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SUMMER PROJECT REPORT
P.KAMAKSHI REGISTER NO: 27348317
UNDER THE GUIDANCE OF
Mrs. K. VIDHYA, MBA, M.Phil
Faculty, Department Of Management Studies in partial fulfillment for the award of the degree Of
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT STUDIES SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY PUDUCHERRY
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
DEPARTMENT OF MANAGEMENT STUDIES
This to certify that the project work entitled “A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS, SPi TECHNOLOGIES,PUDUCHERRY” is a bonafide work done by P.KAMAKSHI [ REGISTER NO: 27348317] in partial fulfillment of the requirement for the award of Master of Business Administration by Pondicherry University during the academic year 2007 – 2008.
HEAD OF DEPARTMENT
Submitted for Viva-Voce Examination held on
I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY to provide necessary and essential facilities to do this project report. I express our sincere thanks and deep sense of gratitude to our Head of Department Mr.S.JAYAKUMAR, Department of Management Studies for providing me with an opportunity to study and to do this report. I express a deep sense of gratitude to my Guide Mrs. K. VITHYA, Faculty, Department of Management Studies, for her encouragement, support and guidance to complete this project work successfully. I convey my heartiest thanks to Mr. D. SRIRAM, Senior Personnel manager, SPi technologies, Puducherry, who kindly granted permission to do this project report in his esteemed organization. Finally, I express my sincere thanks and deep sense of gratitude to my parents and friends for giving timely advice in all the ways and in all aspects for doing the project
“A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS” in SPi technologies was used to study the existing recruitment and selection process and various factor involved in it.
Both primary and secondary sources were used to collect data. The primary data is collected from both employers and employees of SPi technologies through a well constructed questionnaire.
The secondary data was collected from various journals, magazines, articles, various sites and company records.
From the analysis it was inferred that the organization gave preference to internal sources rather than external sources. Some of the employees felt that the company would still fasten the process.
From the study it was found that the employers and employees are satisfied with their present recruitment and selection process
TABLE OF CONTENTS
LIST OF TABLES LIST OF CHARTS CHAPTER
1 2 3 4 5 6
TITLE INTRODUCTION REVIEW OF LITERATURE OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS, SUGGESTIONS AND RECOMMENDATIONS OF THE STUDY CONCLUSION LIMITATION OF THE STUDY AND SCOPE FOR FURTHER STUDY
PAGE NO. 1 6 13 14 17 43 45 46
ANNEXURES 1. QUESTIONNAIRE 2. BIBLIOGRAPHY
LIST OF TABLES
TABLE NO 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 5.1.10 5.1.11 5.2.1 5.2.2 5.2.3 TITLE Respondents based on years of experience Classification based on sources organization rely heavily Employees channel preference to post the resume Employees preference of sources that reaches soon Employees opinion about response after recruitment Employers opinion about the process for identifying job vacancies Employers opinion about job analysis Classification about sources organization use mostly Classification regarding screening of candidates Employees opinion about final satisfaction Employers rating about the process Table regarding panel member as referee and rating about recruitment & selection process[observed count] Table regarding panel member as referee and rating about recruitment & selection process[expected count] Table regarding panel member as referee and rating about recruitment & selection process[Chi-square 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 calculation] Table regarding recruitment cost and rating about recruitment & selection process[observed count] Table regarding recruitment cost and rating about recruitment & selection process[expected count] Table regarding recruitment cost and rating about recruitment & selection process[chi-square calculation] Table regarding medical examination and rating about recruitment & selection process[observed count] Table regarding medical examination and rating about recruitment & selection process[expected count] Table regarding medical examination and rating about recruitment & selection process[chi-square calculation] Table regarding recruitment sources organization use 30 30 31 32 32 33 34 PAGE NO. 17 18 19 20 21 22 23 24 25 26 27 28 28 29
and final decision about appointment[observed count] Table regarding recruitment sources organization use and final decision about appointment [expected count] Table regarding recruitment sources organization use and final decision about appointment [chi-square calculation] Table regarding recruitment sources organization use and source preferred effective by the employer[rank correlation calculation] Table regarding test & interview process and satisfaction about selection technique used[rank correlation calculation] Table regarding questions given prior to the interview and comfortableness with the interviewer[rank correlation calculation] Table regarding employers and employees final opinion about recruitment & selection process[F-test calculation]
LIST OF CHARTS
CHARTNO 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6
TITLE Respondents based on years of experience Classification based on sources organization rely heavily Employees channel preference to post the resume Employees preference of sources that reaches soon Employees opinion about response after recruitment Employers opinion about the process for identifying job vacancies
PAGE NO. 17 18 19 20 21 22
5.1.7 5.1.8 5.1.9 5.1.10 5.1.11
Employers opinion about job analysis Classification about sources organization use mostly Classification regarding screening of candidates Employees opinion about final satisfaction Employers rating about the process
23 24 25 26 27
1.1 COMPANY PROFILE 1.2 SPi Technologies– As an Organisation under Study Recruitment function of HR department in BPO companies is taking much attention due to attrition rate. SPi technologies is not out of the order in this respect. In this organisation attrition rate is 45-50 percent. To find out the reasons for this, a study is conducted to find the effectiveness of recruitment and selection process.
1.3 About SPi Technology
On July 10, 2006, ePLDT acquired 100 per cent of SPi's shares. Together with
ePLDT's Ventus Group, it is one of the world's largest full service BPO companies with a wide range of voice and non-voice BPO solutions, the broadest global delivery network with 26 locations spanning North America, Europe, and Asia ,11,000 dedicated employees , 4,500 in voice and 6,500 in non-voice ,and 7 years of quality and customer service .SPi deploys its core competencies across the markets, like Banking, Financial Services and Insurance, Government, Healthcare, Information Technology, Legal, Media, Not-for-Profit Organizations, Publishing, Retail and Travel. 1.4 Value Proposition SPi is a leading global BPO provider with numerous locations across the United States, Europe, and Asia. With over 6,900 employees worldwide, it delivers scalable and innovative content outsourcing solutions to diversified markets. 1.5 Solutions. People. Innovation. Three simple words that say who SPi is, what they do and how SPi does it. 1.6Seamless. Professional. Invaluable. For more than 150 global BPO clients, SPi is improving operating efficiency, lowering costs, and strengthening competitive positioning in their respective marketplaces. 1.7 Security. Precision. Integrity. Internationally respected standards and methodologies provide a base line for every project it takes on (ISO 9001:2000, ISO/IEC 27001:2005, CMMi Level 5, Six Sigma). 1.8 Specialists. Partnerships. Intelligence. Need a strategic BPO partner? It responds to your complex content management needs with holistic, custom-created solutions that exceed our expectations, both today and for the long term. 1.9 Brand Story On April 3, 2006, SPI Technologies renewed its brand and became simply SPi. Its new brand moves us from four distinct businesses to a single brand and is designed to showcase the growing array of high quality services we offer today in the Healthcare, Legal, Publishing and Transaction markets. Building on its 27 year tradition of innovative business process outsourcing (BPO) solutions, SPi brand has been broadened
to showcase their people and their values, as well as our business. Its brand is the visual expression of what they do and how they do things. It not only represents its brand promise: "SPi is a leading global BPO provider. It delivers valuable and innovative content outsourcing solutions to diversified markets," it also reflects the essence of who they are, its aspirations, and what drives its business. 1.10 Global Presence: (Global Platform. Total Quality) Spanning the United States, Europe, and Asia, SPi has built a robust and scalable international operating platform. 1.11 Publishing (Global Resources. Customer-Centric Solutions) SPi seamlessly blends years of in-depth domain knowledge with global resources and the latest technologies to offer end-to-end editorial, content production and business process outsourcing solutions. Its clients include a wide variety of publishers, including not-for-profits, university presses, commercial and database publishers, as well as content aggregators. 1.12 Need a strategic content outsourcing partner? Its unique onshore/offshore business model ensures that it can consistently deliver high quality, cost-effective, end-to-end publisher-specific solutions in the following areas: • • • Journal Solutions Book Solutions Content & Information Solutions SPi have a long history of partnering with its clients. Its wide array of publishing solutions support the creation, conversion, enhancement, management and presentation of its clients' information, whether in print, electronic, or database format. With its broad industry and process knowledge, robust tools, time-tested methodologies and scaleable technology and facilities, it routinely delivers results that enhance the value of all types of published and enterprise content for our clients. 1.13 Concerned about quality It delivers peace of mind. Our credentials speak for themselves: • ISO 9001:2000
• • •
CMMi Level 5 Six Sigma Best In Class Business Continuity Practices
1.14 Client List SPi has over 150 global clients, ranging from Fortune 1000 companies to internationally respected professional societies and associations, law firms, universities, and government agencies. Their selected client list speaks for itself. Accruent ,American Association of Petroleum Geologists ,American Geophysical Union ,American Institute of Physics ,American Speech-Language-Hearing Association ,Cambridge University Press, McGraw-Hill ,Oxford University Press ,Springer ,University of Chicago Press ,University of Michigan ,Yale University Press. 1.15 SPi Technologies in India SPi technologies entered Indian market by acquisition of KOLAM software in Pondicherry. SPi technologies have their other subsidiary in Delhi, Chennai, Kolkata and Coimabatore.Their clients for Indian operations are Springer,Elsavier,Tata Mcgraw Hills and Oxford University Press.Coimbatore subsidiary deals with Medical transcription. 1.16 SPi Technologies in Pondicherry SPi’s Indian headquarters is Pondicherry facility. The total number of employee working in Pondicherry facility is 769, working under three shifts. The reason behind launching their subsidiary in Pondicherry was: • • • • Pondicherry’s location Low cost of living was taken in to consideration. Pondicherry government’s schemes like tax holidays Less competition .SPi technologies has only one competitor in Pondicherry, Integra software. 1.17 HR Team Human resource department is in Pondicherry. It holds a centralised function for all the other SPi technologies’ subsidiaries (except Coimbatore facility). The HR team is lead by the senior manager . He is next to vice president – Indian operations in the
hierarchy. He leads a HR team of four managers (recruitment, Pondicherry), four assistant manager and four executive. 1.18 HR Functions Human resource department play a major and vital role in the company. HRD is in Laporte Street, Pondicherry. All the HR related function for Indian operation is take care by this department in Pondicherry. They practice a centralized function. Some of the HR functions in SPI technologies are: • • • • • • • Human resource planning Job analysis and design Recruitment Selection Orientation and placement Training and development Performance appraisal and job analysis
1.2 INTRODUCTION TO THE STUDY The study was conducted in SPi TECHNOLOGIES, Puducherry to find the effectiveness of recruitment and selection process. Recruitment and selection process is a crucial factor in any organization for selecting the right person for the right job. The study intends to find how effectively recruitment and selection process followed in the organization. The study on effectiveness of recruitment and selection process provides the organization to know how effectively the process is going on because attrition rate is one of the major factors in call centers.
CHAPTER - II REVIEW OF RELATED LITERATURE
2.1 Recruitment Definition Recruitment refers to the process of finding possible candidates for a job or function, usually undertaken by recruiters. It also may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means through online, newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc. 2.1.1 Recruitment Meaning Employing the right staff is an important human resource challenge faced by all employers.
Recruitment is an expensive business, which includes the cost of advertising and the cost of current employees’ time interviewing and selecting the right candidate. Good recruitment and selection can result in: a] reduced labour turnover b] reduced absence c] reduced stress levels A recruitment process should be: a] efficient - cost effective in method and sources b] effective - producing enough suitable candidates c] fair - ensuring that decisions are made on merit without discrimination. 2.2 Recruitment and Selection 2.2.1 Definition Recruitment is the process of identifying and attracting a group of potential candidates from within and outside the organization to evaluate for employment. Once these candidates are identified, the process of selecting appropriate employees for employment can begin. 2.2.2 Recruitment and Selection Practices Better recruitment and selection strategies result in improve organizational outcomes. The more effectively organizations recruit and select candidates, the more likely they are to hire and retain satisfied employees. 2.2.3 Purpose a) The objectives of this study were to: 1. Identify general practices that organizations use to recruit and select employees. 2. Determine which recruitment and selection practices are most effective. 3. Determine how the recruitment and selection practices affect organizational outcomes. b) Recruitment is the process of identifying and attracting potential candidates from
within and outside an organization to begin evaluating them for future employment. Once candidates are identified, an organization can begin the selection process. This includes collecting, measuring, and evaluating information about candidates’ qualifications for specified positions. The study, based on survey results from 162 members of the DDI HR Benchmark Group, addresses the following issues. a. General recruitment and selection profiles. b. Recruitment strategies. c. Organizational offerings and their impact on prospective employees. d. Current and future selection practices. f. Outsourcing recruitment and selection activities. g. Barriers to effective recruitment and selection. 2.2.4 General Profile a) Findings Overview Although internal candidates typically stay in positions and are more successful than external candidates, organizations fill positions with external candidates, on average, 13 percent more often than internal candidates. In the next two years: a.75 percent of the organizations surveyed plan to increase spending on recruiting. b.68 percent of the organizations plan to increase their spending on selection. c.Almost half of the organizations plan to significantly change their current approach to both recruitment (47 percent) and selection (41 percent) within the next two years. 2.2.5 Recruitment Strategies a) Findings Overview Organizations were asked what strategies they use to recruit both managerial/professional and non management candidates. a. For recruiting managerial/professional candidates, the Internet is the most
popular advertising medium, used by 76 percent of the organizations surveyed. b. Organizations regularly utilize internal resources (e.g., internal job postings and employee referrals) when recruiting both internal and external candidates. c. Different kinds of agencies are used to recruit for positions at different levels. i) Temporary and government agencies are used mainly to recruit non management candidates. ii) Employment agencies, colleges, and professional organizations are used more often to recruit managerial/professional candidates. 2.2.6 Organizational Offerings The quality of an organization’s offerings affects its ability to attract job candidates. a. Organizations believe they offer candidates a strong company reputation (69 percent) and high-quality benefits packages (65 percent) and learning opportunities (55 percent). b. Many organizations do not offer stock options (37 percent) or child care options (36 percent). 2.2.7 Best Practices Organizations with the most effective recruiting strategies were 15 to 19 percent more likely to offer candidates high-quality options such as: Potential for advancement, Company reputation, Stocks, Benefits package etc. . 2.2.8 Current and Future Selection Practices a) Findings Overview Organizations were asked to indicate how extensively they use several selection practices and how much they anticipate using them in the future. a. Most organizations make extensive use of applications (89 percent), manual resume screening (80 percent), and reference checks (75 percent) in their selection systems. b. Less than 20 percent of organizations currently use testing or assessment methods extensively in their selection process
2.2.9 Barriers to Effective Recruitment and Selection a) Findings Overview The surveyed organizations report that the top barriers to effective recruitment and selection of candidates are: a. Shortage of qualified applicants (62 percent). b. Competition for the same applicants (62 percent). c. Difficulty finding and identifying applicants (48 percent). By Sheila M. Rioux, Ph.D., and Paul Bernthal, Ph.D. 2.3 Search & Selection 2.3.1 Introduction The search and selection process is the foundation for all future employee relations activities. As such, a considerable amount of employee resources is rightfully spent on working on screening committees and in hiring employees. This document has been developed to assist hiring supervisors, committee members and others in defining effective search and selection processes, thereby maximizing the efforts to identifying and attracting the best candidates. 2.3.2 Planning As will become evident in further review of this document, planning is an essential component to nearly every step of the search and selection process. We must plan the way the position can meet the needs of the department while appropriately using available resources, plan a recruitment strategy, and plan a screening strategy and, finally, a selection strategy. a) Needs assessment The first step in any process is to determine the goals that you would like to accomplish. In Search and Selection, this process usually takes one of two forms: 1) An addition to staff In the event that the job is new and has not been graded before, it will be necessary for the supervisor to complete the Position Analysis Questionnaire, which will
identify the job responsibilities and competencies required, as well as aid in establishing the appropriate salary grade for the position. 2) A replacement of staff. The time when a current employee vacates an existing position can be an optimal time to review the organization and determine if a reallocation of position responsibilities is appropriate. Often, a juggling of responsibilities within a unit can create promotional opportunities, new skills, job enrichment and could better match the remaining incumbents skills with the skills required for the position. 2.3.4 Identification of minimum requirements and preferred qualities During the posting and recruitment process, the college identifies and announces minimum requirements for fulfilling the responsibilities of the position as well as those qualities which the supervisor believes will lead to further success in the position. 2.3.5 Development of Screening Materials Once the position requirements and preferred qualities are identified, it should be easy for the supervisor to identify the screening questions. Since the committee should only be asking questions which related to the decision of who to forward to the supervisor in the next step of the process, the only topics the committee needs to address are those which have been identified by the supervisor as being either preferred or necessary qualities (as defined in the Notice of Vacancy). The three parts to the screening process a) Paper review b) Interviews with the candidates c) Interviews with each, respective candidates references 2.3.6 The interviews with the candidates As addressed previously, the interview questions should cover specific areas of concern. In the previous section, sample interview questions are offered for the hiring supervisor in developing the interview questionnaire. Similar to developing the rating scale in the paper review process, the supervisor will assign maximum point values to
each question, based on their relative importance to other criteria being reviewed. Qualities that could fall into this category include: ability to adapt to change ability to display a positive outlook ability to follow instructions 2.3.7 Development of Recruitment strategy Even though s/he is not part of the screening process, the hiring supervisor steers the search by developing the recruitment criteria, the position requirements and preferred qualities, the rating scales and interview questions. The recruitment strategy is the stage where the hiring supervisor determines, with assistance from Human Resources, the timing for the search as well as the way that the position vacancy will be communicated. 2.4 Recruitment Metrics Recruitment can be an expensive and time-consuming endeavor, and understanding the value of the results means knowing whether or not the time and money are being used effectively. A few common recruitment metrics: 1) New Hire Quality: Three to six months after hire, the hiring manager should complete an evaluation of the new employee that compares expectations prior to recruiting with the actual performance of the employee. Facets of quality to be evaluated include knowledge and skills, performance, experience, motivation, multitasking abilities, learning curve, customer compatibility, and organization compatibility. 2) Recruiting Cost Ratio: The RCR is used to determine average HR spending on recruiting activities in relation to the starting compensation of new hires (positions filled) that result from staffing activities.This metric calculates the Total Recruiting Costs (both internal and external) and divides it by the Total Compensation Recruited (the sum of the base annual compensation of the positions filled through recruitment). 3) Recruiting Efficiency: Closely related to RCR is the metric for Recruiting Efficiency. Recruiting
Efficiency gives a percentage in relation to complete efficiency, which is considered to be 100%.
CHAPTER- III OBJECTIVES
• • • • •
To study the existing recruitment and selection process the organization is using. To study various factors involved in recruitment and selection process. To study the methods and techniques used in recruitment and selection process. To study and identify how the present process affect organizational outcomes. To find employers and employees opinion about present process and provide a suggestion for improvement.
CHAPTER - IV RESEARCH METHODOLOGY
4.1 DATA COLLECTION: 4.1.1 Sources of data collection: 126.96.36.199 Primary data Primary data are collected afresh and for the first time. It is the data originated by the researcher specifically to address the research problem. In this study, primary data is collected primarily to understand the existing recruitment and selection process the organization is using. 188.8.131.52 Secondary Data Secondary data is collected from internet, registers, records, journals, articles, magazines and annual reports of the organization
184.108.40.206 Data collection Instrument: Questionnaire Design begins with an understanding of the capabilities of a questionnaire and how they can help in research. If it is determined that a questionnaire is to be used, the greatest care goes into the planning of the objectives. 4.2 DATA SAMPLING: Data sampling process includes the following steps that are sequentially shown Define the Target Population Define the Sampling frame Determine the sample size Execute the sampling process
4.2.1 Sample Size Design It refers to the number of elements to be included in the study. A sample design is a definite plan for obtaining a sample from a definite population. It refers to the technique or the procedure the researchers would adopt in selecting items for the sample. It is determined before data is collected. In this study • • 50 samples is collected from the employers. 50 samples is collected from employees. 4.2.2 Sampling Process Convenience Sampling: A convenience is obtained by selecting ‘convenient’ population units. The method of convenience sampling is also called the chunk. A chunk refers to that fraction of the population being investigated which is neither by probability nor by judgement but by convenience.
? [O-E] 2 /E
4.3 TOOLS FOR ANALYSIS: • • • • Percentage Analysis R= 1- 6 ? D2 / N3 -N Chi-square analysis Correlation F-test 4.3.1 Percentage Analysis: In percentage analysis, charts like bar chart and pie charts are used to graphically represent the results from percentage analysis of the questionnaire 4.3.2 Chi-Square Analysis The chi-square is one of the most widely used non-parametric tests in statistical work. The Chi-Square was first used by Karl Pearson in the year 1900. It is defined as
Chi-square test is applicable to a very large number of problems in practice. With the help of this test we can find out whether two or more attributes are associated or not. 4.3.3 Correlation: Correlation analysis deals with the association between two or more variables. Correlation does not necessarily imply causation or functional relationship though the existence of causation always implies correlation. By itself it establishes only co variation. In this research rank correlation was used.The formula used to finn rank correlation is
F= S12 / S22
F-test is used to find out whether the two independent estimates of population differ significantly or whether the two samples may be regarded as drawn from the normal populations having the same variance. F is defined as
CHAPTER – V DATA ANALYSIS AND INTERPRETATION
5.1 ANALYSIS USING PERCENTAGE METHOD TABLE 5.1.1 RESPONDENTS BASED ON YEARS OF EXPERIENCE Sl.no Years 1 2 3 0-2 years 3-5 years 6-8 years Total Respondent s 34 14 2 50 68 28 4 100 Percentage%
Inference 34 respondents belong to 0-2 years of experience, 14 respondents belong to 3-5 years of experience and 2 respondents belong to 6-8 years of experience. CHART 5.1.1 RESPONDENTS BASED ON YEARS OF EXPERIENCE
P e r c e n t a g e
70 60 50 40 30 20 10 0
0-2 years 3-5 years 6-8 years
Years of experience
TABLE 5.1.2 CLASSIFICATION BASED ON THE SOURCES ORGANIZATION RELY HEAVILY Sl.no 1 2 Sources Internal External Total Respondents 30 20 50 Percentage% 60 40 100
Inference 30 respondents said that organization rely heavily on internal sources and20 respondents said that organization rely heavily on external sources. CHART 5.1.2 CLASSIFICATION BASED ON THE SOURCES ORGANIZATION RELY HEAVILY
70 60 50 40
P e r c e n t a g e
30 20 10 0
TABLE 5.1.3 EMPLOYEES CHANNEL PREFERENCE TO POST THE RESUME
Sl.no Channels 1 2 3 4 Job sites Company sites Consultancies Referrals Total
Respondent s 17 20 9 4 50
Percentage% 34 40 18 8 100
Inference 34% of employees prefer jobsites to post the resume, 40% of employees prefer company sites to post the resume, 18% of employees prefer consultancies to post the resume and 8% of employees prefer employee referrals to post the resume.
CHART 5.1.3 EMPLOYEES CHANNEL PREFERENCE TO POST THE RESUME
45 P e r c e n t a g e 40 35 30 25 20 15 10 5 0 C hannels Jobsites C ompanysites C onsultancies R eferrals
TABLE 5.1.4 EMPLOYEE’S PREFERENCE OF SOURCES THAT REACHES SOON Sl.no 1 2 3 4 Sources Newspaper Journals/Periodicals Campus Recruitment Employee Referral Total Respondent s 19 4 10 17 50 38 8 20 34 100 Percentage%
Inference 38% of employees said that newspaper source reaches them soon, 8% of employees said that journals/periodicals reaches them soon, 20 of employees said that campus recruitment reaches them soon and finally 34% of employees said that employee
referral reaches them soon. CHART 5.1.4 EMPLOYEE’S PREFERENCE OF SOURCES THAT REACHES SOON
40 P e r c e n t a g e 35 30 25 20 15 10 5 0 Sources
Newspaper Journals/Magazines Campusrecruitment Employee Referral
TABLE 5.1.5 EMPLOYEE’S OPINION ABOUT RESPONSE AFTER RECRUITMENT Sl.no Response 1 2 Satisfied Not Satisfied Total Respondent s 44 6 50 88 12 100 Percentage%
44 respondents are satisfied with the response given after recruitment and 6 respondents are not satisfied with the response given after recruitment CHART 5.1.5 EMPLOYEE’S OPINION ABOUT RESPONSE AFTER RECRUITMENT
P e r c e n t a g e
90 80 70 60 50 40 30 20 10 0
Satisfied Not Satisfied
TABLE 5.1.6 EMPLOYER’S OPINION ABOUT THE PROCESS FOR IDENTIFYING JOB VACANCIES Sl.no Process 1 2 Step by step process No step by step process Total Respondents Percentage% 32 16 50 100 64 36
Inference 32 respondents said that their organization follow a step by step process with certain rules and regulations in identifying job vacancies and 16 respondents said that their organization does not follow a step by step process with certain rules and regulations in identifying job vacancies. CHART 5.1.6 EMPLOYER’S OPINION ABOUT THE PROCESS FOR IDENTIFYING JOB VACANCIES
P e r c e n t a g e
60 50 40 30 20 10 0 S te p b y s te p p ro ce s s N o s te p b y s te p p ro c e s s
Pr o c e s s
TABLE 5.1.7 EMPLOYER’S OPINION ABOUT JOB ANALYSIS Sl.no Job analysis 1 2 Yes No Total Respondents 35 15 50 Percentage 70 30 100
35 respondents inferred that job analysis is conducted for each position,15 respondents inferred that job analysis is not conducted for each position. CHART 5.1.7 EMPLOYER’S OPINION ABOUT JOB ANALYSIS
P e r c e n t a g e
70 60 50 40 30 20 10 0
Y es No
TABLE 5.1.8 CLASSIFICATION ABOUT THE RECRUITMENT SOURCES ORGANIZATION USE MOSTLY Sl.no Sources 1 2 3 4 5 Newspaper sources Journals Campus Recruitment Employee Referral Consultancies Total Respondents Percentage% 15 7 4 19 5 50 30 14 8 38 10 100
Inference 15 respondents said that their organization uses newspaper source mostly, 7 respondents said that their organization uses journals, 4 respondents said that their organization uses campus recruitment, 5 respondents said that they use consultancies and finally 19 respondents said that their organization uses employee referral mostly. CHART 5.1.8 CLASSIFICATION ABOUT THE RECRUITMENT SOURCES ORGANIZATION USE MOSTLY
P e r c e n t a g e
35 30 25 20 15 10 5 0
Newspaper source Journals/Periodicals Campus Recruitment Employee Referral Consultancies
TABLE 5.1.9 EMPLOYER’S OPINION ABOUT SCREENING OF CANDIDATES Sl.no Screening of Respondents Percentage%
candidates Yes No Total
35 15 50
70 30 100
Inference 35 respondents said that all initial screening of candidates is performed by HR department and 15 respondents said that all initial screening of candidates is not performed by HR department. CHART 5.1.9 EMPLOYER’S OPINION ABOUT SCREENING OF CANDIDATES
P e r c e n t a g e
70 60 50 40 30 20 10 0
Screening of candidates
TABLE 5.1.10 EMPLOYEES OPINION ABOUT FINAL SATISFACTION Sl.no 5 4 3 2 1 HighlyTotal Highly Satisfied Dissatisfied No opinion Satisfied Opinion dissatisfied Respondents 42 100 50 13 21 7 4 5 Percentage% 14 10 26 8
Inference: 42% of employees are satisfied with the present process, 26% of employees are highly satisfied with the present process, 10% of employees are dissatisfied with the present process, 8% employees are highly dissatisfied with the present process, and 14% employees said that they have no opinion about the process. CHART 5.1.10 EMPLOYEES OPINION ABOUT FINAL SATISFACTION
satisfied Highly satisfied Dissatisfied Highlydissatisfied No opinion Final opinion about the process
TABLE 5.1.11 EMPLOYERS RATING ABOUT THE PROCESS
Sl.no 1 2 3 4
Opinion Effective Very effective Not effective No opinion Total
Respondents Percentage% 12 24 21 42 11 22 6 12 50 100
Inference: 24% employers rated that the process is effective, 42% of employers rated that the process is very effective, 22% of employers rated that the process is not effective, 12% of employers said no opinion about the process. CHART 5.1.11 EMPLOYERS RATING ABOUT THE PROCESS
Effective Very effective Not effective No opinion
Final rating about the process
5.2 ANALYSIS USING CHI-SQUARE ANALYSIS OF EMPLOYERS OPINION REGARDING PANEL MEMBER AS REFEREE AND RATING ABOUT RECRUITMENT& SELECTION PROCESS
OBSERVED COUNT: TABLE 5.2.1 Rating about recruitment& selection
Panel member as referee Yes No Total 5 7 12 Effective Very Effective 14 7 21 5 6 11 1 5 6 25 25 50 Not Effective No opinion Total
EXPECTED COUNT TABLE 5.2.2 Rating about recruitment & selection
Panel member as referee Yes No Total 6 6 12 Effective Very Effective 10.5 10.5 21 5.5 5.5 11 3 3 6 25 25 50 Not Effective No opinion Total
CHI-SQUARE CALCULATION TABLE 5.2.3 O 5 14 5 1 7 7 6 5 E 6 10.5 5.5 3 6 10.5 5.5 3 [O-E]2 1 12.25 0.25 4 1 12.25 0.25 4 [O-E]2/E 0.17 1.17 0.05 1.33 0.17 1.17 0.05 1.33 ∑ = 5.44
Null Hypothesis Ho: There is no significant difference between the referee as a panel member and final
rating about recruitment and selection process. Inference: Calculated value Σ [O-E] 2/E = 5.44 Degrees of freedom (m-1) (n-1) = (2-1) (4-1) =3 The tabulated value for 3 degrees freedom at 5% level of significance is 12.98.
Rating about recruitment & selection
Recruitme Effective nt cost Yes No Total
6 6 12
Very Effective 11 10 21
Not Effective 5 6 11
No opinion 2 4 6 24
The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
ANALYSIS OF EMPLOYERS OPINION REGARDING RECRUITMENT COST AND FINAL RATING ABOUT RECRUITMENT AND SELECTION PROCESS OBSERVED COUNT TABLE 5.2.4
EXPECTED COUNT TABLE 5.2.5
Rating about recruitment & selection
Recruitment Effective cost Yes No Total
5.8 6.2 12
Very Effective 10 11 21
Not Effective 5.3 5.7 11
No opinion 2.9 3.1 6
Total 24 26 50
CHI-SQUARE CALCULATION TABLE 5.2.6
O 6 11 5 2 6 10 6 4
E 5.8 10 5.3 2.9 6.2 11 5.7 3.1
[O-E]2 0.04 1 0.07 0.81 0.04 1 0.09 0.81
[O-E]2/E 0.68 0.1 0.02 0.28 0.65 0.09 0.02 0.26 ∑= 2.11
Null Hypothesis Ho: There is no association between the measurement of recruitment cost and final satisfaction about recruitment and selection process. Inference: Calculated value Σ [O-E] 2/E = 2.11 Degrees of freedom (m-1) (n-1) = (2-1) (4-1) =3 The tabulated value for 3 degrees freedom at 5% level of significance is 12.98. The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
ANALYSIS OF EMPLOYERS OPINION REGARDING MEDICAL EXAMINATION AND FINAL RATING ABOUT RECRUITMENT AND SELECTION PROCESS OBSERVED COUNT Table 5.2.7 Rating about recruitment& selection Medical Examination Yes No Total
Effective 5 7 12 Very Effective 8 13 21 7 4 11 3 3 6 23 27 50 Not Effective No opinion Total
EXPECTED COUNT Table 5.2.8 Rating about recruitment& selection Medical Examination Yes No Total
Effective 5.52 6.48 12 Very Effective 9.7 11.34 21 5.1 5.94 11 2.76 3.24 6 23 27 50 Not Effective No opinion Total
CHI-SQUARE CALCULATION TABLE 5.2.9
O 5 8 7 3 7 13 4 3
E 5.52 9.66 5.06 2.76 6.48 11.34 5.94 3.24
[O-E]2 0.27 2.76 3.76 0.06 0.27 2.76 3.76 0.06
[O-E]2/E 0.05 0.29 0.74 0.02 0.42 0.24 0.63 0.02 ∑=2.41
Null Hypothesis Ho: There is no association between the medical examination conducted on employees and final satisfaction about recruitment and selection process. Inference: Calculated value Σ [O-E] 2/E = 2.41 Degrees of freedom (m-1) (n-1) = (2-1) (4-1) =3 The tabulated value for 3 degrees freedom at 5% level of significance is 12.98. The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
ANALYSIS OF EMPLOYEES OPINION REGARDING RECRUITMENT
Final decision about Sources organization rely heavily Internal sources External sources Total 25 14 39 5 6 11 30 20 50 appointment Yes No Total
SOURCE ORGANIZATION USE HEAVILY AND FINAL DECISIONS ABOUT APPOINTMENT OBSERVED COUNT TABLE 5.2.10
EXPECTED COUNT TABLE 5.2.11
Sources organization rely heavily Internal sources External sources Total
Final decision about appointment Yes No
23.4 15.6 39
6.6 4.4 11
30 20 50
CHI-SQUARE CALCULATION TABLE 5.2.12 O 25 5 14 6 E 23.4 6.6 15.6 4.4 [O-E]2 2.56 2.56 2.56 2.56 [O-E]2/E 0.11 0.39 0.16 0.58 ∑=1.24
Null Hypothesis Ho: There is no association between sources organization rely heavily and final decisions about appointment. Inference: Calculated value Σ [O-E] 2/E = 1.24 Degrees of freedom (m-1) (n-1) = (2-1) (2-1) =1 The tabulated value for1 degrees freedom at 5% level of significance is 7.88. The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
5.3 ANALYSIS USING RANK CORRELATION ANALYSIS OF EMPLOYEES OPINION REGARDING TEST&INTERVIEW PROCESS AND SATISFACTION ABOUT SELECTION TECHNIQUE USED
R= 1- 6 ? D2 / N3 -N
Sl.no 1 2
X 24 26
Rx 1 2
Y 39 11
Ry 2 1
[ Rx- Ry ] D2 1 1 Σ D2 = 2
= 1- 6 * 2 23-2 = 1- 12 6
The test & interview process and satisfaction about selection technique used is highly negatively correlated.
R= 1- 6 ? D2 / N3 -N
ANALYSIS OF EMPLOYERS OPINION REGARDING RECRUITMENT SOURCE ORGANIZATION USE AND SOURCE PREFERRED EFFECTIVE BY THEM TABLE 5.3.2 Sl.no 1 2 3 4 5 X 15 7 4 19 5 Rx 4 3 1 5 2 Y 14 6 8 15 7 Ry 4 1 3 5 2 [ Rx- Ry ] D2 0 4 4 0 0 Σ D2 = 8
1- 6 * 8 53-5
1- 48 120
The recruitment source organization use and source preferred effective by them is positively correlated.
ANALYSIS OF EMPLOYEES OPINION REGARDING QUESTIONS GAVE PRIOR TO THE INTERVIEW AND COMFORTABLENESS WITH THE INTERVIEWER TABLE 5.3.3 Sl.no 1 2 X 12 38 Rx 1 2 Y 23 27 Ry 1 2 [ Rx- Ry ] D2 0 0 Σ D2 = 0
R = ? R= 1- 6 1 D2 / N3 -N
= 1- 6 * 0 23-2 = 1- 0 6 = 1-0
If the questions given prior to the interview means then the comfortableness with the interviewer will be increased. So it is highly positively correlated.
5.4 ANALYSIS USING F-TEST ANALYSIS OF EMPLOYEES AND EMPLOYERS OPINION REGARDING FINAL SATISFACTION ABOUT RECRUITMENT AND SELECTION PROCESS NULL HYPOTHESIS H0: The two populations have the same variance. Table 5.4.1 Samples1 X1 X1 12 21 11 6 0.5 8.5 -1.5 -6.5 0.25 72.2 5 2.25 42.2 5 7 -3 9 X12 Samples2 X2 21 13 5 4 11 3 -5 -6 12 1 9 25 36 X2 X22
Σ X12 = 117
Σ X22 = 200
X1 is employee’s opinion about the process and X2 is employers rating about the process. S12 = 50 S22 = 39
F = S12 / S22
INFERENCE: For v1=4 and v2=5, F0.05=6.23. The calculated value is less than the tabulated value. Therefore hypothesis is accepted. It means the two different populations have the same variance.
CHAPTER - VI 6.1 FINDINGS OF THE STUDY
• • • • • • A majority of the respondents prefer to post their resume through company web sites and job sites. The percentage analysis shows that the organization relies heavily on internal sources. Most of the employees said that a newspaper source reaches them soon. A majority of employees inferred that they are satisfied with the response given after recruitment. Most of the employees said that the final decisions about appointment should be based only on merit. A majority of employers inferred that there organization is following a step by step process with certain rules and regulations in identifying job vacancies.
• • • • • •
The percentage analysis shows that the organization is conducting job analysis and job description for each job position. A majority of employers said that there organization using newspaper and employee referral sources mostly. Most of the employers inferred that they are measuring the cost for the recruitment sources by comparing the validated budget versus approved budget. The correlation analysis shows that the questions asked in the interview and comfortableness with the interviewer is positively correlated. Most of the employees are satisfied with the present recruitment and selection process. A majority of the employers inferred that the present recruitment and selection process is effective.
6.2 SUGGESTIONS AND RECOMMENDATIONS
From the study, it is found that majority of the employees prefer to post their resume in companies website. So the company can have exclusive career link in its website to post resume. By using a separate link with resume screening software, the resumes can be screened and managed effectively. From the study, it is found that newspaper is the effective medium to advertise for recruitment. Since this company focus on candidates from Pondicherry, they can advertise for mass recruitment. Relocation is the main problem for a candidate’s rejecting an offer. So by providing a good salary and accommodation, relocation problem can be solved. Thus the recruitment process can be made effective by retaining the recruited candidate.
Some of the employees said that the response given after recruitment is not satisfactory. If the recruitment feedback mechanism is not effective, there is high risk of loosing good candidates to other companies. So they can give the response for candidates immediately whether they are short listed or rejected. It is found that the company is not conducting the medical examination for employees during selection process. They can conduct medical examination in order to prevail themselves if any problem happens to the employees.
This project “A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS” was helpful to know about the recruitment and selection process in E-Publishing Company. This study inferred that most of the employers and employees are satisfied with the present process. This study was helpful to study the sources of recruitment and selection techniques & methods used. The study on recruitment and selection is more an ART rather than a process. HR professional is having a big responsibility to hire a best person from the available talent pool. At the same time, one needs to be cost conscious. The employer should judge on individual merits and set the same standards for all. In the present scenario, “It is the biggest challenge for a HR manager to hunt for talent.”
CHAPTER – VIII 8.1 LIMITATIONS
• • The entire study applies only to the specific concern. The period for study is one month, so the detailed analysis about the process is difficult. • • The study was made only with limited number of samples. The respondents may give false information.
8.2 SCOPE FOR FURTHER STUDY
The Project throws light on the need for learning about recruitment and selection process. This study will be useful to find out the sources and techniques used in the recruitment and selection process. It will be helpful for the company to know the effective sources and techniques in recruitment and selection process.
ANNEXURE - I A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS IN SPi TECHNOLOGIES
EMPLOYER PERSONAL DETAILS 1. Name 2. Designation 3. Age: a) 18 -25 a) Married b) 26 – 35 c) 36 -45 d) above 45 4. Marital status: b) unmarried c) ITI or others d) UG OR PG 5. Educational Qualification: a) Below Hr. Sec. b) Hr. Sec 6. Years of Experience: a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years RECRUITMENT 1. What type of process are there for identifying job vacancies in your organization? a) Follow step by step process with certain rules. b) No step by step process. c) Not aware. 2. Is job analysis conducted for each position? a) Yes 3. b) No Do you give consideration to internal candidates for all jobs before outside a) Yes a) Yes b) No b) No : :
recruitment begins? 4. Do you accept late applications?
5. Is there any job description for each vacancy including the purpose, tasks and responsibilities? a) Yes b) No 6. What kind of recruitment sources does your organization use? a) Newspaper sources b) Professional journals/periodical c) Campus recruitment d) Employee referral e) Consultancies 7. Which recruitment source do you prefer very effective from the above? 8. Does your organization measure the cost of these recruiting sources? a) Yes b) No If yes specify, 9. To whom are the performance measure and recruiting costs are usually communicated? a) Finance department b) Accounts department c) Administration department 10. Identify any one factor which affects you to recruit best candidate? a) Image of the organization b) Government influence c) Internal organizational policies d) None of the above SELECTION 11. Do you have any standard pattern in selection process? (From initial interview to final placement) a) Yes a) Yes b) No b) No 12. Does HR department perform all initial screening of candidates? 13. How many candidates are typically interviewed before final placement?
a) 10 b) Below 10 c) Above 10 d) None of the above 14. Are panel interviews are used? a) Yes a) Yes a) Yes b) No b) No b) No 15. Can you allow a referee as a panel member? 16. Are reference checks considered on all candidates? 17. Are candidate telephone interviews, teleconferencing or video conferencing conducted before personnel interview? a) Yes b) No 18. What type of tests are mostly used in your organization during selection process? a) Personality tests b) Psychometric tests c) Judgement tests c) Ability tests d) Not aware 19. Do you professionally validate the tests used in selection process? a) Yes b) No 20. What your organization will do if short listed applicant cannot be interviewed on the scheduled day? a) Offer another date, location. b) Will hold the applicant and used whenever needed. c) Consideration may be given to exclude that person from the process. d) No opinion. 21. Does your organization conduct medical examination for employees during selection process? a) Yes b) No 22. Finally rate the recruitment and selection process used in your organization a) Effective b) Very effective c) Not effective
d) No opinion A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS IN SPi TECHNOLOGIES EMPLOYEE PERSONAL DETAILS 1. Name 2. Designation 3. Age: a) 18 -25 a) Married b) 26 – 35 b) unmarried b) Hr. Sec c) UG or PG d) ITI or others c) 36 -45 d) above 45 4. Marital status: 5. Educational Qualification: a) Below Hr. Sec. 6. Years of Experience: a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years : :
RECRUITMENT AND SELECTION 1. Did you visit the website of this company before coming for the interview? a) Yes b) No 2. What is your experience in this company? a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years 3. Which sources your organization rely heavily for recruitment? a) Internal sources b) External sources 4 .Which channel do you prefer easy to post your resume? a) job sites b) company websites c) consultancy
d) referrals 5. Through which source did you get recruited in this company? a) Newspaper sources b) Professional journals/periodicals c) College recruiting d) Employee referral e) Internal computerized applicant database 6. Which type of recruitment sources reaches you soon? a) Newspaper sources b) Professional journals/periodicals c) College recruiting d) Employee referral 7. Have you ever rejected an offer in any company? a) Yes b) No 8. State the reason for rejecting the offer. a) relocation b) salary c) growth d) others 9. State the reason for accepting the offer in this organization? 10. Are you satisfied with the response given after recruitment? a) Yes b) No 11. Are you satisfied with the selection techniques used in your organization? a) Yes b) No If No means give reason: 12. Do you feel that the test and the interview process is lengthy? a) Yes b) No 13. What type questions they asked you in the interview? a) Relaxing questions
b) Tough questions c) Icebreaking questions 14. Did they give the questions prior to the interview? a) Yes b) No 15. Did you felt comfortable with your interviewer? a) Yes b) No 16. Do all people have to be interviewed in the same way? a) Yes b) No If No means state reason: 17. The people who are all involved in the recruitment and selection process were very supportive to you a) Yes b) No 18. The final decisions about the appointment should be based only on merit? a) Yes b) No If No means state reason: 19. Does your organization provide you induction or orientation programme after placement? a) Yes b) No If yes means mention how effective and useful, 20. Finally how much you satisfied with the present recruitment and selection process followed in your organization? a) Satisfied b) Highly satisfied c) Dissatisfied d) Highly dissatisfied e) No opinion If you are not satisfied with the present process means provide suggestion for improvement:
Annexure - II
Books Referred 1. Christopher Mabey, “Strategic Human Resource Management” – Edition 1. 2. K. Aswathappa, “Human Resource and Personnel Management” – Edition 1. 3. Donnelly , “Managing Human Resource” – Edition 1 4. Statistical methods by S.P.Gupta Sites Visited 1. www.spi.com 2. www.citehr.com 3. www.explorehr.com
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