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Concentration, dedication and application are necessary but not sufficient to achieve my goal. They must be awarded by guidance, assistance and cooperation of some people to make it enable. Many people have given their valuable time and ideas to enable me to complete my project and project report. I am deeply indebted to all for their ideas and assistance, and I bear the entire responsibility for any kind of weaknesses in my report, if any. I am highly obliged to express my praise and profound thanks to Mr. Vivek Tripathi (Reporting Officer) for his expert guidance and cooperation and also to Ms. Neha Swati valuable advice. Lastly, I would like to thank all those, who have, directly or indirectly, helped me in making the project. (Circle HR) for their supervision, encouragement and
DECLARATION BY THE LEARNER
This is to declare that I have carried out this project work myself in part fulfillment of the PGDBM Program of TAXILA BUSINESS SCHOOL .
The work is original, has not been copied from anywhere else and has not been submitted to any other university/Institute for an award of any degree/diploma.
About Mahindra & Mahindra Group
The Mahindra Group is an Indian multinational conglomerate company headquartered at Mahindra Towers in Mumbai, India, with operations in 79 countries across the globe. Mahindra & Mahindra limited was started on October 2, 1945 by the Mahindra brothers alongwith a distinguished gentleman named Ghulam Mohammad. The company was then named as Mahindra & Mohammad. It was set up as a franchise for assembling jeeps from Willys, USA. Following the Partition of India in 1947, Malik Ghulam Mohammad left the company and emigrated to Pakistan where he became the first finance minister of the new state. In 1948, Keshub Mahindra (Chairman of the company), changed the company‟s name to Mahindra & Mahindra. By 1956, the company was listed on the Bombay Stock Exchange, and by 1969 the company had entered the world market as an exporter of utility vehicles and spare parts. Mahindra & Mahindra created a tractor division in 1982 and a tech division (now Tech Mahindra) in 1986. It has continue to diversify its operations ever since through both Joint Ventures and Greenfield Investments. By 1994, the Group had become so diverse that it undertook a fundamental reorganisation dividing into six strategic business units: Automotive, Farm Equipment, Infrastructure, Trade and Financial services, Information Technology and Automotive components. In 2002, there was a successful launch of Mahindra Scorpio. Together with an overhaul in production and manufacturing methods, these changes helped make the company more competitive, and since then the Group's reputation and revenues have risen noticeably. Currently, Mahindra & Mahindra is one of the 20 largest companies in India. In 2009, Forbes ranked Mahindra among the top 200 most reputable companies in the world. In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify Mahindra's image across industries and geographies. The brand positions Mahindra products and services as aspirational, supporting customers' ambitions to 'Rise.'
Farm Equipment 3. Divisions of Mahindra & Mahindra Group 1. marketing and distribution which are key to its evolution as a customer-centric organisation. are testimony to our determination to provide our global customers with quality products and reliable service. The Group employs over 75. 6 . Mahindra Defence 7. Automotive 2. Club Mahindra Holidays 6.000 people and has several state-of-the-art facilities in India and overseas. Africa and South-America and assembly plants in Brazil and Egypt.With over 62 years of manufacturing experience. Banking & Finance 4. Our strategic operations in Eurasia. the Mahindra group has built a strong base in technology. Infrastructure & Real Estate International Operations of Mahindra & Mahindra Mahindra has been marching globally and has established presence across all the continents barring Antartica. Information Technology 5. engineering. Mahindra Aerospace 8.
Its name was changed to Mahindra & Mahindra Financial Services Limited on November 3. 1991 as Maxi Motors Financial Services Limited and received certificate of commencement of business on February 19. 1934. MMFSL(Mahindra Finance) is one of the leading non-banking finance companies focused on providing finance for utility vehicles.Mahindra & Mahindra Financial Services Limited (MMFSL) About MMFSL Mahindra & Mahindra financial services limited is a subsidiary of Mahindra & Mahindra Limited. 1992. History of MMFSL MMFSL was incorporated on January 1. tractors and cars in the rural and semi-urban sector. 1998 under Section 45IA of the Reserve Bank of India Act. a leading tractor and utility vehicle manufacturer with over 62 years of experience in the Indian market. It is also registered with the Reserve Bank of India as a nonbanking Financial Corporation with effect from September 4. 8 . 1991.
We will target all segments of vehicle financing and deploy the skills acquired through an in-depth understanding of the chosen product market. In case of demand-supply mismatch of funds. We will provide products and services tailored to the needs of M&M. we will do everything to find a solution.THE VISION AND THE MISSION The Vision The vision of the company is as follows: Our vision is to be the leading Rural Finance Company and continue to retain the leadership position for Mahindra Products. our most favoured customer. services and help M&M protect its sale through availability of finance. 9 . and always meet their needs. tractors. The Mission We will be recognised as the premium provider of financial services on the basis of our contribution to the sale of Mahindra range of vehicles. We will help M&M develop better products by providing first-hand information received from the target market. We will specialize in financing products based on applications and build on the competence developed in its focus area.
Management. Doshi Mr. Y. U. The primary responsibility of the Board of Directors includes: Overseeing high standards of corporate governance and compliance with various laws Overseeing our financial management and approving various lines of business Shaping our policies and procedures Monitoring our performance and evolving the growth strategy Setting up counter-party and other prudential risk management limits Setting up counter-party and other prudential risk management limits Board of Directors Mr. Bhide Mr. Dhananjay Mungale Dr. Bharat N. Piyush Mankad Mrs. Rama Bijapurkar Designation Chairman Vice Chairman Managing Director Director Director Director Director Director 10 .Board of Directors at MMFSL At Mahindra Finance we have nine noted directors vested with the charge of general supervision. Ramesh Iyer Mr. direction and management of the operations of our company. M. G. Pawan Kumar Goenka Mr. Phadke Mr.
in December 2005. He has participated in the Program for Management Development at the Harvard Business School.Mr. Mr. Bharat Doshi was adjudged „India‟s Best CFO‟ by the leading business fortnightly „Business Today‟ (India Today Group Publication) in April 2005. He was a member of the Managing Committee of Bombay Chamber of Commerce & Industry from May 2005 to May 2007. the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India and has a Master‟s Degree in Law from the University of Bombay. Government of India. Bharat Doshi is very actively involved with the work of several Chambers of Commerce and Industry in India and is a member of various Expert Committees. M&M. Bharat Doshi is a fellow member of both. 11 . an associate of The Economist Group. Bharat joined Mahindra & Mahindra Limited (M&M) in the year 1973. on Making Mumbai an International Financial Centre and is a member of the SEBI (Securities and Exchange Board of India) Committee on Disclosures and Accounting Standards (SCODA). Bharat Doshi was the Chairman of Expert Committee on Economic Affairs of Bombay Chamber of Commerce and Industry (BCCI) during 1996-97. He was also conferred the 'CFO of the Year' Award. Mr. He was a member of the High Powered Expert Committee constituted by the Ministry of Finance. honouring financial excellence. Mr. Bharat N. He is presently designated as Executive Director and Group Chief Financial Officer (Group CFO). Doshi Mr. Bharat Doshi has been elected as Vice President of Bombay Chamber of Commerce & Industry (BCCI) for the year 200809. instituted by IMA India. which influence economic and business policies of the Government. Mr. Mr.
12 . U. He is also a Special Invitee to the meetings of National Advisory Committee on Accounting Standards constituted under the Companies Act. Y. Phadke is the Vice-Chairman of Mahindra & Mahindra Financial Services Limited. Phadke joined Mahindra & Mahindra in 1973. Legal and Financial Services Sector and Member of Group Management Board. Phadke Mr. Mr. Phadke has been Chairman of the Direct Taxes Committee of the Bombay Chamber of Commerce and Industry and on the Accounting Standards of Board of the Institute of Chartered Accountants of India. He is a Member on the `National Committee on Professional Services' of CII & he is on the Governing Council of Indian Association of Corporate CFOs and Treasurers. Mr.In November 2007.Finance. Bharat Doshi was honoured with the prestigious CNBC CFO of the Year 2007 award. Y. Phadke is a member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India and has a Bachelor's degree in Commerce and Law. Mr. He is a Member of the Working Group on „Employee Benefits‟ constituted by the International Accounting Standards Board. He is presently designated as President . Mr. U.
He is presently acting as advisor to various corporations in India and Europe. Dhananjay Mungale Mr. 13 . Mr. Ramesh Iyer has been awarded with the Udyog Rattan from The Institute of Economic Studies. He has spent a major part of his career in corporate and investment banking in India and Europe with Bank of America and DSP Merrill Lynch Ltd. 2007. Dhananjay Mungale is a Chartered Accountant and a Law graduate. Pune in December. Ramesh Iyer Mr.Mr. Iyer. New Delhi and has also been presented with „Rashtriya Udyog Pratibha Award‟ from the Council for Economic Growth & Research. Presently he is the Chairman of Banking & Finance Committee of Bombay Chamber of Commerce & Industry. Mr. Ramesh Iyer has been the Managing Director of the Company since 2001 and is associated with the Company since its inception. a commerce graduate and an MBA from Mumbai University was working with Ashok Leyland Finance Limited prior to joining the Company. He is on the Board of various public and private limited companies. He is also a member of core committee of Finance Industry Development Council. Mr.
Goenka took over as President of the Automotive Sector on 26th September 2005. and a Ph. He has been honored by General Motors through the Charles L McCuen Achievement Award twice and the Extraordinary Accomplishment Award. 14 . both in India and abroad. Bolero and Loadking. Dr. after a successful career spanning 14 years with General Motors. Dr. which brought laurels to Mahindra & Mahindra. USA. Among other achievements. Dr. Goenka is the Vice President of SIAM Executive Council and Chairman of the Technical Committee. Under his leadership. Pawan Goenka joined the Mahindra Group in October 1993 as General Manager – Research & Development. Armada 98. Tech from the Indian Institute of Technology. and was promoted to Chief Operating Officer of the Automotive Sector in April 2003. He holds the position of President of the ARAI Governing Council and is a past-President of SAE India. Marshal. Kanpur. His best acknowledged contribution is his leadership of the Scorpio project.Dr. He has also done an Advanced Management Programme (AMP) at the Harvard Business School. from Cornell University.D. He received the Distinguished Alumni Award from the Indian Institute of Technology. Goenka is an internationally acknowledged scientist – manager with several citations to his credit. he has also played a key role in the formation of both the Renault and International Truck joint ventures. Pawan Kumar Goenka is a Mechanical Engineer with a B. Pawan Kumar Goenka Dr. USA. He became Executive Vice President – Product Development in September 2001. Dr. Mahindra & Mahindra launched a slew of new products such as Pick-Up. Kanpur in 2004 and is a Fellow of the Society of Automotive Engineers (SAE) and of the Indian National Academy of Engineers.
Chairman – Foreign Investment Promotion Board. Mr. CAIIB. Secretary – Industrial Policy and Planning. Embassy of India – Tokyo. K. He was also a member of Telecom Commission. He was the Chairman & Managing Director of Bank of India. Piyush Mankad Mr. He was also the Managing Director & Group Executive (National Banking) of State Bank of India. Controller of Capital Issues – Ministry of Finance. He also served on 15 . India.Mr. Space Commission and Atomic Energy Commission and is on the Board of IIM Ahmedabad. Mankad is a retired civil servant. He has also served on various Committees constituted by the Reserve Bank of India. Secretary Information and Broadcasting. Secretary – Departments of Industrial Development and Public Enterprises. Manila. IIM Calcutta and IIM Bangalore. G. Bhide Mr. State Industrial Development and Investment Corporation and ex-officio Secretary to the State Government.. and obtained a post graduation diploma in Development Studies with Distinction from Cambridge. Mr. G. M. Stephen‟s College. M. He was a Member of the Investment Advisory Committee of the Army Group Insurance Fund.A. Piyush Mankad did his post graduation in History from St. Finance Secretary – Government of India and Executive Director (India) and Board Member – Asian Development Bank. He was the Managing Director. He has also held important positions including those of Counsellor Economic. University of Delhi. Bhide is a M. Director General – National Productivity Council of India. U.
K.the Asia Pacific Advisory Committee of Barclays Capital U. He is also a Member of the Governing Body Lady Shriram College for Women. New Delhi and Association of Indian Diplomats. and been a full time consultant with Hindustan Unilever Ltd. 16 . She serves as an Independent Director on the Boards of various reputed Companies. marketing and consultancy.) degree in Physics from Miranda House. Rama Bijapurkar has published extensively on emerging market and consumer related issues and is the author of the book titled “Winning in the Indian Market – Understanding the Transformation of Consumer India”. Ahmedabad.Sc. Mrs. He is a Trustee of the Vodafone India Foundation. She has previous work experience with McKinsey & Company. Delhi University and a Post Graduate Diploma in Management from Indian Institute of Management. (Hons. She is an independent market strategy consultant and also a visiting faculty and member. Rama Bijapurkar Ms. Board of Governors of the Indian Institute of Management. MARG (now AC Nielsen India). Mrs. Ahmedabad. She has over 30 years of experience in industries such as advertising. Rama Bijapurkar graduated with a B.
c) Quality of Contribution: The company operates on the basis of being a team of equals.Values of MMFSL a) Effective Communication: It is the essence for building a successful and healthy environment. The company encourages the employees to have flexibility in their work. e) Team Spirit: The organisation intends to do its best so as to encourage an enjoyable working atmosphere. b) 110% Effort: The organisation needs all its employees to contribute to the success an dgrowth of the company for which employees need to give their 110% effort. g) Sound Health: The company believes in “sound mind in a sound body” and hence requests its employees to maintain good mental and physical health. d) Assertiveness: We expect every employee to be assertive and have enough confidence in you to be positive. where the quality of contribution being made by our colleagues is all that matters. f) Flexibility: It is a way to define how and when work gets done and how careers are organized. 18 . The company shall strive to provide a work environment and welfare policies promoting the same. while at the same time understanding other people‟s point of view. proven to encourage good team spirit.
a) Utility Vehicle Loans: MMFSL provide finance for a range of Mahindra Utility Vehicles. The branch network. flexible documentation process and capability of our executives to take quick. Business of MMFSL: Mahindra Finance has a wide range of products and services. b) Tractor Loans: With the majority of our country‟s population engaged in farming and agriculture. It also provides trade advance facilities for dealers. in the easiest and most convenient manner. 19 . farm equipment. our Farm Equipment loans help rural India surge ahead in a big way.Strengths: In depth knowledge of the rural and semi-urban market. speed and efficiency. with something to suit everyone‟s needs. it also have a group of experts providing investment advice. So that they can help their customer‟s dreams of owing a Mahindra UV come true. and better reach their approach. The ability to borrow at competitive rates. The client base. surveying available market products and choosing the most suitable product based on customer requirements. smart decisions ensure that the process of obtaining a loan is a quick and smooth one. tractors. The relationship with Mahindra & Mahindra. The association with dealers. It is constantly trying to further enhance their services. cars and utility vehicles to commercial vehicles and construction equipment. Their wide reach. Right from finance for two wheelers.
makes it possible for their customers to contact them easily and obtain a loan. obtaining a Mahindra tractor and trailer is just a few steps away. This is seen in their flexible repayment options.They understand the needs of rural India and customize loans to specific requirements. It‟s just one of the ways in which they bring Indians closer to their dreams. They want to make sure that they can help customer‟s dream of owning their favourite car come true. in the most easiest and convenient manner. quick processing and competitive interest rates. So. Also. enabling one to contact them anywhere. customers will be able to meet all their personal needs and obtain the vehicle of their dreams. Maruti Udyog limited. as well as our extensive network of branches. customers will now have the power to own a car soon. d) Two Wheeler Loans: With their flexible. Hyundai. 20 . whether their customers want that moped. their extensive branch network in over 400 locations. simple documentation. convenient finance options. they help their customers with customised solutions and make the whole process as easy as child‟s play. So. including quarterly and half-yearly repayment schedules. scooter. Be it a marriage in the family or a new job requiring travel. General Motors. c) Car Loans: Mahindra Finance is a preferred financier for M&M as well as all other small car manufacturers in the country like Hindustan Motors. All this helps to ensure that the entire process of obtaining a loan remains smooth and simple. wherever they are. motorbike. owning a two wheeler is just a few steps away. with Mahindra Finance. e) Refinance: With their easy and quick finance options.
it is usually seen that equities typically outperform these investments. we offer commercial vehicle and construction equipment loans among many others. f) Commercial Vehicle Loans: At Mahindra Finance. We fund new vehicles as well as old. excavators. M&M Investment Advisory Services help customers invest their money in equity through different Mutual Fund Schemes. Customer identify the vehicle and M&M help them out. buses. These vehicles include trucks. used commercial vehicles and used tractors.It provide fast and easy finance for the purchase of used cars. commercial vehicle and tractors. over a longer period of time. g) Investment Advisory Services-Mutual Fund Distribution: When it comes to investing. systematic investment in equity allows one to create substantial wealth. utility vehicle. utility vehicles. exist. investing in equity is not as simple as investing in bonds or bank deposits. tippers. M&M is of the opinion that. However. It ensures the best for its clients by identifying products best suited to their individual needs. customers can be sure that we provide them the best and most flexible financing solutions to meet their business requirements. because only proper allocation of portfolio gives maximum return with moderate risk. and will even top-up existing loans. Hence. and this requires expertise and time. It also provide loans against an existing car. 21 . light commercial vehicles and more. While many investment avenues such as fixed deposits. With our simple documentation and quick turn-around time. everyone has unique needs based on their own objectives and risk profile. bonds etc.
They can get financial assistance for Marriage Related Expenses. Milestones 1993 1995 1996 1998 1999 2001 2002 2004 Received a long-term credit rating of AA+/Stable Opened a branch in Port Blair 22 Commenced financing of M&M Utility Vehicles. at Jaipur Commenced financing M&M dealers for the purchase of tractors Launched pilot project for retain tractor financing Commenced tractor retail financing in rural and semi-urban areas Total Assets crossed Rs. Agricultural Needs. Children‟s Higher Education. Now customers will never have to bother about the extra amount needed to fulfill all their needs. Medical Treatment.h) Personal Loans: Mahindra Finance launches Personal Loans.8 million . 10 billion Commenced financing of non-M&M vehicles Received Tier II debt from International Finance Corporation Made our first securitisation transaction of Rs. Exotic Needs or just squash a Temporary Cash requirement. Opened our first branch outside Mumbai. Personal Loans from Mahindra Finance are the solution. 434. Consumer Durables. Whatever be the need. House Furniture.
Listing of non-convertible debentures on BSE on the wholesale debt market segment Securitisation of tractor assets of Rs. Received 12.(MIBL) 2005 Tied up with HPCL Made MIBL our wholly owned subsidiary 2006 2007 2008 Preferential allotment of shares to Standard Chartered Private Equity Ltd.6 million Commenced Insurance Broking business through subsidiary Mahindra Insurance Brokers Ltd. 256. Commenced Home Loans Business through our subsidiary Mahindra Rural Housing Finance Limited Commenced Financing non Mahindra commercial vehicles Commenced financing of personal Loans Issued our IPO Tied up with Maruti Udyog Limited Launched our marketing campaign Reached a new benchmark with 400 Branches 2009 Commenced Fixed Deposits Program 23 .5% equity participation from NHB for our Subsidiary Mahindra Rural Housing Finance Ltd. & Axon Private Equity Ltd.
It enables the management to select suitable employees for different jobs. According to Edwin B. ”Recruitment includes the set of activities undertaken by the organisation for the primary purpose of identifying a desirable group of applicants. and retaining them at least for the short-term. It may be defined as the process to discover sources of manpower to meet the requirements or the staffing schedule and to employ effective measures 25 .” Recruitment is the process of searching the candidates for employment and stimulating them to apply for the jobs in the organisation. 7. of qualified applicants who are ready to take up the job if it is offered. It involves listing of suitable candid ates for consideration of selection for various jobs. It is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings.” 2. Definitions & Meanings: 1. Flippo.It is the process to discover sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. 4.RECRUITMENT It is the process of finding and attracting capable applicants for employment . attracting them into its employee ranks. It aims at : a) Attracting a large no. screening and selecting qualified people for a job at an organisation or firm. Recruitment refers to the process of attracting . 3. According to Taylor & Collins. 5. b) Offering enough information for unqualified persons to self-select themselves out. 6.
Head Hunters 26 . Management consultants 3. Job posting 1. Employment exchanges 8. Internal sources 2. Gate hiring & Contractors 5. Recalling of laid-off employees 4. Unsolicited applicants/ Walk-ins 6. Promotions 3. Recommendations 9. Internet recruitment 7. Campus recruitment 2. External sources Internal Sources External Sources 1.for attracting that manpower in adequate number to facilitate the selection of an efficient working force. Sources of recruitment: 1. Advertisements 4. Transfer 2.
Internal sources Persons who are already working with the organisation constitute internal sources. It involves lateral movement within the same grade. Training & Development may not necessarily always ensure availability of the best talents internally. transferred or even demoted. the demand for the labour increase and the management can recall the employees who have been laid off. working conditions etc. A promotion at a higher level may also lead to a chain of promotions at lower levels in the organisation. to another. but not necessarily salary. Whenever any vacancy arises. When the situation gets normal. or from one shift to another. carrying higher responsibilities. It has the great psychological impact over the employees. promoted. one dept. someone from within the organisation is upgraded. Organisations need to develop their existing manpower adopting suitable training & development functions. status& pay. facilities. a) Transfer :It involves shifting of one employee from one job to another. It may lead to change in duties & responsibilities. In those cases. It is a good source of filling vacancies with employees from overstaffed departments or shifts. b) Promotions :It leads to shifting an employee to a higher position. Organisations are then compelled to recruit from outside sources. c) Recalling of laid – off employees :The term lay-off means temporary separation of employees from the employer because of the lack of work or shortage of raw materials etc. 27 . Filling vacancies in higher jobs from within the organisation has the benefit of motivating the existing employees.
and the recruiters. Job seekers are provided the information about the jobs. the organisation publicises job openings on bulletin boards. 28 . etc. Candidates responding to advertisements. get a snapshot of job seekers through constant interchange of information with respective institutions. Here the organisation can have the services of: Employees working in their organisation Job aspirants working with the employment exchanges Students from reputed educational institutions Candidates referred by unions. a) Campus recruitment :It is a method of recruiting by visiting and participating in college campuses & their placement centres. electronic media. Below specified are some of the sources from which the vacancy can be filled from outside sources. friends etc. Advantages of this method include: The placement centre helps locate applicants & provides resumes to organisations. Applicants can be pre-screened. A preliminary screening is done within the campus and the shortlisted students are then subjected to the remainder of the selection process. External sources: It lies outside the organisation. and similar outlets. Unsolicited applications/walk-ins. In this . in turn.d) Job posting :It is another way of hiring people from within. It offers a chance to highly qualified applicants who are working within the company to look for growth opportunities within the company without looking for greener pastures outside.
specifying the details of the jobs available. generally the blue collar employees. Applicants will not have to be lured away from a current job & hence lower salary expectations. television etc. So. prospects in the organisation etc. This method has the following advantages : It does not involve the cost of advertising the vacancies. The ads generally give a brief outline of the job responsibilities. b) Management consultants :These firms help the organisations to recruit technical. This method is appropriate when : The organisation wants a fairly good number of talented people who are geographically spread out. compensation package. But one limitation is that. c) Advertisements :It includes ads in newspapers or trade & professional journals. professional and managerial personnel. radio. The organisation intends to reach a large targeted group. campus recruiting means hiring people with little or no work experience. It also facilitate self-screening by the prospective candidates. 29 . it will prove to be costly for the organisations as it will have to provide some kind of training to the selected candidates. They specialise in middle level and top level executive placement. d) Gate hiring & Contractors :Gate hiring. It is the direct recruitment by placing a notice on the notice board of the enterprise. where the job seekers . present themselves at the factory gate & offer their services on a daily basis. Most of the senior positions in industry as well as commerce are filled by this method. They maintain data bank of the persons with different qualifications & skills and they advertise the jobs to recruit right type of personnel.
most of the companies have their own websites and they. either they are already employed somewhere else or are simply not interested in the position offered. generally list their job openings on it. www. the website may be flooded with resumes from unqualified job seekers. But. After receiving of resumes. It is the cheapest method to fill the vacancies. it would intimate the candidate to apply through the formal channels.timesjobs. of organisations and when they are actually required by some company. basically depends upon the image of the company. www. etc. f) Internet recruitment :Now a days. Maintain a data bank of these applications & whenever a job vacancy arises.e. generally receive unsolicited applications from job seekers at various points of time. has developed for short-listing the candidates according to a set criteria i. Whenever there is rush of work or large no.com.com.naukri. this source of labour may be easily used. qualifications. Apart from the company‟s own website. timely responses from job applicants from different parts of the world. The co.monsterindia. as the job seekers generally apply to a no. these are then converted into standard format using the software that the co.com. Internet recruiting generates fast. It. 30 . there are some other sites where the applicants can submit their resumes & potential employers can search for the qualified candidates. such as: www. e) Unsolicited applicants / Walk – ins :Companies. But the only limitation of this method is that. costeffective. & the applicant‟s perception of the types Of job available in the company. experience etc. there is one problem with this method of recruitment. of workers absent.
the details of referral scheme should be given to all the levels using various means i. many organisations have successfully fought court battles when they were asked to pick the candidates from among those sponsored by the employment exchanges. the co. give some monetary rewards to those employees whose recommendations has been accepted by the company. It covers all the establishments in public sector and the non-agricultural establishments employing 25 or more workers in the private sector. To obtain the effective results. It is a recommendation from a current employee regarding a job applicant. with regard to the practical difficulties. etc. after the routine screening and examining process is over.g) Employment exchanges :As per the Employment Exchanges Act1959. However. the firm should constantly measure the quality & performance of employees recruited through the programme. In return. posters. 31 . And at last. every attempt should be made to ensure quality.e. are encouraged to suggest or recommend some of their friends‟ and relatives names for filling up some vacancy in near future. Employees already associated with the co. involved in implementing the provisions of this act. all the employers are required to notify the vacancies arising in their establishments from time to time to the prescribed employment exchanges before they are filled. h) Recommendations :It means using personal contacts to locate job opportunities. e-mails. those making referrals should get quick feedback so that they can come with more referrals. The main advantage of this method is that something about the candidate‟s background is known. But. Employees should also understand that they have been entrusted with a critical task and also.
and the is reluctant to take the offer since he fears that his company is testing his loyalty. This is a useful source when both the companies involved are in the same field. 32 . An agent is sent to represent the recruiting company and an offer is made to the candidate.i) Head hunters:They are useful in specialised in skilled candidate working in a particular company.
External sources It involves finding candidates from outside the organisation. It does not involve any contacting the external sources. This means infusion of new blood and new ideas into the enterprise. The business can hope for talented candidates from outside.Difference between internal and external sources Basis 1. External sources of recruitment are expensive. Scope The scope of fresh talent is diminished. This process is cheaper. Cost It is a very quick process. Time perspective Internal sources help in saving time of officials responsible for recruitment. This process is costly as vacancies have to be notified in newspapers etc. 6. Process 3. 4. The existing staff feels dissatisfied if external sources are used. 33 . 2. Effect on existing staff 5. 7.Choice The existing staff is motivated to improve their performance. Choice of candidates is limited. Meaning Internal sources It involves search of candidates from within the organisation. It is a lengthy process.
The internal forces or factors are the factors that can be controlled by the organisation. And the External factors are the forces which cannot be controlled by the organisation . The internal & external factors affecting the Recruitment function of an organisation are : Factors affecting recruitment are : Internal factors •Recruitment policy •Human resource planning •Size of the firm •Cost of recruitment •Growth & Expansion External factors •Image / Goodwill •Supply & Demand •Labour Market •Competitors •Unemployment rate •Political-social-legal environment 34 .FACTORS AFFECTING RECRUITMENT The recruitment function of the organisation is affected and governed by a mix of various internal & external forces.
organisations try to employ that source of recruitment which will bear a lower cost of recruitment to the organisation for each candidate. It may involve organisational system to be developed for implementing recruitment.Internal factors :a) Recruitment policy :The recruitment policy of an organisation specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. it will think of hiring more personnel. programmes and procedures by filling up vacancies with best qualified people. It also helps in determining the number of employees to be recruited and what qualification they must possess. If the organisation is planning to increase its operations and expand its business. c) Size of the firm :The size of the firm is an important factor in the recruitment process. Personnel policies of the organisation & its competitors Government policies on reservations Preferred sources of recruitment Need of an organisation Recruitment costs & financial implications b) Human resource planning :Effective human resource planning helps in determining the gaps present in the existing manpower of the organisation. 35 . Factors affecting recruitment policy are: Organizational Objectives. therefore. which will handle its operations. d) Cost to the firm :Recruitment incur cost to the employer.
then . even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc.e) Growth & Expansion :Organisations will employ or will think of employing more personnel if it is expanding its operations. If there is surplus og manpower at the time of recruitment. 36 . An organisation with positive image & goodwill as an employer finds it easier to attract & retain employees than an organisation with negative image. c) Image & Goodwill :Image of the employer can work as a potential constraint for recruitment. Image of the company is based on what the company does and affected by industry. External Factors :a) Supply & Demand :The availability of manpower both within & outside the organisation is an important determinant in the recruitment process. will attract more than enough applicants. For example:Finance was taken up by fresher MBA‟s when many finance companies were coming up. If the company has a demand for more professionals and there is limited supply in the market for professionals demanded by the company. b) Labour Market :Employment conditions i the community where the organisation is located will influence the recruiting efforts of the organisation. the company will have to depend upon internal sources by providing them special training & development programs.
e) Political-legal-social environment :Various government regulations prohibiting discrimination in hiring & employment have direct impact on recruitment practices. there is often oversupply of qualified labour which in turn leas to unemployment. physically handicapped. c) Chooses the most suitable sources. many a times the organisations have to change their recruitment policies according to the policies being followed by the competitors. d) Unemployment rate :One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). scheduled tribes. PROCESS OF RECRUITMENT Recruitment process involves a systematic procedure from sourcing the candidates to resources and time. To face the competition. For Example. Also. 37 arranging and conducting the interviews and requires many . Government of India has introduced legislation for reservation in employment for scheduled castes. b) Assesses their ability. Trade unions play an important role in recruitment. When the company is not creating new jobs.c) Competitors :The recruitment policies of the competitors also affect the recruitment function of the organisations. etc. This restricts management freedom to select those individuals who it believes would be the best . The process of recruitment involves: a) Identifies the different sources of labour supply.
38 .d) Invites applications from the prospective candidates for the vacant jobs. though all the organisations have many different bases to select a candidate for their organisation. Identify the vacancy Conducting interviews & Decision making Prepare job description Arrange interviews Advertising the vacancy Short-Listing Managing the response The above table represents the basic recruitment process followed by all the organizations .
The decision of what skills are required and how many staff to employ must be considered carefully. It must also be seen that whether a new employee is required permanently or the increased work load is for a fixed period of time. it is important to ensure that the budget exists for the appointment of a new employee. focusing on the following: The key functions that need to be fulfilled The key competencies required by the employee to fulfil the roles and duties Other factors to decide upon include: How urgent is it that the new employee starts with all the required skills and experience? To what extent is the organisation prepared to train? Does the organisation have the time and resources to allow for the new employee to be trained? 39 . b) Define the job:After being sure that a vacancy does exist in the organisation. which has left a vacant job Growth and expansion The recruitment process must start with a check on whether a vacancy actually exists. on the right job. at the right time to ensure the success and productivity of the organisation. If the vacancy has arised because of expansion and increased work demands. the job needs to be defined as precisely as possible.Explanation of the above process is as follows: a) Identifying vacancy :The first step in recruitment is the identification of vacancy. and whether there are other alternatives as opposed to recruiting a new person. The goal is to place the right people. Generally a vacancy exists because of the following reasons: A resignation A promotion.
been identified which will guide the selection of a 40 . c) Define the job level:Once the job profile has been developed. The job evaluation systems may vary from organisation to organisation. This process is called job evaluation. job has been defined and the required competencies has suitable applicant. The nature of employment. is it a short term or permanent function? At the end of this point the. then it must be ranked or graded in relation to other job roles in the organisation.
2. selection is frequently described as a negative process in contrast with the positive nature of recruitment. The basic purpose of the selection process is choosing right type of candidates to manage various positions in the organisation. This process could be called rejection since more candidates may be turned away than those selected. That is why. a well organised selection procedure involves many steps. Selection leads to employment of personnel and is an integral part of staffing. In order to achieve this purpose. At each step more and more information is obtained about the candidates so as to reject the unsuitable candidates. It will keep the rates of absenteeism and labour turnover low. It facilitates the selection of candidates who possess the ability and qualifications to perform the jobs which have fallen vacant in the organisation. Efficiency: Competent employees will show higher efficiency and enable the organisation to achieve its objectives effectively. Absenteeism & labour turnover: Proper selection and placement of personnel go a long way towards building up a suitable workforce.SELECTION Selection involves a series of steps by which the candidates are screened for choosing the most suitable persons for vacant jobs in the organisation. IMPORTANCE OF SELECTION Following are some of the points which shows the benefits of selecting right kind of people for various jobs: 1. It divides the candidates for employment into two categories:‟ those who will be offered employment and those who will not be‟. 41 .
They also make the optimum use of the resources available.3. Nature It is a positive process as more & more candidates are sought to be attracted. Industrial accidents: The rate of industrial accidents will be considerably low if suitable employees are placed on various jobs as they know very well how to use the machines effectively an efficiently. Comparison of Recruitment and Selection BASIS 1. But selection aims at eliminating unsuitable candidates and ensuring most competent people for the available vacancies. Purpose Its purpose is to create a pool of applicants for various jobs in the organisation. 3. It is a negative process as it aims at rejecting unsuitable applicants. 4. they do their work with more of loyalty. SELECTION It is the process of selection of right type of candidates and offering them jobs. Job satisfaction: When people get jobs of their taste and choice. they get higher job satisfaction. And because of this. 42 . Meaning RECRUITMENT It is the process of searching candidates for vacant jobs and making them apply for the same. Morale: The morale of the employees who are satisfied with their jobs is often high. 5. This will build up a contended workforce for the organisation. 2.
43 . employment tests. 7. It envisages taking decisions on the choice of tapping the sources of labour supply. Recruitment implies communication of vacancies only. Selection follows recruitment and it leads to a contract of service between the employer and the employee. It is done after recruitment.4. medical exam etc. The firm asks the candidates to pass through a number of stages such as filling of form. Sequence 5. Procedure It takes place prior to selection. 6. The firm notifies the vacancies through various sources and distributes application forms to candidates. It is the second phase. Phase of staffing process This is the first phase. Contract of service No contractual relation is created. It involves giving various types of tests to the candidates and interviewing them in order to select the suitable candidates only. interview.
SELECTION PROCESS The selection process is concerned with selecting right type of candidates for different jobs in the organisation. Each step should help in getting more and more information about the applicants to facilitate right choice of people. The major steps followed by modern organisations to get right type of persons are listed below: 44 . It involves: a) Obtaining information about the candidates. Selection process involves a number of steps. b) Using information to choose the right type of people.
Preliminary Interview Receiving Applications Screening of Applications Employment Tests Employment Interview Checking References Medical Examination Final Selection The points mentioned above are explained as follows: 1. candidates are asked questions relating to their experience. 45 . the organisation will be saved from the expenses of processing him through the remaining steps of the selection procedure. During the course of interview. If an applicant is eliminated at this stage. Those who come out successfully from this interview are asked to fill the application forms. Preliminary interview: The preliminary interview is generally brief and it helps in eliminating the totally unsuitable candidates. education etc.
That is why. Receiving applications: An application form is designed to get a written record of candidate‟s qualifications. This test brings out the qualities. experience etc. capacity. This all information is useful in determining the suitability of the candidate for the concerned job. experience and other details. in his own handwriting. these are checked properly with regards to the experience and qualifications etc. training. likes & dislikes and also with respect to personality traits. After this. a list is prepared of the candidates to be called for employment tests. personality. strengths and weaknesses of individuals which could be analysed before offering them jobs in the organisation so it must be designed in a proper way. these tests should not be relied upon fully. After the applications have been received. Unsuitable candidates are eliminated at this very stage. Application forms helps in securing the necessary information about candidate‟s qualifications.2. etc. 3. 4. 46 . by the screening committee. Screening of applications: This step is necessary as it helps in checking whether the candidates fulfil the qualifications required to perform the job effectively. These tests can provide important information about the candidate as regards his intelligence. level of mental ability. Employment tests: These tests are widely used for judging the applicant‟s suitability for the job. Individuals differ with respect to the physical characteristics. The differences among the individual candidates can be analysed with the help of various psychological and trade tests. aptitude interest. Also these tests should not be biased because then they will not be the good indicators of one‟s knowledge and skills and selection based on them will be faulty.
There are many verbal and non-verbal intelligence tests constructed by psychologists for different kind of jobs. Tests provide a healthy basis for evaluating applicant‟s performance. Tests reduce the cost of selection and placement because large number of applicants can be evaluated within the least possible time. Aptitude tests are the most promising indices for predicting worker‟s success. ability to catch or understand instructions and also the ability to take decisions. b) Aptitude tests: Aptitude means the potential which an individual has for learning the skills required to do a job efficiently. There are two general types of aptitude tests: 47 . Various types of tests available to match the characteristics of the candidates with the requirements of the jobs advertised are as follows: a) Intelligence tests: An intelligence test is used to judge the mental abilities and capacity of the applicant. A test is an objective and standardised sample of certain qualities. ii. They can compel the interviewers to think through their evaluation more carefully. v.e . Tests can identify talents of individuals which might otherwise be overlooked. It tends to eliminate the business in selection of personnel.Importance of employment tests: Employment tests have the following benefits: i. iv. Aptitude tests measure an applicant‟s capacity and his potential for development. i. iii. It measures the individual‟s learning ability. Psychological tests can measure the aptitude of candidates and predict their success.
still they do not provide the complete set of information 48 . etc. areas in which the individual shows special concern. They are also known as Occupational or trade tests. Employment interview: Although applications and employment tests provide a lot of valuable information about the candidates. e) Situational or personality tests: Such tests are designed to observe how job applicants react to real life situations. 5. c) Achievement or proficiency tests: Proficiency tests are those which are designed to measure the skills already acquire by the individuals. They are concerned with discovering clues to an individual‟s value system. d) Interest or motivation tests: Interest tests identify patterns of interest. Personality tests probe for the qualities of the personality as a whole. fascination and involvement. For example. a candidate for a managerial job may be given a typical problem which requires on the spot decision making. that is. ii. his emotional reactions. maturity. Cognitive test Motor test Cognitive test measures the mental and intellectual aptitude Motor test measures the physical dimensions such as manual dexterity or hand – eye coordination. They are used to test the level of knowledge and proficiency of an applicant to do a specific job. the combination of aptitude.i. interest and usual mood and temperament. These tests would suggest what type of jobs may be satisfying to the employees.
The main purposes of employment interview are: a) to find out the suitability of the candidate b) to seek more information about the candidate c) to give the candidate an accurate picture of the job with details of terms and conditions and some ideas of organisational policies. mental maturity etc. their conduct. The candidate‟s overall personality is judged in the interview. This personal meeting between the panel of interviewers and the candidate may also be used for testing the qualities and the capabilities of the candidate. Usually. way of thinking. ii. INTERVIEW An interview is a face-to-face oral examination of a candidate by an employer. It also involves giving information that will help the applicant make up his mind about the company. temperament. 49 . presence of mind. Preliminary stage Final stage Interviewing the candidates is an important aspect of selection procedure. Interview may be used to secure more information about a candidate. In the interview. For the selection of right types of people interview is very important. their interest. The final selection is based partly on the performance of the candidate in different tests and partly on his final interview. it is used as a means of getting information from the candidate. knowledge. the candidate has to appear before the interviewer or a panel of interviewers. The interview may be held at two stages: i. It may last for 10-20 minutes. Its objectives are to see the looks of the candidate. Various questions are asked from the candidate in order to judge his ability. capacity and so on. communication skills.required of the applicant.
Importance of Interview Below given are some of the points which highlight the importance of employment interview: a) There is a face-to-face contact between the employer and the candidate. b) The candidate can seek more information about the employer and the job. This creates better understanding in the mind of the candidate. His way of thinking can also be known. e) Many companies do not follow the elaborate selection procedure as it is costly and time consuming. The employer can assess the personality traits of the candidate. They can rely on interview if it is properly planned and administered. d) Interview is important where the candidate has not to go through the employment tests. c) The communication skill of the candidate can be judged in the interview. Types of interview Interview may be of different types as given below: Informal interview Formal interview Structured Interview Unstructured Interview Depth Interview Stress Interview Board Interview Group Interview Sequential interview Mixed interview 50 . The information contained in the application form can be checked during the interview.
e) Depth interview: 51 . He can ask any question that he thinks is relevant and see how the interviewee responds. in this kind of an interview. is a patient listener. b) Formal interview: Formal interviews may be held in the employment office in a more formal atmosphere. Second interview Telephonic interview The points mentioned above are explained as follows: a) Informal interview: An informal interview is an oral interview and may take place anywhere. the work he did earlier. c) Structured interview: Ina structured interview the interviewer has a list of questions with answers prepared well in advance. Sometimes the interviewer may ask the candidate to express his views on the job he has applied for. either in their respective offices or anywhere outside the plant of the company. The interviewer. The employee or the manager or the personnel manager may ask a few almost inconsequential questions like name. The candidates interviewed are asked questions only from the prepared list. name of relatives etc. place of birth. the present organization and so on. It is not at all planned. d) Unstructured interview: In this case the interviewer does not keep any list of questions. with the help of well-structured questions. This is used widely when the labour market is tight or when they are demanded badly. the time and place of the interview will be stipulated by the employment office. He does not interrupt the interviewee nor does he give his opinions on what is stated. Marks may be awarded to the candidates based on the answer they give and thereby their suitability of the job may be assessed. the organizations he served earlier.
who are interviewed for such jobs as those of sales representatives receptionists. Similarly. another person regarding his interests and so on. human relations and so on. a person who is going to be appointed as the office manager must be well versed in all aspects of office work. Candidates. The selection of the candidate will depend on the assessment of all the board members. The 52 . he may not be considered for the post.. g) Board or panel interview: In this kind of an interview the candidate is interviewed simultaneously by a panel of experts. Each member of the board or panel may ask questions from certain specific areas. criticize him or even try to provoke him. need to be subjected to a stress interview. This type of interview is necessary where the candidates are expected to be experts in performing the job to be assigned to them. h) Group interview: In this case a group of candidates will be interviewed simultaneously. f) Stress interview: This kind of interview is necessary to select candidates for jobs that require tremendous amount of patience. For example. In a stress interview the interviewer may reach sharply to the views of the candidate. Such an interview is necessary where the employer desires that assessment of the candidate by a group or a team of experts is required. a person who is going to be employed as the labour welfare officer must be sound in labour laws. the capacity to overcome resistance or protest and the mental courage to overcome stress and strain. One interviewer may ask questions pertaining to the candidate's field of work.As the very name suggests depth interview attempts to know the in-depth knowledge of the candidate in his chosen field of activity. A practical problem is given to them and each one is asked to discuss it to find a solution. This he does deliberately to see whether the candidate exercises patience and is able to overcome resistance or protest. public relations officers etc. Such an approach is normally used for the selection of management trainees. If the candidate fails to perform to the expected level.
The final selection is done only after checking references and subjecting the candidates to medical examination. Middle or the senior management generally conducts the second interview.performance of each individual in the group discussion will decide whether he will be selected or not. j) Mixed interview: In practice. Speak a bit slower than usual. together or separately. k) Second interviews: Job seekers are invited back after they have passed the first initial interview. Applicants can expect more in-depth questions. l) Telephonic interview: As its name depicts. the interviewer while interviewing the job seekers uses a blend of structured and unstructured questions. Applicants should continue to research the employer after the first interview. usually utilising the strength and knowledgebase of each interviewers so that each interviewer can ask his or her subject area of each candidate. The structured questions provide a base of interview more conventional and permit greater insights into the unique differences between the applicants. and be prepared to use any information gained through the previous interview to their advantage. It is 53 . and the employer will be expecting a higher level of preparation on the art of the candidates. as the candidate moves from room to room. these interviews are those which take place through telephone. In this kind of interview it is better that you have a copy of your resume in your hand and also if you are using your home phone then make sure that there is no disturbance or noise from your family members. On completion of the interview process. This approach is called mixed interview. the employer will have a list of provisionally select candidates. i) Sequential interview: The sequential interview takes the one-to-one a step further and involves a series of interview.
7. relatively candid comments and attitude can sometimes be inferred from hesitations and inflections in speech. Although listed on the application on the application form. references are not usually checked until an applicant has successfully reached the fourth stage of the sequential selection process. b) People may write favourably about the candidate in order to get rid of him or her. It may be stated that the information gathered from references hardly influence the selection decision. addresses and telephone numbers of references for the purpose of verifying information and. The telephone reference has also the advantage of soliciting immediate. perhaps gaining additional background information on an applicant. If there are pauses. 6. do not worry. c) People may not like to divulge the truth of the candidate. The reasons are obvious: a) The candidate approaches only those persons who would speak well about him or her. Checking references: Many employees request names. the interviewer is likely taking some notes. The latter is advantageous because of its accuracy and low cost. since the interviewer cannot see your face. 54 .crucial that you convey your enthusiasm verbally. lest it might damage or ruin his or her career. Organisations normally seek letters of reference or telephone references. Physical/ Medical examination: The pre-employment physical examination or medical test of a candidate is an essential step in the selection procedure. It has three objectives: a) It serves to ascertain the applicant‟s physical capabilities to meet the job requirements.
c) It helps to prevent the communicable diseases from entering the organisation. labour absenteeism and turnover.b) It serves to protect the organisation against the unwarranted medi-claims by the candidate. 55 . pay scale etc. the candidate is given the offer letter first and all the terms & conditions are mentioned in that and he has to accept it and revert back to the organisation and then after the completion of some months of his employment in the organisation. Final selection and Appointment letter: After a candidate has cleared all the hurdles in the selection procedure. are also an integral part of the appointment letter. The broad terms & conditions of the employment. 8. But now-a. he is formally appointed by issuing him an appointment letter. The date by which he must join the organisation is mentioned in the letter. nature of job.days. then the appointment letter has been issued to him. A proper medical examination will ensure higher standards of health and physical fitness of the employees and will reduce the rates of accidents. A qualified medical expert appointed by the organisation or a government employee should certify whether the candidate is physically fit to the requirements of a specific job.
HR Operations Aditi Chandra Head.HR hierarchy of Mahindra& Mahindra Group Vinay Deshpande (Vice president. HR) Vinod Nair Head. HR 56 . Learning & Development HR Hierarchy at Mahindra Finance Mahindra finance Zonal HR Circle HR Regional HR Area HR Management trainee.
Viva‟s and tests are conducted by the company and on that basis employees are assessed as to on which level they currently stand. then he will be confirmed otherwise he will be terminated by the company. the employees who fail in this assessment. they are required to give several tests and viva‟s again in order to prove their worth to the company. food etc. respective branch where he has to join etc. when the candidate is finally selected. In this period of 5 days. of all the employees who come for this training. his joining date. and it is for a period of 5 days for all new joinees. The employees who will pass in this assessment. But before the candidate joins the respective branch of the company. The company bears all the expenses like. After a period of 5 months. then he will be given the offer letter of the company and he has to return the same to the company after duly signing it. accommodation. they will be assessed again by the company and he has to go through various tests and other procedures and if this time he clears. he has to undertake a training which is provided by the company to all the freshers. After the completion of DRONA program . the employees join their respective branches. the company will give them 1 more chance to improve upon their performance.Training at Mahindra & Mahindra Group After crossing all the hurdles of selection process. This time the employees have to give presentations of what they have learnt during this period. 57 . the company again makes an assessment of those employees who have gone through DRONA. After a period of 3 months. The offer letter gives all the information regarding what is his role in the company. travelling expenditure. This training is called DRONA. the employees who did not clear the previous assessment. And. This training is held at Mumbai. they will be issued the confirmation letter of the company and from then they will be called the confirmed employees of the company and will be given all the facilities which a confirmed employees should get.
Performance appraisal-: Appraising performance should be done in such a way that it does not threat the employee that any point of time. Compensation-: Compensation is a major factor of motivation. Working environment-: Working environment is an important factor to keep the employees engages to the organization. 8. Communication barriers can create high amount of dissatisfaction among the employees and some time it takes the form of rumors and affect the organization badly. Different levels of hierarchy require different kind of recognition.Facts & Findings 1. Employees need different kind of working environment at different levels. Relationship-: Interpersonal bonding is essential for getting out of the employees coaching and mentoring system not only developed the employee but also builds a moral bonding for better engagement. Recognition-: Recognition is important to keep employee motivated and committed to the organization. 2. Monetary and nonmonetary compensation can be used wisely to motivate the employees and keep the engagement level higher. 7. 5. 9. Transparency-: Transparency in the organization is required at all the levels and it actually creates a good amount of enthusiasm especially among the middle and bottom level of management. 6. 4. Communication-: Clear upwards and downwards communication is required for the employee involvement in the organization. Motivation-: Overall motivation of the employee depends on numerous factors and it is a most important aspect of employee engagement. 58 . HR people must keep this factor in mind. 3. Otherwise employee motivation and so employee engagement can come down dramatically. Learning and growing opportunities-: this factor is especially important for the bottom and middle level of management and it ensures long term employee organization orientation and employee commitment.
the candidate is given the offer letter first and all the terms & conditions are mentioned in that and he has to accept it and revert back to the organisation and then after the completion of some months of his employment in the organisation. labour absenteeism and turnover. A qualified medical expert appointed by the organisation or a government employee should certify whether the candidate is physically fit to the requirements of a specific job.b) It serves to protect the organisation against the unwarranted medi-claims by the candidate. 8. The date by which he must join the organisation is mentioned in the letter. nature of job. he is formally appointed by issuing him an appointment letter. pay scale etc. are also an integral part of the appointment letter. 59 . A proper medical examination will ensure higher standards of health and physical fitness of the employees and will reduce the rates of accidents. c) It helps to prevent the communicable diseases from entering the organisation. then the appointment letter has been issued to him. Final selection and Appointment letter: After a candidate has cleared all the hurdles in the selection procedure.days. The broad terms & conditions of the employment. But now-a.
HR 60 . HR) Vinod Nair Head.HR hierarchy of Mahindra& Mahindra Group Vinay Deshpande (Vice president. Learning & Development HR Hierarchy at Mahindra Finance Mahindra finance Zonal HR HR Circle Regiona l HR Area HR Management trainee. HR Operations Aditi Chandra Head.
he has to undertake a training which is provided by the company to all the freshers. they are required to give several tests and viva’s again in order to prove their worth to the company. 61 . food etc. After a period of 5 months. the company will give them 1 more chance to improve upon their performance. the employees join their respective branches. The employees who will pass in this assessment. And. This training is called DRONA. The offer letter gives all the information regarding what is his role in the company. This training is held at Mumbai. respective branch where he has to join etc. After the completion of DRONA program .Training at Mahindra & Mahindra Group After crossing all the hurdles of selection process. and it is for a period of 5 days for all new joinees. accommodation. But before the candidate joins the respective branch of the company. of all the employees who come for this training. his joining date. This time the employees have to give presentations of what they have learnt during this period. the employees who fail in this assessment. when the candidate is finally selected. In this period of 5 days. Viva’s and tests are conducted by the company and on that basis employees are assessed as to on which level they currently stand. travelling expenditure. The company bears all the expenses like. then he will be given the offer letter of the company and he has to return the same to the company after duly signing it. they will be issued the confirmation letter of the company and from then they will be called the confirmed employees of the company and will be given all the facilities which a confirmed employees should get. the company again makes an assessment of those employees who have gone through DRONA.
6. 62 . Working environment-: Working environment is an important factor to keep the employees engages to the organization. Relationship-: Interpersonal bonding is essential for getting out of the employees coaching and mentoring system not only developed the employee but also builds a moral bonding for better engagement. Transparency-: Transparency in the organization is required at all the levels and it actually creates a good amount of enthusiasm especially among the middle and bottom level of management. the employees who did not clear the previous assessment. Otherwise employee motivation and so employee engagement can come down dramatically.monetary compensation can be used wisely to motivate the employees and keep the engagement level higher. Monetary and non. 3. Performance appraisal-: Appraising performance should be done in such a way that it does not threat the employee that any point of time. Communication-: Clear upwards and downwards communication is required for the employee involvement in the organization. Facts & Findings 1. 4. HR people must keep this factor in mind. Compensation-: Compensation is a major factor of motivation. 7.After a period of 3 months. Communication barriers can create high amount of dissatisfaction among the employees and some time it takes the form of rumors and affect the organization badly. they will be assessed again by the company and he has to go through various tests and other procedures and if this time he clears. Recognition-: Recognition is important to keep employee motivated and committed to the organization. Different levels of hierarchy require different kind of recognition. then he will be confirmed otherwise he will be terminated by the company. Employees need different kind of working environment at different levels. 2. 5.
63 . 9. Learning and growing opportunities-: this factor is especially important for the bottom and middle level of management and it ensures long term employee organization orientation and employee commitment. Motivation-: Overall motivation of the employee depends on numerous factors and it is a most important aspect of employee engagement.8.
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