PROJECT TITLE

on
“RECRUITMENT”
at
ESCORTS LIMITED
SEC.13, FARIDABAD
Submitted in partial fulfillment of the requirement of degree in
Management of Business Administration
of

SIKKIM MANIPAL UNIVERSITY, SIKKIM

Session 2011-2013

UNDER THE GUIDANCE OF: SUBMITTED BY:

MR DEEPAK NAME : GYANRAJ BISTA
(Lecturer MBA Department) Class : MBA 4th SEM
ROLL NO.: 521150290

Sec-16A
Faridabad
June, 2013

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 A COMPREHENSIVE STUDY

ON

RECRUITMENT PROCESS AT ESCORTS AGRI MACHINARY

Submitted to SMU UNIVERSITY in partial fulfillment of the requirements for

the award of degree of MANAGEMENT of Business Management
2011-2013

SUBMITTED BY:
GYANRAJ BISTA
MBA: 4th SEM
Roll no.:521150290

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Index

Chapter 1 Introduction of Project

 Objective of Study

 Scope of Study

 Research Methodology

Chapter 2 Review of Literature

Chapter 3 Company Profile
Chapter 4 Analysis & Findings
Chapter 5 Recommendations, Suggestion and
Conclusion
Chapter 6 Bibliography
Chapter 7 Annexures

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 ACKNOWLEDGEMENT

Words are the dress of thoughts, appreciating and acknowledging those who are responsible for the
successful completion of the project.

I am grateful to ESCORTS LTD. (Agri Machinery group), FARIDABAD, for providing me the
opportunity to work in their reputed organization.

After joining the ESCORTS LTD. I had novice enthusiasm of watching and learning the human
resource management and tools related to it. After undergoing this training, I can confidently say
that this experience has not only enriched me with practical knowledge but also has imparted the
maturity of thought and vision, the attribute required to be a successful professional.

My sincerity gratitude goes to Mr. S.K AGGARWAL (Executive - Human Resources) who assigned
me responsibility to work on this project and provided me all the help, guidance and encouragement
to complete this project.

Further I pay my sincere regards to Mr. Sandeep (Manager-HR) and I am also grateful to all other
executives of the companies who have given me all important knowledge about the processes and
helped me a lot by giving information that is so vital to complete the project.

The encouragement and guidance given by MR NEERAJ CHOPRA have made this a personally
rewarding experience. I thank him for his support and inspiration, without which, understanding the
intricacies of the project would have been exponentially difficult.

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PREFACE

Many students may have done work on this project in different ways/styles. I have also tried to

work on this project in a different way.

It was for the first time I got the opportunity to work in such a prestigious and well known

organization. And things, which I have experienced in my training time, are going to help me

through out my lifetime. I have worked on this project with great enthusiasm and zeal. I have tried

to cover almost all the things, which I have experienced and learned from the company’s

management.

No doubt at present working atmosphere is fine but it needs some alternations, keeping in mind

this view; I have also suggested some improvements/suggestions. The title, which is:

“THE STUDY AND ANALYSIS OF THE RECRUITMENT PROCESS OF THE SALES

EXECUTIVES AT ESCORTS”

The main goal of my project is to find out the frequency, uses, modifications, improvements and

appropriate suggestions .It would be my great pleasure, if this project can help this company to

achieve its goal higher.

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CHAPTER-1

INTRODUCTION
OF

PROJECT

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 OBJECTIVE OF THE PROJECT:

1) To develop an appreciation of the structure and operation of

industrial organizations.

2) To appreciate the importance of good communication and

interpersonal skills, and to develop these skills, and.

3) To appreciate the ethical basis of management practice in

industry.

4) To expose students to the various aspects of industrial

practices and ethics

5) To apply the training knowledge for the preparation of their

final year project.

6) To enables the organization in better

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Motivation and maintaining the employees of the organization.

- To find out the probable reasons of exit and solving them

,So that remaining workforce do not come across such
factors
- Finding solutions in order to maintain the loyalty of the
Employees.

SCOPE:

This project gives the ample scope to know about various aspects of HR especially
regarding recruitment.

The scope of the project was limited to certain applicants who have applied for the position of
sales executive only. The project has allowed the researchers to learn the various aspects and tools
which can be applied for recruitment.

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THE KEY POINTS OF MY RESEARCH STUDY ARE:-

1. TO STUDY THE FACTS ABOUT THE ESCORTS LTD. AS A GROUP.

2. TO UNDERSTAND AND ANALYSE VARIOUS H.R. FACTORS INCLUDING RECUITMENT AND

SELECTION PROCEDURE AT ESCORTS LTD.

3. TO SUGGEST ANY MEASURES / RECOMMENDATIONS FOR THE IMPROVEMENT OF THE

RECRUITMENT PROCEDURES.

RESEARCH METHODOLOGY

This section of the report presents how we collected data i.e. the methodology being followed and
used while collecting information about the topic under study.

TYPE : Qualitative & Quantitative

DESIGN : Descriptive

SAMPLE SIZE : 35
SOURCES :

Primary sources:
1.Discussion guidelines

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2. Practically done the recruitment.

Secondary sources:
1. Websites (internet services)
2. Reference books (list mentioned in the bibliography)

 A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives determined for
carrying out the research study.

The appropriate research design formulated is detailed below.

 Exploratory research: this kind of research has the primary objective of development of
insights into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate courses of action.
 The research methodology for the present study has been adopted to reflect these realties
and help reach the logical conclusion in an objective and scientific manner.

The present study contemplated an exploratory research

 NATURE OF DATA
Secondary data: secondary data that is already available and published .it could be internal and
external source of data. Internal source: which originates from the specific field or area where
research is carried out e.g. publish broachers, official reports etc.

- 10 -
External source: This originates outside the field of study like books, periodicals, journals,
newspapers and the Internet.

DATA COLLECTION
Secondary data has been used which is collected through articles, reports, journals, magazines,
newspapers reports prepared by research scholars, universities and internet.

- 11 -
- 12 -
 CHAPTER-2

REVIEW
OF
LITERATURE

- 13 -
 INTRODUCTION

The project covers “The Study of Recruitment Process of Sales Executives” at Escorts Ltd.
Faridabad. It gives the insight of various recruitment tools and various sources through which an
organization can fulfill the needs of manpower.

RECRUITMENT AND SELECTION PRACTICES AND PROCEDURES AT ESCORTS

1. Introduction:
ESCORTS Group believes in translating its business strategy into a manpower plan and develop a
recruitment program accordingly, which will enable it to attract and select people with the
appropriate combination of experience, skills and knowledge.

1.1 Objectives
The Main Objectives of the Recruitment Policy at Escorts are outlined as follows:
Build the ESCORTS brand in the Market
Ensure availability of the “right” talent at the “right” time
Evaluate through a scientific process that ensures the right fit between the organization and the
candidate.

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1.2 Scope of the Policy
The Policy is applicable to all the employees of ESCORTS across all grades, locations and
departments.

1.3 Essential Framework

ESCORTS will work towards designing and institutionalizing the following essential
frameworks/process to ensure the effective deployment of this policy:

1. Productivity and Staffing norms: The company will undertake a process of setting these
norms through internal benchmarking across different locations

2. Competency Framework: The company will invest in defining a competency framework

which will consist of the following: Managerial and Technical competencies for all functions
Proficiency scale and competency benchmarks for each unique position, which would define the
expected level of proficiency for each competency.
This framework will guide the interview and selection process and ensure the right that only those
candidates who fit with the organizational requirements are hired.

3. Job Evaluations: A job evaluation/classification exercise will be conducted to understand the

value of each job so that each job is attached a value or a corresponding grade. A mismatch
between the grades and the appropriate grade for the position will be eliminated over a period of
time.

4. Interviewer Training: A process to certify internal interviewers in selection skills will facilitate
in standardization of the process, thereby ensuring the quality of recruitment.

- 15 -
5. Internal Database: An automated database consisting of potential candidates (walk-ins,
unsolicited applications, advertisement responses) will scientifically strengthen the recruitment
function with the Company.

6. Grade Structure: Grades are a way of grouping jobs of similar value. The company should
eventually move to a job value system where each job has a unique value. The main objective is to
rationalize and simplify the existing grade structure so as improve efficiency in HR processes and
to flatten the organizational structure, thereby improving performance effectiveness.

2. Manpower Planning
Manpower planning is a key input to the recruitment process. The objective of manpower planning
is to determine the human resource needs of the organization and secure qualified people to meet
those requirements both through internal and external recruitment. Manpower productivity and
staffing norms will form the basis of manpower planning process, since these will help set
standards while forecasting manpower requirements.

- 16 -
 The following schematic outlines the various stages and timeliness for the Manpower Planning
process of the Company:

Mm
MANPOWER MANPOWER
FORECASTING BUDGET
Initiated by individual MANPOWER HR prepares
departments.
Departments fill out the GAPS manpower plans for
the year captures data
forecasting form as per HR calculates the
about the required
projected estimates for the gap between the number of personnel
year and send it to HR current and in the terms of grades,
projected numbers skills, roles and
locations

Approval by
the
Management

REQUISITIO
NS
Department Heads
send out Manpower
requisitions as per the
MANPOWER standard recruitment
INVENTORY time
RECRUITMEN

Ann
HR prepares a manpower
inventory, taking into account TS
the existing manpower in Recruitment against the
terms of grades, roles and specific requirements
locations

- 17 - ual
 Reso
urcin
g
Plan
2.1 Manpower Forecasting
HR
The overall annual business plan for the Company will be broken down into plans and targets for

plans
each individual department. Each department will calculate their grade wise manpower
requirements based on the staffing norms, and provide quarterly and monthly manpower

the
requirements to corporate HR.

2.2 Manpower Inventory: HR will prepare the current manpower status of each department,

meth
including an analysis of the current manpower at each location, grade and skill summary.

2.3 Identifying Manpower Gaps The existing number of employees and their skill levels will be

ods/s
compared with the forecasted requirements to identify qualitative and quantitative gaps.
Options for redeployment through retaining, transfers, promotions will be considered. Where these

trateg
options do not exist, options for recruiting from external sources will be taken into account.

2.4 Manpower Plans

ies
On the basis of the identified gaps, HR will prepare an overall manpower plan which provides
adequate lead time for transfers, retaining, promotions and external hiring. The plan will also
contain details on:

for
Department wise numbers for transfers, retaining and promotions. Department wise
numbers for external recruitment.

fulfill
The final manpower plan will be prepared. Once completed, it will be put up for approval by all
department heads and the Managing Director.

3. Recruitments
ing
the
- 18 -
 plann
ed
ESCORTS is equal opportunity employer and does not distinguish between potential candidates
based on age, gender, disability, nationality, ethnic origin, sexual orientation, religion, race, color
and family status.
gaps
Even after the manpower plan is approved, all vacancies will be filled only after the formal
requests have been to fill these vacancies. All requests for a new position must be sent to HR in a
Manpower Requisition Form after approval from the HOD.

RECRUITMENT

INTRODUCTION

Successful employment planning is designed to identify an organization’s human resource needs.

Once these needs are known, an organization will plan their activities to reach them. The next step,
then, in staffing function assuming, of course, that demand for certain skills, knowledge and
abilities, is greater than current supply- is called recruiting. This activity makes possible for a
company to acquire the necessary people to ensure the continued operation of the organization.
“Recruiting is the process of discovering potential candidates for the actual or anticipated
organizational vacancies or in other words it is the linking activity- bringing together those jobs
to fill and those seeking jobs.”
Also defined, as “Recruitment is the process of findings and attracting capable applicants for
employment. ‘The process begins when new recruits are sought and ends when their
applications are submitted. The result is the pool of applicants from which new employees are
selected.”

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PURPOSE AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes are to:

1. Determine the present and future requirements of the organization in conjuction with its
personnel planning and job-analysis activities.
2. Increase the pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by reducing the number of visibly
under qualified or overqualified job applicants.

4. Help reduce the probability that job applicants, once recruited and selected, will receive the
organization only after a short period of time.
5. Meet the organization’s legal and social obligations regarding the composition of its
workforce.

6. Begin identifying and preparing potential job applicants who be appropriate candidates.
7. Increase organizational and individual effectiveness in the short term and long term.
8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.

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Recruitment represents the first contact that a company makes with potential employees. It is
through recruitment that many individuals will come to know a company, and eventually
decide whether they wish to work for it. High quality employees cannot be selected when
better candidates do not know of job openings, are not interested in working for the company
and do not apply.

RECRUITING GOALS

For the recruitment process to work effectively there must be a significant pool of candidates
to choose from and the more diversity within the group is better. Achieving a satisfactory pool
of candidates, however, may not be that easy, especially in the lab our market.

The first goal of recruiting is to communicate the position in such a way that job seekers
respond. The more the applications received, the better the chances for the recruiter to find the
best-suited person for the job requirement.

Simultaneously, the recruiter must provide enough information about the job that unqualified
applicants can select themselves out of the candidates. Typically, when applications are
Received, the company acknowledges their receipt. That acknowledges costs time and money.
Then, there are applications reviews and second letter is sent, this time rejecting the
applications. Again, this incurs some cost. Accordingly, applications from those who are
unqualified must be discouraged. A good recruiting program should attract the qualified but
not the unqualified. Meeting this dual objective will minimize the cost of processing
unqualified candidates.

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 EMPLOYMENT PLANNING AND FORECASTING

Employment or personnel planning is the process of deciding what positions the firm will have
to fill and how to fill them. Personnel planning involve all the firm’s future position. However,
most companies use succession planning (growth, future prospects, technology deployment) to
refer to the process of deciding how to fill the company’s most important executive jobs.
Employment planning is an integral part of a firm’s strategic and HR planning process.

Forecasting Personnel Needs

The usual process is to forecast revenues first. Then estimate the size of the staff required to
achieve high volumes. In addition to expected demand, staffing may reflect:

1) Projected turnover
2) Quality and Skills of employees
3) Strategic decisions to upgrade the quality of products or services or enter into new
markets.
4) Technological deployment and other changes resulting in increased productivity
5) The financial resources available to your department.

Following are the several methods to predict employment needs:

 Trend Analysis:
Trend Analysis means studying variations in the firm’s employment levels over the last few
years to predict future needs. Thus, computing the number of employees in the firm at the end

- 22 -
 of each of the last five years or, perhaps the number in each subgroup at the end of each of
those years .The purpose is to identify trends that might continue in the future. Trend Analysis
can provide initial estimate, but employment levels rarely depend just on the passage of time.

 Ratio Analysis:
Ratio means making forecasts based on ratio between (a) some casual factors (viz. sales
volume) and (b) the number of employees required like the sales force for instance.
Like Trend Analysis, ratio analysis assumes that productivity remains about the same- for
instance; each sales person can’t be motivated to produce much more than ₤ 100,000 in sales.
If sales productivity were to increase or decrease, the ratio of sales to sales people would
change. A forecast based on historical ratios would then no longer be accurate.

 The Scatter Plot

A Scatter Plot shows graphically how two variables- such as a measure of business activity
and the firm’s staffing levels are related. If they were, then forecasting the level of business
activity and estimating the personnel requirements would be possible.

 Managerial judgment
Managerial judgment plays a big role in whichever forecasting method that is used. It’s rare
that any historical trend ratio or relationship will simply continue unchanged in future. In
practice, making personnel forecasts usually isn’t mechanical even for major firms. It is
sometimes difficult to take a long-term perspective, particularly when market conditions
change dramatically.

CONSTRAINTS IN RECRUITING

- 23 -
While the ideal recruitment effort will bring in a satisfactory number of qualified applicants
who will take the job if it is offered, the realities cannot be ignored. For example, the pool of
qualified applicants may not include the best candidate; or the best candidate may not want to
be employed by the organization. These other constraints on recruiting efforts limit human
resource recruiter’s freedom to recruit and select a candidate of their choice. However, we can
narrow our focus by suggesting five special constraints:

1: Image of the organization:

In a study conducted it was found that a prospective candidate was not interested in pursuing
job opportunities in some particular organization. The image of the organization, therefore,
should be considered a potential constraint. If the image is perceived to be low, the likelihood
of attracting a large number of applicants is reduced. Many college graduates feel that the
Individual who occupies the top-notch companies will earn excellent salaries, are given
Excellent benefits and are greatly respected in the communities. But not all the graduates hold
a positive image of the organization. In a number of communities, local firms have a
Reputation for being in a declining industry; engaging in practices that result in polluting the
Environment, poor quality products and unsafe work conditions or being indifferent to
Employees’ needs. Such reputation can and do reduce these organizations abilities to attract the
Best personnel available.

2: Attractiveness of the job:

If the position to be filled is an unattractive job, recruiting a large and qualified pool of
applicants will be difficult. In recent years, many employers have been complaining about the
difficulty of finding suitably qualified individuals for manual labor positions. In a job market
where employment rates and where a wide range of opportunities exists creating competition
for these workers, a shortage results. Moreover, any job that is viewed as boring, hazardous ,
anxiety creating ,low paying or lacking in promotion potential seldom attract a qualified pool
of applicants. Even during economic slumps, people refuse to take these kinds of jobs.

- 24 -
3: Internal organizational policies:

Internal organizational policies, such as “promote from within wherever possible,” may give
priority to individuals inside the organization. Such policies, when followed, typically ensure
that all positions, other than the lowest level entry positions, will be filled from within the
ranks. Although this is promising once one is hired, it may reduce the number of applications.

4: Government influence:

The government‘s influence in the recruiting process should not be overlooked. An employer
can no longer seek out preferred individuals based on non-job-related factors such as physical
appearance, sex or religious background.

5: Recruiting cost

The last constraint, certainly not the lowest constraint in priority, is one of that centers on
recruiting costs. Recruiting efforts by an organization are expensive. Sometimes continuing a
search for a long period of time is not possible because of budget restrictions. Accordingly,
when an organization considers various recruiting sources, it does so with some sense of
effectiveness in mind-like maximizing its recruiting travel budget by first interviewing
employees over phone or through video conferencing.

STEPS INVOLVED IN RECRUITMENT AND SELECTION

I) Employment planning and forecasting.

II) Recruiting: Building a pool of candidates.

- 25 -
 III) Applicants complete application forms.

IV) Use selection tools like tests to screen out most applicants.

V) Interviewer interviewed final candidates to make final choice.

VI) Candidate becomes employee.

EFFECTIVE RECRUITING

Assuming the company authorizes to fill a position, the next steps is to develop an applicant
pool, using one or more of the recruiting sources described below. Its hard to over emphasize
the importance of effective recruiting. The more applicants a company gets, the more selective
it can be in hiring the best.

Effective recruiting is increasingly important today, for several reasons. First, the ease of
recruiting tends to ebb and flow with economic and employment levels. The increased
emphasis on technology and therefore on skilled human capital also demands more selective
hiring –and thus a bigger applicant pool.

Finding the right inducements for attracting and hiring employees can be a problem.
Aggressive recruiting is therefore often the name of the game.

FACTORS GOVERNING RECRUITMENT

Given its key role and external visibility, recruitment is naturally subject to influence of
several factors. These include external as well as internal forces.

- 26 -
 External Forces Internal Forces
 Supply and Demand  Recruitment Policy
 Unemployment  HRP
Rate  Size of the firm
Recruitment 
 Labor Market Cost
 Political-Social  Growth and
 Image Expansion

External Factors

Of particular importance is the supply and demand of specific skills in the labor market. If the
demand for a particular skill is high relative to the supply, an extraordinary recruiting effort
may be needed.

When the unemployment rate in a given area is high, the company’s recruitment process may
be simpler. The number of unsolicited applicants is usually greater, and the increased size of
the labor pool provides better opportunities for attracting qualified applicants. On the other
hand, as the unemployment rate drops, recruiting efforts must be increased and new sources
explored.

Labour market conditions in a local area are of primary importance in recruiting for most non-
managerial, supervisory and middle-management positions. However, so far as recruitment for
executive and professional positions is concerned, conditions of all India market are important.

Another external factor is political and legal considerations. Reservation of jobs for SCs, STs,
minorities, and other backward classes is a political decision. Political leader clamour that
preference must be given to the people of their respective states in matters of employment.

- 27 -
The company’s image also matters in attracting large number of job seekers. Blue chip
companies attract large number of applications. Often, it is not the money that is important. It
is not the money that is important. It is the perception of the job-seekers about the company
that matters in attracting qualified prospective employees.

Internal Factors

There are certain internal forces, which deserve consideration while recruiting personnel.

One such internal factor is the recruiting policy of the organization. Most organizations have a
policy on recruiting internally or externally. Generally, the policy is to prefer internal sourcing,

as own employees know the company well and can recommend candidates who fit the
organization’s culture.

Another related policy is to have temporary and part time employees. An organization hiring
temporary and part time employees is in a less advantageous position in attracting sufficient
applications.

In MNC’s there us a policy relating to the recruitment of local citizens. MNC’s operating in
our country prefer local citizens as that can understand local languages, customs and business
practices better.

A major internal factor that can determine the success of the recruiting programme is whether
or not the company engages in HRP. In most cases, company cannot attract prospective
employees in sufficient numbers and with required skills due to lack of required HRP.
Effective HRP greatly facilitates the recruiting efforts.

- 28 -
 Size is another internal factor, which has its influence on the recruitment process. An
organization with one hundred thousand employees will find recruiting less problematic than
an organization with just one hundred employee.

Cost of recruiting is yet another internal factor that has to be considered. Recruiting costs must
be within the budgets. careful HRP and fore fought by recruiters can minimize recruitment
costs. Evaluating the quality, quantity and costs of recruitment helps ensure that it is efficient
and cost effective.

RECRUITMENT PROCESS

The recruitment process comprises of five interrelated stages viz.

 Planning
 Strategy Development
 Searching
 Screening
 Evaluation and control
The ideal recruitment program is the one, which attracts a relatively larger number of qualified
applicants who will survive the screening process and accept positions with the organization, when
offered. To approach the ideal, individuals responsible for the recruitment process must know how
many and what types of employees are needed, where and how to look for individuals with the
appropriate qualifications and interests, what inducements to use for various types applicant
groups, how to distinguish applicants who are unqualified from those who have a reasonable
chance of success, and how to evaluate their work.

Personal Job Employee

Planning Analysis Requisition TO SELECTION

Searching
Activation
Recruitment “Selling” Screening
Job Strategy  Message
Applicant Potential
Vacancies Planning
Development Applica Pool Hires
 Numbers  Media
 Where nt - 29 -
 Types
 How Populatio Evaluation
 When n
& Control
 Recruitment Process

Recruitment Planning:

The first stage in the recruitment process is planning. Planning involves the translation of
likely job vacancies and information about the nature of these jobs into a set of objectives or
targets that specify the (i) number and (ii) type of applicants to be contacted.

Recruiting yield pyramid:

Some employers use a recruiting pyramid to calculate the number of applicants they must
generate to hire the required number of new employees.
If the company needs to hire 50 new entry level technical agents next quarter or year, then
from the experience the company knows the ratio of offers made to actual new hires is 2 to 1
i.e. half the people to whom it makes offers accept them. The company also knows, from
experience that the ratio of candidates interviewed to offers made is 3 to 2.The ratio of
candidates invited for interviews and to candidates actually interviewed is about 4 to 3. Finally,
the firm knows that of the six leads that come from all the recruiting efforts, only one applicant
typically gets interviewed 6:1 ratio.

New Hires

Offers Made (2:1)

Candidates Interviewed (3:2)

Candidates invited (4:3)

Leads Generated
(6:1)

Recruiting Yield Pyramid- 30 -

Thus the Recruiting Yield Pyramid can be known as the historical arithmetic relationships between
recruitment leads and invitees, invitees and interviews, interviews and offers made and offers
made and offers accepted.

Strategy development:

Once it is known how many and what type of recruits are required, serious consideration
needs to be given to (i) make or buy employees (ii) technological sophistication of recruitment
and selection devices (iii) geographical distribution of labor markets comprising job seekers
(iv) sources of recruitment (v) sequencing the activities in the recruitment process

‘Make’ or ‘Buy’ Organization must decide whether to hire less skilled employees and invest
on training and education programmes, or they can hire skilled labor and professionals.
Essentially, this is the ‘make’ (hire less skilled workers) or ‘buy’ (hire skilled workers and
professionals) decision. Organizations, which hire skilled labor and professionals, shall have
to pay more for these employees.

Technological Sophistication The second decision in strategy development relates to the

methods used in recruitment and selection. This decision is mainly influenced by the available
technology. The computers have given employers and job seekers a wider scope of options in
the initial screening stage.

Where to look In order to reduce costs, organizations look into labor markets most likely to
offer the required job seekers. Generally, company look into the national market for
managerial and professional employees, regional or local markets for technical employees and
local markets for clerical and blue-collar employees.

How to look How to look refers to the methods or sources of recruitment?

- 31 -
Recruitment Process

The recruitment process for the Management trainees will be as follows:

HR will initiate the campus recruitment process by sending the company’s literature to the
campus, one month before the proposed date of recruitment. This will contain brochures of the
company literature containing information about the company, the job profile and the
remuneration package.

Pre Placement Talks:

HR will coordinate with the Placement Cell of short listed Institutes and schedule Pre Placement
talks (PPT)

The HR head and a senior line Manager will form the Pre Placement Team. The following
information will be carried to the Pre Placement Talks:

a. Brochures or company literature containing information about the company, job profiles
and the remuneration package.
b. Application blanks
c. Number of job openings

Eligibility criteria for candidates will be given to the Placement Officer at the end of the PPT.

Eligibility
The following eligibility criteria will be used to short list applicants from various Institutes:
a. A CGPA of at least 6 out of 10 or its equivalent in the MBA/PGDBM program
b. Projects undertaken at the summer trainee/internship level
c. For Chartered Accountants, preference to 1st attempt in inter and final. Preferred one year
industrial training over and above the article ship undertaken.

- 32 -
Screening of Application Blanks
The Placement Coordinator/Administrative offices will short list candidates on the basis of
predetermined eligibility criteria and send the list of short listed students to the company at least
one week before the date of campus interviews.

HR will then screen the application blanks that are received and short list them a second time
according to the eligibility criteria. Any deviations will be highlighted and justified. A final list of
candidates selected for interviews will be sent back to the Institute no later than one week before
the selection process.

Selection Process
Only Institutes where day 0, 1 or 2 is offered will be accepted.
All eligible candidates will undergo the following 2 – step selection process:
1. Group Discussion – This will be the first step of the selection process. Two members of
the Campus Recruitment Team will observe each group discussion. Observations will be
recorded in the Group Discussion Observation Form and compared for a final rating at the
end of the Group Discussion. Topics will be a mix of economics, business and general
awareness.
2. Candidates who are selected after the Group discussion will be called for a personal
interview. Interview Observation Forms will be used to evaluate the candidate’s
performance during the interview.
Panel composition for the interview will be as per appendix II
Suggested Selection Criteria for Students

It is imperative to not only recruit those students who do well academically but also those who
possess a winning attitude but may not have done as well academically. The following selection
criteria can be used as a guide:

a. Academics – Focus on students who have consistently done exceptionally well

b. Extra and Co curricular activities – Focus on Leadership, Initiative
c. Personality and Attitude – Focus on Communication, Presentation and Teamwork

At the end of the selection process, the Campus Recruitment Team will compile a list of selected
candidates and handover the same to the Placement Officer. An announcement can also be made to
inform students at the same time.

- 33 -
Offer Letters:
Offer Letters will be sent to the selected candidates within 7 days of the selection process at the
Campus. Candidates have to indicate his/her acceptance by signing and returning the copy of the
letter to HR not more than15 days after receipt of the letter. Where required blank offer letters will
be carried to the Campus and given at the time of placement itself.

A. Trainee Scheme (A)

Once selected, all trainees will be provided with an HR brochure that lists the details of the trainee
scheme as outlined below:

Travel: Management Trainees will be provided with AC class Train Fare from home to the
company. Conveyance expenses such as travel (taxi) from the Railway station to the place of
posting etc. will be provided.
Accommodation: Trainees will be provided with shared accommodation (for bachelors/spinsters).
Guest House (twin sharing) will be provided for one month for outstation candidates. Any
accommodation required after this period will be deducted from the trainees’ stipend.

B. Training Program: The training period will last for one year. Selected Management Trainees
will be confirmed at ….. Level

Module 1: Induction: A three day induction period will be held for all trainees by the top
Management on the vision, mission and company policies.

Module 2: Functional Overview: All trainees will spend one week in each function for a period of.
…Weeks.

Module 3: Cross – Functional Training: Trainees will undertake 2 projects in 2 other functions
than their specialization. Duration of each project will be one month.

- 34 -
Module 4: On the Job Training: Trainees will be given 9 months of on the job training where they
will undertake projects in their department of choice/specialization according to the
responsibilities accorded to their grade.

Performance Evaluation and Placement

Upon completion of the training period, all trainees will undergo a performance evaluation.
Process
Trainees will be required to present a report of the projects they have undertaken to the
Department Head at the end of the training period.

HR will schedule a performance interview for every management trainee. The panel for interview
will consist of one cross – functional head, Department head and HR Manager.

The trainee will be assessed on the projects completed and a number of parameters listed in the
“Trainee Evaluation Form”.
The Performance Evaluation Panel will then either recommend a confirmation or separation as per
the trainee’s performance. Upon receiving the evaluation and recommendation, HR will issue a
confirmation letter to the trainee confirming him/her at …..Level.
The separation process will be initiated for trainees whose performance is not found to be
satisfactory.

Executive Trainees:

- 35 -
Depending upon the requirements projected in the manpower plan the company will recruit
Executive Trainees MBA Institutes/B schools of the country.
A. Sourcing of trainees.
a. Campus rating through Publications: HR will refer to the campus ratings
published in the Business Magazines of the country and arrive at average campus
ratings. For the current year the company should try to rank between 25 th and 50th
rank. It is further recommended that the company should try to rank between 30 th
and 40th rank
b. Campus Relationship: The Company will develop close relationship with the
targeted campuses by hiring large number, conducting events, taking summer
trainees, sending senior managers for lectures etc.

An attempt will be made to include cross – section of Institutes across the country to ensure
diversity in the campus recruitment process.
B. Positioning of trainees
a. Fresh Graduates: Student with a Masters in Business Administration/Chartered
Accountants will be placed at the Management Trainee grades and will get confirmed
in level…. After successful completion of the training period.
b. Experience: Student with relevant work experience of 1 – 3 years will be given
weightage but will be taken as Management Trainee.
c. Any candidate with more than three years of work experience will be considered a
lateral recruit and appropriate fitment will be done.

Travel
Executive trainees will be provided with fare from their Institute/ home to the company.

- 36 -
Conveyance expenses such as travel (Taxi) from the Airport/ Railway station to the place of
posting etc will be paid.
Accommodation
Outstation Trainees will be provided twin sharing Accommodation for one month free of cost.
Any cost for further requirement will be deducted from the trainees stipend will be deducted from
the trainee’s stipend.
Executive Trainees Management Trainees
Training program
The Training program for both trainees will last for one year
The program has already been mentioned earlier in the recruitment process.
Direct Hiring

Selection Process
HR will short list candidates as per the pre determined criteria prescribed for the vacancy. After a
Preliminary interview, the candidate will undergo a panel interview as per the panel composition
in Appendix II. Observations will be recorded in the interview observation form.
Compensation Fitment: The compensation package will be as per the compensation grid. The same
id decided by the Compensation Manager, HR and then approved by the HR Head.

Offer Letter: An offer letter will be sent to selected candidates within one week of the interview.

Offer Acceptance: Candidates have to sign a duplicate copy of the letter as a token of their
acceptance and send the same back within 15 days of the receipt of the letter.

SOURCES OF RECRUITMENT:

- 37 -
Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of
position to be filled. The company should first make a thorough study about the nature of the
job and the source should be identified based on that.
The company should also consider the past experiences and should use that data for the
present. Certain recruiting sources are more effective than others for filling certain types of
jobs. For jobs like that of a senior executive and higher grade jobs advertisement in leading
newspapers and professional journals is advised.

There are two main sources of recruitment as under:

1) Internal Sources
2) External Sources.

1) INTERNAL SOURCES:

Recruiting may bring to mind employment agencies and classified ads, but current employees
are often the best source of candidates. Filling open positions with inside candidates has many
benefits. First, there’s really no substitute for knowing candidate’s strengths and weaknesses.
It is often therefore safer to promote employees from within since there is a clearer picture
about the person’s skill and his behavior. Inside candidates may also be committed to the
company. Morale may rise, to the extent that employees see promotion as rewards for loyalty
and competence. Inside candidate may also require less orientation and training then outsiders.
Many large organizations will attempt to develop their own employees for positions beyond
the lowest level. These can occur through an internal search of current employees, who have
either bid for job, been identified through the organizations human resource management
system or even been referred by a fellow employee. The advantages of such searches are:
1) It is good public relations
2) Builds morale
3) It encourages good individuals who are ambitious .

- 38 -
 4) It improves the probability of a good selection, since information on the individual’s
performance is readily available.
5) It is less costly than going outside to recruit
6) Those chosen internally already know the organization.
7) When carefully planned, promoting from within can also act as a training device for
developing middle-and top level management.
The organization should also avoid excessive breeding. Occasionally it may be necessary to
bring in new blood to broaden the current ideas, knowledge and enthusiasm. In many
organizations, it is standard procedure to post any new job openings and to allow any current
employee to apply for the position.

Employee referral recommendations:

One of the best sources for individuals who will perform effectively on the job is a
recommendation from a current employee. This is so because employees rarely recommend
someone unless they believe that the individual can perform adequately. Such a
recommendation reflects on the recommender and when someone’s reputation is at stake. We
can expect the recommendation to be based o considered judgment. Employee referrals also
may have acquired more accurate information about their potential jobs. The recommender
often gives the applicant more realistic information about the job that could be conveyed
through employment agencies or newspaper advertisements. This information reduces
unrealistic expectations and increases job survival. As a result of these preselection factors,
employee referrals tend to be more acceptable applicants, to be more to likely to accept and
offer if one is made and once employed to have a higher job survival rate. Additionally,
employee referrals are an excellent means of locating potential employees in those hard-to-fill
positions.
There are, of course some potentially negative features of employee referral. For one thing,
recommences may confuse friendship with job performance competence. Individuals often
like to have their with job performance competence. Individuals often like to have their friends
at their work place for social and economic reasons. Employee referrals may also lead to
nepotism that is hiring individuals who are already working in the organization. Although

- 39 -
such auctions may not necessarily align with the objective of hiring the most qualified
applicant, interest in the organization and loyalty to it may be long-term advantages. Finally,

employee referrals may also minimize an organization’s desire to add diversity to the work
place.
Employee referrals do, however, appear to have universal application lower-level and
managerial –level positions can be, and often are, filled by the recommendation of a current
employee. In jobs where specialized expertise is important, and where employees participate
in professional organizations that foster the development of this expertise, it can be expected
that current employees will be acquainted with or know about, individuals they think would
make an excellent contribution to the organization.

Former employees:

Former employees are also an internal source of applicants. Some retired employees may be
willing to come back to work on a part time basis or may recommend who would be interested
in working for the company.

Previous applicants:

Although not truly internal, those who have previously applied for the jobs can be contacted by
mail, a quick and inexpensive way to fill an unexpected opening. although walk-ins are likely

- 40 -
 to be more suitable for filing unskilled and semi-skilled jobs, some professional openings can
be filled by applicants to the previous jobs.
The following schematic describes the referral process:

Employee referral mail

CV Received

CV in database? Yes Inform employee

Allot reference no. to CV

Screen for eligibility No Inform employee

Selection process

Reference checks

Satisfied

Offer Candidate Inform employee

2: EXTERNAL SOURCES:

In addition to looking for candidates, it is customary for the organizations to open up

recruiting efforts to the external community. These efforts include advertisements,

- 41 -
employment agencies, schools, colleges and universities, professional organizations and
unsolicited applicants.

Professinal or Trade Associations:

Many associations provide placement services for their members. These services may consist
of compiling job seekers’ lists and providing access to members during regional or national
conventions. Many associations publish or sponsor trade journals or magazines for their
members. Professionals or trade associations are particularly useful for attracting highly
educated, experienced or skilled personnel.

Advertisements:

When an organization wishes to communicate to the public that it has vacancy, advertisement
is one of the most popular methods used. However, the type of the job often determines where
the advertisement is placed. The higher the position in the organization, the more the
specialized the skills, or the shorter the supply of that resource in the labor force, the more
widely dispersed the advertisement is likely to be. A number of factors influence the response
rate to advertisements. There are three important variables: identification of the organization,
labor market conditions and the degree to which specific requirements are included in the
advertisements.

Employee agencies:

These agencies are also of three types: public or state agencies, private employment agencies
and management consulting firms. The major difference between these sources is the type of
clientele served. All states provide public employment service. The main function of these

- 42 -
agencies is closely tied to unemployment benefits, since benefit in some states are given only
to individuals who are registered with their states employment agency.

Campus recruitment:

Colleges, universities, research laboratories, sportsfields and institutes are fertile ground for
recruiters, particularly the institutes. IIMs’ and IITs’ are on the top list of avenues for
recruiters.

Walk-ins, write-ins, talk-ins:

The most common and least expensive approach for candidates is direct applications, in which
job seekers submit unsolicited application letters or resumes. Direct applications also provide
a pool of potential employees to meet future needs. Direct applications are particularly
effective in filling entry level and unskilled vacancies, some organizations pools of potential
employees from direct applications for skilled positions. Write-ins are those who send written
enquiries. These jobseekers are asked to complete application forms for further processing.
Talk-ins is becoming popular nowadays. Job aspirants are required to meet the recruiter for
detailed talks.

Contractors:

- 43 -
Contractors are used to recruit casual workers. The names of the workers are not entered in the
company records and to this extent difficulties experienced in maintaining permanent workers
are avoided.

Displaced persons:

Sitting and implementation of a project in an area would result in displacement of several

hundred inhabitants. Rehabilitating the displaced people in a social responsibility of business.
Such people are a source of recruitment.

Mergers and acquisitions:

Another method of staffing organizations is the result of merger or acquisition process. When
combine into one, organizations have to handle a large pool of employees some of whom may
no longer be necessary in the new organization. Consequently, the new organization has, in
effect, a pool of qualified job applicants.
Competitors:

Rival firms can be a source of recruitment. Popularly called ‘poaching’ or ‘raiding’, this
method involves identifying the right people in rival companies, offering them better terms and
luring them away.

ANALYSIS OF THE STUDY:

- 44 -
Analysis of the study is done by the evaluation of the internal recruitment and external
recruitment as these are the main sources of recruiting employees which have merits as well as
demerits. After that evaluation of the whole recruiting process is done.

INTERNAL RECRUITMENT:

Merits of internal recruitment:

 It is cheaper.
 Candidates are already oriented towards organization.
 Organizations have better knowledge about internal candidates.
 Enhancement of employee morale and motivation.
 Good performance is rewarded.

Demerits of internal recruitment:

 It perpetuates the old concepts of doing things.

 It abets raiding.
 Candidate’s current work may be affected.
 Politics play greater role.
 Morale problem for those not promoted.

EXTERNAL RECRUITMENT:

- 45 -
 Merits of external recruitment:

 The organization will have the benefit of new skills, new talents and new experiences, if
people are hired from external sources.
 The management will be able to fulfill reservation requirements in favor of the
disadvantaged sections of the society.
 Scope of resentment, heartburn and jealousy can be avoided by recruiting from outside.

Demerits of external recruitment:

 Better motivation and increased morale associated with promoting own employees are lost
to the organization.
 It is costly as compared to internal source of recruitment.
 If recruitment and selection processes are not properly carried out, chances of right
candidates being rejected and wrong applicants being selected occur.

EVALUATION OF RECRUITMENT PROCESS

 Return rate of applications sent out.

 Number of suitable candidates for selection.
 Retention and performance of the candidates selected.
 Cost of recruitment process
 Comments on image p.
FINDINGS OF RECRUITMENT PROCESS OF SALES EXECUTIVES AT
ESCORTS LTD.(FOCUS ON INFORMATION TO BE CAPTURED FOR
SALES EXECUTIVES)

- 46 -
 Resumes from database/sources

Match the JD and JS

(Job description & Job subscription)

Shortlisted Rejected

Constraints to be detected
(communication skill,
technical knowledge,
last employment)

within the limitations of exceed the limitations of

the organization the organization

screening of shortlisted rejected

candidates(psychological test)

Screening of shortlisted candidates through interview PART A

- 47 -
 Shortlisted Rejected

Final shortlisting through personal

interview PART B

Shortlisted Rejected

Joining of finally short listed candidates

The various steps during the recruitment process of sales executives are:

1. The recruitment process of sales executives starts with the persual and downloading of
resumes from various database/sources like www.naukri.com,www.times job.com, etc.

2. Firstly the short listing of the candidates is done according to there job description and job
subscription and the eligibility for sales executive is that the candidate should be either
B.Tech /diploma in mechanical / automobile / technical and should have at least 1-4 years
of work experience.

3. Short listed candidates are to be detected on various constraints like communication skill,
technical knowledge, last employment,etc.

- 48 -
 4. After that it is to be detected that whether the candidates is within the limitations of the
organization. If no, then rejected. Shortlisted candidates who are within the limitations of
the organizations are further short listed on the basis of screening i.e. FORM (Annexure I)
& there is one psychological test (PREDICTIVE INDEX, Annexure II).
In personal profile (PP FORM) he has to give all the details regarding themselves, which
the company required .The Predictive Index form is an analysis in which candidate tells
about themselves according to himself on the first page and defined by others on the
second page, through which company can examine whether the person is a right choice to
intact particular crystal for which the candidate is applying. Then again short listing is done
the basis of this Predictive Index analysis.

5. Those candidates who are short listed after this Predictive Index test have to
go for further processing i.e. Interview PART A in which one technical
Person will take interview .

6. The last round that is held is the HR interview (PART B), here the focus is on
Whether the candidate can adjust to the high-pressure work situation, and job
Demands. In this process of interview each round is elimination round of
Unworthy candidates.

7. After this final interview short listed candidates or finally selected candidates
have to move for further processing i.e. joining of finally selected candidates.

Joining of finally selected candidates:

The various steps are:

- 49 -
1. checking of all the academic/professional documents which the candidates mentioned in
the PP Form (Annexure I).

2. Offer letter (Annexure V)

3. Medical formalities (Annexure IV)

4. Joining –cum-checklist (Annexure V)

5. Induction

6. Joining in their specified areas.

Positioning of trainees Selected trainees will be positioned at the following

grades:

- 50 -
d. Fresh Graduates: Student with a Masters in Business Administration/Chartered Accountants
will be placed at the Management Trainee grades and will get confirmed in level…. After
successful completion of the training period.

e. Experience: Student with relevant work experience of 1 – 3 years will be given weight age but
will be taken as Management Trainee.

Any candidate with more than three years of work experience will be

considered a lateral recruit and appropriate fitment will be done.

- 51 -
CHAPTER:2

The
Company
Profile

- 52 -
 ABOUT COMPANY

The Escorts Group is among India's leading engineering conglomerates operating in the high
growth sectors of agri-machinery, construction & material handling equipment, railway
equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the
agricultural growth of India for over five decades. One of the leading tractor manufacturers of the
country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from 25
to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of tractors
from the house of Escorts.

A leading material handling and construction equipment manufacturer, we manufacture and

market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts
today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for nearly five decades.
Our product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite
brake blocks and vulcanized rubber parts.

In the auto components segment, Escorts is a leading manufacturer of auto suspension products
including shock absorbers and telescopic front forks. Over the years, with continuous development
and improvement in manufacturing technology and design, new reliable products have been
introduced.

The Escort Group has also been operating in the ITES and financial services sectors.

- 53 -
Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In
the over six decades of our inception, Escorts has been much more than just being one of India's
largest engineering companies. It has been a harbinger of new technology, a prime mover on the
industrial front, at every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000 construction and material
handling equipment that have rolled out from the facilities of Escorts, complemented by a highly
satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the
globally accepted best manufacturing practices with relentless focus on research and development,
Escorts is today in the league of premier corporate entities in India.

Technological and business collaboration with world leaders over the years, Globally competitive
indigenous engineering capabilities, over 1600 sales and service outlets and footprints in over 40
countries have been instrumental in making Escorts the Indian multinational. At a time when the
world is looking at India as an outsourcing destination, Escorts is rightly placed to be the
dependable outsourcing partner of world's leading engineering corporations looking at outsourcing
manufacture of engines, transmissions, gears, hydraulics, implements and attachments to tractors,
and shock absorbers for heavy trailers and armored tanks.

In today's Global Market Place, Escorts is fast on the path of an internal transformation, which will
help it to be a key driver of manufacturing excellence in the global arena. For this we are going
beyond just adhering to prevailing norms, we are setting our own standards and relentlessly
pursuing them to achieve our desired benchmarks of excellence.

- 54 -
 INDIAN TRACTOR INDUSTRY

INTRODUCTION

India is predominantly an agricultural country.70% of the population lives in villages and villagers

depends upon agriculture for their bread and butter. Since Indian valley civilization, agriculture is

the main source of income but at that time the agriculture was manual work. Before independence

Indian agriculture was in very bad situation. But since 1947, when India became independent, the

farmers also became independent. They had seen many ups and downs in their income. After

independence in five-year plans, first priority was assigned to agriculture government tried best to

improve the industry but a systematic planned approach for development started in 1950, since

than irrigation was recognized as key factor for agriculture. Education and research were also

taken as a major initiative.

In over six decades of the inception, Escorts has been much more than

just being one of India's largest engineering companies. It has been a prime mover on the industrial

front introducing products and technologies and taking the country forward in key areas.

All these developments made mechanization mandatory for agriculture and imports of tractors
began. Acceptance of mechanization was slow, in fifty’s the use of tractor was very low. Green
Revolution was the result of tractor was barely 10000 in 1970. The industry was producing around
25000 to 30000 tractors. Today, India is the largest tractor market estimating 2185000 tractors per
annum with the annual growth of 12.3. Today the tractor industry is of about 5000 crores.
With the 12% of arable land, today India has 4.7% of the world’s tractor. India splits tractors

largely into four categories i.e. 20-30hp, 31-40hp, 41-50hp, 51& above. 21-30hp and 31-40hp

ranges into together are nearly 76%.

- 55 -
SEGMENT OF TRACTORS ACCORDING TO HP WISE

Tractor Range 1965-97 1997-98 1998-99 1999-2000

20-30 HP 24% 22% 17% 10%
31-40 HP 51% 50% 54% 55%
41-50 HP 19% 20% 22% 25%
50&above 6% 8% 7% 10%

Demand for big hp segment is increasing as per the table shown. In the budget of 1995-96, the

central government has given subsidy of Rs. 30000 per tractor. The subsidy was for the user of low

up segment tractors (for small farmers). The government wants to increase the usage of tractor for

higher agriculture production. In the budget of year1998-99, the finance minister Mr. Yashwant

Sinha has levied 8% excise duty on the imports. This was to save the Indian tractor industry form

the slow down of economy and the East Asian Crises. According to economic survey of 1997-98

the production of agriculture has dropped by 205%. Until 1993-94 small tractor (below 25hp) were

exempted fro the excise in bid to encourage small farmers. Because in India, almost 65% of

farmers has less than 4 acres of arable land.

According to business India, due to the Mahindra & Mahindra and Swaraj tractors would be

benefited about Rs. 10000 to Rs.12000 per tractor as compared to others, which imports parts from

abroad. The compound average growth rate during last six years has been around 15%. The level

of tractorization is high in Punjab & Haryana at around 95&74 tractors per thousand hectares

respectively. The tractor demand is driven by agriculture Products, Interest Rates, Total

- 56 -
Agricultural Credit, Total Irrigation Facilities and Crop Pattern. Among them, credit is strongly

correlated with the tractor sale. Nearly 80% of the tractor’s sale is through credit.

Financial Pattern:

As stated above that 80% of the tractor is financed through credit rates essentially through

commercial banks, regional banks, rural banks and state level land development banks. The credit

worthiness of the farmer is ascertained to have minimum holding of 6 areas of cultivated land to be

eligible for loan. However bank can provide a loan on smaller landholding subject to farmer

establishing his credit worthiness. The credit inflow since financial year 1996 is increasing support

from NSBARD. This has already allocated 2000 crores from current year.

HISTORICAL BACKGROUND:

Indian agricultural in the fifties followed age bound tradition and was considered backward. The

country did not produce enough food grain to feed its 36 cores population and famines were

recurrent features. Import of food grains became necessary to meet the short fall in domestic

production, there by causing a drain on scare foreign exchange resources. It therefore became

imperative to high priority to the development of agriculture.

First phase of development (1960-1967):

- 57 -
Farm mechanism made a small beginning in the first five year PLAN. Tractors were imported for

introduction is isolated pockets. However acceptance of mechanization was a slow process due to

lack of awareness about its economic usefulness and versatility.

The decade 1960 saw green revolution both increase in production and productivity with the

parallel emphasis on industry. The birth of Indian tractor industry took place in 1959-60 when

import was restricted & five manufacturing units were set up in private sector all with

collaboration. It was in this background that production of tractors in the country in 1960.

NAME COLLABORATION YEAR OF

COMMENCEMENT
M/S EICHER TRACTORS LTD. WEST GERMANY 1959
M/S HINDUSTAN TRACTORS CZECHOSLOVAKIA 1963

LTD.
M/S TRACTORS & FARM, U.K. 1963

EQUIPMENT LTD.(TAFE)
M/S ESCORTS LTD. POLAND 1964
M/S INTERNATIONAL U.K. 1965

TTACTORS CO. OF INDIA

LTS LATER RENAMED AS

MAHINDRA & MAHINDRA

The total indigenous production of tractors by 1965 was just 6000. The real spurt in mechanization

of agriculture came in the introduction of high yielding variety (HYV) of seeds in 1966-67 and

- 58 -
their enthusiastic adoption by farmers, particularly in the wheat growing northern region. With the

successful introduction and acceptance these high quality seeds there was a upspring in the

demand of tractors in 1967 and demand started multiplying at an annual rate of almost 50%

(1967:1800-1970:33000).A natural consequent of sharp upsurge and consequent shortage was

heavy price premium on tractors : Recognizing the situation , imports of tractors were liberalized

and over and above the domestic production of 20000 in 1970 3000 tractors were imported.

Second phase of development (1968-1980):

Since the pace of indigenous five tractors manufacturing units already set up far below

expectation, the Government decided to provide diligence to the tractor industry in 1968 and

invites new entrepreneurs. Benefiting from this forward-loo

king policy six more units came in during 1971-1974. These were:

NAME COLLABORTION YEAR OF

COMMENCEMENT
M/S ESCORTS TRACTORS U.K. 1971

LTD.
M/S HMT LTD. CZECHOSLIVAKIA 1971
M/S KIRLOSKAR TRACTORS WEST GERMANY 1974

LTD.
M/S PUNJAB TRACTORS LTD. INDIGENOUS 1974
M/S HARSHA TARCTORS USSR 1975

LTD.

Not withstanding the above progress on the setting up to new units. Tractor industry ran into

difficulties from 1969 onwards and by 1972 domestic tractor production stagnated at a level of

20000units primarily due to continuing of imports of tractors. Problem was further compounded by

- 59 -
the oil crisis in 1973-74 and the resultant economic crisis and inflationary pressures, which

persisted till middle of 1975.

The tractor market started slowly pocking up from 1975 (31000tractors) because of relative price

stability , govt. directives of the commercial banks increase rural lending expansion of rural

branches of commercial banks good monsoons which resulted in bumper harvests and accelerated

pace of extension of irrigation facilities . This trend continued throughout the late seventies and by

1979-80 yearly market off take had risen to a level of 62000tractors.

Third phase of development (1980-86):

The buoyancy in the tractor market experienced in the late seventies continued tell

1981-82 when 78000 tractors were sold. The encouraging trend led to the setting up

of more for the manufacture of tractors during 1981-86. These units were:

NAME COLLABORATION YEAR OF

COMMENCEMENT
M/S AUTO TRACTORS LTD. U.K. 1981
M/S PRATAP STEEL INDIGENOUS 1983

ROLLING MILL LTD.

M/S VST TRACTORS LTD. JAPAN 1986

However, the sale of tractors plummeted to a low level of 66000 tractors in the year 1982-83 in the

wake of severe credit squeeze imposed by reserve bank of India.

The demand for tractors again picked up when the credit squeeze was eased and a sale of

80000units was recorded in the year 1984-85 for next year. Tractor industry stagnated causing

closure of five manufacturing units as detailed below

- 60 -
NAME YEAR OF CLOSURE

PINE TRACTORS LTD. 1983

HARSHA TRACTORS LTD. 1987

AUTO TRACTORS LTD. 1987

KISLOSKAR TRACTOR LTD. 1991

PRALAP STEEL ROLLING MILLS 1996

(HARYANA TRACTORS LTD.)

Fourth phase of development(1987 onwards):

In the year 1987-88 the country saw a severe drought situation. This was a difficult period and it

widely anticipated that crop yield would be severely affected. Under such a situation it was

necessary to have provisions for supply of power, to perform farm operation, at proper time in

order to fully exploit the limited moisture content left in soil. The versatility in the tractor became

evident as this vehicle was used for pumping out underground water in this background tractor

industry showed a remarkable growth during this period and all time high sale of 90000 tractors

was recorded in the drought year (1987-88).Fourth phase of development

The growth trend appears to be continuing with relaxation of tractor financing

norms, except for a 2 year slack period due to general economic slowdown and

political turmoil. In fiscal 1997-98 tractors sales refaced an all time high record of

250000.This impressive growth has influenced 3 more players, as listed below, to

enter the market

NAME COLLABORATION YEAR OF

- 61 -
 COMMENCEMENT
INTERNATIONAL TRACTORS INDIGENOUS 1997

LTD.
BAJAJ TEMPO LTD. INDIGENOUS 1997
NEW HALLAND TRACTORS ITALY 1998

(INDIA) PVT. LTD.

JOHN DHEER TRACTORLTD. POLAND 2000

HISTORICAL BACKGROUND OF ESCORTS GROUP

Escorts came into being a vision that led two brothers Yudi Nanda and Hari Nanda to branch out

their family’s prospering transport s business and institute ventures that were to become the

foundations of escorts Ltd. Escorts Agents Limited was born at Lahore on 17 th October 1944 with

Yudi Nanda as Managing Director and Hari Nanda as Chairman. After the owing to opportunity

lying in the Indian village, Escorts (Agricultural Machinery) Ltd. was launched in 1948 with Yudi

Nanda as Director. Tragically Yudi Nanda died in an accident in 1952. Then Escorts agent Ltd.

And Escorts (Agricultural Machine) Ltd. Was merged in 1953 to create single Escorts agents Pvt

Ltd

- 62 -
 SOME MILESTONES

1948 Pioneered farm mechanization in the country by launching Escorts Agricultural Machines Ltd. With a franchise

from a U.S. based MINNEAPOLIS MOLINE, WISCONCIN, for marketing tractors, implements, engines and

other equipments.
1958 Started importing MF tractor from Yugoslavia for marketing the same in India.
1960 A manufacturing plant was set up at Faridabad

1965

1965 Got industrial license to manufacture URSUS/ ESCORT tractors.

169

1969 Escorts signed a contract with FORD MOTOR COMPANY to manufacture Ford 3000 model tractors. Escorts

- 63 -
 Institute of Farm Mechanization (EIFM) was established at Bangalore. This training Institute is one of its kind.
1971 1st February, the first tractor FORD 3000 rolled out of the factory. The same year the turnover touched the Rs.53

million mark.

1973 Escorts Tractors Limited (ETL) declared a healthy Profit Before Tax of Rs.4.725 million.

1974 Export of 400 tractors to Afghanistan - perhaps the worlds largest ever airlift of such equipment.

1975 Turnover crossed the Rs. 200 million mark for ETL. Profit After Tax Rs. 8.7 million. Maiden dividend of 10%
declared.

1976
1976 FORD 3600, advancement in Farm Mechanization, was launched with fanfare to a tremendous reception. Trial

production of in-plant manufacturing of engine parts (Block & Head).

1977
1977 Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27

and E-37. Due to constant technology absorption, indigenization level touched 72% for FORD tractors, which

was a result of relentless effort in that direction.

1979 Turnover crossed the Rs. 50 crores mark. In plant facility for machining centre housing and case transmission,

on built-in line concept, installed

1983 Escorts Tractors Limited (ETL) established a state-of-the-art research and development centre to spearhead
newer breakthroughs in Farm Mechanization and to maintain industry leadership. Line concept introduced for

engine block machining.

- 64 -
 1984 75000th tractor rolled out. A great occasion for the large family that worked for ETL. Newer challenges and
frontiers were set.

1985 In keeping with the stupendous financial success, Escorts Tractors Limited (ETL) offered its first Bonus Issue
(1:1).

1987 50hp FORD 3610 was launched, another leap for the Indian Farm Mechanization Industry, the farmers and the
people of the land.

1988
1988 ETL’s annualized turnover crossed Rs. 100 crores. Dividend: 45% for 15 months.
1989 A MOU with CLAAS was signed for manufacturing &

1990- First Public Issue (February’91) over-subscribed four times. Shares listed on Delhi and Bombay Stock Exchanges.

91
1991- The Crop Tiger range of Combine Harvesters was launched by Escorts Claas Ltd.

92
1993 FORD 3620 tractor launched

1996 Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor.
1997 A Joint Venture with Italian company CARRARO was finalized to establish a company in India for manufacturing

and marketing of transmission and axles.

1998 POWERTRAC series of tractors were launched. A MOU was signed with Long Manufacturing Company, USA
for setting up a Joint Venture in USA.

- 65 -
1999

MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.

2004

Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.
2005
Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006
Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new range of railway
equipment

COLLABORATIONS

Collaboration with international Organization of technological excellence , constant research to

adopt the emerging technology to specify requirement of the market and belief in the philosophy

industrial interdependence have made Escorts today one of the leading trend steers in India’s New

Industrial Culture. Escorts have merged as fraternity of above 50,000 shareholders, 22,000

employees 4,000 ancillary suppliers and 1, 6000 dealers and stockiest all engaged in a large scale

- 66 -
investment and sustained efforts to meet the ever widening market horizons of technological

competence appropriate to India’s unique changing needs.

Escorts believe in incorporating the finest existing technology to meet Indian consumers demands

by collaborating with the internationally renowned companies prominent among these are:

IN GERMANY

 GOETZE AG Piston rings and cylinder liners.

 MAHLE GmbH Piston
 CLASS OHG Harvesters Combines
 KNORR BREMSE AG Railway Brake System
 AUGUST BILSTEIN GmbH Absorbers, Hydraulic products,

Pressure and temperature switches,

automatic valves
IN U.K.

 J.C.BAMFORD EXCAVATORS JCB Excavators loaders Front end Loaders,

Telescopic handlers
IN JAPAN

 KAYABA INDUSTRY CO. LTD. Telescopic Front Forks Car

 MIKUNI SHOKO CO. Carburetors for BI-Wheelers
IN U.S.A

 HUGHESNETWORKS SYSTEMS AB Road Construction Machinery

Vibratory Road Rollers

- 67 -
- 68 -
OFFICIAL ADDRESS OF ESCORTS

Registered Office Corporate

Secretariat & Law

Escorts Ltd.
11, Scindia House,
Connaught Circus,
New Delhi-110 001.
Tel. No. 011-23310145
Fax No. 011-23311715
Escorts Ltd.
15/5, Mathura Road,
Faridabad - 121 003
Tel. No. ( 0129 ) 2250222
Fax: ( 0129 ) 2250060
Email Address: corpsect@ndb.vsnl.net.in
Web Site        : www.escortsgroup.com

- 69 -
 LEADERSHIP TEAM

Mr. Rajan Nanda

Chairman

Mr. Nikhil Nanda

Joint Managing Director

Mr. Rohtash Mal

Executive Director and Chief Executive Officer - Agri Machinery Group

Mr. Manoj Jha

Executive Vice President of Engineering Division

Mr. Kamal Bali

CEO – Escorts Construction Equipment Limited (ECEL)

Mr. G.B. Mathur

Vice President - Law & Company Secretary

Mr. Rakesh Kumar Budhiraja

Group Chief Financial Officer

Mr. Partha Dasgupta

Group Vice President Human Resources and Employee Relations

- 70 -
LEVELS OF MANAGEMENT

MANAGEMENT

TOP SENIOR MIDDLE JUNIOR

MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT

MANAGING CHIEF GENERAL CHIEF ASSISTANT

DIRECTOR & MANGER(G-8) MANAGER MANAGER(G-2)
CEO(G-11) (G-5)

VICE PRESIDENT GENERAL SENIOR EXECUTIVE(G-

(G-10) MANAGER(G-7) MANAGER(G-4) 1)

ASSOCIATE DEPUTY MANAGER(G-3)

VICE PRESIDENT GENERAL
(G-9) MANAGER(G-6)

AMG MISSION

- 71 -
WE WILL ACHIEVE LEADERSHIP IN MARKET SHARE &

PROFITABILITY IN THE DOMESTIC TRACTOR MARKET BY

THE YEAR 2004-2006 AND SHALL BE THE WORLS’S LARGEST

SUPPLIER OF SUB 100 HP TRACTORS. WE SHALL

PROACTIVELY CONTRIBUTE TO THE PROSPERITY OF THE

RURAL ECONOMY BY DEFINING A LARGER ROLE FOR

OURSELVES IN THE FOOD AND AGRICULTURE SECTOR.

- 72 -
 THE VISION

WE SHALL STRIVE TO BE THE NUMERO UNO IN THE INDIAN TRACTOR INDUSTRY

AND TOP FIVE TRACTOR MANUFACTURERS IN THE WORLD.

WE SHALL CONTINUOUSLY STRIVE TO MEET THE EVER RISING EXPECTATIONS

OF OUR VALUED CUSTOMERS AT THE LOWEST INTERNAL COST.

WE SHALL AIM TO OFFER THE FARMING COMMUNITY A RANGE OF INNOVATIVE

PRODUCTS AND SERVICES, WHICH SHALL ENABLE THEM TO IMPROVE THEIR

PRODUCTIVITY AND COMPETITIVNESS.

WE SHALL ACHIEVE A TURNOVER OF RS. 2 BILLION BY THE YEAR

2006.TRANSCENDING NATIONAL BOUNDARIES, WE SHALL STRIVE TO ATTAIN

EXPORTS OF ONE TENTH OF OUR TOTAL TRACTOR PRODUCTION BY THE YEAR

2007

AMG STRATEGIES 2004-2007

1. INSTITUTIONALIZE SYSTEMS TO CONTINUOSLY ASSESS CUSTOMER NEEDS AND CONCERNS

2. IMPROVE RESPONSE TIME FOR DEVELOPMENT AND INTRODUCTION OF TECHNOLOGICALLY

SUPERIOR

& COST COMPETITIVE PRODUCTS.

- 73 -
 3. BUILD AN R&D ORGANISATION CAPABLE OF MEETING MAKET REQUIMENT OF QUALITY, PRICE AND

SPEED.

4. GLOBAL QUALITY STANDARDS OF PRODUCTS AND MANAGEMENT.

5. FOCUSSED AND AGGRESSIVE MARKETING, SELLING ANS CUSTOMER SERVICE STRATEGIES.

6. WORLD CLASS DISTRIBUTION SYSTEM ADAPTED TO THE INDIAN CONTEXT.

7. ENSURE RAPID GROWTH IN EUROPE AND NORTH AMERICAN MARKET.

8. INSTITUTIONALIZE SYSTEMS FOR TIMELY BUSINESS INTELLIGENCE ON PRODUCTS, MARKETS,

STRATEGIES, TACTICS, SYSTEMS, ETC.

9. IMPROVED EFFICIENCY AND PRODUCTIVITY AT ALL LEVELS THROUGH CONTINOUS IMPROVEMENTS

OF SYSTEMS & PROCESSES.

10. LOW COST BASE – FIXED AND VARIABLE .OPTIMIZATION OF MANPOWER NUMBER ACROSS AMG.

(OUTSOURCING TO IMPROVE CAPACITY UTILIZATION)

11. ENHANCE TRANSPARENCY & RELATIONSHIP WITH SUPPLIERS AND IMPROVE VENDOR PROCESS FOR

LONG TERM COST ADVANTAGE.

12. ENHANCE COMMITMENT, ACCOUNTIBILITY, PASSION, OWNERSHIP, POSITIVE ENERGY , TEAM

WORKING

AND PROACTIVE CULTURE IN AMG.

13. ENHANCE QUALITY AND SPEED OF EXECUTION, IMPLEMENTATION & COMMUNICATION ACROSS AMG.

14. INSTITUTIONALIZE PROJECT MANAGEMENT TO ENHANCE EFFICIENT IMPLEMENTATION ACROSS AMG.

15. ESTABLISH ‘GOAL CONGRUENCE “WITH THE EMPLOYEES UNION ANS A LONG TERM MATURE

HARMONIUS RELATIONSHIP FOR A WIN-WIN IR ENVIORNMENT.

- 74 -
 MODELS OF TRACTORS

   
 
    Most fuel efficient and tractor which   Reliable and trustworthy with a
has best value for money powerful feel. Low maintenance cost  

Most powerful tractor in its range

with excellent productivity in terms
of output

   
 
   

- 75 -
 ESCORTS

S. NO. DESCRIPTION
1. E-325
2. E-335
3. E-340
4. E-335

FARMTRAC

S. NO. DESCRIPTION
1. FT-45
2. FT-50
3. FT-55
4. FT-60
5. FT-70

POWERTRAC

- 76 -
 S.NO. DESCRIPTION
1. P-430
2. P-435
3. P-440
4. P-455

CHAPTER -4:

- 77 -
 Data Analysis and Interpretation

STEP: 1: Data is collected from the personal files of the employees resigned in 2006( January
till march).

- 78 -
STEP: 2: Reasons given by them are marked as 1 to make the study simple to understand
and to analyses it.

Step 1: Total no. of people resigned from each department.

DAMM
Manuf

IT
R&D

Names

- 79 -
ARCHANA HAK 1
MOHAN SHARMA 1
ARGHYA ROY 1
SOUVIK LAHIRI 1
HANUMAN SINGH 1
VINAY PANDEY 1
K N S V RAMA RAO 1
RAJEEV KUMAR
SOLANKI 1
J V SANTOSH 1
T N V MURALI KRISHNA
RAO 1
TARVINDER SINGH
ANAND 1
MUKESH LOHAN 1
PAWAN BAHL 1
KAMLESH KUMAR 1
TUSHAR KAUL 1
M S RAMASAMY 1
VIKAS SHARMA 1
AKSHAT BHARDWAJ 1
KAILASH CHAND
DUDEJA 1
DEEPAK KATYAL 1
NEERAJ SAINI 1
RAJAN ARYA 1
SATISH DAULATRAO
DHANDOLE 1
V KHOSLA 1
BHASKAR CHANDOLA 1
VIKAS DHIMAN 1
AMIT KAUSHAL 1
SARBJIT SINGH 1
KAMAL KISHORE 1
_____________
Total 2 20 5 2

- 80 -
 Departments
Jan'06 till 31st mar'06
25

20
20

15
Manufacturing
AMMD
R&D
IT
10

5
5

2 2

0
Total
Manufacturing 2
AMMD 20
R&D 5
IT 2

STEP: 2: Reasons for leaving given by the employees are codified. These reasons are taken
form the form filled by them during the exit interview. Some of the reasons are given to the
interviewer.

- 81 -
 S. NO. REASONS
1 Over all Work Culture
2 Working hours
3 Physical working environment
4 Leisure time/Leave and holidays
5 Spirit of cohesiveness and team work
6 Job challenge and satisfaction
7 Work commensuration to qualification & experience
8 Work content
9 Involvement and participation in decision making
10 Delegation of authority and responsibility
11 Recognition and Rewards
12 Objectivity of the appraisal process
13 Opportunities for career growth
14 Opportunity for learning and self development
15 Openness of the appraisal and feedback
16 Objectivity in promotion/increments/rewards
17 Quality of superior –Subordinate relationship
18 Relationship with immediate superior
19 Support and guidance from superiors
20 Cooperation from colleagues
21 Present level of salary
22 Perquisites and fringe benefits
23 Employee welfare scheme

Step 3: Reasons marked

Experiencework comensurating to qualification &

Involvement and participation in decision making

Openness of the appraisal and feedback system

Objectivity in promotions/increments/rewards

Quality of superior -Subordinate relationship

Opportunity for learning & self development
Delegation Of authority & responsibility

Support & Guidance From superior

Objectivity of the appraisal process

Support &guidance from superiors

spirit of cohesiveness & team work

Opportunities for career growth

Employee Welfare Scheme

Leisure time/Leave & holidays
physical working environment

Perquisites & fringe benefits

Job challenge & satisfaction

Recognition & Rewards

Present level of salary

over all work culture

working hours

work content

Names

- 82 -
Ms.AR
CHAN
A 1 1 1 1 1 1 1 1 1
Mr.M
OHAN 1 1 1 1 1 1
Mr.AR
GHYA 1 1
Mr.SO
UVIK 1 1 1 1 1 1 1 1 1 1 1 1
Mr.HA
NUMA
N 1 1 1 1 1 1 1 1 1 1
Mr.VI
NAY 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.RA
MA
RAO 1
Mr.RA
JEEV 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.SA
NTOS
H 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.M
URALI 1 1 1 1 1
Mr.TA
RVIN
DER 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.M
UKES
H
Mr.PA
WAN
Mr.KA
MLES
H 1 1 1
Mr.TU
SHAR 1 1 1 1 1 1 1 1
Mr.RA
MASA
MY
Mr.VI
KAS 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.AK
SHAT 1 1 1 1
Mr.KA
ILASH 1
Mr.DE
EPAK 1 1 1 1 1
Mr.NE
ERAJ 1 1 1 1 1 1 1
Mr.RA
JAN 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.SA
TISH 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mr.KH 1 1 1 1 1 1 1 1 1

- 83 -
OSLA
Mr.BH
ASKA
R
Mr.VI
KAS 1 1
Mr.A
MIT 1 1 1 1 1 1 1 1 1 1 1 1
Mr.SA
RBJIT 1 1 1 1 1 1
Mr.KA
MAL 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

__ __
_ _
2
Total 8 5 9 3 7 8 13 9 11 13 18 13 14 10 10 18 6 6 6 0 16 10

- 84 -
 Exit jan'06 till 31st mar'06

10 employee welfare scheme

16 Perquisites & frindge benefits
20 Present Level of salary
6
Cooperation from colleagues
6
support and guidance from sup
4
6 Realtionship with imm sup
18 Quality of superior -Sub real
10 Object in promotions/incre/rewards
10 Openness of the app & feedback sys
14 Opp for learning & self develop
Total 13
eters

Opp for carrer growth

Param

18
Object of App process
13
11 recog & rewards
9 Delegation of authority & res
13 Involvement & Part in decesion making
8 Work content
7 work comensurat to quali & exp
3
Job challenge & team work
9
Spirit of cohes & team work
5
Leisure time/Leaves & Holidays
8
Physical working environment
working hours
0 5 10 15 20 25
Over All work culture
no. of resignations

Step 4: Reasons given in the exit form

bossRelationship with
Locational Problem

Work environment
Self employment

Family Problem
Health Problem

Any Other (Plz

Higher studies

Specify)
Better Job

low salary

Names
ARCHANA HAK
MOHAN SHARMA 1

- 85 -
ARGHYA ROY 1
SOUVIK LAHIRI 1 1
HANUMAN SINGH 1
VINAY PANDEY 1 1
K N S V RAMA RAO 1
RAJEEV KUMAR
SOLANKI 1
J V SANTOSH 1
T N V MURALI
KRISHNA RAO 1 1
TARVINDER SINGH
ANAND 1
MUKESH LOHAN 1
PAWAN BAHL 1
KAMLESH KUMAR 1
TUSHAR KAUL 1
M S RAMASAMY 1
VIKAS SHARMA 1 1
AKSHAT BHARDWAJ 1
KAILASH CHAND
DUDEJA 1 1
DEEPAK KATYAL 1 1
NEERAJ SAINI 1
RAJAN ARYA
SATISH DAULATRAO
DHANDOLE 1 1 1
V KHOSLA 1
BHASKAR
CHANDOLA 1
VIKAS DHIMAN 1
AMIT KAUSHAL 1
SARBJIT SINGH 1
KAMAL KISHORE 1 1
Total 1 5 20 6 1 3

- 86 -
 Reasons Of Resignation jan,06 till 31st mar'06

20

20

18

16

Heigher Studies
14
Self Employement
Health Problem
12
Locational Problem
Family Problem
10 Better job
Relationship with boss
8 Low Salary
6
Work Enviroment
6 5
Any Other

4 3

1 1
2

0
Total

Step 5: Analysis

Weaknesses Analysis
appraisalPerformance
No Carrer Growth
Low Pay Packages
Slow Decision

Coordnation
No Rewards

Work Load

Names
ARCHANA HAK 1 1
MOHAN SHARMA 1
ARGHYA ROY 1
SOUVIK LAHIRI 1 1
HANUMAN SINGH 1
VINAY PANDEY 1

- 87 -
K N S V RAMA RAO
RAJEEV KUMAR
SOLANKI 1 1 1
J V SANTOSH
T N V MURALI
KRISHNA RAO 1 1 1
TARVINDER SINGH
ANAND
MUKESH LOHAN
PAWAN BAHL
KAMLESH KUMAR 1 1
TUSHAR KAUL 1 1
M S RAMASAMY
VIKAS SHARMA
AKSHAT BHARDWAJ 1
KAILASH CHAND
DUDEJA 1
DEEPAK KATYAL
NEERAJ SAINI 1 1 1
RAJAN ARYA 1 1
SATISH
DAULATRAO
DHANDOLE
V KHOSLA 1
BHASKAR
CHANDOLA
VIKAS DHIMAN 1
AMIT KAUSHAL 1
SARBJIT SINGH 1
KAMAL KISHORE 1 1
_____________________
Total 6 8 2 6 5 2 2

- 88 -
 Weaknessess Analysis

7
6

6
5

Low Pay Packages

5
No Rewards
No Carrier Growth
4 Coordination
Performance Appraisal
Work load
3
2 2 2

0
1

STEP: 6: CLUBBING OF REASONS: All the reasons and their facts:

By analysising all the reasons , the conclusion took majorly towards :

 Low salary packages

 No career growth
 No Coordination of work or improper coordination of work.

- 89 -
 CHAPTER:5

RECOMMENDTION
&
SUGGESTION

- 90 -
RECOMMENDATIONS: Bottom Line of HR initiatives

As my scope of study is on recruitment process and recruitment process is the foremost &
important process in every organization.

 It should be more systematic

 The process should be more transparent.

 The company should made online process for filling PP Form and the PI form i.e. the
predictive index form so that the process become less time consuming and shortlisting of
candidates should be done more easily which can help the organization to call up only those
person who are eligible and fit to their vacancy and can save money and time both.

 The organizations need some more professionals in the HR department which help the
organization to achieve their goals and to move the process smoothly and fastly.

- 91 -
 SUGGESTIONS AND CONCLUSION

As a result of my study of HR practices at escorts , I must conclude that HR practices and

procedures at escorts are very sound and effective , however the consideration of the following
points will definitely help the management

NEED FOR MANPOWER PLANNING:

(1) To carry on its work, each organization needs personnel with the necessary qualifications,
skills, knowledge, work experience and aptitude for work. These are provided through
effective manpower planning.

(2) Since a large number of persons have to be replaced who have grown old, or who retire, die or
become incapacitated because of physical or mental ailments, there is a constant need for
replacing such personnel. Otherwise, the work would suffer.

(3) Human resource planning is essential because of frequent labour turnover which is
unavoidable and even beneficial because it arises from factors which are socially and
economically sound such as voluntary quits, discharges, marriage, promotions, or factors such
as seasonal and cyclical fluctuations in business which cause constant ebb and flow in the
workforce in many organizations.

(4) In order to meet the needs of expansion programmes human resource planning is unavoidable
(it becomes necessary due to increase in the demand for goods of the same goods and services
with growing population, a rising standard or living --- large quantities of the same goods and
services are required.

(5) The nature of the present workforce in relation to its changing needs also necessitates the
recruitment of new labour. To meet the challenge of a new and changing technology and new
techniques of production, existing employees need to be trained or new blood injected in an
organization.

(6) Manpower planning is also needed in order to identity areas of surplus personnel or areas in
which there is a shortage or personnel. If there is a surplus, it can be redeployed; and if there
is shortage, it may be made good.

- 92 -
(A) manpower planning:

Manpower planning fulfills individual, organizational and national goals. The main purpose is one
of matching or fitting employee’s abilities to enterprise requirements, with an emphasis on future
instead of present arrangements. The objectives may be laid down for a short-term (i.e., for one
year). For example, the short-term objective may be to hire 25 persons from Scheduled tribes or
Backward Class for purposes of purposes of training. The long-term objective may be to start a
new industry, to expand the market, to produce a new product, to develop its own sales force rather
than depend on distributors, or to have minority group members eventually in position of middle
and upper management cadres.

(B) Forecasting the manpower requirements:

The management must estimate the structure of the organization at a given point in time. For this
estimate, the number and type of employees needed have to be determined; many environment
factors affect this determination. They include business forecasts, expansion and growth, design
and structural changes, management philosophy, government policy, product and human skills
mix, and competition.

After estimating what the future organization structure should be, the next step is to draw up the
requirements of human resources, both for the existing departments and for new vacancies.

In determining the requirements of human resources, the expected losses which are likely to occur
through labour turnover --- quits, retirement, death, transfers, promotions, demotions, dismissals,
disability, resignations, lay-offs, and other separations --- should be taken into account.

It may be noted that for purposes of manpower planning, the main dimensions to be taken into
consideration are:

(i) The total number of personnel available, this could be obtained from the payrolls and other
personnel records, such as the applications for employment.

- 93 -
(ii) The job-family, i.e., a detailed job-description for each position such as stenographers who
may belong to various departments, e.g., finance, marketing, personnel, public relations,
general administration, etc.

(iii) Age distribution of the employees, available in the present departments, says in the age-
groups 20-29 years; 30-45 years; 46 years and above.

(iv) Qualification and experience desired, such as a person with 5 years or 10 years experience
in a particular branch/job; and wither under-graduate, post-graduate, diploma holders, etc.;
or with specialized knowledge in the field of marketing, finance, computer programming or
engineering work.

(v) The salary range, etc.

(C) Auditing human resource:

Once the future human resource needs are estimated, the next step is to determine the present
supply of manpower resources. This is done through what is called “Skills Inventory.” A skills
inventory contains data about each employee’s skills, abilities, work preference and other items of
information which indicate his overall values to the company.

Some organizations do not compile a Skills Inventory but prepare Organization Charts to
determine “how many people, at what level, in what position and what kind of person’s age, the
number of years he has been in a particular position, and his fitness for promotion.

Once the present manpower resources are determined, the personnel department can estimate what
changes will occur in the present labour force in the next few years, say, 5 years.

- 94 -
(D) Job analysis:

After having decided how many persons would be needed, it is necessary to prepare a job analysis,
which records details of training, skills, qualifications, includes the preparation of job description
and job specifications. This has been discussed in the later section of this chapter.

(E) Developing a human resource plan:

This step refers to the development and implementation of the human resource plan, which
consists in finding out the sources therefore, is to decide on the policy --- should the personnel be
hired from within through promotional channels or should it be obtained from an outside source.
The best policy which is followed by most organization is to fill up higher vacancies by promotion
and lower level position by recruitment from the labour market.

LIMITATIONS:

The project has inherent limitations due to its potential scope.

Major ones are:

 Six weeks is too short to give shape to a new idea in an old set up like Escorts.

 Less importance to long term operational benefits.

 An expense for HR Department is not viewed as investment.

Since Escorts is a large organization with its strongly set business practices, so extensive efforts
and change in organizational thinking will be necessary in order HR Department.

- 95 -
 CHAPTER-6

BIBLOGRAPHY

- 96 -
Books & Journals:

Human Resource Management: Stephen P.Robbins

Mirza Saidanima
Ashwathappa

Websites:

1) www.escortsagri.com
2) www.escortsgroup.com
3) www.google.com
4) www.findarticles.com

MANUALS FROM THE ORGANISATION

- 97 -
 CHAPTER-7

ANNEXURES

- 98 -
- 99 -
- 100 -
- 101 -
- 102 -
 PERSONAL INDEX FORM (PSYCHOMETRIC TEST)

PI THE PREDICTIVE INDEX ENGLISH

Organization Survey PAGE 1
Checklist

Name: Date:

Occupation:

DIRECTIONS: Please read the words in the list below and check those that you feel describe the
way you are expected to act by others.

Helpful: - Esteemed: - Calm: - ______

Relaxed: - Worrying: - Popular: - _____
Exciting: - Sentimental: - Polite: - _____
Assertive: - Adventurous: - Dynamic: -
Patient: - Easy going: - Good-humored:-
Conscientious:- Unassuming: - Escapist: -
Sophisticated: - Good mixer: - Generous: -
Persistent: - Agreeable: - Unobtrusive: -
Earnest: - Well-liked: - Daring: -
Outstanding: - Docile: - Tolerant: -
Sympathetic: - Demanding: - Nice: -
Loyal: - Charitable: - Compelling: - _____
Self-starter: - Persuasive: - Resolute: -
Conventional:- Careful: - Tranquil: -
Eloquent: - Satisfied: - Cultured: -
Cynical: - Understanding:- Dominant: -
Passive: - Spirited: - Respectful: -
Gentle: - Congenial: - Nonchalant: -
Brave - Obedient: - Flexible: -
Appealing: - Cheerful: - Attractive: -
Thoughtful: - Obstinate: - Trusting: -
Self-assured: - Convincing: - Eager: -
Steady: - Responsive: - Shy: -
Competitive: - Neighborly: - Fussy: -
Fashionable: - Selfish: - Versatile: -
Neat: - Reserved: - Amiable: -
Audacious: - Serious: - Diplomatic: -
Polished: - Persevering: - Self-centered: -
Fearful: - Consistent: -
Copyright 1955, 1963, 1988, 1992 by Arnold S. Daniels. All rights reserved. No part of Continue on other side of
this form may be reproduced by any means, nor transmitted, nor translated into a machine Page
language without the written permission of the publisher.

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PI

Organization Survey PAGE 2

Checklist

Name:

Start on other side of page.

DIRECTIONS: Continue by reading the words in the list below, now checking those that you
yourself believe really describe you.

Helpful: - Esteemed: - Calm: -

Relaxed: - Worrying: - Popular: -
Exciting: - Sentimental: - Polite: -
Assertive: - Adventurous: - Dynamic: -
Patient: - Easy going: - Good-humored:-
Conscientious:- Unassuming: - Escapist: -
Sophisticated: - Good mixer: - Generous: -
Persistent: - Agreeable: - Unobtrusive: -
Earnest: - Well-liked: - Daring: -
Outstanding: - Docile: - Tolerant: -
Sympathetic: - Demanding: - Nice: -
Loyal: - Charitable: - Compelling: -
Self-starter: - Persuasive: - Resolute: -
Conventional: -__ Careful: - Tranquil: -
Eloquent: - Satisfied: - Cultured: -
Cynical: - Understanding:- Dominant: -
Passive: - Spirited: - Respectful: -
Gentle: - Congenial: - Nonchalant: -
Brave: - Obedient: - Flexible: -
Appealing: - Cheerful: - Attractive: -
Thoughtful: - Obstinate: - Trusting: -
Self-assured: - Convincing: - Eager: -
Steady: - Responsive: - Shy: -
Competitive: - Neighborly: - Fussy: -
Fashionable: - Selfish: - Versatile: -
Neat: - Reserved: - Amiable: -
Audacious: - Serious: - Diplomatic: -
Polished: - Persevering: - Self-centered: -
Fearful: - Consistent: -

FORMAT OF MEDICAL LETTER

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 Dated __________

_______________________
_______________________
_______________________

Dear __________________

We are pleased to enclose your letter of Offer. Please return the duplicate copy of the same duly
signed in token of your acceptance.

We would appreciate your joining us on or before the date mentioned in offer letter. You are
requested to communicate the precise date of your taking up the assignment. If you do not join us
by this date, we shall treat this offer as withdrawn.

You are requested to undergo your pre-employment medical check-up in a hospital of repute near
your place and forward to us the complete report along-with x-ray etc. The bill will be reimbursed
to you on joining. The medical tests, which are to be undergone, are given below. Please do not
process your papers with your present employer till you receive the Medical Fitness from us.

1. E.C.G.,
2. Normal Hemogram,
3. Chest X-ray,
4. Lever Function test,
5. Blood Sugar - Fasting & PP,
6. Physical check-up by specialist.

Kindly bring the following documents, when you come to join at Escorts Limited, 18/4
Mathura Road, Faridabad-121007 (Haryana).

 Four copies of passport size photograph (Self).

 One passport size photographs of your dependent family members (Wife and two
children’s)
 Photostat copies of the following and original (for verification).
 School leaving certificate showing the date of birth,
 Educational qualification certificates along with all semester Mark sheets,
 Experience certificate, for the previous employment (if applicable),
 Relieving certificate from last employer,
 Proof of last drawn salary along with break-up.

for ESCORTS LIMITED

(AUTHORIZED SIGNATORY)

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 FORMAT OF JOINING LETTER

Dated_______________

__________________
__________________
__________________

Dear _____________________,

Subsequent to the recent discussions you had with us, we are pleased to make the following offer:

POSITION : _______________________
GRADE : G – 2.
DEPTT/DIVISION : Agri Machinery Marketing Division.
BASIC SALARY : _______________________
DATE OF JOINING : _______________________

You will be entitled to other allowances, benefits and privileges in accordance with the Company's
rules relating thereto, from time to time.

If this offer is acceptable to you, kindly confirm to us by returning the duplicate copy of this letter
duly signed within a week's time.

We would like you to join us latest by the above-mentioned date. If you do not join us by this
date, we shall treat this offer as withdrawn.

Your appointment with us will be subject to your being found Medically fit by the Company’s
Medical Officer.

A formal letter of appointment will be issued to you on your joining duty with us.

We look forward to having you with us soon.

for ESCORTS LIMITED

(AUTHORIZED SIGNATORY)

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 JOINING CUM CHECKLIST

AGRI MACHINERY GROUP (HRD)

TO : PERSONNEL DEPT (PL-1) DATE : ____________

JOINING REPORT – CUM – CHECK LIST

Mr/Mrs. ______________, whose details are appended below, has joined the organisation on
_____________.

Name : __________________
Father's Name : __________________
Present Address : __________________
Permanent Address : __________________
: __________________
Previous P.F. No.(If any) : __________________
ESI No. (if applicable) : __________________
Blood Group : __________________
DOB : __________________
Qualification : __________________
DOJ : __________________
Designation : __________________
Basic : __________________
Grade : __________________
Dept / Division : __________________
Reporting to : __________________
EIN : __________________
C.C. : __________________

Signature Of Employee ……………..

Certified that the person whose particulars are given above has joined the Company. You are
requested to take necessary action at your end.

SECTION SIGNATURE SECTION SIGNATURE

Security Canteen
Time Office Transport
ESI / MIHS PF / Gratuity
Social Security Scheme Welfare & ID Card
ISD Reporting Officer

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 INTERVIEW QUESTIONS
Knowledge:

1. What do you think a [insert position title] should be?

2. How have you prepared yourself for this kind of position?
3. What have you been doing to keep up to date in your field?
4. How would you rate your level of expertise in [insert major function to be performed]
compared with others in similar positions? Why do you rate yourself that way?
5. In which areas do you feel you need to upgrade your knowledge? Why do you feel that
way?
6. What improvements did you introduce in your last position?
7. How good is your knowledge of [insert essential knowledge area]. Please briefly
summarize that for me?

Skills:

1. Tell me about the 2 or 3 biggest problems you have encountered in your work, and how
you handled them.
2. What would you say are your 3 major strengths? How will these strengths help you in this
position?
3. What would you say are your principal weaknesses or shortcomings? How might these
interfere with your success in this position? How might you overcome them?
4. What was the most creative or original contribution you made to your last organization?
5. Could you describe a few situations in which your work was criticized? How did you
handle that?
6. What skills or abilities do you possess which have not yet been used in your career?
7. How skillful are you at [insert a major function to be performed]? Describe a situation
where you needed that skill.

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8. How skillful are you at [insert a major function to be performed]? Where have you used
that skill in the past?
9. How many people were in the largest group that you have supervised? What kinds of
positions were involved?
10. What has been the hardest thing you have ever had to do as a manager? How did you
approach that?

11. As a manager, what do you look for when you are selecting people for your team?
12. Describe a situation where you had to deal with a poor performer. How did you handle
that?
13. Tell me about your approach to motivating employees.
14. If you had a general morale problem among your subordinates, what would you do about
it?
15. How would you set about building an effective work team in your branch/department?
16. If you had to choose between retaining a poor performer and operating with a short-staffing
situation, which would you choose?
17. What would you do if you discovered an employee taking illegal drugs or drinking on the
job?
18. What would you do if you suspected that two of your unmarried employees have an
intimate relationship? How would your approach be different if you had proof of such a
relationship?
19. What would you do if you suspected that two of your married employees are having an
extramarital affair? How would your approach be different if you had proof of the affair?
20. How would you respond if a subordinate asked you directly about an organization
change/downsizing that had not yet been announced?
21. What would you do if you suspected, but could not prove, that a subordinate was selling
the organization's property for personal gain? How would your approach be different if you
had proof?
22. What would you do if you suspected that an employee was conveying sensitive
Information to an outside party/the media/a competing organization?
23. What would you do if you suspected that an employee was selling member contact

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 information to someone compiling mailing lists?
24. What would you do if you discovered that a group of employees was having discussions
with a union organizer?
25. What would you do if two of your subordinates refused to co-operate with each other?
26. What would you do if an subordinate was charged with a criminal offence?
27. What would you do if a subordinate accused another employee of sexual harassment?
28. What would you do if another manager's subordinate came to you with a serious complaint
about her manager?
29. What would you do about an employee who is chronically late for work?
30. What would you do about an employee who exhibits excessive absenteeism?

31. What would you do about an employee who appears to be padding her out-of-pocket
expenses?
32. What would you do about an employee who spoke abusively to a customer?
33. How would you convince employees to reduce unnecessary waste and costs?
34. What do you think would affect productivity levels in an operation like this?
35. If you had to choose between satisfying a [client/customer/member] and following policy,
which would you choose?
36. Tell me how you would expect to spend your time in a typical day in this position?

Interests:

1. What do you want to be doing 5 years from now?

2. If you had complete freedom of choice, what would you choose to be doing at this stage in
your life?
3. What did you like best about your last job?
4. What did you like least about your last job?
5. What do you want to avoid in your next job?
6. Where do you see your career going in the longer run?
7. How did you get into this field?

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8. Why did you select the educational program you chose?
9. Which courses did you like best?
10. Which courses gave you the most difficulty?
11. What do you enjoy most about being a manager?
12. What have been the major surprises you encountered in being a manager?
13. What are you doing to continue developing your management skills?
14. What are the qualities that make for a great manager?
15. Which work-related organizations have you joined?
16. What kinds of books and periodicals do you read?
17. How do you spend you leisure time?
18. If you had it to do over again, would you take the same [education/career path]? Why/Why
not?

Values:

1. What is your definition of success?

2. Who has exercised the greatest influence on you? What did you learn from her/him?
3. For what kind of organization can you do your best work?

4. What are the qualities that make for a great organization, in your opinion?
5. What do think might be your most important contribution to our organization?
6. What would make an organization unattractive to you as a prospective employer.
7. What would you expect would happen if you and a fellow employee could not cooperate?
8. What would you expect would happen if you were often late for work or absent?
9. What would you expect would happen if you were discovered drinking or using illegal
drugs on the job?
10. What would you expect would happen if a client/member/customer complained about your
work, or the way you spoke to her/him?
11. What would you expect would happen on your first day on the job?

- 111 -
Working Climate:

1. Why are you interested in joining our organization?

2. Why are you looking for a new position right now??
3. Describe your [last/current] boss. How did you get along with her/him?
4. What makes you angry or frustrated?
5. What makes you feel happy or satisfied?
6. Describe the person you would like to report to.
7. Have you ever been fired? Tell me about it.
8. When you call an employee into your office, what do they expect is going to happen?
9. On the Friday before a long holiday weekend, if you had to choose between working
overtime yourself, or having a subordinate work overtime, which would you choose?
10. If you had to choose between solving a problem for a key customer, or solving a problem
for a key employee, which would you choose?

11. If your planned annual vacation conflicted with a major problem arising at work, what
would you do?
12. How many hours per week, on average, do you put in on the job? Is that about right?
13. Describe you management style.
14. What kind of people do you like to work with?
15. Why did you close down your business?
16. If we called your [last/current] employer, what would they tell us about you?
17. If we talked to your previous/current subordinates, what would they tell us about you?

18. Does your present boss know you're looking? How did she become aware of that?
19. How long do you think you would stay with us?
20. For each of your previous jobs, please tell me the reason for leaving.
21. Do you have any weaknesses on or off the job that I should know about?
22. How would you describe your use of alcohol?
23. How would your [last/current] boss describe you?

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24. How would your best friend describe you?
25. Describe your personality for me.
26. How many hours per week, on average, would you expect to put in on the job?
27. Have you ever been affected by organization politics? Tell me about it.
28. Describe your method of working.
29. What kind of people do you like to work with?
30. Why is it taking so long for you to find a new job?
31. In your last organization, were you satisfied with your rate of advancement? To what do
you attribute your rate of progress?
32. There seem to be some gaps in your résumé. Would you explain those for me?
33. What do you know about our organization?
34. What appeals to you about us?
35. What concerns do you have about joining us?
36. What salary were you receiving in your last position?
37. What do you expect to be earning in 3 years?
38. Who could we check with for references?

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