The Study of Recruitment and Selection

A Project Report On â€Å"THE STUDY OF RECRUITMENT AND SELECTION† At PACE HR INNOVATION PVT. LTD. By Aarti Sharma Under The Guidance of PROF. Pranjal Jadhav Submitted to â€Å"UNIVERSITY OF PUNE† In partial fulfillment of the requirement for the award Of the Degree of Master of Business Administration. MARATHWADA MITRA MANDAL’S INSTITUTE OF MANAGEMENT EDUCATION RESERCH AND TRAINING (2011-2013) ACKNOWLEDGEMENT The success and satisfaction of any work would be incomplete without mentioning the people who made it possible, whose constant guidance and encouragement crowned my efforts with success.I would like to express my sincere gratitude and thanks to Mr. BHAVESH SHAH for his constant encouragement and invaluable suggestions throughout the course. I consider it privilege to express my sincere gratitude to PROF. PRANJAL JADHAV for their entire support and encouragement I express my sincere appreciation and gratitude to PROF. PRANJAL JADHAVfor the constant encourage ment and invaluable suggestions throughout the course. I also express my gratitude to Mr. BHAVESH SHAH for giving me this opportunity to do my project in their esteemed organization.Last but not the least to the entire team of PACE HR Innovation PVTLTDwithout their effort this project could not have been completed. I am also thankful to my colleagues for helping me directly or indirectly to complete my project work. Aarti Sharma. DECLARATION I hereby declare that the project work titles THE STUDY OF RECRUITMENT AND SELECTION in Pace HR Innovation Pvt. Ltd. Kothrud,Pune is written and submitted by me is original and all the information collected is authentic to the best of myknowledge under the guidance of PROF. PRANJAL JADHAV and Mr. BHAVESH SHAH.The empirical finding in the report is based on the information collected by me. Aarti Sharma. INDEX Sr. No| CONTENTS| PAGE NO| 01| Executive Summary. | 1. | 02| Company Profile. | 3. | 03| Introduction. * Concept of HRM. * Recruitment Proc ess. * Selection Process. | 9. | 04| Objective of study. | 33. | 05| Scope of study. | 34. | 06| Research Methodology| 35. | 07| Data Analysis and Interpretation| 37| 08| Finding and Observation| 61. | 09| Recommendation| 62. | 10| Conclusion. | 63. | 11| Bibliography| 64. | 12| Annexure. | 65. | Executive Summary EXECUTIVE SUMMARYThe Summer Project at Pace HR Innovation PVT LTD, Kothrud Pune was indeed a very fruitful experience. This project gave main sight knowledge on Recruitment and Selection procedure especially for Manufacturing and Service industries. During these two months all the HR team of Pace HR Innovation PVT LTD put all their efforts in giving me the best possible training on various inner sight of Recruitment & Selection procedure. The project had started with Interview process as I had gone through one of my friend reference who is already working in Pace HR Innovation Pvt.Ltd After interview process, the Induction program was conducted by HR executive of Pace HR I nnovation PVT LTD. The induction program gave me the entire overview of the organization its Mission and Vision. The training session was then followed by Recruitment and Selection procedure which was taken by HR members responsible for conducting the recruitment process for the company. The HR trainee taught the process step by step each day by virtually showing the process of Recruitment and Selection.The HR trainee also explained that how success of every company begins with finding and hiring of good employees at regular intervals. Recruiting the right person for the right Post is the main motto of HR department. It need not be difficult though, as long as the process of recruitment & selection it is approached in a careful and systematic manner. The HR trainee also explained that Recruitment and Selection, strictly are differentiated functions, the recruitment process deals with the forming a pool of applicants, whereas Selection process deals with picking out the best employee .However, in practice no clear distinction is seen between the two it is considered as an integrated process. Recruitment must start with a thorough assessment of immediate staff requirements. The vacant job should be analyzed and a job description should be prepared which in turn becomes easier for the employee who wants to apply for the post. Attention must also be given to future vacancies of the organizationalso. The HR trainee also explained the possible sources of recruitment – internal and external which have to be studied and performed in an organized manner.Then HR trainee also explained as how to screen and shortlist the candidates CVs as per the requirements of various departments and inviting candidates possessing different skills and talent and also explained as how to conduct a telephonic interview and how to arrange interviews as per both the parties’convenience. 1. After completion of all the selection process the suitable employee should be selected an d should be provided with offer letter. HR trainer also explained as how to conduct induction programmeand necessary instruction given during the induction programme.The training program included not only Recruitment process but also various management games, how write appropriate mails to candidates, communication skills. During the project I found that Interview process was conducted in satisfactory manner. The HR department of Pace Hr innovation Pvt. Ltd. follows both the internal and external sources for conducting the recruitment process. I also noticed that it was difficult to conduct interview process, as candidates where not able to reach for the interview as per the time schedule.The major factor affecting the recruitment policy is the Pay Packages provided by the organization. The test duration for the senior level officer and fresher is too long. Though it is beneficial but time consuming and it also takes a lot of effortto find the exact candidate with required skills, e xperience, qualification etc on the portals. During the project I also recommended that the company should develop or provide software which would provide quick result as the test is over. So the time is saved in evaluation.The advertisement of the company should be done on the large scale so that the company would get more outsourced work from the various large organizations. The company should find some type of technology in place of the large amount of paper work and thus work can be done faster and the time is saved. The selected candidates should be given training at their work place which in turn will give them proper view of their work process and Organization should reward their employees regularly which will increase their work efficiency and will become more loyal towards their organization.And thus I concluded that the company follows a standard policy to recruit employeesand the existing recruitment policy is adequate but modern methods of recruitment and selection shoul d be adopted to be more effective. The present recruitment policy is flexible enough as it has undergone several changes from time to time to suit the requirements of the organizations and in the company, both internal & external sources of recruitment are used.Lastly HR members explained that the main motto of HR department is to take care of the employees working in the organization and also to make them effective and efficient to achieve the goals of the organizations. 2. Company Profile COMPANY PROFILE About Company Pace HR Innovation Pvt. Ltd. was established in 2006 by Bhavesh shah and Pooja Shah. Mr. Bhavesh holds 10 years of experience in HR and Pooja Shah has an experience of 9+ years of experience in the IT domain. Pace HR Pvt. Ltd. is the fastest growing Payroll Processing & Manpower Outsourcing Company providing a wide range of staffing solutions to its clients.Pace HR bring in the right combination of expertise facilitating organizations to acquire temporary and permane nt staff, enhancing productivity, quality and reducing employment cost. Pace HR Pvt. Ltd. started in 2006 for providing total HR Solutions for MNCs and Indian Companies. It started with Payroll Processing division and later diversified into Temp Staffing and Manpower Outsourcing. Pace HR currently employs in leading MNCs, Corporate Houses, FMCG, Service Industries, KPO, Technologies, Engineering & Manufacturing Companies.The focused approach, continuous improvement to enhance operational and delivery standards, implementation of best practices and technology has helped Pace HR in attaining the leading position in the HR Services Certification:- Pace HR Innovation Pvt. Ltd. is an ISO 9001:2008 certified company and a member of MCCIA (Maratha Chambers of Commerce, Industries and Agriculture). Company is also in the process to get certified by D&B from an International body. Operations:- Companymajor operations include Payroll Processing, Outsourcing and Hr Trainings.Company Footprints :- Company has branches in Pune, Mumbai and Bhubaneswar. 3. Objective of Company:- To provide exposure to HR Professional for the entire Recruitment process and Payroll Process where they can hands on experience of IT/ITES/BSFI sectors. And gain an edge in the competitive job market. * Achievements:- Company proudly admit that we have trained and placed 570+ HR Professionals across the industries and have made a difference to their career growth in last 5 years . In 2010-2011 we Trained and placed 156+HR Professionals.Company pool trainees include Professionals from INFOSYS, WIPRO, TATA, WNS, and JOHN DEER. * Philosophy Welcome to Pace HR Innovations Pvt. Ltd are Management Consultants located in pune established in 2006. The company has succeeded in changing its strategy to service Clients globally as India's Premier HR Company with focus on the entire gamut of HR Services ranging from Recruitments (Talent Search), Flexi Staffing (Flexi talent), Training, HR Services, Institution S ervices and Assessment Centre. Pace HR Innovations Pvt.Ltd has succeeded in changing its strategy to service Clients globally as one of India's Premier HR Companies with focus on the entire range of HR Services namely Recruitments (Talent Search), Flexi Staffing (Flexi talent), Training, HR Consulting Services, Institutions Services and Assessment Centre. Thus, raising productivity through improved quality, efficiency and cost-effectiveness, this enables Pace HR Innovations Pvt. Ltd to concentrate more on Clients. Expertise and leadership propelled Pace HR Innovations Pvt.Ltd from a small pune operation called Check and Cash in 2006 to a nationally-connected enterprise within our first Eight years of business. Aggressively expanding our network is intrinsic to our strategic plans. Our expertise banks on 20 strong team of HR specialists drawn from the various verticals across all major industries. Consequently, we are opening our doors to more applicants and employers each year with a broader range of excellent available positions to fill and a healthier base of candidates to place in those jobs. From year to year, nearly all of our clients return to us.We are, therefore, building lasting relationships with high-quality employers. The benefit to job seekers is a confidence that the employers, with whom we do business, from Fortune 500 to entrepreneurial firms, are respectable, financially strong and growing. Employers can rely upon us to present only solidly qualified candidates for consideration. 4. * Recruitment/Outsourcing The growth in economy is making organizations to look at ramping-up their workforce. At the same time competition calls the organizations to focus more on their prime business functions.By outsourcing the recruitment Process the organizations are able to allow their human and capital resources to dedicate more time on core competencies and other high value consultative activities. And for this, Pace HR Innovations Pvt. Ltd offers tailored and measurable Recruitment Solution under Recruitment Process Outsourcing (RPO) which generates a competitive advantage for our clients by allowing a varied set of services ranging from Talent Pool Generation, Job Board Advertising, Candidate Screening & Response Management, Vacancy Monitoring, Skill-set Mapping etc. in addition to Candidate Validating & Referencing, Interview Scheduling & co-ordination and CandidateAssessment. To our esteemed clients, RPO gives them the advantage of being Process Driven, Domain Competence, Scalability, Cost-Effectiveness, Time-Bound delivery, Pan India Operations and a Single Contact Point. * Ascent Ascent is an innovative model of recruitment that provides a very comprehensive action plan for tracking recruitment requirements within the organization. Ascent offers multiple specialists to work on variable talent acquisition cost. The HR specialists sit at your office to provide on-site recruitment solutions.They man the entire logistics from requir ement to sourcing, to test processes, to coordinating interviews to counsel between joining periods and mentoring post joining. Our goal is to maximize cost savings to our clients whilst ensuring high quality services through our vast talent sourcing model and synergizing world class recruitment methodologies with the competitive advantages offered by Pace HR Innovations Pvt Ltd. * Vision of the company Pace HR Innovation Pvt. LTDCompany,to be the India's Premier HR Company and to acquire, provide, and nurture the best of Indian talent. Mission Pace HR Innovation Pvt. LTDis passionate and pioneering people dedicated to provide solutions for any HR challenges of our clients, our customers, or our employees. 5. Process of the Pace HR Innovation Pvt. Ltd company Outsourcing, has been defined as sub-contracting of a process to a third party. The decision for outsourcing is based on a lot of deliberation on a process to be so outsourced and its importance for a direct control by the busi ness pros ; cons of the resources attached to the process So, The steps a business person need to take to outsource any process? 1.Deliberation: This is the first step for outsourcing. Any business needs to first identify the reasons for outsourcing, the pros ; cons of outsourcing and then only decide in favor of it. Outsourcing needs to be seen as a part of strategic business decision and the outsourcing vendor needs to be seen as a partner in the overall growth strategy of the business. 2. Invitation of proposals: Once the business decides that it wants to outsource a certain process, the next step is to sort out various vendors offering their expert services in the same category as the process belongs to.In today's world, with the wide usage of internet, proposals may be invited from vendors outside the local area of operation of the business. 3. Negotiation: This step is the natural fallout of the second step. All the proposals are first compared to understand the pros and cons of each vendor. A face to face meet or a telephonic meeting may be held to clarify the requirements of the business and the vendors' response. Based on the interaction, the number of vendors in the fray would be significantly reduced to a couple of vendors.At this stage, the business needs to do a proper due diligence of the remaining vendors and also negotiate on the prices andtermsofservices. 4. Finalization of contract: Once the negotiation round is over, the business can take a decision about the vendor it would want to partner with. Once this decision is made, the business would then draft the legal agreement/contract that needs to be signed by the business and the selected vendor before the actual outsourcing starts. This is one of the most critical stages since the business needs to be very specific about the terms and conditions.There shall not be any ambiguity in the legal contract. It would be better if the contract specifies the jurisdiction of the contract and how any di sagreement, if anycanberesolved. 5. Transition: This is the step where the process transfer takes place. This also includes the knowledge transfer from the business to the outsourcing vendor. In this stage, the business would do good to outline the SLAs (Services Level Agreement) which would measure the work being done by the outsourcing firm. 6. Ongoing Service delivery: This is the stage where the services of the outsourcing firm are availed by the business.If the agreement between the two parties talks about any fixed term, then this stage continues till the time such fixed term is not over. Else, this stage continues till the time the business doesnotterminatethecontractofoutsourcing. 6. 7. Termination or Renewal: If the contract talks about any fixed term or any other condition that would trigger termination of the contract, then on the occurrence of such an incident, the contract may be terminated. In case of the term getting over, the contract may either be terminated or rene wed. In ase of renewal, both the parties may re-negotiate on the price terms or any other terms that need a re-look. if the contract is terminated, the next step would involve the outsourcing firm to giving back the outsourcing process and related resources to the business or to any other outsourcing firm the business has appointed. * Company’s Prestigious Clients INFOSYS. WIPRO. IBM. TATA. WNS. JOHN DEER. * Company Strength. * Efficient Project Management * Technical competence * Multi-location Branch Offices * Strict compliance with completion Schedules * Quality ; Safety consciousness Competitive pricing with maintained Profit margin. * Commitment to customer satisfaction. * Completion of project on time. 7. * HR Department Of the Company. HR Department of the company includes one HR Manager and three HR forAdmin,payroll, Executive. It also plays important role in keeping record of each employee, their salary, ESI, PF. And five HR Recruiter for Recruitment ;Selection,joini ng formalities, Training etc. * TOP MANAGEMENT TEAM OF PACE HR INNOVATION PVT. LTD. * Mr. Bhavesh Shah- Co- founder, Director. * Mrs. Pooja Shah- Director. * Jay Shah – Head Operation. * Apasna chowlage- Head HR. Gunja Towal- Head training ; Development. * Reshma Shaikh- Head Marketing. 8. Introduction INTRODUCTION The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working within the organization. Employee should be creative, talentedand goal achievable person who will achieve the organizations goal and objective. Thus organization will progress and prosper. In order to achieve the goals or the activities of an organization it is necessaryto recruit people with adequate skills, qualifications and experience.While doing so, they have to keep the present as well as the future requirements of the organization in mind. Recruitment is distinct from Employment and Selectio n. Once the required number of vacant position are determined and kind of human resources requirement , The HR management has to find the ways from where the required human resources will be available and also find the means of attracting them towards the organization before selecting suitable candidates for jobs. HR professional has a big responsibility to hire the best person from the talent pool. At the same time, one needs to be cost conscious.It is a good practice in Recruitment ; Selection process to be objective and seek to identify the candidate’s abilities. Judge on individual merits and set the same standard for all. One needs to use the technology, to get the best results and it is also necessary to possess the healthy relationship with employees. Thus in order to achieve the best result from the recruitment ; selection process, one needs to strategies on following points. * Adopting the right method of recruitment, this is more efficient in terms of cost and time without compromising on quality. Reducing the risk of employing people who cannot perform. Hence these procedures will play major role in driving the organization in forward direction. 9. Concept of Human Resources Management Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. It has the following features: I.Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization. ii. Action oriented: HRM focuses attention on action, rather than on record keeping, written pro Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.It has the following features: * Pervasive force: HRM is spread throughout in nature. It is present in all enterprises. It permeates all levels of management in an organization. * Action oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies. * Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organization. It motivates employees through a systematic rocess of recruitment, selection, training and development coupled with fair wage policies. * People oriented: HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. * Development oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure.Every attempt is made to use their talents fully in the service of organizational goals. * Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization. * Comprehensive function: HRM is, to some extent, concerned with any organizational decision which has an impact on the workforce or the potential workforce. The term ‘workforce’ signifies people working at va rious levels, including workers, supervisors, middle and top managers.It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organizational hierarchy but the basic objective of achieving organizational effectiveness through effective and efficient utilization of human resources, remains the same. 10. â€Å"It is basically a method of developing potentialities of Employees so that they get maximum satisfaction out of their work and give their best efforts to the organization. * Individually oriented: It tries to help employees develop their potential fully.It encourages them to give their best to the organization. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies. * People oriented: HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produ ce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. * Future-oriented: Effective HRM helps an organization meet its goals in the future by providing for competent and well-motivated employees. Development oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organizational goals. * Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization. Comprehensive function: HRM is, to some extent, concerned with any organizational decision which has an impact on the workf orce or the potential workforce. The term ‘workforce’ signifies people working at various levels, including workers, supervisors, middle and top managers. It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organizational hierarchy but the basic objective of achieving organizational effectiveness through effective and efficient utilization of human resources, remains the same. It is basically a method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization† Meaning of human resource management: â€Å"Human Resource Management is that branch of organizational science that deals with the employment relationship, along with all the decisions, actions, and issues involved in that relationship†. Human Resource Management (HRM) is the function within an organization that focus es on recruitment of, management of, and providing direction for the people who work in the organization.Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. 11. Importance of HRM to Managers: To hire right person for the right job * To avoid high manpower turnover * To ensure people doing their best * To conduct proper interview * To avoid legal implications * To ensure proper compensation management * To ensure safety of workmen and avoid unsafe practices * To ensure equity and justice and right pay for right person * To ensure i mplementation of training and development * To avoid unfair labor practices Process of HRM 12. FLOWCHART OF RECRUITMENT PROCESS & SELECTION PROCESS IN PACE HR INNOVATION PVT LTD. Identified Requirement Job Posting Shorting of CV’sScreening of CV’s Contact Employees Short listing of CV’s Application to Company Company Response Telephonic Interview Conduct Interview Feed Back Candidate offer letter 13. RECRUITMENT PROCESS Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued of operation of the organization. Recruitment is the discovering of potential applicants for actual or anticipated organizational vacancies.In other words, it is a ‘Linking activity’ bringing together those with jobs and those seeking jobs. As Yoder and others point out â€Å"Recruitment is a process to discover the sources of manpower to meet the recruitments of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to effective selection of an efficient working force†. Accordingly, the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications.Recruitment has been regarded as the most important function of personnel administration, because unless the right type of people are hired, even the best plans, organizational charts and control systems would not do much good. According to Flippo views recruitment both as positive and negative activity. He says it is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to increase the â€Å"Hiring ratio’’ i. . , the number of applicants for a job. Selection, on the other hand tends to be negative because it rejects a good member of those who apply, leaving only the best to be hired’’ A careful and comprehensive approach towards recruitment can ensure that you select the right person for the job, both for now and in the future. Theoretically speaking, Recruitment and Selection are two separate functions. Recruitment deals with the forming a pool of applicants for a particular job, whereas Selection deals with finding the best one of the lot.In the first part of the project the various stages of Recruitment and Selection have been defined. However, it must be noted that in practice, Recruitment and Selection are considered to be synonymous and used interchangeably. 14. Generally, every organization has its own recruitment policy. It may vary year to year in the light of changing environments, situations. Recruitment as a matter of fact is a process used by an organization to locate and attract jobseekers in order to fill the job positions.An organi zation has to choose that recruitment method and sources which produce the best pool of candidates quickly and cost effectively. The Recruitment is known as a process because certain important steps are required to be followed while recruitment the candidates. The following are the three important stages of a recruitment process is planning, Implementation, Evaluation. Before coming to details of recruitment, it is useful to note that, contrary to popular perception, this is an ongoing process and not confined to the formative stages of an organization.Employees leave the organization in search of greener pastures—some retire and some die in the saddle. More important an enterprise grows, diversifies, takes over other units—all necessitating hiring of new and more capable employees. In fact, this function stops only when the organization ceases to exist. MEANING AND DEFINITION According to Edwin B. Flippo, â€Å"Recruitment is the process of searching the candidates f or employment and stimulating them to apply for jobs in the organization†. Recruitment is the activity that links the employers and the job seekers.A few definitions of recruitment are: * A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected. * It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. 5| | PURPOSES AND IMPORTANCE OF RECRUITMENT PROCESS The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to: * Attract and encourage more and more candidates to apply in the organization. * Determine the present and future requirements of th e organization in conjunction with its personnel planning and job analysis activities * Increase the pool of job candidates at minimum cost Help increase the success rate of the selection process by reducing the number of visibly, under qualified or overqualified job applicants * Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time * Meet the organizations legal and social obligations regarding the composition of its workforce * Begin identifying and preparing potential job applicants who will be appropriate candidates * Increase organizational and individual effectiveness in the short term and long term * Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whet her 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 effort will result in mediocre ones. High-quality employees cannot be selected when better candidates do not know of job openings, are not interested in working for the company, and do not apply. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions. 16 THE RECRUITMENT PROCESS 1 2 RECRUITMENT PROCESS 7 3 6 4 5 1. Identifying vacancies. 2. Preparing Job Description. 3.Advertising the vacancies. 4. Managing the response. 5. Short listing candidates. 6. Telephonic call to candidate 7. Arranging Interviews. 8. Conducting interview and decisi on making. 17. Sources of Recruitment Process Before an organization activity begins recruiting applicants, it should consider the most likely sources of the employee it needs. Some companies try to develop new sources, while most only try to tackle the existing sources they have. These sources accordingly may be termed as internal & external sources. Recruitment process naturally comprises of two major factors they are External sources and internal sources. Internal SourcesThey include those who are already on the payroll of the organization and those who served the organization in the past (but quit voluntary or due to retrenchment) and would like to return if the organization likes to re employ. There is merit in looking for internal resources since they provide opportunities for better deployment and utilization of existing human resources through planned placements and transfers or to motivate people through planned promotion and career development where vacancies exist in high er grades. The law provides preference to retrenchment employees when vacancies arise in future. Generally, the policy is to prefer internal sourcing, as own employees know the company well and can recommend candidates who fit the organization’s culture. Another related policy is to have temporary and part-time employees.In multinational corporations (MNCs), there is the policy relating to the recruitment of local citizens. MNCs operating in India, China, Japan, etc. may prefer local citizens as they can understand local languages, customs and business practices well. Cost of recruiting is yet another internal factor that has to be considered. Recruiters must operate within budgets. One cost-saving measure, for instance, is recruiting for multiple job openings simultaneously should be considered. Finally, an organization registering growth and expansion will have more recruitment drive. Internal sources of Recruitment process Transfer, Promotion, Demotion, Retied Employees, i nternal referrals etc. 8. Advantages of Internal sources:- * It is a time saving and economical too as no advertisement is required to be given for the jobs in external media. Cost of selection is reduced. * The internal candidates are well versed with policies, rules and regulation of the organization and as a result, cost of training, induction, orientation, period of adaptability can to the organization etc. * It helps to improve the moral and motivation of employees of the organization and to develop loyalty towards the organization and a sense of responsibility. * It encourages the employees to work hard, sincerely and to put sincere efforts to get promotion. As the management has the better of the strengths and weaknesses of its employees, proper decision can be taken to promote or transfer or to demote and thereby, the chances of making wrong decision can be considerably reduced. Disadvantages of Internal sources:- * Internal recruitment restricts the options and freedom for the enterprises in choosing the most suitable candidates for the vacancies. The enterprises may have to compromise on quality of its choice of candidates. * If the enterprise depends too much on internal recruitment, it means that the enterprise denies itself fresh talent and new blood available outside. Existing employees, even if promoted or transferred may continue to work and behave in the same habitual ways, without any dynamism. In the absence of competition from the qualified candidates compared from outside employees are likely to expect automatic promotio0n by seniority and sure prospect. Thus may loose the drive for proving their worth. * There may be chance of conflict and quarreling among the employees who aspire for promotion to the available vacancies. Those who are not promoted are unhappy and their efficiency may decline. 19. External Sources:- Organization may look for people outside the organization. Entry level jobs are usually filled by new entrants from outside. Also in the following circumstances organization may resort to outside sources. * When suitable qualified people are not available. * When organization feels it is necessary to inject new blood into it for fresh ideas, initiativesetc. When it is diversifying into new avenues and when it is merging with another organization of particular importance is the supply and demand of specific skills in the labour market. * If the demand for a particular skill is high relative to the supply, an extraordinary recruiting effort may be needed. For instance, the demand for analysts and specialists is likely to be higher than compared to of supply, non-technical employer. When the unemployment rate in a given area is high, the increased size of the labour pool provides better opportunities for attracting qualified applicants. On the other hand, as the unemployment rate drops, recruiting efforts must be increased and new sources explored. Another external source is political and legal consideratio ns.Reservation of jobs for SCs, STs, minorities, and other backward classes (OBCs) is a political decision. Politics play a vital role in recruitment purpose, this need to be taken into consideration while recruiting. The company’s image also matters in attracting large number of job seekers. Often, it is not the money that is important. It is the perception of the job seekers about the company that matters in attracting qualified prospective employees. The various external sources of Recruitment can be made through are as follows Press Advertisement, Educational Institutes, and Employment Exchange, Placement agencies / outsourcing, Labour Contractors, Recruitment at factory gate. 20. Advantages of external sources:- It helps to attract and introduce new blood in the organization which makes the organization more dynamic through the inflow of innovative ideas, fresh thinking etc. * Employees can be selected without pre-conceived ideas, partially or reservation and labour cost can be minimized by selecting the employees on minimum wages. * External sources prove to be more economical if experienced, well trained candidates are selected. * Labour cost can be minimized by selecting the employees on minimum pay scales. * It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Such a competitive atmosphere would help an employee to work to the best of his abilities. Disadvantages of external sources:- It sometimes proves to be expensive if advertisement are required to be done on large scale and also because of heavy costs of making arrangements for interviews, tests etc. * It is a time consuming and involves lengthy selection process. * The task of attracting, contracting and evaluating the potentials employees is somewhat difficult and very hard. * It creates unhappy among the existing employees who feel that they are qualified and fit for the jobs but no opportunity is given. It does not hel p to develop the loyalty among the existing employees. * As newly recruited employees are not familiar with the policies, practices, procedures, and environment of the organization, they take sometime to adjust themselves.If they take more time to adjust or if they cannot adjust themselves valuable time is wasted and costs also increases. 21. Factors affecting Recruitment Process The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organisation. And the external factors are those factors which cannot be controlled by the organisation. The internal and external forces affecting recruitment function of an organisation are: FACTORS AFFECTING RECRUITMENT EXTERNAL FACTORS * Supply And Demand. * Labour Market. * Image and Reputation of company * Political- social- legal environment. Competitors. * Unemployment Rate INTERNAL FACTORS * Human Resour ces planning. * Size of the Firm. * Cost of Recruitment. * Growth and Expansion. * Recruitment Policy. 22. SELECTION PROCESS The Selection procedure is concerned with relevant information about an applicant. This information is secured in a number steps or stages. The objectives of selection process are to determine whether an applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job. Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment.The hiring procedure is not a single act but it is essentially a series of methods or steps or stages by which additional information is secured about the employee. At each stage, fact may come to light which may lead to the rejection to the applicant. A procedure may be compared to a series of successive hurdles or barriers which an applicant must cross. These are intended as screens, and they are desig ned to eliminate an unqualified applicant at any point in the process. The following process of selection can be mentioned as a scientific and widely used selection process:- * Initial screening interview. * Application blank or application form. * Written test and other selection tests. * Comprehensive Interview. Medical examination. * Checking of references. * Final employment decision. * Placement. Meaning and Defination According to Dale Yoder, â€Å"Selection is the process in which candidates for employment are divided into two classes those who offered employment and those are not. Selection means a process by which qualified personnel may be chosen by the recruiter for the various vacancies in the organization. 23. Selection procedure * Screening Screening of applications can be regarded as an integral part of the selection process, though many view it as the last step in the recruitment process. Even the definition on recruitment excludes screening from its scope.However, screening is included in recruitment by some HR professionals. The purpose of screening is to remove from the process, at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must be exercised, however, to assure that potentially good employees are not lost and that women and minorities receive full and fair consideration and are not rejected without justification. In screening, clear job specifications are invaluable. It is both a good practice and a legal necessity that applicants' qualifications be judged on the basis of their knowledge, skills, abilities and interests required to do the job.The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. * Using the telephone Talking on the telephone is a prompt way of screening applicants, especially appropriate if good speech and the ability to chat informally are necessary attributes for the job, for example tele-marketing jobs. Information can be swiftly collected and assessed with suitable applicants being invited for an interview. However, there are some limitations of this screening method. Some interested, and possibly suitable, applicants may find it difficult to call, particularly if they're already in employment. * Application forms Probably the best way of screening applicants is to ask them to fill out an application form.There are many valid reasons for adopting this approach. Full details about the job and your company can be sent with the form. Only then can he decide if he wishes to proceed with his application, attend an interview and accept a job offer. Supplying background information is in your interests too. Some people, realizing that this isn't the job or company for them, will not apply. With applicants answering the same questions in exactly the same place, it will be simple to check whether essential and desirable requirements are met. Some basic cri teria – age, possession of a full driving license and so on – can be quickly referred to and unsuitable applicants promptly eliminated.The recruiter will be able to compare applicants directly and more easily. Of course, the main benefit of using an application form as a screening method – the simplicity of checking and comparing information – can only be derived if the form is well designed. 24. There are several points that need to be thought about before an application form is drawn up. Ideally, the form should be individually designed for the particular job, and composed after a careful study of the appropriate job description and employee specification. Every form should be set out in a logical and progressive manner and should include the following: * opening instructions personal details * education and training * employment history * medical information * closing instructions * interviewer's notes Most companies, at the end of the form, ask the ap plicants to sign a declaration stating that the information given in the application is true and accurate. This helps protect the company if legal issues arise later with regards to the employee’s qualifications, experience and other details. * Preliminary interview Preliminary interview is more or less the scrutiny of applications, that is, elimination of unqualified applications. Preliminary interview helps easily to reject or eliminate unwanted application forms.For example, when recruiting for the post of a receptionist, you need to first see whether the person is presentable enough or not for the job. Besides, preliminary interview, often called ‘courtesy interview’, is a good public relations exercise. * Selection tests They should be seen strictly as an aid, not as a replacement to other steps in the process. Testing candidates can help to create a more comprehensive picture of them than one might otherwise obtain. With test results measured on a scientifi c basis, it should also be more accurate and reliable than when subject to personal interpretation. Nevertheless, testing is a highly specialized area, and reputable tests take years to be developed, tested and checked for validity and reliability before being used.No manager should devise his own tests unless he is fully trained and sufficiently experienced; nor should he run other, professionally designed tests without first having been through an appropriate training programme. Bear in mind the financial outlay involved in testing candidates as well. The reference sets, manuals, test sheets, answer booklets, scoring charts and so on that are needed to run the test on several candidates might cost the company a lot of money. Weigh the costs against the importance of the job to the company. Only use the test if you cannot obtain the same, equally accurate information in another way. 25. * Types of Tests 1. General aptitude tests: General aptitude tests, also commonly known as gener al intelligence or mental ability tests, similar to IQ tests measure and assess the candidate in a number of ways.Those involving words allow you to judge his verbal ability and how well he understands and can deal with verbal concepts. Symbols enable you to evaluate his non-verbal ability to process and differentiate between relevant and irrelevant data. Numerical ability can be judged that how well the candidate reasons with figures. 2. Specificaptitude tests: In addition to finding out about a candidate's general intelligence, you may also want to measure the innate skills which are needed or need to be developed to do the job properly. For example, a candidate applying for a job in a market research agency is tested on his knowledge in Statistics. 3.Personality tests: -Personality tests are probably the most widely used selection tests because all employers want to be certain that a candidate will fit in and get on well with other employees. Personality tests could thus be of so me assistance if you cannot accurately assess candidates' personalities in any other way. Such tests typically comprise a series of questions. His answers are then used to draw up a profile of his personality so you can decide if he is a suitable person for the job. 4. Group tests: -Having assessed candidates individually, by reading applications and running interviews and tests, you may wish to bring them together as a group to see how they behave and interact with each other.This can be a valid and extremely important testing method especially where the successful candidate is expected to lead or work as part of a team. Group testing can be carried out in a variety of ways, such as group discussions, case studies, management games, etc. 5. Medical tests: – Here candidates are required to under go some type of medical test such has He or she is not addicted to some type of drugs or some injuries products. To detect if the candidate is suffering from any infectious disease. * To test if the candidate has the physical abilities and capacity to do the job * To protect the candidate from taking up a job that is injurious to his health say if he has some kind of an allergy. To protect the employer, because nobody wants to spend on a medical compensation for the newly joined worker; it is better to employee people who do not have any medical problems. 26. * Selection Decision After obtaining information through the proceeding steps, selection decision- the most crucial of all the steps must be made. The other stages in the selection process have been used to narrow the number of candidates. The final decision has to be made from among the individuals who have passed the various stages like the tests, interviews and references checks. For the final selection the line manager should be involved along with the HR Department because it is he who is responsible for the performance of the new employee.A careless decision of rejecting a candidate would impair the m orale of the people and they will suspect the selection procedure and the organization. * Job offer It is the next step to the selection processes. Now the employer makes an offer to the selected candidate. The offer could be oral or written, but the letter is preferred to avoid doubts and uncertainties. The essentials of a job offer are: * Job title, job description, location, hours of work, holiday etc. * The conditions of the job offer, such as satisfactory references, a medical check up and an acceptable trial period of work * Time limit allowed for accepting or rejecting the offer (generally 7 – 14 days) * A negotiable salaryIt may so happen that the candidate is not satisfied with the job offer made to him, and even after negotiation if still not satisfied, he may reject the offer. In such a situation the employer may make the offer to the second best selected candidate. Hence the employer may keep one or two candidates till the end just to be on a safer side, because a fter rejecting it becomes difficult to get them back if required. As soon as the final selection is made and the offer is accepted the employer must immediately inform all the other candidates. This must be done with utmost care, because this may make the rejected candidates upset and unhappy and that they might spread a negative word about the organization.The ideal situation would be such that if there is an opening at another time then even the rejected candidates must want to try again. 27. * Starting work The recruitment process must not suddenly end as soon as a job offer is accepted. If recruitment is to be considered successful, you still need to help the new recruit settle down to work for the company on a long-term basis. One should monitor and assess him regularly, developing his strengths and eliminating his weaknesses. One should then review the way he was recruited, learning from the mistakes and making the necessary changes for the future. * Induction The process of s ettling a new recruit into his new job should serve several purposes.He must be aware of the policies and objectives of the organisation. The employees must fully familiarize with his role and the company he'll be working for. Introduce the recruit to his immediate superior, workmates and the trainer responsible for training him. Should the former job holder be available, it may be a good idea to get them together to discuss the job, but only if the predecessor is a cheerful person with a positive attitude towards the job and company. Through induction new employees get a all round view of the organization strategies, goals and objectives and what type of work he should do to achieve this objectives, goals of the organization.Through induction the employee becomes more confident and it takes short period of time for him to adjust with employees and the organization. 28. Recruitment process conducted at Pace HR Innovation Pvt Ltd. 1. Receptionist. Job involves: Candidates should have good communication and good command over English. Candidates should have good knowledge regarding MS word, Excel. Candidates must have at least completed graduation from, a recognized university. Experience:-fresher/1-2 yrs. Job Category: Bcom, any graduate. Functional Area: To handle calls, Front Desk Keywords: Receptionist. 2. Recruiter Job involves: Candidates should be MBA/ diploma. Candidates should able to screen and recruit candidates as per Job Description.Candidates should have good command over English, Marathi, and Hindi. Experience: fresher/1-2 yrs. Job category: MBA in Recruiter and Selection. Functional Area: Recruitment and selection. Keywords: Recruiter. 3. Training and Development. Job involves: Candidates should have completed MBA in HR from recognised university. Candidates have a good knowledge regarding core HR functions and various HR policies. Candidates should be able to develop and find weakness of the employee. Experience: 1-2yrs. Job Category: MBA in Trai ning and Development. Functional Area: Training and Development. Keywords: Human resources development. 29. 3. HR Manager.Job Involves: Candidates should have completed MBA in HR from recognised university. Candidates should be able to handle all the quires and should be able to calculate the performance of the employees. Candidates should have knowledge regarding various forms and policies. Job category: MBA in HR manager. Functional Area: Human Resources Department. Keywords: HR manager. 4. Marketing. Job Involves: – Candidates should have completed MBA in marketing from recognised university. Candidates should have good command over English, Hindi and Marathi. Should have good should knowledge regarding Marketing Analysis and surveys. Job category: – MBA in Marketing. Functional Area: – Marketing Department. Keywords: – Marketing. 30.Selection Procedure:- Unfavorable Personnel Data Application Blank Psychological Test Interview Back ground Investigatio n Placements Final selection Interview Physical Examination Preliminary Interview Negative Decision Waiting list of desirable Application Reception of Application UnfavorableGeneral Impression Unfavorabletest score Unfavorable second impression Unfavorable previous History 31. LIMITATION TO EFFECTIVE SELECTION The main objective of selection is to hire people having competence and commitment. Perception: – Our inability to understand others accurately is probably the most fundamental barrier to selecting the right candidate.Selection demands an individual or a group of people to assess and compare the respective competencies of others, with the aim of choosing the right ones for the jobs. Fairness:- Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. Validity:- Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has been validated can different iate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success. Reliability:- A reliable method is one which will produce consistent results when repeated in similar situations.Like a validated test, a reliable test may fail to predict job performance with precision. Pressure:- Pressure may be brought on the selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidates. Candidates selected because of compulsions are obviously not the right ones. Appointments to public sector undertakings generally take place under such pressures. Problems relating to interview:- Interviews must be experts and versatile in conducting interviews, tests etc. If they do not have sufficient experience and maturity, suitable candidates may not be selected. 32. OBJECTIVES OF THE STUDY OBJECTIVE OF THE STUDYThe selection of this topic for the project i s because the recruitment and selection process is first towards the developing and setting up an organization and manpower planning in the organization. Recruitment plays an integral role in Human Resources development in any company. The complete study of the whole process was carried out to have depth knowledge of the procedure and to have some new ideas to improve the procedure. * To study the existing Recruitment ; selection procedure of Pace HR Innovation Pvt. LTD. * To understand the difference between theoretical and practical process. * To study the sources and methods of Recruitment ; selections. * To get the detail knowledge of Recruitment ; selection. To understand how human resources are made available as and when required at correct time and place. * To understand the basic procedure of selection of any candidate for a particular position as per their personality, Skills, attitude, knowledge. * To create a pool of candidates at minimum cost. * To ensure that candidate will not leave the organization at least in short Period once they are selected. On completion of this training I understood. * Recruitment Process * Job Analysis and Job Descriptions. * Sourcing candidate * The Selection Process. 33. SCOPE OF THE STUDY SCOPE OF THE STUDY Summer project is one of the main subjects for MBA student.The project provides opportunity to see the actual Practical position in the industries and helps us in many ways such as working and coordination between the employees and the subordinates. The main theme and Moto of pace HR innovation was to train and built the personality of the candidates so that they will not find it difficult to crack any type of problems which will occur during the course of their career. The Pace HR innovation trainer explained that there are various types of manpower’sthat are needed in the organization such as qualification, technical knowledge, personality, modern thinking, skills etc which are available in the market and showed me how to select the right candidate for the respective position which is the main criteria of Recruitment ;Selection process.The HR trainee also explained me as how to recruit and short list candidates as per organizations Job Description and showed ashow to work on various Job Portals such as the TIMES JOB PORTAL and how to Post a job on Job Portal according to the various post vacant in the organization. At Pace HR Innovation Company I have also learnt that how the HR department coordinates and works together and Trainees also taught me that how a HR manager should stand in front and motivate his workers to improve their work and to achieve the organization goals. HR Trainees also taught me various important HR department functions such as how to handle the employees and solve their quires and to see that whether they are satisfied ith the organizations work procedure or not. The HR trainer also explained the necessary documents that should be collected from employees and how to fill various necessary Application form. The summer Project gives us many insight ideas about how HR department functions. 34. RESEARCH METHODOLOGY RESEARCH METHODOLOGY. Methodology:- The research was conducted one to one at the premises of PACE HR INNOVATION PVT LTD, PUNE. The coverage of the design was adapted so that relevant and necessary information was available to the reader. Care has been taken to ensure that the report does not lose its significance at any point of time. Research Objective:- To find out the recruitment process existed in the organization. * To get in hand knowledge of recruitment and selection measures necessary for the employees. * Awareness among employees about the vacant post in the organization. * To study the impact of employees satisfaction for the organization. Research Methods:- Both primary data and secondary data were used in the research. Primary Method:- Primary data was collected in two forms: (I) Questionnaire (II) Interview. Questionn aire:- Questionnaire is research instru