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Report of summer training On

Recruitment and Selection

Final Project Report Submitted To:BIS COLLEGE GAGRA (MOGA)

In partial fulfillment of the Requirement for the award of degree of Master of business Administration

Submitted By:Saroj Kumari University Roll-(100152243427)

This is to certify that the Project entitled, Recruitment and Selection submitted by Saroj Kumari (MBA, 100152243427) to Punjab Technical University, Jalandhar in partial fulfillment of Degree of Master of Business Administration, has been approved after an oral examination, in collaboration with external examiner. Mr. Rajdeep Sharma (Project Advisor) External Examiner


First of all I would like to thank all mighty God, because without his blessings, the undertaken Project was not possible for me. My special thanks to honorable Principal of this Institute facilities. With high reference, I express my thanks to the stages of development of my studies. for providing all the necessary

for providing her excellent guidance at all

Hearted thanks to all my seniors for their help during the course of my study.



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Company Profile Introduction of the Project Literature Review Objective and Scope of study Research Methodology Analysis and Interpretation Findings and Suggestions Conclusion Bibliography Annexure

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The Beginning
We look over our shoulders, we see the past. We use it to make a better present and a beautiful tomorrow, as tomorrow isnt just another day, its another chance for us to better ourselves and to excel. Hero Cycles is a product of this philosophy. The philosophy that instills commitment, team work and foresight. Heros colossal journey started before independence. The four Munjal brothers, hailing from a small town called Kamalia, now in Pakistan, are the men who are behind the mission. Brotherhood apart, what knit the men together was the wealth of will, integrity, ambition & determination. In the year 1944, they decided to start a business of bicycle spare parts in Amritsar. It is modest beginning and the next 3 years saw the business grow rapidly. But the dark clouds of partition eclipsed their plans of the future. With renewed vigour and optimism, the operational base was shifted to Ludhiana. By 1956, the brothers had began manufacturing key components of bicycles and as a logical way forward, began to assemble the entire cycle at their manufacturing plant in Ludhiana. In the early days, the plant had a capacity for 25 cycles per day. Over the next few years, the Bicycle Unit started growing in stature and size, attracting skilled engineers, technocrats, administrators and entrepreneurs. From a modest beginning of mere 639 bicycles in the year 1956, Hero Cycles products over 18500 cycles a day today, the highest in global reckoning. With the 48% share of the Indian market, this volume has catapulted Hero in the Guinness Books of World Records in 1986 and edge over global players is being maintained since then. A tiny acorn has now become a mighty Oak. From cycle to two - wheeler was a natural step, and the Hero Group came into being. The Hero Group, today, is a vast conglomerate of companies, either in the form of collaborations, joint ventures or fully owned subsidiaries, with more than Rs. 10000 Crore turnover annually. Hero Group, besides being the worlds largest manufacturers of bicycles, motorcycles and chains to this date, has diversified into newer segments like Information Technology, IT Enabled Services and Financial Services.


The Hero Group has done business differently right from the inception and that is what has helped us to achieve break-through in whatever product category we have ventured. The Groups low key, but focused, style of management has earned the plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by the number of factor: The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two

machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house has resulted in low inventory levels. In Hero cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the limit in the unit and is functional even till date. The vendors bring in the raw material and by the end of the day the finished product is rolled out of the factory. This is the Japanese style of production and in India; Hero is the first company to have mastered the art of the just-in-time inventory principle


Hero Group ranks amongst the Top 10 Indian Business Houses comprising 18 companies, with an estimated turnover of US$1.8 billion during the fiscal year 2003-2004.

Hero Cycles Limited Hero Honda Motors Limited Hero Cold Rolling Division Hero Motors Limited Hero Exports LO

GO Majestic Auto Limited Rockman Cycle Industries LOG

O Highway Cycle Industries LOG

O Sunbeam Auto Limited LOGO Munjal Auto Industries Limited

Munjal Showa Limited

Munjal Castings

Munjal Auto Components

Hero Global Design

Hero Corporate Services Limited


Hero Mind mine

Hero Soft


Easy Bill Limited

MILESTONES Heros success saga contains the element of courage, great; determination, enterprises and perseverance coupled with vision and meticulous planning: 1956 Hero Cycles Ltd. is established. 1961 Rockman Cycle Industries Ltd. established which is today the largest manufacturer of bicycles chains & hubs in the world. 1963 Bicycle exports take off from India a foray into the international market. 1971 Highway Cycles was set up. It is today the largest manufacturer of single speed & multi-speed freewheels in the country. 1975 Hero Cycles Limited became the largest manufacturer of bicycles in India. 1978 Majestic Auto Limited was formed and Hero Majestic Moped was introduced. 1981 Munjal Casting established. 1984 Hero Honda Motors Limited established in joint venture with Honda Motors, Japan to manufacture Motorcycles. It is now the worlds largest producer of two-wheelers.

1985 -Munjal Showa Ltd. established to manufacture shock absorbers and struts and is today one of the topmost shock absorber manufacturers companies in this country. -100cc Hero Honda Motorcycle was launched, which, later on in 1988, became No.1 among all motorcycles in India.

1986 Hero Cycles Limited entered the Guinness Books of World Records as the largest bicycle manufacturer in the world. 1987 Hero Motors, a division of Majestic Auto Limited set up on collaboration with Steyr DiamlerPuch of Austria. 1987 Gujarat Cycles Limited, now known as Munjal Auto Centre Ltd. was established to Manufacture and export state-of-the-art bicycles and light products in its full automated plant at Wagodia. 1987 Sunbeam Auto Limited, earlier a unit of Highway Cycle Ind. Ltd., established as an ancillary to Hero Honda. It has the largest die casting plant in India. 1988 Hero Puch was introduced by Hero Motors Ltd., which was a revolutionary machine to set new records of petrol. 1989 Ranger bicycles (a generic name for Mountain Bikes today) was introduced by Hero Cycles Limited. 1990 Hero Cold Rolling Division established which is one of the most modern steel cold rolling plants in India. 1991 Hero Honda received National Productivity Council Award and also the Economic Times Harvard Business School Association Award against 200 contenders. 1991 Hero Cycles introduced Kid the first branded bike in childrens segment. 1992 Hero Cycles introduces Impact, the first citibike in India. 1992

Munjal Showa Ltd. received national safety award. 1993 Hero Exports was established as International Trading Division for group & non-group products. 1995 -Hero Corporate Services Ltd. was established. -The first exerbike from Hero Group was introduced with the nameAllegro. 1996 Hero Winner, a large wheeled scooter with a choice of 50 cc & 75 cc engines was launched by Hero Motors Ltd. 1998 Hero Briggs & Stratton Auto (P) Ltd. was set up to produce 4-stroke two wheeler engines in various cubic capacities. 1998 Munjal Auto Components established to manufacture gear shaft & gear blanks for motorcycles.

2000 The first fully automated bicycles by the name POWERBIKE was introduced by Hero Cycles Limited. Hero Corporate diversified into I.T. and I.T. Enabled Services through its services segment Hero Corporate Services Limited. 2001 Hero Honda emerges as the market leader in motorcycles with the sales of over a million motorcycles and a market share of 47%. 2002 Hero Cycles Limited ties up with National Bicycle Industries, a part of Matsushita Group, Japan, to manufacture high-end bicycles. Fastener World established. 2002 Easy Bills Limited established to offer utility bill collection and retail services.

2003 Tie-up with Live Bridge Inc., U.S.A., Aprilia Scooters, Haly& Bombardier Rotax GmbH of Germany. 2003 Super Starter Series Launched by Hero Cycles Limited. 2003 Hero Honda continues to be the worlds largest manufacturer of two-wheelers with the market of more than 48%. 2004 Hero Retail Insurance Business established. Super Smart Series introduced by Hero Cycles Limited. 2005 Hero ITES strengthens its relationship with ACS, USA USD 5 BILLION-market cap and fortune 500 companies. 2006 Hero Honda crosses a unit sales threshold of 3 MILLION motorcycles. 2006 Hero Honda enters the scooters segment, launches 100 cc pleasure. 2006 Hero group celebrates GOLDEN JUBILLEE YEAR since inception. It was commemorated by sales of over 15 million motorcycles & over 100 million bicycles. 2007 Hero group has made 13 models of e-bikes.


As early as in the 1960s' very few Indian bicycle manufacturers were interested in exports. However, the Hero Group's foray into the overseas markets in 1963 pioneered Indian exports in the bicycle segment. It was a move prompted essentially by the need to remain attuned to the global market place. While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the exports from Hero Cycles Limited meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that Hero offers. The Group has been continuously upgrading technology and has set up special units - like Gujarat Cycles Limited (now Munjal Auto Industries Limited), to meet international quality standards. Munjal Auto Industries Limited has state-of-the-art equipments imported from Europe and Taiwan. The unit is designed to match international standards and is an Export Oriented Unit (EOU). Its products are supplied to the International Markets of developed countries like United Kingdom, Germany, and France etc. The Group's exports have gone beyond cycles and their components. The success of the Hero Majestic moped did not remain confined to Indian shores. Finding enthusiastic buyers across the world, it became the largest exported moped from India. Hero Puch is perhaps the first Indian two-wheeler to be homologated abroad (in Spain) and has assembly plants in Mauritius and Egypt. Today Hero Puch mini-motorcycles can also be seen in Paraguay, Mexico, Argentina, Turkey and Holland. Group Company, Munjal Showa Limited is one of the largest suppliers of shock absorbers to major auto giants in Japan, United States and the United Kingdom, amongst other developed markets. In 1993 Hero Exports was established as the International Trading Division for Group and non-Group products. The Government of India recognizes Hero Exports as a Trading House. And the latest diversification for the Group in the export market is in the area of Software exports and providing Business Processing and Contact Centre Services through Hero Corporate Service limited. The company exports services to many Fortune 1000 corporations in the USA, UK and Australia and has offices in UK & USA to manage client relationships.


We, at the Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the group to excellence in everything we do.


Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities. This mission is what drives us to new heights in excellence and helps us forge a unique and mutually beneficial relationship with all our stakeholders. We are committed to move ahead resolutely on this path, shown to us by visionaries like Mr. Satyanand Munjal, Mr. Om Prakash Munjal, the late Mr. Dayanand Munjal and late Mr. Raman Kant Munjal. Mr. Brijmohan Lall Munjal, Chairman & MD THE HERO GROUP.

The Achievements

The Group and its management have acquired a number of accolades and achievements over the years: Hero Group Management style has been acclaimed internationally by World Bank and BBC, UK. Hero Group is discussed as a case study at London Business School, UK and INSEAD, France. World Bank has acclaimed Hero Cycles as a role model in vendor development based on a worldwide study. The London Business School, UK, has done a case study on the Group as model of entrepreneurship.

Boston Consulting Group has ranked Hero Group as one of the top ten Business Houses on Economic value, in India.

The Hero Group is recognized as a long-term partner and an ideal employer:

Hero Groups Partnership with Honda Motors, Japan is over 20 years old.

Hero Groups Partnership with Showa Manufacturing Corporation, Japan is over 18 years old.

Group Chairman, Mr. BrijmohanLallMunjal received the coveted Ernst& Young Entrepreneur of the Year award for 2001.

Hero Cycles was ranked 3rd amongst top Indian Companies Review 2000

Asias leading companies award (2003) by Far Eastern Economic Review.

Hero Cycles is the Worlds largest manufacturer of Bicycles with annual sales volume of over 4.8 million cycles.

Hero Cycles Limited is a Guinness Book Record holder since 1986 as the worlds largest manufacturer of bicycles, with annual sales volume of 5.2 million bicycles in FY 2004.

Engineering Exports Promotion Council has awarded Hero Cycles with the Best Exporter Award for the last 28 years in succession.

The Hero Cycles Ltd. Manufactures cycles, rims, free wheels, hubs & chains and cold rolled strips as a main product. Company has long portfolio of different range of cycles. Company has 132models in the list, covers all the three section-gents, ladies and kids. It also manufactures cycles parts for its own requirements. After fulfilling the requirements of company, it can export its remaining quantity. The main products are: COMPETITORS IN CYCLE MARKET: AVON OPERA TI ATLAS OTHERS (NEELAM,KW,BS) Cycles Rims Free wheels Hubs and Chains Cold Rolled strips E-Bikes



In this unit 3171 workers are working for production and 508 officers and staff members are working as administration, managerial, officers jobs. This unit is working in different shifts. First morning shift 6:00 a.m. - 2:00 p.m.

Second Evening shift 2:00 p.m. - 10:00 p.m. Third Night shift One General shift 10:00 p.m.- 6:00 a.m. 8:30 p.m. - 5:00 p.m.

All the departments are interrelated with each other for working process.


Introduction to HRM Employees are the Human Resources, as opposed to capital and equipment resources, in a company. Human Resources (HR) departments are responsible for all polices and activities that impact employees. The HR department is a crucial area of business success, as talented employees are a company's most important asset and greatest competitive advantage. Thus, HR executives are tasked with developing strategies that ensure employees contribute to the company's success. Meaning and definition of HRM In the simple sense ,HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organization, individual and the society. HRM can be defined as managing (planning, organizing, directing and controlling the functions of employing. Developing and compensating human resource resulting in the creation and development of human relations with a view to contribute to proportionately to the organizational, individual and social goals. According to Leon C Megginson, the term human resource can be thought of as the total knowledge, skills, creative abilities, talents and aptitude of an organizations workplace, as well as the value, attitudes and beliefs of the individuals involved. Importance of HRM: Human resource plays a crucial role in the development process of modern economics. Arthur Lewis observed, there are great difference in developing between countries which seem to have roughly equal resources, so it is necessary to enquire into the different in human behavior. It is often felt that though the exploitation of natural resources, availability of physical and financial and international aid play prominent roles in the growth of modern economies, none of these factors are more significant than efficient and committed man power. It is in fact said that all developments from the human mind. Functions of HRM The functions of HRM can be broadly classified into 2 categories Managerial functions Operative functions

Managerial functions of personal management involves, Planning

Organizing Directing Controlling

Operative functions of HRM are related to specific activities of personnel management Employment Human resource development Compensation Training and Development Industrial relations


Should be a qualified person (Minimum Graduate/MBA/MSW) in Personnel Management, HRD, HRM, IR and Welfare.

A person with cool temperament and good inter-action level.

Adjustable/adaptable nature in any type of working environment and to ready work under pressure.

A good listener with a quality to work as team leader not as individual.

A good guide with helping attitude to its team/subordinates

Should be honest, industrious and loyal to management being a key person of company.

He should knows his job well and to understand the goals of organization and its management. He should keep himself involved and updated with the latest change in system and what is going on its surroundings.

A good decision maker.

AREA OF WORKING (Hr manager)

To create healthy and clean working environment in an organization.

To create good industrial relations between workmen and management.

To recruit right person for the right job. Also to understand the job profile of individuals.

To ensure that there is no over manpower/over staffing/over manning in the company in order to control the wage bill.

Social security of employees and their families

To provide canteen facility including drinking water facility etc in the organization.

To persuade and guide management for providing reasonably good salary to employees with benefits.

To ensure timely distribution of salary/advance/loans etc to employees in order to maintain standard of company.

To comply with all the statutory requirements under various labor laws/Acts etc.

To create healthy liaison with Government officials, Judiciary and local administration etc.

To arrange good training to its employees (at all levels) whether from in house facility or outsource in order to further strengthen the skill of employees.

To enforce/implement safety measures in the plant, particularly at hazardous operations in order to avoid and minimize the accident rate.

Any other job assigned by management from time to time.

Recruitment and Selection

RECRUITMENT MEANING: Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. When more persons apply for jobs then there will be a scope for recruiting better persons. The job seekers too, on the other hand, are in search of organisations offering them employment. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection. In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisements, employment exchanges, internal promotion, etc. are used. In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees. Definition: According to Edwin flippo, Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. Need for Recruitment: The need for recruitment may be due to the following reasons/ situation: Vacancies due to promotions, transfer, retirement, termination, permanent disability, death and labor turnover.

Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job satisfaction

Purpose and Importance of Recruitment

Determine the present and future requirements of the organization on conjunction with its personnel planning and job analysis activities.

Increase the pool of job candidates at minimum cost.

Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time.

Help increase the success rate of the selection process by reducing the number of visibility under qualified or overqualified job applicants.

Meet the organization legal and social obligations regarding the composition of its work force.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increase organizational and individual effectiveness in the short term and long term.

Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection. 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 decided whether they wish to work for it. A well- planned and well- managed recruiting effort will result in high quality applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones.

Selection process diagram


Promotion Transfers Internal notification Retirement Recall Former employees Miscellaneous external sources

1) Campus recruitment 2) Press advertisement 3) Management consultancy services 4) Deputation of personnel 5) Management training scheme 6) Walk-ins, write-ins, talk- ins

The sources of recruitment can be broadly categorized into internal and external sources: Internal Recruitment-Internal recruitment seeks applicants for positions from within the company. The various internal sources include :Promotions and Transfers -

Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Promotions has many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improve the probability of good selection since information on the individuals performance is readily available, is cheaper than going outside to recruit, those chosen internally are familiar with the organization thus reducing the orientation time and energy and also act as a training device for developing middle- level and top-level managers. However, promotions restrict the field of selection preventing fresh blood & ideas from

entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad- based view of the organization, necessary for future promotions. Employee referrals

Employee can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with introduction and encouraging them to apply. This is a very effective means as many qualified people can be reached at a very low cost to the company. The other advantage is that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill. Former employees

These include retired employees who are willing to work on a part- time basis, individuals who left work and are willing to come back for higher compensations. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need of an orientation program me for them, since they are familiar with the organization. Dependents of deceased employees -

Usually, banks follow this policy. If an employee dies, his/ her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfill social obligation and create goodwill. Recalls

When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may be decided to recall that persons after the problem is solved, his leave may be extended. Retirements

At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances, management may decide to call retired managers with new extension. Internal notification (advertisement)

Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for.


1. The internal source of recruitment will boost morale of employees. They are assured of higher positions whenever vacancies arise. 2. The management is in a better position to evaluate the performance of existing employees before considering them for higher positions. The service records of existing employees will be a guide to study their suitability for ensuring vacancies. 3. The method of internal recruitment is economical. The cost incurred in selecting a person is saved. It also promotes loyalty among employees. They are preferred to consider at the time of filling up higher positions. They will feel a part and parcel of the organization and will always try to promote its interests. 4. This method can be used to motivate employees. It also ensures stability of employees. Moreover, this source of recruitment has the support of trade unions also.

DEMERITS OF Internal SOURCES: 1. The internal sources often lead to inbreeding and discourage new blood from entering into the organisation. 2. Since the learner does not know more than the trainer, no innovations worth the name can be made. Therefore, on jobs which require original thinking, this practice is not followed. 3. The likes and dislikes ant the personal biases of the management may also play an important role in the selection of the personnel.

External Recruitment: External recruitment seeks applicants for positions from sources outside the company. Every enterprise has to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken. External methods are discussed as follows: Advertisements:-

It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to apply. Newspaper is the most common medium but for highly specialized recruits, advertisements may

be placed in professional or business journals. Advertisement must contain proper information like the job content, working conditions, location of jobs, compensation including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the company and job are perfect for the candidates. It also cost effective. Employment Exchanges:-

Employment exchanges have been set up all over the country in deference to the provisions of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled. The major functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Campus Recruitments:-

Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the institutes. Some companies recruit a given number of candidates from these institutes every year. Campus recruitment is so much sought after that each college; university department or institute will have a placement officer to handle recruitment functions. However, it is often an expensive process, even if recruiting process produces job offers and acceptances eventually. A majority leave the organization within the first five years of their employment. Yet, it is a major source of recruitment for prestigious companies. Walk-ins, Write- ins and 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 can also provide a pool of potential employees to meet future needs. From employees viewpoint, walk- INS is preferable as they are free from the hassles associated with other methods of recruitment. Write- INS is those who send written enquiries. These jobseekers are asked to complete application forms for further processing. Talk- INS involves the job aspirants application is required to be submitted to the recruiter. Contractors:-

They 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. Consultants:-

They are in the profession for recruiting and selecting managerial and executive personnel. They are useful as they have nationwide contacts and lend professionalism to the hiring process. They also keep prospective employer and employee anonymous. However, the cost can be a deterrent factor. Head Hunters:-

They are useful in specialized and skilled candidate working in a particular company. An agent is sent to represent the recruiting company and offer is made to the candidate. This is a useful source when both the companies involved are in the same field. Competitors:-

This method is popularly known as poaching or raiding which involves identifying the right people in rival companies, offering them better terms and luring them away. For instance, several executives of HMT left to join Titan Watch Company. There are legal and ethical issues involved in raiding rival firms for potential candidates. From the legal point of view, an employee is expected to join a new organization only after obtaining a no objection certificate from his/ her present employer. Mergers and Acquisitions:-

When organizations combine, they have a pool of employees, out of whom some may not be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job applicants. As a result, new jobs may be created. Both new and old jobs may be readily staffed by drawing the best qualified applicants from this employee pool. This method facilitates the immediate implementation of an organization strategic plan. It enables an organization to pursue a business plan. MERITS OF EXTERNAL RECRUITMENT: 1. The suitable candidates with skill, talent, knowledge are available from external sources.

2. It will help in bringing new ideas, better techniques and improved methods to the organisation. 3. The existing employees will also broaden their personality. 4. The entry of qualitative persons from outside will be in the interest of the organisation in the long run. DEMERITS OF EXTERNAL RECRUITMENT: 1. It is more expansive and time consuming to recruit people from outside. Detailed screening is necessary as very little is known about the candidate. 2. The employee being unfamiliar with the organisation, their orientation and training is necessary. 3. If higher level jobs are filled from external sources, motivation and loyalty of existing staff are affected.


MEANING: To select is to choose. Selection is the process of picking up individuals (out of pool of job applicants) with requisite qualification and competence to fill jobs in the organisation. DEFINITON: According to DALE YODER, Selection is the process in which candidates for employment are divided into two classes - those who are to be offered employment and those who are not. SELECTION PROCESS: The selection procedure consists of a series of steps. Each step must be successfully cleared before the applicant proceeds to the next. The selection process is a series of successive hurdles or barriers which an applicant must cross. These hurdles are designed to eliminate an unqualified candidate at any point in the selection process. Thus, this technique is called SUCCESSIVE HURDLES TECHNIQUE .Selection procedure for the senior managers will be long drawn and rigorous, but it is simple and short while hiring lower level employees. Steps involved in employee selection are explained in detail as follows: 1. External and internal environment: Selection is influenced by several external and internal environmental factors. The important external factors affecting selection are supply and demand of specific skills in the labour market, unemployment rate, labour market conditions, legal and political considerations etc. The internal factors are organisations image, organisations policy, human resource planning and cost of hiring. 2.Reception: The receipt and scrutiny of applications is the first step in the process of selection. A receptionist in the personnel department gives information about new openings to the visitors and receives their applications. The scrutiny of applications is essential to take out those applications which do not fulfill the requirements of posts. These applicants if called for interviews, will waste their own time and that of the company. 3.Preliminary Interview: Preliminary interview is a sorting process in which the prospective candidates are given the necessary information about the nature of the job and the organization. Necessary information is obtained from the candidates about their education, skills, experience, expected salary etc. If the candidate is found suitable, he is selected for further screening. Preliminary interview saves time and efforts of both the company and the candidate. Preliminary interview is brief and generally carried out by a junior executive across the counter or at the reception office.

4. Blank Application Form: A blank application form is a widely accepted device for getting information from a prospective applicant. This is a way of getting written information about candidates particulars in his own handwriting. The information collected in blank application relates to the following particulars: (i)Bio-data:Bio-data includes name of the applicant, fathers name, date of birth, place of birth, permanent address, height, weight, identification mark, marital status, physical disability etc. (ii)Educational Qualifications: This part of educational qualifications relates to education acquired, subjects studied, areas of specialization. (iii)Work Experience: Application blank also enquires about previous experience, similar or other jobs held, nature of duties, salaries received, names of previous employers, reasons for leaving the present job. (iv)Curricular Activities: The information about participation in extra-curricular activities like N.S.S., N.C.C., debates and declamations, sports, etc. is also received in blank application form. (v)References: The applicant is also asked to give some references from where an enquiry may be made about his nature and work. The references are normally the persons with whom the applicant has worked but are not related to him. (vi)Salary Demanded: The salary demanded by the applicant is also given in the application blank. 5. Selection Test: Applicants who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered depending on the job and the company. A test provides a systematic basis for comparing the behavior attitudes and performance of two or more persons. Tests help in reducing bias in selection by serving as a supplementary screening device. Tests help in better matching of candidates and the job. Tests are useful when the number of applicants is large 6.Selection Interview: Interview is the oral examination conducted for the purpose of employment. It is a formal, in depth conversation, which evaluates the applicants acceptability. It is also a very flexible device which can be adopted to select unskilled, skilled, managerial and professional employees. In selection interview the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observations during the interviews. 7.Checking References: The references may provide significant information about the candidate if they happened to be his former employers or with whom he might have been working earlier. The applicants are normally asked to name two or three persons who know about his experience, skill, ability, etc. but should not be

related to him. The prospective employer normally makes an investigation on the references supplied by the candidate and undertakes search into his past employment, education, personal reputation, etc. 8.Final Selection: Upto this stage selection is handled by personnel department or staff executives. Since the persons employed are to work under line officers, the candidates are referred to them. Line officers will finally decide about the work to be assigned to them. If the candidate is not suitable for one job then he is tried at some other. 9.Physical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo physical fitness test. Candidates are sent for physical examination either to the companys physician or to a medical officer approved for the purpose. A job offer is often, contingent upon the candidate being declared fit after the physical examination. The results of medical fitness test are recorded in a statement and preserved in the personnel records. 10.Job Offer: The next step in the selection process is the job offer to those applicants who have crossed all the previous hurdles. Job offer is made in the form of an appointment letter. Such a letter, generally, contains a date by which the candidate must report for duty. Reasonable reporting time is given to all the appointed candidates. 11.Contract Of Employment : After the job offer has been made and the candidate accepts the offer, a contract for employment is executed by the employer and the candidate. The basic information that is included in a written contract varies according to the level of the Job. Generally, the following details are included in the contract: (i)Job tittle (ii)Details of duties (iii)Date when the continuous employment starts (iv)Remuneration and method of payments (v)Hours of work including lunch break, overtime and shift arrangements (vi)Holiday arrangements and details of holidays (vii)Sickness leave rules (viii)Length of notice due to and from employee (ix)Grievance procedure

(x)Disciplinary procedure (xi)Work Rules (xii)Terms of Termination of employment (xiii)Terms for union membership (xiv)Employers right to vary terms of the contract subject to proper notification being given. Great care is taken in drafting the contracts. 12. Evaluation: The selection process, if properly performed will ensure availability of competent and committed personnel. A period audit conducted by people who work independently of the human resource department will evaluate the effectiveness of the selection process.

Research done on Recruitment and Selection Practices by Sheila M. Roux, Ph.D., Research Consultant and Paul Bertha, Ph.D., Manager of Development Dimensions International (DDI).

Better recruitment and selection strategies result in improved organizational outcomes. The more effectively organization recruit and select candidates, the more likely they are to hire and retain satisfied employees. Recruitment is the process of identifying and attracting potential candidates from within and outside an organization to begin evaluating them for future employment. Once candidates are identified, an organization can begin the selection process. This includes collecting, measuring, and evaluating information about candidates qualifications for specified positions. Organizations use these processes to increase the likelihood of hiring individuals who possess the right skills and abilities to be successful at their job. Research done on How to tailor your recruitment and selection process to reflect a changing economy by Co-operative Personnel Services (CPS) human resource service.

The purpose was to identify what other agencies have been doing in their recruitment and selection processes to account for the changing economy. Wanted information in terms of strategies and processes used or changed over the past few years in order to account for the change in the economy, the number of applications, and the number of qualified applicants. Research done on how can HRM Improve recruitment and selection within organization by Carter Mc Namarari. Research done on a dissertation on recruitment and selection process in TATA INDICOM by Shweta Dass.

To minimize the recruitment cost & time, telephonic interview / video conferencing are being conducted for the outstation candidates. The other important source of recruitment considered in this sector is the HR Databank/ References from the interviewed candidate. Number of rounds conducted for interview depends upon the level of job it varies according to that. Telephonic interview is used very less instead of that other mode of interview is used i.e. mix and one to one How you select people is more important than how manage them once they are on the job.

The objectives of research are as follows:
1. To know about brief introduction of the company. 2. To know about organizational structure of the company. 3. To know about the manpower planning and recruitment policy of the company. 4. To recommend suggestions for improvement.


Each and every project study along with its certain objectives also has scope for future. In order to meet the recruitments of the project, the survey was conducted at LUDHIANA. No other city was covered. The scope of the study about the manpower planning, recruitment and selection policy of HERO CYCLES is restricted to the city LUDHIANA

LIMITATIONS OF THE STUDY Limitation of time and resources may have narrowed the scope of study. The time period for the training was short enough to study the organization in detail. Due to different shifts all workers who were imparted training could not be interviewed. The employees hesitated disclosing the true facts. Thus the accuracy of the data could not be achieved.

The sample size of 100 is very small and more than that could not be possible.


Research methodology is a way to systematically solve the research problem. The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Type of research:- Descriptive Research INFORMATION COLLECTION:The core findings of the study are based on the information collected through primary data & secondary data. PRIMARY DATA: which we collect through SECONDARY DATA: Observation method Companies literature Internet Trainer Books Questionnaire, Interviews. Scheduling

The research design was purposefully exploratory and descriptive because little research had previously been conducted that investigated commitment issues in organizations. Sample size The study sample constitutes 100 respondents constituting in the Research area.

Collection of Data Most of the data collected by the researcher is primary data through personal interview, questionnaire. RESEARCH INSTRUMENT We use questionnaire and give multiple choice questions in order to get data. Thus, Questionnaire is the data collection instrument used in the study. All the questions in the questionnaire are organized in such a way that elicits all the relevant information that is needed forth study. STATISTICAL TOOLS The statistical tools used for analyzing the data collected are percentage Method, pie diagrams. RESEARCH PERIOD The research period of the study has from June 6th 2011 to July 30st 2011.


Age Group
41-50 15% <20 12%

21-30 31% 31-40 42%

The above pie chart shows that out of total 25 respondents 12% of the respondents are in the age group of less than 20 years, another most 31% of the respondents lies in the age group of 21- 30 years, 42% respondents are in 31 -40 years, 15% of respondents lies in the age group of 41-50 years.


West Bengal 12%


Bihar 15%

UP 46%

Punjab 15% HP 12%

The above pie charts shows that out of the sample of 25 respondents, 46% of the respondents are from UP, 12% are from HP, 15% are from Punjab, 15% are from Bihar, and the remaining 12% are from West Bengal.


Up to 7th 7%

Illiterate 4%

Up to 12th 15%

Up to 8th 26% Up to 10th 44% Up to 9th 4%

The above pie chart describe that 4% respondent are illiterate, 26% respondents are middle school graduates i.e. up to 8th standard,11% respondents are in school graduates i.e. up to 7th and 9th, 44% are secondary school graduate i.e. up to 10th, at least 15% respondents are higher school graduate i.e. up to 12th.


Why did you select Hero Cycles for job?

Friendly environment 4% Image of the company 4%

Better working conditions 28%

Better salary 64%

The above pie chart illustrates that out of the sample of 25 respondents 68% respondents selected Hero Cycles Ltd because of its better salary and better career growth/ opportunity and 32% of the respondents selected HCL because of its better working conditions/ environment and reputation of company in the market.


How do you come to know the availability of job in Hero Cycles?

Employment Placement agency 0% exchanges 0%

Advertisements 24% Friends/ Relatives 76%

The above pie chart illustrates that out of the sample of 25 respondents, the percentage of the respondents who came to know the availability of job in HCL reached at the peak i.e. 76% while 24% of the respondents came to know the availability of job in HCL through advertisements/ notice boards.


Are you satisfied with method used by the company for recruitment?
Neutral 0% 0% No 20%

Yes 80%

From the above pie chart we conclude that the maximum number of respondents i.e. 80% is satisfied from the method of recruitment and remaining 20% respondents are not satisfied from the method of recruitment because of communication gap between newly recruited workers and personnel department.


Why did you leave previous company and opted for Hero Cycles?
Others Stagnation 0% 0%

Less salary 40%

Unsatisfactory working conditions 60%

From the above pie chart we conclude that the 18% of the workers leave their previous company and opted for HCL because of less salary, 27% of the workers left their previous company due to unsatisfactory conditions.


Is your family happy over your decision for this change?

0% 0% No 40%

Yes 60%

From the above pie chart we conclude that 60% of the families of workers are happy over the decision of their family members for opting the HCL, while 40% are not happy.


Did you get any rise in your salary package/redesignation after coming to Hero Cycles?
No 10%


Yes 90%

The above pie chart illustrates that out of the sample of 25 respondents, 90% of the workers get rise in the salary package after coming to Hero Cycles whereas 10% didnt get any rise in their salary package.


Are you satisfied with the salary/wages being paid to you according to your qualification and experience?
0% Neutral 20%

Yes 50% No 30%

The above pie chart illustrates that 50% of the workers in HCL are satisfied with their salaries but 30% of the workers in HCL are not satisfied with their salaries while remaining 20% of the workers working in HCL are neutral.


In which category are you selected?

Casual 12%

0% 0%

Permanent 88%

The above pie chart defines that 88% of the workers working in HCL are selected under permanent category, whereas remaining 12% of the workers working in HCL are selected under casual category.


Are you getting full training according to your job?

No 0% 0% 0%

Yes 100%

The above pie chart depicts that the percentage of workers getting full training according to their jobs reached at the top i.e. 100%. However, training is always imparted on the basis of nature of job.


Are you aware about the company's policies?

0% 0%

No 60%

Yes 40%

From the above pie chart we conclude that the only 40% of the workers are aware about the companys policies whereas remaining 60% of the workers are not aware about the companys policies.


61-70 4% 21-30 12%

51-60 40%

31-40 12%

41-50 32%

The above pie chart defines that 5% of the respondents lay in the age group of 21-30, 25% of respondents lie in the age group of 31-40, and maximum number of respondents lie in the age group of 41-50 and 5% lie in the age group of 61-70 years respectively in this sample.



DGM 8% Engineer 12% Manager 4% HR 4% Asstt.Manager 20% Auditor 8%

Store Officer 16%

Dy.Manager 28%

It is clear from the above chart that 4% of respondents are HODs whereas 12% respondents are engineers on the other hand 4% respondents are managers, 8% respondents are auditor, 20% respondents are Asstt. Manager, 28% respondents are Dy. Manager, 16% respondents are store officer, 8% respondents are DGM out of the total samples.


(0-10) 16%

(31-40) 20%

(21-30) 32%

(11-20) 32%

We can interpret from the above diagram that out of the total sample of respondents 16% of respondents are having their length of service between 0-10 years, 32% respondents have their length of service between 11-20 years, 32% respondents have length of service between 21-30 years and only 20% respondents have their length of service between 31-40 years.


Employment Exchanges 8% Others 8% Internal 16%

External 68%

The above figure illustrates that 68% of the respondents says that the source of recruitment in their department is external, 16% respondents choose internal source of recruitment in their department, 8% respondents select employment exchange as source of recruitment and 8% respondents select other source of recruitment like internet etc.



0% 0%

No 20%

Yes 80%

The above chart depicts that 80% of respondents say yes that the basic purpose of recruitment is to recruit qualified persons and other 20% respondents says no that the basic purpose of recruitment is not only to recruit qualified persons, it is based on the nature and type of the job and its recruitment.


0% 0%

Yes 40%

No 60%

It is clear from the above chart that 40% out of the total respondents play role in the procedure of recruitment in their department but 60% respondents are those who never play any role in recruitment.



Business Expansion 16% 0%

Replacement 40%

Increased productivity of firm 44%

The above chart describes that 40% of the respondents select replacement against left employees as the primary role of recruitment, 16% respondents prefer current or future business expansion as the primary goal of recruitment, 44% of the respondents says that the primary goal of recruitment is to increase the productivity/ capability of the firm by adding new skills.


Transfer from one Deptt. To other 23%

Standardization of employees 61%

Rotation of shift 8%

Overtime against absenteeism 8%

The above chart shows that 23% respondents said that they plan manpower in their department by transfer from one department to another, 8% of the respondents plan their manpower by rotation of shifts, 8% respondents prefer overtime to plan their manpower and 61% select standardization of employees to plan their manpower.


0% 0% No 35%

Yes 65%

The above chart illustrates that 65% respondents says yes that there is manpower variability in their department while the remaining 35% respondents said that there is not any manpower variability in their department.

The following are the findings with respect to recruitment and selection for the Hero Cycles Ltd.: The following are the findings of the research conducted at the workers level: a) It has been found that while recruiting the workers, their qualification & experience is taken as most important part. b) It has been found that 42% workers lie in the age group of 21- 30 tears, and hence are younger, 36% workers lie in the age group of 31-40 years and 65% of workers belongs to the state of Punjab and 30% are from U.P. c) 76% of the workers are permanent while 24% are casuals and almost each and every worker gets training according to their job. d) 40% of the workers have selected Hero Cycles Ltd. For job because of better salary and better career growth/ opportunity while 60% of the workers have selected HCL because of better working conditions/ Environment reputation of the company.100% of the workers are satisfied from the method of recruitment method. e) 50% of the workforce is satisfied from their salary. And 30% are agreed that they are getting their wages according to their qualification and experience and 20% workers have no idea about this. f) Almost all the workers found that the faculty is good & effective and they use to welcome the doubt workers and solve them.

The following are the suggestions with respect to manpower planning, recruitment and selection for Hero Cycles Ltd.:1) It has been found that most of the staff lie in the staff lies in the age group of 41- 50 years and only 5% lie in the age group of 61- 70 years. And most of the staff is much experienced. 2) 65% of the staff members are managers and only 15% are HODs. And 40% have 1-10 years of length of service in HCL and 35% 11-20 years of length of service.

The following are the suggestions with respect to manpower planning, recruitment and selection for Hero Cycles Ltd.:a) Detailed description of job, its duties, hours, wage rate or incentive, work place, equipment should be specifying to employees. b) Experience should be counted by the company at the time of recruitment. c) After recruitment there must be a periodically Training program by personnel department for different jobs. And training on the job should be supplemented by instructor in the class room. d) Personnel policies, what new employee can expect of the company and what is company expecting of them, must be clear at the time of recruitment. e) There should be effective programs conducted to motivate the employees and build up positive attitude of employees. f) There are some reservation for persons having with maximum qualification & experience.


The Hero Cycles Factory in Ludhiana is considered to be the largest and the most efficient factories in the world. After doing the survey study at employees level certain results and findings were derived on the basis of which we came to certain conclusions. It is on that the purpose of the study for it was conducted to know the manpower planning, recruitment and selection of HCL. We found that many workers are unaware about the manpower planning, recruitment and selection procedure of HCL. There are less sources of information about manpower planning, recruitment and selection due to communication gap between management and workers. Most of the workers are younger and dissatisfied with their salary. Most of the staff employees are experienced. And according to them the basic purpose of recruitment qualified people. The primary goal of manpower planning in HCL is replacement against left employees and increases the production of the firm by adding new skills. Most of the staff agreed that the manpower planning is varying in their department. In short Hero Cycles Limited believes in to provide excellent transportation to the common man at easily affordable price.









a) b) c) d) e) f)


Dear respondents, This questionnaire is only for academic purposes. So be honest and true in your response. Please put tick against appropriate answer.


1. Why did you select Hero Cycles for job? a) Better salary b) Better working conditions c) Friendly environment d) Image of the company 2. How do you come to know the availability of the job in Hero Cycles? a) Friends / relatives b) Advertisements c) Employment exchanges d) Head hunting 3. Are you satisfied with the method used by the company to recruit the workers? a) Yes b) No 4. Why did you leave previous company and opted for Hero Cycles? a) Less salary b) Unsatisfactory working conditions c) Stagnation d) Others 5. Is your family happy over your decision?

a) Yes b) No

6. Did you get any rise in your salary package after coming to Hero Cycles? a) Yes b) No 7. Are you satisfied salary/ wages being paid to you according to your qualification and experience? a) Yes b) No 8. In which category are you selected? a) Permanent b) Casual 9. Are you getting full training according to your job? a) Yes b) No 10. Are you aware about the companys policies? a) Yes b) No 11. What is your objective of life?



Dear respondent, This questionnaire is only for academic purposes. So be honest and true in your response. Please put tick against appropriate answer.


1. How many employees are working in your department? a) Staff b) workers 2. What is the source of recruitment in Hero Cycles? a) Internal b) External c) Employment exchanges d) Others e) If other, please specify 3. Do you think the basic purpose of recruitment is only to recruit qualified people? a) Yes b) No 4. Do you play any role while recruiting the manpower in your department? a) Yes b) No 5. How do you agree that following parameters are significant for effective utilization of manpower and promotion within department? METHODS STRONGLY AGREE SOMEWHAT STRONGLY DISAGREE SOMEWHAT AGREE AGREE DISAGREE DISAGREE JOB ROTATION PROMOTION TRANSFER FRESHER


6 What is your primary goal of recruitment and manpower planning? a) Replacement against left employees b) Current and future business expansion c) Increase the production of the firm by adding new skills/ automation 7 How do you plan your manpower in your department? a) Transfer from one section to another b) Rotation of shifts c) Overtime against absenteeism d) Standardization of employees 8 Is the manpower is variable in your department? a) Yes b) No 9 What are your suggestions to increase the production & output by modifying the recruitment & manpower process?