A Project Report on Recruitment and Selection Process1

1. INTRODUCTION

1.1 RECRUITMENT

According to Edwin B. Flippo, recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the organisation”. 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.

Recruitment of candidates is the function preceding the selection, which helps create a pool

of prospective employees for the organisation so that the management can select the right

candidate for the right job from this pool. The main objective of the recruitment process is

to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of

qualified applicants for the future human resources needs even though specific vacancies do

not exist. Usually, the recruitment process starts when a manger initiates an employee

requisition for a specific vacancy or an anticipated vacancy.

Recruitment and Selection are the two phases of the employment process. The differences

between the two are:

1. The recruitment is the process of searching the candidates for employment and

stimulating them to apply for jobs in the organisation whereas selection involves the series

of steps by which the candidates are screened for choosing the most suitable persons for

vacant posts.

1

2. The basic purpose of recruitments is to create a talent pool of candidates to enable the

selection of best candidates for the organisation, by attracting more and more employees to

apply in the organisation whereas the basic purpose of selection process is to choose the

right candidate to fill the various positions in the organisation.

3. Recruitment is a positive process i.e. encouraging more and more employees to apply

whereas selection is a negative process as it involves rejection of the unsuitable.

1.1.1 The Purpose and Importance of Recruitment are given below :

Attract and encourage more and more candidates to apply in the organisation.

Create a talent pool of candidates to enable the selection of best candidates for the

organisation.

Determine present and future requirements of the organization in conjunction with

its personnel planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost

Help increase the success rate of selection process by decreasing 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.

2

Figure No: 1.1.1

SOURCE OF RECRUITMENT

Source: www.wikepedia.com

Figure No: 1.1.2

FACTORS AFFECTING RECRUITMENT

3

1.1.2 SELECTION

Selection is defined as the process of differentiating between applicants in

order to identify (and hire) those with a greater likelihood of success in a

job. Selection is basically picking an applicant from (a pool of applicants)

who has the appropriate qualification and competency to do the job .

Selection done by two steps namely,

STEP 1 : PRELIMINARY INTERVIEW

STEP 2 : SELECTION TEST:

The following are the type of tests taken:

1). Ability tests

2). Aptitude test

3). Intelligence test

4). Interest Test

5). Personality Test

6). Projective Test

7). General knowledge Test

8). Perception Test

9). Graphology Test

10). Polygraph Test

1.1.3Types of interview

1) Informal Interview

2) Formal Interview

3) Non-directive Interview

4) Depth Interview

5) Stress Interview

6) Group Interview

7) Panel Interview

8) Sequential Interview

4

9) Structured Interview

The following chart gives an idea about selection process:

Figure No: 1.1.3

5

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

PRELIMINARY INTERVIEW

SELECTION TESTS

EMPLOYMENT INTERVIEW

Reference and Background

Analysis

SELECTION DECISION

PHYSICAL EXAMINATION

JOB OFFER

EMPLOYMENT CONTRACT

Evaluation

Rej

ecte

d A

pp

lica

tion

1.2 INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology

refers to the application of scientific knowledge for practical purposes. Dairy technology has

been defined as that branch of dairy science, which deals with the processing of milk and the

manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade and

India has now become one of the largest producers of milk and value-added milk products

in the world.

The dairy sector has developed through co-operatives in many parts of the State.

During 1997-98, the State had 60 milk processing plants with an aggregate processing

capacity of 5.8 million litres per day. In addition to these processing plants, 123

Government and 33 co-operatives milk chilling centers operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27

cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of

this lowest cost of milk production and increasing production in the country multinational

companies are planning to expand their activities here. Some of these milk producers have

already obtained quality standard certificates from the authorities. This will help them in

marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of

around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to

come from the greater emphasis on the processed foods sector and also by increase in the

conversion of milk into milk products. By 2005, the value of Indian dairy produce is

expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000

mn.

6

1.2.1 MILK PRODUCTION FROM 1950 TO 2020 IN INDIA

1950 – 17 million tonnes

1996 – 70.8 million tonnes

1997 – 74.3 million tonnes

(Projected) 2020 – 240 million tonnes

Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will increase up to 30-

35% (year 2020)

TABLE NO. 1.2.1 WORLD'S MAJOR MILK PRODUCERS (MILLION MTS)

Country2007-08 2008-09 (Approx.)

India 81 84.5

Brazil 75 77

Russia 34 33

Germany 27 27

France 24 24

Pakistan 21 22

USA 71 71

UK 14 14

Ukraine 15 14

Poland 12 12

1.2.2 RESEARCH AND DEVELOPMENT IN DAIRY INDUSTRY:

7

The research and development need to the dairy industry to develop and survives for

long time with better status. The various institute and milk dairy companies R&D results

provide base for today’s industry growth and development. The research and development

of products of dairy, like yogurt and cheese market research and company reports provides

insights into product and market trends, analysis opportunities, sales and marketing

strategies will help local milk unions to develop and spread world wide through obtaining

this knowledge. Specific on market share, segmentation, size and growth in the US and

global markets are also helps industry to expand its market worldwide even small union

also.

1.2.3 DEVELOPMENT OF FOOD PROCESSING INDUSTRY:

The food processing industry sector in India is one of the largest in terms of

production, consumption, export and growth prospects. The government of accorded it is a

high priority, with a number of fiscal relieves and incentives, to encourage

commercialization and value addition to agriculture produce, for minimizing harvest

wastage, generating employment and export growth.

Food processing industry is providing backbone support to the milk industry. The

development food products by using milk can give good market opportunities to produces

milk.

1.2.4 PRODUCTS AND INDUSTRY STATUS:

Among the products manufactured by organized sector are Ghee, Butter, Cheese,

Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk etc.. some milk

products like Casein and Lactose are also being manufactured lately. Therefore, there is

good scope for manufacturing these products locally.

Liberalization of the economy has led to a flood of new entrants, including MNCs due to

good prospects and abundant supply.

1.2.5 INVESTMENT POTENTIAL IN MILK PRODUCTS:

8

At the present rate of growth, India is expected to overtake the US in milk

production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being

largely imported, manufacture of casein and lactose has good scope in the country.

Exports of milk products have been decentralized and export in 2005-2010 is

estimated at 71.875 cr.

TABLE NO. 1.2.2 PRODUCTION OF MILK INCREASE IN INDIA

Year Production in million MT

1993-94 61.2%

1994-95 63.5%

1995-96 65.0%

1996-97 68.0%

1997-98 71.0%

1998-99 74.5%

1999-00 78.0%

2000-01 81.51%

2001-02 85.17%

2002-03 89.0%

2003-04 93.0%

2004-05 97.65%

2005-06 102.45%

2006-07 107.58%

1.2.6 INDUSTRY PROFILE ON DAIRY PRODUCT

A dairy is a facility for the extraction and processing of animal milk—mostly from

cows or goats, but also from buffalo, sheep, horses or camels —for human consumption.

Typically it is a farm (dairy farm) or section of a farm that is concerned with the production

of milk, butter and cheese.

Terminology differs slightly between countries. In particular, in the U.S. a dairy can

also be a facility that processes, distributes and sells dairy products, or a room, building or

9

establishment where milk is kept and butter or cheese is made. In New Zealand English a

dairy means a corner convenience store, or Superette—and dairy factory is the term for what

is elsewhere called a dairy.

As an attributive, the word dairy refers to milk-based products, derivatives and

processes, and the animals and workers involved in their production: for example dairy

cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a variety

of dairy products. These establishments constitute the dairy industry, a component of the

food industry.

1.2.7 STRUCTURE OF THE INDUSTRY

While most countries produce their own milk products, the structure of the dairy

industry varies in different parts of the world. In less developed countries the producer

generally sells directly to the public, whereas in major milk-producing countries most milk

is distributed through wholesale markets. In Ireland and Australia, for example, farmers' co-

operatives own many of the large-scale processors, while in the United States many farmers

and processors do business through individual contracts. In the United States, the country's

196 farmers' cooperatives sold 86% of milk in the U.S. in 2002, with five cooperatives

accounting for half that. This was down from 2,300 cooperatives in the 1940s.

As in many other branches of the food industry, dairy processing in the major dairy

producing countries has become increasingly concentrated, with fewer but larger and more

efficient plants operated by fewer workers. This is notably the case in the United States,

Europe, Australia and New Zealand. In 2009, charges of anti-trust violations have been

made against major dairy industry players in the United States.

Government intervention in milk markets was common in the 20th century. A

limited anti-trust exemption was created for U.S. dairy cooperatives by the Capper-Volstead

Act of 1922. In the 1930s, some U.S. states adopted price controls, and Federal Milk

Marketing Orders started under the Agricultural Marketing Agreement Act of 1937 and

continue in the 2000s. The Federal Milk Price Support Program began in 1949. The

10

Northeast Dairy Compact regulated wholesale milk prices in New England from 1997 to

2001.

Plants producing liquid milk and products with short shelf life, such as yogurts,

creams and soft cheeses, tend to be located on the outskirts of urban centres close to

consumer markets. Plants manufacturing items with longer shelf life, such as butter, milk

powders, cheese and whey powders, tend to be situated in rural areas closer to the milk

supply. Most large processing plants tend to specialise in a limited range of products.

Exceptionally, however, large plants producing a wide range of products are still common in

Eastern Europe, a holdover from the former centralized, supply-driven concept of the

market.

As processing plants grow fewer and larger, they tend to acquire bigger, more

automated and more efficient equipment. While this technological tendency keeps

manufacturing costs lower, the need for long-distance transportation often increases the

environmental impact.

Milk production is irregular, depending on cow biology. Producers must adjust the

mix of milk which is sold in liquid form vs. processed foods (such as butter and cheese)

depending on changing supply and demand.

1.2.8 OPERATION OF THE DAIRY FARM

When it became necessary to milk larger numbers of cows, the cows would be

brought to a shed or barn that was set up with bails (stalls) where the cows could be

confined while they were milked. One person could milk more cows this way, as many as

20 for a skilled worker. But having cows standing about in the yard and shed waiting to be

milked is not good for the cow, as she needs as much time in the paddock grazing as is

possible. It is usual to restrict the twice-daily milking to a maximum of an hour and a half

each time. It makes no difference whether one milks 10 or 1000 cows, the milking time

should not exceed a total of about three hours each day for any cow.

11

As herd sizes increased there was more need to have efficient milking machines,

sheds, milk-storage facilities (vats), bulk-milk transport and shed cleaning capabilities and

the means of getting cows from paddock to shed and back.

Farmers found that cows would abandon their grazing area and walk towards the

milking area when the time came for milking. This is not surprising as, in the flush of the

milking season, cows presumably get very uncomfortable with udders engorged with milk,

and the place of relief for them is the milking shed.

As herd numbers increased so did the problems of animal health. In New Zealand

two approaches to this problem have been used. The first was improved veterinary

medicines (and the government regulation of the medicines) that the farmer could use. The

other was the creation of veterinary clubs where groups of farmers would employ a

veterinarian (vet) full-time and share those services throughout the year. It was in the vet's

interest to keep the animals healthy and reduce the number of calls from farmers, rather than

to ensure that the farmer needed to call for service and pay regularly.

Most dairy farmers milk their cows with absolute regularity at a minimum of twice a

day, with some high-producing herds milking up to four times a day to lessen the weight of

large volumes of milk in the udder of the cow. This daily milking routine goes on for about

300 to 320 days per year that the cow stays in milk. Some small herds are milked once a day

for about the last 20 days of the production cycle but this is not usual for large herds. If a

cow is left unmilked just once she is likely to reduce milk-production almost immediately

and the rest of the season may see her dried off (giving no milk) and still consuming feed for

no production. However, once-a-day milking is now being practised more widely in New

Zealand for profit and lifestyle reasons. This is effective because the fall in milk yield is at

least partially offset by labour and cost savings from milking once per day. This compares to

some intensive farm systems in the United States that milk three or more times per day due

to higher milk yields per cow and lower marginal labor costs.

Farmers who are contracted to supply liquid milk for human consumption (as

opposed to milk for processing into butter, cheese, and so on—see milk) often have to

manage their herd so that the contracted number of cows are in milk the year round, or the

12

required minimum milk output is maintained. This is done by mating cows outside their

natural mating time so that the period when each cow in the herd is giving maximum

production is in rotation throughout the year.

Northern hemisphere farmers who keep cows in barns almost all the year usually

manage their herds to give continuous production of milk so that they get paid all year

round. In the southern hemisphere the cooperative dairying systems allow for two months

on no productivity because their systems are designed to take advantage of maximum grass

and milk production in the spring and because the milk processing plants pay bonuses in the

dry (winter) season to carry the farmers through the mid-winter break from milking. It also

means that cows have a rest from milk production when they are most heavily pregnant.

Some year-round milk farms are penalised financially for over-production at any time in the

year by being unable to sell their overproduction at current prices.

1.2.9 INDUSTRIAL PROCESSING

A Fonterra cooperative dairy factory in Australia.

Interior of a cheese factory in Seine-et-Marne, France

Main article: dairy products

Dairy plants process the raw milk they receive from farmers so as to extend its

marketable life. Two main types of processes are employed: heat treatment to ensure the

safety of milk for human consumption and to lengthen its shelf-life, and dehydrating dairy

products such as butter, hard cheese and milk powders so that they can be stored.

1.2.10 CREAM AND BUTTER

Today, milk is separated by large machines in bulk into cream and skim milk. The

cream is processed to produce various consumer products, depending on its thickness, its

suitability for culinary uses and consumer demand, which differs from place to place and

country to country.

Some cream is dried and powdered, some is condensed (by evaporation) mixed with

varying amounts of sugar and canned. Most cream from New Zealand and Australian

13

factories is made into butter. This is done by churning the cream until the fat globules

coagulate and form a monolithic mass. This butter mass is washed and, sometimes, salted to

improve keeping qualities. The residual buttermilk goes on to further processing. The butter

is packaged (25 to 50 kg boxes) and chilled for storage and sale. At a later stage these

packages are broken down into home-consumption sized packs. Butter sells for about

US$3200 a tonne on the international market in 2007 (an unusual high).

1.2.11 SKIMMED MILK

The product left after the cream is removed is called skim, or skimmed, milk.

Reacting skim milk with rennet or with an acid makes casein curds from the milk solids in

skim milk, with whey as a residual. To make a consumable liquid a portion of cream is

returned to the skim milk to make low fat milk (semi-skimmed) for human consumption. By

varying the amount of cream returned, producers can make a variety of low-fat milks to suit

their local market. Other products, such as calcium, vitamin D, and flavouring, are also

added to appeal to consumers.

1.2.12 MILK POWDERS

Milk is also processed by various drying processes into powders. Whole milk, skim

milk, buttermilk, and whey products are dried into a powder form and used for human and

animal consumption. The main difference between production of powders for human or for

animal consumption is in the protection of the process and the product from contamination.

Some people drink milk reconstituted from powdered milk, because milk is about 88%

water and it is much cheaper to transport the dried product. Dried skim milk powder is

worth about US$5300 a tonne (mid-2007 prices) on the international market.

1.2.13 TRANSPORT OF MILK

Historically, the milking and the processing took place in the same place: on a dairy

farm. Later, cream was separated from the milk by machine, on the farm, and the cream was

transported to a factory for buttermaking. The skim milk was fed to pigs. This allowed for

the high cost of transport (taking the smallest volume high-value product), primitive trucks

and the poor quality of roads. Only farms close to factories could afford to take whole milk,

14

which was essential for cheesemaking in industrial quantities, to them. The development of

refrigeration and better road transport, in the late 1950s, has meant that most farmers milk

their cows and only temporarily store the milk in large refrigerated bulk tanks, whence it is

later transported by truck to central processing facilities.

1.2.14 MILKING MACHINES

Milking machines are used to harvest milk from cows when manual milking

becomes inefficient or labour intensive. The milking unit is the portion of a milking

machine for removing milk from an udder. It is made up of a claw, four teatcups, (Shells

and rubber liners) long milk tube, long pulsation tube, and a pulsator. The claw is an

assembly that connects the short pulse tubes and short milk tubes from the teatcups to the

long pulse tube and long milk tube. (Cluster assembly) Claws are commonly made of

stainless steel or plastic or both. Teatcups are composed of a rigid outer shell (stainless steel

or plastic) that holds a soft inner liner or inflation. Transparent sections in the shell may

allow viewing of liner collapse and milk flow. The annular space between the shell and liner

is called the pulse chamber.

Milking machines work in a way that is different from hand milking or calf suckling.

Continuous vacuum is applied inside the soft liner to massage milk from the teat by creating

a pressure difference across the teat canal (or opening at the end of the teat). Vacuum also

helps keep the machine attached to the cow. The vacuum applied to the teat causes

congestion of teat tissues (accumulation of blood and other fluids). Atmospheric air is

admitted into the pulsation chamber about once per second (the pulsation rate) to allow the

liner to collapse around the end of teat and relieve congestion in the teat tissue. The ratio of

the time that the liner is open (milking phase) and closed (rest phase) is called the pulsation

ratio.

The four streams of milk from the teatcups are usually combined in the claw and

transported to the milkline, or the collection bucket (usually sized to the output of one cow)

in a single milk hose. Milk is then transported (manually in buckets) or with a combination

of airflow and mechanical pump to a central storage vat or bulk tank. Milk is refrigerated on

15

the farm in most countries either by passing through a heat-exchanger or in the bulk tank, or

both.

In the photo above is a bucket milking system with the stainless steel bucket visible

on the far side of the cow. The two rigid stainless steel teatcup shells applied to the front

two quarters of the udder are visible. The top of the flexible liner is visible at the top of the

shells as are the short milk tubes and short pulsation tubes extending from the bottom of the

shells to the claw. The bottom of the claw is transparent to allow observation of milk flow.

When milking is completed the vacuum to the milking unit is shut off and the teatcups are

removed.

Milking machines keep the milk enclosed and safe from external contamination. The

interior 'milk contact' surfaces of the machine are kept clean by a manual or automated

washing procedures implemented after milking is completed. Milk contact surfaces must

comply with regulations requiring food-grade materials (typically stainless steel and special

plastics and rubber compounds) and are easily cleaned.

Most milking machines are powered by electricity but, in case of electrical failure,

there can be an alternative means of motive power, often an internal combustion engine, for

the vacuum and milk pumps. Milk cows cannot tolerate delays in scheduled milking without

serious milk production reductions.

1.2.15 TEMPORARY MILK STORAGE

Milk coming from the cow is transported to a nearby storage vessel by the airflow

leaking around the cups on the cow or by a special "air inlet" (5-10 l/min free air) in the

claw. From there it is pumped by a mechanical pump and cooled by a heat exchanger. The

milk is then stored in a large vat, or bulk tank, which is usually refrigerated until collection

for processing.

16

1.2.26 ASSOCIATED DISEASES

Leptospirosis is one of the most common debilitating diseases of milkers, made

somewhat worse since the introduction of herringbone sheds, because of

unavoidable direct contact with bovine urine

Cowpox is one of the helpful diseases; it is barely harmful to humans and tends to

inoculate them against other poxes such as small pox.

Tuberculosis (TB) is able to be transmitted from cattle mainly via milk products that

are unpasteurised. TB has been eradicated from many countries by testing for the

disease and culling suspected animals.

Brucellosis is a bacterial disease transmitted to humans by dairy products and direct

animal contact. Brucellosis has been eradicated from certain countries by testing for

the disease and culling suspected animals

Listeria is a bacterial disease associated with unpasteurised milk, and can affect

some cheeses made in traditional ways. Careful observance of the traditional

cheesemaking methods achieves reasonable protection for the consumer.

Johne's Disease (pronounced "yo-knees") is a contagious, chronic and sometimes

fatal infection in ruminants caused by a bacterium named Mycobacterium avium

subspecies paratuberculosis (M. paratuberculosis). The bacteria are present in retail

milk, and are believed by some researchers to be the primary cause of Crohn's

disease in humans. This disease is not known to infect animals in Australia and New

Zealand.

17

1.3COMPANY PROFILE

HATSUN AGRO PRODUCT LTD., was incorporated in the year of 1986. Shri

R.G.Chandramogan is the promoter of the company. He is the chairman and managing

director of the company. He has initially started icecream business in early 1970s and later

ventured into milk and milk related products. In the year 1986 he formed the business into a

private limited company, which was later converted into a public limited company.

1.3.1 MANAGEMENT

1.3.1.1 BOARD OF DIRECTORS

The company is managed by the Managing Director, Joint Managing Director and

Executive Director - Operations subject to the superintendence, control and direction of the

board of directors.

The board of Directors of the company have an optimum combination of executive,

Non-Executive and independent directors, which compels with clause 49 of the listing

requirements as well. The entire board of the company is involved in selection, Orientation

and succession of directors.

1.3.1.2 EXECUTIVE DIRECTORS

Shri R.G.Chandramogan Chairman & Managing Director

Shri R.G.Chandramogan is the promoter of the company. He is the chairman and

managing director of the company. He has initially started icecream business in early 1970s

and later ventured into milk and milk related products. In the year 1986 he formed the

business into a private limited company, which was later converted into a public limited

company.

Shri K.S.Thanarajan Joint Managing Director

Shri K.S.Thanarajan is a post-graduate in economics and is in-charge of day-by-day

operations of the dairy division of the company. Shri Thanarajan has had more than 30 years

of experience.

18

Shri C.Sathyan Executive Director-Operations

Shri C.Sathyan, a Company Executive, is a Bachelor of Business Management with

specialization in Marketing. He has held various executive positions during his career

spanning over 10 years.

1.3.1.3 NON - EXECUTIVE DIRECTORS

Shri P. Vaidyanathan

Shri P.Vaidyanathan is a fellow member of The Institute of Chartered Accountants

of India and associate member of The Institute of Company Secretaries of India and The

Institute of Cost and Works Accountants of India. Shri Vaidyanathan is the Chairman of

M/s Integrated Enterprises (India) Limited. He is also on the Board of reputed companies

viz., City Union Bank Limited, Economist Communications Limited and Templeton Asset

Management Pvt. Limited. Shri Vaidyanathan has had more than 32 years of experience in

the Finance functions.

Shri Kirti P Shah

Shri Kirti P Shah, an Industrialist, is an Engineering Graduate. Shri Shah is a Non-

Resident Indian. At present he is the President of M/s Custom Magnetics Inc., U.S.A. Shri

Shah has had more than 40 years of experience in the field of Engineering.

Shri S. Thiagarajan

Shri. S.Thiagarajan is a post graduate in Economics and a Certified Associate of the

Indian Institute of Bankers. He has over four decades of experience in the financial services

sector and has held various senior positions in Reserve Bank of India, Industrial

Development Bank of India and Small Industrial Development Bank of India.

Shri B. S. Mani

Shri. B.S.Mani is a post graduate in Literature and has a Diploma in Journalism from

Cardiff England. He has over 4 decades of experience in the Journalism. He is the Chairman

of Karnataka News Publications Private Limited, which publishes a Tamil Daily outside

Tamilnadu.

19

Shri N Chandrasekaran

Shri N.Chandrasekaran is a Mechanical Engineering Graduate with about 38 years

experience. He has held various executive positions during his career. He is the Managing

Director of M/s Fichtner Consulting Engineers (India) Pvt. Ltd. and M/s Fortune Valley

Agro Forms Pvt. Ltd. He is also on the Board of reputed companies viz., M/s EPT

Engineering Services Pvt. Ltd. and M/s Enmas Process Technologies Pvt. Ltd.

1.3.2 INFRASTRUCTURE

1.3.2.1 MILK PROCUREMENT

The Company has an excellent milk collection system with chilling centers in more

than 36 locations and a fleet of more than 1348 vehicles on contract for procurement.

FIGUR 1.3.2.1 MILK PROCUREMENT

Its milk shed area is spread over 10 districts

in Tamilnadu and 3 in Karnataka and covers over

52,000 milk producers and 2000 medium and bulk

milk vendors.

The Company is also involved in dairy

extension services to farmers for the development

of livestock quality and yields.

Besides this the company also has tie up with banks for arranging agricultural loans

to milk producers.

More than 110 veterinary doctors under direct employment rendering full-scale

animal care to the milk producers.

1.3.2.2 PROCESSING PLANTS

Hatsun's state of the art processing and packaging plants are located in Salem,

Kancheepuram, Madurai, Palacodu in TamilNadu and Honnali, Belgaum in Karnataka.

After procurement, milk vans then take the procured milk to these plants where the milk has

20

to undergo a quality test again to enter the plant. Then the weight is checked. After that,

using superior technologies milk is subjected to pasteurisation, homogenisation, and bacteria

clarification.

Hatsun is a pioneer in India of the world-acclaimed homogenisation processes where

the fat globules are broken and evenly distributed in the milk making it rich and wholesome.

An unyielding commitment to quality has formed the backbone of Hatsun's business ethics

right from its start. At every stage, intensive procedures to preserve quality are undertaken

to ensure the purity of the milk. The entire Hatsun staff work in harmony as one family in

enforcing the tough standards that Hatsun set for itself as basic guidelines.

Each milk packet packaged-using German technology-reaches the consumer with this

assurance: The Hatsun Quality.

1.3.2.3 DISTRIBUTION

FIGUR 1.3.2.3 DISTRIBUTION VEHICLE

Everyday Hatsun's fleet of puff-insulated

trucks travel 3.9 times the distance around the

world, i.e. 1,82,730 km taking milk for

consumption by homes across the states of

Tamilnadu, Karnataka, Goa and Kerala. Hatsun

takes pride in having its large cold-chain network

in India ensuring that each and every one of its consumers gets fresh milk day after day.

1.3.2.4 LOGISTICS

The company has a strong logistics and distribution network in icecream and milk.

Around 1100 exclusive Arun Icecreams parlours spread over the entire Tamilnadu and parts

of Andhra Pradesh and Karnataka.

The company has six cold room distribution points, strategically located for quick and easy

distribution of its products.

In the milk segment, the Company's distribution network comprises of 150

wholesale distributors and above 10,000 dealers for Arokya and around 850 direct selling

agents for Hatsun Komatha milk.

21

More than 1348 vehicles handling distribution, and each covering a distance of 200

to 250 km every day.

The total distance travelled by company vehicles in procurement, marketing and

other administrative activities per day comes close to 1, 82, 730 km, which is equivalent to

going around the world 3.9 times a day.

1.3.3 RECOGNITION

Hatsun's dairies are ISO 9001:2000and HACCP (Hazard Analysis Critical Control

Point) certified. The Salem plant has received ISO 14001and been certified eco-friendly.

The quality assurance of Hatsun ensures that stringent quality standards and norms of

American Dairy Products Institute (ADPI) are fully met. The success of Arun Icecreams has

been taken as a case study by the Indian Institute of Management, Ahmedabad, India's

leading business school.

1.3.4 OUR NETWORK

The company has achieved excellence in establishing an extremely efficient supply

chain management, better logistics and widespread distribution network spearheaded by

exclusive franchisee outlets. All the brands of the company enjoy very strong brand equity

and despite being in a price sensitive market, its brands command a premium.

ARUN Icecream is sold through exclusive franchisee outlets and is occupying the top slot in

Tamilnadu and figures within the top three in the south India. With the commissioning of

plant in Belgaum, the company has entered into the Goa, Pune and southern districts of

Maharashtra markets. The company has also entered into International markets during the

financial year (2004-05). The company has implemented an arrangement, whereby Arun

icecream is now available in Seychelles. Arun Icecream is also being exported to Brunei.

1.3.5 CORPORATE MILESTONES

Arun Icecream Launch.

1970 - M/s. R.G. Chandramogan & Co. set up.

22

1986 - March- M/s. Hatsun Foods (HFPL) incorporated as a private limited company. The

same year HFPL was admitted as a partner in M/s. R.G. Chandramogan & Co.

1986 - April HFPL takes over M/s. R.G. Chandramogan & Co. HFPL was allowed to

register the brand name 'Arun' in its own name subject to a royalty payment of 1% on the

gross icecream sales.

1991 - MPD Factory (Atlantic) - Salem Inauguration.

1993 - Hatsun Dairy Private Limited (HDPL), promoted by M/s. Hatsun Foods

Private Limited, established.

Salem Dairy - Inauguration.

1995 - M/s. Hatsun Foods goes public. Changes name to Hatsun Agro Product Limited.

Icecream Factory - Red Hills - Inauguration.

1998 - Hatsun Milk Product Limited (formerly known as HFPL amalgamated with Hatsun

Agro Product Limited.

2000 - Belgaum Dairy - Inauguration.

Kanchipuram Dairy Acquisition.

2004 - Dairy Ingredient Plant - Inauguration (Salem & Kanchipuram)

1.3.6 FINANCIAL RESULTS

The company's sales have grown from a level of INR 190.9 million (approx. USD 4

million) in 1997 to INR 8694 million (approx. US$ 183 million) in 2008. The company's

PBDITA has increased from INR 25.14 million (approx. US$ 0.53 million) in 1997 to INR

614 million (approx US$ 12.92 million) in 2008. The equity base with reserves stand at

Rs.481 million (approx US$ 10.12 million) and gross asset base of more than Rs.2332

million (approx US$ 49.09 million).

23

1.3.7 SHARE CAPITAL

The Company made its maiden public issue of 18,00,000 equity shares of Rs.10/- at

a premium of Rs.35/- per share. The issue was well subscribed. The present listed and paid-

up Equity Share Capital of the company is Rs.6.79 Crore with a shareholder base of 3,772

as of 30th September, 2008.

1.3.8 LIST OF SHARES

The Company's Equity Shares are listed on Bombay Stock Exchange Limited and

the shares are regularly traded.

1.3.9 PROCURING WITH CARE

The company procures around 1.65 million litre of liquid milk per day by directly

collecting it from farmers spread over 4500 villages in south India. Hatsun has its own

infrastructure of milk collection centre & chilling centre for procuring & handling of raw

milk.

Over 350 field's staffs are employed to ensure timely collection, testing of milk at

the point of collection, weekly payment; cattle feed sales, encouraging farmers to grow their

herd size, bank loans, animal insurance, training farmers on a better animal management and

clean milking.

Over 100 veterinary doctors and 160 inseminators under direct employment, assist in

artificial insemination, feed management, breed management, vaccination program and

render full scale animal health care.

1.3.10 HIGHLY SOPHISTICATED PROCESSING FACILITIES

With high-tech processing plants operating at 7 locations, Hatsun ensures rigors

testing of milk before processing.

Intensive procedures to ensure the purity of milk with handling capacity of

1.7million litre of milk per day, proves Hatsun's unyielding commitment to quality. The

facilities comprise of highly advanced technology from westfalia called Bactofuge which

bacteria clarifies the milk resulting in a high quality end product.

24

There are state-of-the-art laboratories (chemical & microbiological) for process

control, product quality control and product development. Validations of critical parameters

are also done at our fully quipped central lab located at Chennai. These ISO 22000:2005;

9001:2000, 14001:2004 and HACCP certified manufacturing facilities have been regularly

upgraded to meet the requirement & standards of various large multinational companies.

1.3.10 MILK PROCESS

Hatsun operates state of the art processing

plants at 6 locations. Rigorous milk testing is done

at each of these locations. The raw milk when

received is bacteria clarified by use of west Falia

Bactofuge. The milk is then sent either for fresh

product processing or for manufacturing of dairy

ingredients.

An unyielding commitment to quality has formed the backbone of Hatsun's business

ethics right from its start. Intensive procedures to pressure the quality are undertaken to

ensure the purity. Handling capacity of 1.7 million litre of milk per day, including Fresh

milk and Dairy ingredients.

ISO 22000:2005, ISO 14001:2004 and ISO 9001:2000 certified manufacturing

facilities that have been extensively upgraded in the last three years.

Only company in India using Bactofuge Technology (from West Falia-Germany) to

clarify liquid milk.

State-of-the-art laboratory for process control, product quality control including

Micro Biological lab and product development.Capable of being scaled up for higher

volumes and enhanced product range.

25

1.4 PRODUCT PROFILE

1.4.1 ARUN ICECREAM

Arun: An insight Arun Icecreams believes in the motto "Customer is the King".

Arun Icecreams, a feather in the cap of Hatsun is a brand leader in the icecream market.

Today, Arun is the largest selling icecream brand in south India. It sells its icecreams

through exclusive parlours spread all over Tamilnadu, and parts of Karnataka, Kerala and

Andhra Pradesh. With over 70 unforgettable varieties, Arun continues to delight millions of

customers.

Arun Icecreams success was due to the below said reasons

Pure Milk based Icecreams with rich and creamy taste.

Range of flavours and varieties

Innovative product concepts

Packaging at par with International standards

26

Arun: First to Take the Parlour Route

Arun introduced the concept of exclusive franchise parlours selling only Arun

Icecreams. This is admittedly one of the major reasons for Arun Icecreams' strong

performance over the years. By reaching out to towns with a population of 30,000 and in

some cases even smaller towns, Arun has boldly taken a path that is less traveled. Arun

Icecreams continue to come up with new varieties and flavours which should help it

maintain its strong performance and brand image.

Arun: Parlour Standardisation

Arun has now brought about standardisation of its parlours. This will help maintain

the unique identity of the parlours. This, in turn, enhances uniformity in the image of the

brand among the consumers leading to utmost satisfaction.

Arun Icecreams parlours have been hugely successful. The reasons for this are explained

briefly:

Ideal and convenient location

Well-decorated parlours where cleanliness given top priority

Convenient working hours (10 A.M to 10 P.M.)

Regular maintenance of freezer to keep them functioning at optimum levels

Courteous and unmatched service

Knowledge of product/variety among the staff

Ability to understand customers' needs so as to satisfactorily cater to their tastes

1.4.1.1 ICE CREAM MANUFACTURING PROCEDURE

27

FIGUR 1.4.1.1 ICE CREAM MANUFACTURING PROCEDURE

The basic steps in the manufacturing of ice cream are generally as follows:

Blending of the mix ingredients

Pasteurization

Homogenization

Aging the mix

Freezing

Packaging

Hardening

Process flow diagram for ice cream manufacture: the red section (Blending of mix

ingredients, Pasteurization) represents the operations involving raw, unpasteurized mix, the

pale blue section (Homogenization, Cooling, Aging) represents the operations involving

28

pasteurized mix, and the dark blue section (Continuous Freezing, Batch freezing, Packaging,

Hardening, Storage/Distribution) represents the operations involving frozen ice cream.

1.4.1.2 BLENDING

First the ingredients are selected based on the desired formulation and the calculation

of the recipe from the formulation and the ingredients chosen, then the ingredients are

weighed and blended together to produce what is known as the "ice cream mix". Blending

requires rapid agitation to incorporate powders, and often high speed blenders are used.

1.4.1.3 PASTEURIZATION

The mix is then pasteurized. Pasteurization is the biological control point in the

system, designed for the destruction of pathogenic bacteria. In addition to this very

important function, pasteurization also reduces the number of spoilage organisms such as

psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers).

Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s

Both batch pasteurizers and continuous (HTST) methods are used.

Batch pasteurizers lead to more whey protein denaturation, which some people feel

gives a better body to the ice cream. In a batch pasteurization system, blending of the proper

ingredient amounts is done in large jacketed vats equipped with some means of heating,

usually steam or hot water. The product is then heated in the vat to at least 69 C (155 F) and

held for 30 minutes to satisfy legal requirements for pasteurization, necessary for the

destruction of pathogenic bacteria. Various time temperature combinations can be used. The

heat treatment must be severe enough to ensure destruction of pathogens and to reduce the

bacterial count to a maximum of 100,000 per gram. Following pasteurization, the mix is

homogenized by means of high pressures and then is passed across some type of heat

exchanger (plate or double or triple tube) for the purpose of cooling the mix to refrigerated

temperatures (4 C). Batch tanks are usually operated in tandem so that one is holding while

the other is being prepared. Automatic timers and valves ensure the proper holding time has

been met.

Continuous pasteurization is usually performed in a high temperature short time

(HTST) heat exchanger following blending of ingredients in a large, insulated feed tank.

29

Some preheating, to 30 to 40 C, is necessary for solubilization of the components. The

HTST system is equipped with a heating section, a cooling section, and a regeneration

section. Cooling sections of ice cream mix HTST presses are usually larger than milk HTST

presses. Due to the preheating of the mix, regeneration is lost and mix entering the cooling

section is still quite warm.

1.4.1.4 HOMOGENIZATION

The mix is also homogenized which forms the fat emulsion by breaking down or

reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage

homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is

reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also

improved. Homogenization provides the following functions in ice cream manufacture:

Reduces size of fat globules

Increases surface area

Forms membrane

Makes possible the use of butter, frozen cream, etc.

By helping to form the fat structure, it also has the following indirect effects:

Makes a smoother ice cream

Gives a greater apparent richness and palatability

Better air stability

Increases resistance to melting

Homogenization of the mix should take place at the pasteurizing temperature. The high

temperature produces more efficient breaking up of the fat globules at any given pressure

and also reduces fat clumping and the tendency to thick, heavy bodied mixes. No one

pressure can be recommended that will give satisfactory results under all conditions. The

higher the fat and total solids in the mix, the lower the pressure should be. If a two stage

homogenizer is used, a pressure of 2000 - 2500 psi on the first stage and 500 - 1000 psi on

the second stage should be satisfactory under most conditions. Two stage homogenization is

usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby

producing a thinner, more rapidly whipped mix. Melt-down is also improved.

30

1.4.1.5 AGEING

The mix is then aged for at least four hours and usually overnight. This allows time for

the fat to cool down and crystallize, and for the proteins and polysaccharides to fully

hydrate. Aging provides the following functions:

Improves whipping qualities of mix and body and texture of ice cream

It does so by:

providing time for fat crystallization, so the fat can partially coalesce;

allowing time for full protein and stabilizer hydration and a resulting slight viscosity

increase;

allowing time for membrane rearrangement and protein/emulsifier interaction, as

emulsifiers displace proteins from the fat globule surface, which allows for a

reduction in stabilization of the fat globules and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature

should be maintained as low as possible without freezing, at or below 5 C. An aging time of

overnight is likely to give best results under average plant conditions. A "green" or unaged

mix is usually quickly detected at the freezer.

1.4.1.6 FREEZING AND HARDENING

Following mix processing, the mix is drawn into a flavour tank where any liquid

flavours, fruit purees, or colours are added. The mix then enters the dynamic freezing

process which both freezes a portion of the water and whips air into the frozen mix. The

"barrel" freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a

boiling refrigerant such as ammonia or freon. Mix is pumped through this freezer and is

drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch

freezers) with about 50% of its water frozen. There are rotating blades inside the barrel that

keep the ice scraped off the surface of the freezer and also dashers inside the machine which

help to whip the mix and incorporate air.

31

Ice cream contains a considerable quantity of air, up to half of its volume. This gives

the product its characteristic lightness. Without air, ice cream would be similar to a frozen

ice cube. The air content is termed its overrun, which can be calculated mathematically.

As the ice cream is drawn with about half of its water frozen, particulate matter such

as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry

which has a consistency similar to soft-serve ice cream. In fact, almost the only thing which

differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into

cones at this point in the process rather than into packages for subsequent hardening.

1.4.1.7 HARDENING

After the particulates have been added, the ice cream is packaged and is placed into a

blast freezer at -30° to -40° C where most of the remainder of the water is frozen. Below

about -25° C, ice cream is stable for indefinite periods without danger of ice crystal growth;

however, above this temperature, ice crystal growth is possible and the rate of crystal

growth is dependant upon the temperature of storage. This limits the shelf life of the ice

cream.

A primer on the theoretical aspects of freezing will help you to fully understand the

freezing and recrystallization process.

Hardening invloves static (still, quiescent) freezing of the packaged products in blast

freezers. Freezing rate must still be rapid, so freezing techniques involve low temperature (-

40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced

conduction (plate freezers).

The rate of heat transfer in a frezing porcess is affected by the temperature difference,

the surface area exposed and the heat transfer coefficient (Q=U A dT). Thus, the factors

affecting hardening are those affecting this rate of heat transfer:

Temperature of blast freezer - the colder the temperature, the faster the hardening,

the smoother the product.

Rapid circulation of air - increases convective heat transfer.

Temperature of ice cream when placed in the hardening freezer - the colder the ice

cream at draw, the faster the hardening; - must get through packaging operations

fast.

32

Size of container - exposure of maximum surface area to cold air, especially

important to consider shrink wrapped bundles - they become a much larger mass to

freeze. Bundling should be done after hardening.

Composition of ice cream - related to freezing point depression and the temperature

required to ensure a significantly high ice phase volume.

Method of stacking containers or bundles to allow air circulation. Circulation should

not be impeded - there should be no 'dead air' spaces (e.g., round vs. square

packages).

Care of evaporator - freedom from frost - acts as insulator.

Package type, should not impede heat transfer - e.g., styrofoam liner or corrugated

cardboard may protect against heat shock after hardening, but reduces heat transfer

during freezing so not feasible.

Ice cream from the dynamic freezing process (continuous freezer) can also be

transformed into an array of novely/impulse products through a variety of filling and

forming machines, which have ben identified on a separate page.

1.4.2 ARUN ICECREAM UNLIMITED

And now Arun introduces the whole new concept in icecream retailing in south

India, the Unlimited concept.

Arun unlimited offers the customer a wide range of flavours with unlimited options

of creating ones own sundaes. The customer is given the option to choose his own choice of

icecream and toppings or sauces to go with it. In addition to allowing customers to create

their own combinations, The Arun unlimited has a sundae menu of proprietary and

innovative creations ready for customers to enjoy. We even offer take away icecreams.

The parlours are decorated to offer a vibrant,fun and friendly experience.

Currently operational at Chennai's leading shopping mall - Spencer plaza and also

stand alone parlours at Annanagar, R.K.Salai , Besant nagar, Egmore etc

Arun Unlimited also operates inside the most renowned IT parks like Chennai one and IT

giants like Accenture.

Arun unlimited is very much on its way marching ahead to become the leading

icecream Retail chain in south India in years to come.

33

1.4.3  AROKYA MILK OVERVIEW

Arokya - Milk that suits children & adults alike !!!

Arokya has more nutrition and butterfat. Growing children can consume Arokya

because it's wholesome and nourishing. It fortifies the bones with calcium, proteins and

minerals. In case of adults, Arokya can be diluted with water & used.

Arokya is a healthy and ready nourishment for growing children. Fortified with 4.5%

butterfat, Arokya helps in the growth of vital strengths of a child - both physical and mental.

It contains adequate quantities of calcium and phospholipids for development of the bones

and brain respectively.

Unlike toned milk where butterfat is removed to make it only 3%, Arokya has 4.5%

butterfat. Hence the catchy slogan attached to it: Nothing added. Nothing removed.

Nobody underscores the need for healthy foods more than the World Health

Organisation (WHO). In fact, World Children's Fund (WCF)-a body recognized by WHO-

believes that milk with 4.5% butterfat is best for growing children.

It is very critical to give every child the right kind of food and nutrients, and to give

the child just when he needs them the most. If you are looking to make your child skilled,

agile and admired, switch to Arokya. And watch your child excel.

1.4.4 MILK PRODUCTS   /   HATSUN COOKING BUTTER

34

Hatsun's all-natural high-quality Cooking Butter has something that makes it stand

out from the crowd - it has dollops of 'zeal' in it. Hatsun Pasteurised Cooking Butter is made

from the choicest of creams, churned from pure farm fresh milk. It is then processed in a

high-tech dairy plant where hygiene and quality are given utmost importance. This ensures

that sweets, savouries and cakes have a great taste and aroma.

1.4.5 HATSUN COW GHEE

At Hatsun, we decided that Hatsun

would be different from other branded ghees

that jostle for your attention. So, what makes

Hatsun Ghee different? The nutty taste of

Hatsun Ghee - a special grade ghee, is perfect

for Indian cuisine in general and sweet making

in particular. Being made only from cow milk,

all the freshness and uniqueness associated

with cow milk can be found in Hatsun Ghee. It

has the distinct property of carrying and

enhancing the flavour of practically any dish

that one briefly fries in Hatsun Ghee. Hatsun

Ghee comes with the 'Agmark' seal of quality.

1.4.6 HATSUN CURD

35

Hatsun Curd is a semi-solid fermented milk

product, with excellent consistency. It has a very low

bacteria count making it extremely healthy in nature

and delightfully tasty in character.

1.4.7 HATSUN PANEER

36

Made from farm-fresh milk.

Higher milk solids make it more tasty and helps in retaining texture & shape.

1.4.8 DAIRY INGREDIENTS PRODUCTS OVERVIEW

Quality that's perfect for the World

Hatsun's Range of Dairy Ingredients is made directly from Liquid Milk and contains

all the premium qualities and Nutritional benefits of Fresh COW'S MILK.

Hatsun's Procurement team ensures timely collection, testing of milk at the point of

collection, cattle feed sales, encouraging farmers to grow their herd size, training farmers on

a better animal management and clean milking. Over 110 veterinary doctors under direct

employment assist in artificial insemination, feed management, breed management,

vaccination program and also render full-scale animal care.

Hatsun's Dairy Ingredients are processed at the state-of-the-art processing

technology run by people with strong technological capabilities. These, together with an

innovative and flexible approach, enable us to manufacture a range of high quality products.

Hatsun has an annual production of 20,000 MT of Milk Powders and 11,000 MT of milk Fat

at present.

1.4.9 QUALITY

Preamble: We at "Hatsun" from management to down the line i.e. land/floor are

conscious and continue to strive hard to achieve high level of pledge in obtaining pure milk

and safe products. Scruple sly & sincerely IS standard of analysis are followed "before -

during - after"; at procurement point, collection bank point, raw fresh milk reception point,

Chilled milk point, market milk point, dairy ingredients point, dairy by-products point.

Particularly physical, chemistry, microbiology, residue monitoring are applied at all

necessary point in order to comply & to provide comfortable milk & milk products. This

applies from cow to commercial.

COW TO COMMERCIAL ANALYSIS SUBJECTIVE STRATEGY:

37

At Fresh milk collection centre i.e. Hatsun Milk bank (HMB) First stage analysis):-

Fresh Milk is procured and poured at our dedicated (major) fresh milk collection centre i.e.

Hatsun Milk Bank (HMB).

1.4.10 PHYSICAL EVALUATION:

Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB

personal

Milk is measured i.e. computerized.

Cleanliness of milk cans.

1.4.11 CHEMICAL ANALYSIS:

Gerber method applied to find out fat percentage

Lactometer method is applied to find out Solid non fat

At Chilling centre raw fresh milk reception dock (Second tire analysis): -

1.4.12 PHYSICAL EVALUATION:

Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB

personal

Milk is measured i.e. computerized.

Cleanliness of milk cans.

1.4.13 CHEMICAL ANALYSIS:

Gerber method applied to find out fat percentage

Lactometer method is applied to find out Solid non fat

Adulteration test are carried out.

MBRT is conducted.

COB is conducted.

1.4.14 PHYSICAL EVALUATION:

Sensory evaluation is carried out by our trained HMB personal

Milk is measured i.e. computerized.

Cleanliness of milk cans.

38

1.4.15 CHEMICAL OF MILK:

Gerber method applied to find out fat percentage

Lactometer method is applied to find out Solid non fat

Adulteration test are carried out.

COB is conducted.

Acidity test

1.4.16 MICROBIOLOGY OF MILK:

MBRT of milk

Antibiotic residue test

CAP residue test

Standard plat count enumeration

Coli form enumeration

1.4.17 DURING AND AFTER PROCESS OF MARKET MILK:

Homogenization efficiency

The entire test stated above to confirm its declaration on the package.

1.4.18 DURING AND AFTER PROCESS OF DAIRY INGREDIENTS:

Entire IS standard of analysis and enumerations (Chemistry, microbiology, residue

monitoring both quantitative and qualitative) are carried out scrupulously with out any

deviations.

Shelf-life studies are in place.

Third party analyses are in place.

Third party frequent audit are in place.

Constant monitoring, feed-back and collection of various datas have played and playing a

major role in our assurance of safe products to our royal - real ultimate customers.

39

1.5 OBJECTIVES OF THE STUDY

1.5.1 PRIMARY OBJECTIVE

To find out the effective recruitment and selection process in HATSUN AGRO

PRODUCT LTD with reference to ARUN ICE CREAMS, CHENNAI

1.5.2 SECONDARY OBJECTIVES

1. To evaluate the effectiveness of various recruiting techniques and sources for all

types of job applicants.

2. To identify the various factors companies undertake prior to the recruitment process.

3. To study how the companies establish a balance between their business strategy and

recruitment strategy.

4. To find the recruitment and selection system in the organization.,

5. To study the process of intake of employees with relation to experience ,

communication skills and qualification in the organization.,

6. To find out the reason why the people choose Hatsun Agro Product Ltd.,

7. To identify the reason why they are leaving the present company and also the reason

to join Hatsun Agro Product Ltd.,

8. To evaluate the effectiveness of various recruiting techniques and sources for all

types of job applicants.,

1.6 SCOPE OF THE STUDY

40

o HR professional is having a big responsibility to hire a best person from the

available talent team. At the same time, one needs to be cost conscious. It is a

good practice in recruitment to be objective and seek to identify the candidates'

abilities. Judge on individual merits and set the same standards for all. Whereas

generalized assumptions made about ability or ambition, based on applicant's

sex, caste, age, religious belief, sexual orientation or any disability, is a bad

practice. One need to use the technology, to get the best results from recruitment

process.

o This study helps in finding the improvements to be done in recruitment and

selection process.

o This study able to know about the expectations of the candidates from the

company.This study able to learn about the strength and weakness of the

strategies followed by the company.

1.7 LIMITATIONS OF THE STUDY

41

It cannot be generalized to any other organization.

There may be personal bias in the information provided, as some employees like to

underestimate or appreciate their organization.

The results and findings are confined to a limited area.

Employees have to answer the questionnaires amidst their hectic schedule of work.

2. REVIEW OF LITERATURE

42

2.1 BOOK REVIEW

2.1.1. BOOK: EXPERIENCING RECRUITMENT AND SELECTION

Author: Jon Billsberry

Recruitment and election is a stressful and traumatic transition for both the people and the

organisations, where futures are decided and destinies set. How does it feel to be involved in

this process? "Experiencing Recruitment and Selection" offers readers a unique insight into

this life-changing event; one that is very different to the current recruitment literature as it

gives a voice to both applicants and recruiters. Using real-life stories, this book explores

applicants' and selectors' experiences of the recruitment and selection process. The author

offers original insights into: differences between internal and external applicants;

perceptions of fairness; how failure to get appointed influences internal applicants; how

recruiters select for 'fit'; the reasons why people apply for jobs; the influence of market

forces on selection decisions.

Each chapter focuses on a key topic in recruitment and selection and features at least three

related stories. The stories are interwoven with analyses that demonstrate the key lessons for

practitioners and students. Each chapter concludes with a series of provocative questions

and a guide to further reading.With its practical, easy-to-use format, "Experiencing

Recruitment and Selection" is essential reading for undergraduate and postgraduate students

in disciplines including organisational psychology, organisational behaviour, management

studies and HRM, as well as personnel or HR managers and occupational psychologists.

"Experiencing Recruitment and Selection" uses real-life stories to explore issues such as

why people apply for jobs, perceptions of fairness, how failure affects internal applicants,

the impact of market forces on decisions, how recruiters select for 'fit' and much more. In

each chapter Jon Billsberry tackles a particular topic, drawing on at least three related stories

and concluding with provocative questions and a guide to further reading. The stories are

interwoven throughout with analyses that highlight key lessons.

2.2 PROJECT REVIEW

43

2.2.1 REVIEW ON A STUDY ON RECRUITMENT AND ITS EFFECTIVENESS.

Author : Nayab Naseer

Rcruitment is the process of soliciting, screening, and selecting qualified people for a job at

an organization or firm, and therefore the process by which organizations fulfill their human

resource requirements. Small and Medium scale industries are relatively small enterprises

employing far less manpower compared to large scale firms and usually concentrated on a

specific area or region, tapping into the resources available in such areas. Recruitment is one

of the major Human Resource activities of an enterprise. An enterprise first determines the

number of employees required to run its operations through a manpower planning exercise,

and then lists out the skills and qualifications required for each of these employees through a

Job Analysis. The Human Resource department then conducts the recruitment process

wherein they sources candidates through various ways to fulfill such requirements. The

short listing and eventual selection the appropriate candidates from the candidates sourced

for the vacancies count as the selection process, which is a sub-set of the recruitment

process. This process repeats itself whenever there are new vacancies on when an existing

employee leaves.

2.2.2. AUDITING RECRUITMENT AND SELECTION USING GENERIC

BENCHMARKING

Author: Sharon

This article provides an account of an audit on the recruitment and selection systems and

procedures in place within a printing company based in the West Midlands (England). A

human resource audit (HRA) of generic benchmarks was developed from a literature review.

The audit subsequently was applied to establish the current position of the company in the

areas of recruitment and selection. The empirical investigation process primarily consisted

of content analysis of documents and the interviewing of 13 staff within the company. As a

result of the audit, the recruitment and selection processes, systems and procedures were

identified as ineffective. Consequently, an action plan was developed as part of a quality

44

improvement process and preparation for Investors in People Award. As a result of the

implementation of the recommendations, the culture of the company and the staff should

become more focused, systematic and of a higher quality.

2.2.3. TEACHER RECRUITMENT AND RETENTION: A REVIEW OF THE

RECENT EMPIRICAL LITERATURE

Author: Glenn A. Daley

This article critically reviews the recent empirical literature on teacher recruitment and

retention published in the United States. It examines the characteristics of individuals who

enter and remain in the teaching profession, the characteristics of schools and districts that

successfully recruit and retain teachers, and the types of policies that show evidence of

efficacy in recruiting and retaining teachers. The goal of the article is to provide researchers

and policymakers with a review that is comprehensive, evaluative, and up to date. The

review of the empirical studies selected for discussion is intended to serve not only as a

compendium of available recent research on teacher recruitment and retention but also as a

guide to the merit and importance of these studies.

2.2.4. E-RECRUITMENT AND THE BENEFITS OF ORGANIZATIONAL

WEB APPEAL

Author: Lori Foster Thompson

This study examined the influences of website design on prospective job seekers. A total of

182 participants accessed and reviewed an online job ad. Afterwards, they rated: (a) the

attractiveness of the ad's formatting, (b) the usability of the website, (c) overall evaluations

of the organization's web appeal, (d) impressions of the organization, and (e) willingness to

pursue employment with the hiring organization. Although both the formatting

attractiveness and usability of online recruitment materials influenced participants'

inclinations to pursue jobs, formatting was more important than usability. Moreover,

impressions of the employer mediated the relationship between satisfaction with the website

and willingness to pursue employment with the organization. Overall, this research

advances knowledge by applying signaling theory to the web-based recruitment domain and

45

by testing a mediated relationship implied therein. In addition, this is the first study to

introduce relative weights analysis to the recruitment literature.

2.2.5. THE STUDY ABOUT VARIOUS ASPECTS OF RECRUITMENT AND

SELECTION SUCH AS SOURCES OF RECRUITMENT

Author: K. W. Smith

"Management is the art of getting things done through people": Mark Parker Follet.

The above quote implies management to be a process of planning, organizing, leading and

controlling all other organizational resources to achieve the stated organizational goals,

which in turn would help in bringing up the organizational effectiveness and attaining

optimum profits. All the efforts of the organization could be achieved through employing

the organizational elements like Land, Labor and Capital.

Until recently, human resources where not given prior importance. With the emergence of

industrialization and mass production, the concept of human resource started to change.

After further studies, it was understood that human resources was one of the most important

elements, in fact the assets of the organization. It involves human elements in an

organization that contribute their maximum efforts towards the attainment of the

organizational goals. When the human elements are properly managed, the concept of

Human Resource Management emerges, which is defined as the planning, compensation,

integration, maintenance and separation of human resource to the end that individual,

organizational and social objectives are accomplished.

2.2.6. STUDY ABOUT THE VARIOUS BENEFITS OFFERED BY

RECRUITMENT TECHNIQUES

46

Author: Gareth Roberts.

Recruitment is a core of human resource activity carried out in organization of all kinds,

whether they are manufacturing, trading, service or not-for-profit organizations. The

recruitment activity makes it possible for these organizations to acquire the number and

types of personnel necessary to ensure the continued operation of the business.

Recruitment is the discovery of potential candidates for actual or anticipated organizational

vacancies and selection is choosing the candidate suitable for the job. recruiting the right

person for the right job is a time consuming and a lengthy process. tricky an art though it is,

it need not be difficult, as long as it is in a careful and systematic manner.

Since it is a traditional and primary human resource activity, most organizations undertake

recruitment individually, identifying the right sources of prospective candidate, contacting

them, and selecting the best candidate from among those who apply.

2.2.7. TO STUDY VARIOUS METHODS THE ORGANIZATION IS

FOLLOWING FOR RECRUITMENT AND SELECTION.

Author: Dean Taylor Glen.

Recruitment and selection techniques" is a GUI based application that automates the

recruitment and selection activities for better functioning and providing accurate

information time.

It is a computerized solution for organizations that often undergo the process of recruitment

for fulfilling their vacancies the application maintains electronic database comprising

various information about the job applicants organizational requirements, the results of the

various recruitment and selection phase etc.

Based on the various phases performed during recruitment and selection of employees in an

organization the undergoing project is classified into three modules.

47

In today's highly and competitive situation. Choice of right personnel has far reaching

implication for an organizations functioning. Employees well selected and well placed

would not only contribute to the efficient running of the organization but effective human

organization becomes the most important management function.

2.2.8. STUDY OF RECRUITMENT REGARDING DIFFERENT ASPECTS OF

RECRUITMENT PROCESS

Author: Dominic cooper.

Measures for attracting that manpower in adequate numbers to facilitate effective selection

of an efficient working force. Recruitment of candidates is the function preceding the

selection, which helps create a pool of prospective employees for the organization so that

the management can select the right candidate for the right job from this pool.

The main objective of the recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of

qualified applicants for the future human resources needs even though specific vacancies do

not exist. Usually, the recruitment process starts when a manger initiates an employee

requisition for a specific vacancy or an anticipated vacancy.

Attract and encourage more and more candidates to apply in the organization. Create a talent

pool of candidates to enable the selection of best candidates for the organization. Determine

present and future requirements of the organization in conjunction with its personnel

planning and job analysis activities.

Recruitment is the process which links the employers with the employees. Increase the pool

of job candidates at minimum cost. Help increase the success rate of selection process by

decreasing 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

48

regarding the composition of its workforce. Begin identifying and preparing potential job

applicants who will be appropriate candidates.

2.2.9. THE MODES OF THE SELECTION AND RECRUITMENT ARE THE

ON REQUIREMENT AND SELECTION.

Author: John Wiley.

Selection is the process of differentiating between applicants in order to identify (and hire)

those with a greater likelihood of success in a job. It is the processes of ascertain the need

requirements for prospective candidates and finally identifying potential candidates for the

vacant job. This is conducted with different tools at different stages to identify the suitability

of the person to the job.

Recruitment and selection are the two crucial steps in the HR process and are often used

interchangeably. While recruitment refers to the process of identifying and encouraging

prospective employees to apply for jobs, selection is concerned with picking the right

candidates from a pool of applicants.

Potential candidates may come from an internal trawl of the organization or from the

external job market. The latter are reached through channels such as recruitment advertising,

employment agencies, professional associations or word of mouth. The approach differs

according to the organization's resourcing philosophy:

3. RESEARCH METHODOLOGY

49

RESEARCH

Research is conscious to find out the truth which is hidden and which has not

been discovered anyone, applying scientific procedure.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It is

the scientific steps that are generally adopted by the research in studying his problem along

with the logic behind them. The advanced learner’s dictionary of current English lays down

the meaning of research as “a careful investigation or inquiry especially through search for

new facts in any branch of knowledge”.

Research Design

Data Collection

Sampling Techniques

Tools for Analysis

3.1 RESEARCH DESIGN

Research design contains:-

A clear statement of research problem.

Procedure and techniques to be used for gathering information.

Population to be studied and

Methods to be used in processing and analyzing data.

Descriptive research

The descriptive study is the one that aims at describing accurately the characteristics

of the group, community or people. A researcher may be concerned with discriminating

the proportion of people in a particular population who hold the certain views and

attitude. In this study descriptive research design is used.

50

The research study was descriptive in nature. Descriptive research studies which are

concerned with specific predictions with narrations of facts and characteristics concerning

individuals groups or situations are examples of descriptive research.

3.2 SAMPLING DESIGN

A sample design is a finite plan in obtaining a sample from a given population. It

refers the techniques or procedure the researcher would adopt in selecting items for the

sample. The probability sampling design offers every item of the population equal chance of

inclusion in the sample

3.2.1 POPULATION

Population gives the total number of employees present in the organization. The total

population under study is around 300 employees.

3.2.2 SAMPLING TECHNIQUE

The method of selecting a portion of the universe for the study with a view to draw a

conclusion about the “universe/population” is known as sampling.

SAMPLING DESIGN (Simple random sampling)

In the simple random sampling, more commonly known as simple random sampling,

every element in the population has a known and equal chance of being selected as a

sample. The respondent has different type of characteristics and spread across various

groups. Standard form of appraisal is being used irrespective of the class of the employees,

so everyone knows about the system. Each and every employee has something to

contribute towards the study. The employees have been selected from the list randomly.

51

SAMPLE SIZE

In this study also convenience sampling is applied. The sample size of the study is

100 employees.

3.2.4 AREA OF THE STUDY

The area of study is recruitment and selection at Arun Ice Cream, Chennai.

3.2.5 PERIOD OF STUDY

The study period of the project work was for six months from January to June 2010.

3.3 DATA COLLECTION

The data collected by the researcher were purely based in the primary data and was

less dependent on secondary data.

3.2.1PRIMARY DATA

The primary data was collected through a structured questionnaire.

3.2.2 SECONDARY DATA

The secondary data was collected from personal department files and records,

company broachers, magazines and journals.

3.4 STATISTICAL TOOLS USED FOR ANALYSIS

3.4.1 SIMPLE PERCENTAGE ANALYSIS:

52

It is simple analysis tool. In this method, based on the opinions of the respondents,

percentage and bar chart is calculated for the respective scales of each factor.

Formula:

Simple percentage = No of Respondents

Total No of Sample Size

3.4.2CHI- SQUARE TEST:

As a non parametric test chi-square can be used be to determine if categorical

data shows dependency or the two classifications are independent. It is generally used to test

the significance of association between two variables.

In chi-square test first a null hypothesis is formed that there is no significance

relation between the two given attributes. The calculated chi-square value is less than the

theoretical value. We accept the null hypothesis as valid. Otherwise reject the null

hypothesis and accept the alternative hypothesis.

H0: Null Hypothesis H1: Alternative Hypothesis

Chi- square is a measure for comparing variance studies.

Formula:

Where,

O = is the observed frequency, and E = is the expected frequency

Expected frequency (E) = Row Total *Column Total/Grand Total.

Degree of freedom = (R – 1)*(c -1)

Where,

R = Number of Rows

C = Number of Columns

3.5 DATA ANALYSIS AND INTERPRETATION

53

3.5.1 AGE OF THE RESPONDENTS

TABLE 3.5.1 AGE OF THE RESPONDENTS

S. NO PARTICULARS NO. OF

RESPONDENTS

AGE OF

RESPONDENTS

1 Below 20 Years 6 6%

2 26-30 years 65 65%

3 31-35 years 17 17%

4 Above 35 years 12 12%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 65% of the respondents are in the age

between 26 – 30, 17% of the respondents are in the age between 31 – 35, 12% of the

respondents are above 35 years and 6% of the respondents are below 20 years.

54

FIGURE 3.2.1 AGE OF THE RESPONDENTS

55

3.5.2 GENDER OF THE RESPONDENTS

TABLE 3.5.2 GENDER OF THE RESPONDENTS

S. NO PARTICULARS

NO. OF

RESPONDENTS

GENDER OF

RESPONDENTS

1 Male 77 77%

2 Female 23 23%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 77% of the respondents are male, 23% of

the respondents are female.

56

FIGURE 3.5.2 GENDER OF THE RESPONDENTS

57

3.5.3 QUALIFICATION OF THE RESPONDENTS

TABLE 3.5.3 QUALIFICATION OF THE RESPONDENTS

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Below SSLC 26 26%

2 SSLC 12 12%

3 HSC 18 18%

4 UG 33 33%

5 PG 11 11%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 33% of respondents have done UG, 26%

of the respondents qualification is below SSLC, 18% of the respondents are HSC, 12% of

the respondents are qualified SSLC and 11% of the employees have completed PG.

58

FIGURE 3.5.3 QUALIFICATION OF THE RESPONDENTS

59

3.5.4 EXPERIENCE OF THE RESPONDENTS

TABLE 3.5.4 EXPERIENCE OF THE RESPONDENTS

S. NO PARTICULARS

NO. OF

RESPONDENTS PERCENTAGE %

1 Below One Year 6 6%

2 1-2 Years 23 23%

3 2-3 Years 10 10%

4 3-4 Years 40 40%

5 Above 4 Years 21 21%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 40% of respondents have 3 – 4 years of

experience, 23% of respondents are having 1-2 years of experience, 21% of respondents are

having above 4 years of experience, 10% of respondents are having 2-3 years of experience

and 6% of the respondents have below one year of experience.

60

FIGURE 3.5.4 EXPERIENCE OF THE RESPONDENTS

61

3.5.5 WAY OF JOIN IN THE ORGANIZATION

TABLE 3.5.6 WAY OF JOIN IN THE ORGANIZATION

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Referrals 74 74%

2 News Paper 0 0%

3 Consultancy 0 0%

4 Walk-in 12 12%

5 Job Site 14 14%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 74% have joined at Hatsun Agro Product

Ltd., through referrals, 14% of respondents are joined at Hatsun Agro Product Ltd., and

12% of respondents are join at Hatsun Agro Product Ltd., by Walk – in.

62

FIGURE 3.5.5 THE WAY OF JOIN IN THE ORGANIZATION

63

3.5.6 REASON TO QUIT THE PREVIOUS JOB

TABLE 3.5.6 REASON TO QUIT THE PREVIOUS JOB

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 No use of job skills 41 41%

2 No hike in the salary 22 22%

3 No promotion 9 9%

4 Far from house 7 7%

5 No Flexible work schedule 21 21%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 41% of the respondents are quit the

previous job because of no use of job skills, 22% of respondents is left the job because of no

hike in the salary, 21% of the respondents are quit the previous job due to No flexible work

schedule, 9% of respondents are quit the job due to no promotion and 7% of the respondents

are quit the job due to organization was so far from house.

64

FIGURE 3.5.6 REASON TO QUIT THE PREVIOUS JOB

65

3.5.7 REASON TO CHOOSE HATSUN AGRO PRODUCT LTD

TABLE 3.5.7 REASON TO CHOOSE HATSUN AGRO PRODUCT LTD

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Career Development 46 46%

2

Monetary/Non monetary

benefits 0 0%

3 Appraisal system 23 23%

4 Near to home 22 22%

5 Working condition 9 9%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 46% of the respondents are chosen the

Hatsun Agro Product Ltd., because of career development, 23% of respondents are chosen

Hatsun Agro Product Ltd., because of appraisal system, 22% of respondents are chosen

Hatsun Agro Product Ltd., because of Near to home and 9% of the respondents have chosen

Hatsun Agro Product Ltd., because of Working condition.

66

FIGURE 3.2.7 REASON TO CHOOSE HATSUN AGRO PRODUCT

LTD

67

3.5.8 RULES AND PROCEDURE FOLLOWED IN HATSUN AGRO

PRODUCT LTD.

TABLE 3.5.8NRULES AND PROCEDURE FOLLOWED IN HATSUN AGRO

PRODUCT LTD.

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Excellent 0 0%

2 Above Average 9 9%

3 Average 61 61%

4 Below average 19 19%

5 Poor 11 11%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 61% of the respondents are says the rules

and procedure followed in Hatsun Agro Product Ltd is average, 19% of the respondents are

says the rules and procedure followed in Hatsun Agro Product Ltd is Below average, 11% of

the respondents are says the rules and procedure followed in Hatsun Agro Product Ltd is

Poor and 9% of the respondents are says that the rules and procedure followed in Hatsun

Agro Product Ltd is above average.

68

FIGURE 3.2.8 RULES AND PROCEDURE FOLLOWED IN HATSUN

69

3.5.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN YOUR

DEPARTMENT

TABLE 3.5.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN YOUR

DEPARTMENT

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Excellent 2 2%

2 Above Average 11 11%

3 Average 54 54%

4 Below average 18 18%

5 Poor 15 15%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 54% of the respondents are says that the

morale and ethics followed in department at Hatsun Agro Product Ltd is Average, 18% of

the respondents are says that the morale and ethics followed in department at Hatsun Agro

Product Ltd is Below average, 15% of the respondents are says that the morale and ethics

followed in department at Hatsun Agro Product Ltd is poor, 11% of the respondents are says

that the morale and ethics followed in department at Hatsun Agro Product Ltd is above

Average and 2% of the respondents are says that the morale and ethics followed in

department at Hatsun Agro Product Ltd is Excellent.

70

FIGURE 3.2.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN

YOUR DEPARTMENT

71

3.5.10 BASIS EMPLOYEE HAVE BEEN SELECTED

TABLE 3.5.10 BASIS EMPLOYEE HAVE BEEN SELECTED

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Experience 18 18%

2 Qualification 11 11%

3 Technical skills 54 54%

4 Family members 2 2%

5 References 15 15%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 54% of the respondents are selected on

the basis of Technical skills, 18% of the respondents are selected on the basis of previous

experience, 11% of the respondents are selected on the basis of qualification and 2% of the

respondents are selected on the basis of family member’s reference.

72

FIGURE 3.2.10 BASIS EMPLOYEE HAVE BEEN SELECTED

73

3.5.11EMPLOYEE FIND IT USEFUL HAVING THE INTERVIEW

DATE DETAILED IN THE ADVERTISEMENT

TABLE 3.5.11 EMPLOYEE FIND IT USEFUL HAVING THE INTERVIEW DATE

DETAILED IN THE ADVERTISEMENT

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Yes 78 78%

4 No 22 22%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 78% of the respondents are find it useful

having the interview date detailed in the advertisement and 22% of respondents are not find

it useful having the interview date detailed in the advertisement.

74

FIGURE 3.5.11 EMPLOYEE FINDS IT USEFUL HAVING THE

INTERVIEW DATE DETAILED IN THE ADVERT

75

3.5.12 EMPLOYEE FEEL ABOUT PAY

TABLE 3.1.12 EMPLOYEE FEEL ABOUT PAY

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Excellent 0 0%

2 Above Average 7 7%

3 Average 34 34%

4 Below average 26 26%

5 Poor 33 33%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 34% of the respondents are feel about

their pay is average, 33% of the respondents are feel about their pay is poor, 26% of the

respondents are feel about their pay is below average and 7% of the respondents are feel

about their pay is above average.

76

FIGURE 3.5.12 EMPLOYEE FINDS IT USEFUL HAVING THE

INTERVIEW DATE DETAILED IN THE ADVERT

77

3.5.13EMPLOYEE PERFORMANCE EVALUATIONS PROVIDE

FEEDBACK TO ASSIST IN THE PERFORMANCE OF THE JOB

TABLE 3.5.13 EMPLOYEE PERFORMANCE EVALUATIONS PROVIDE

FEEDBACK TO ASSIST IN THE PERFORMANCE OF THE JOB

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Yes 82 82%

4 No 18 18%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 82% of the respondents are says the

feedback of the performance appraisal is assist to performance of their job and 18% of the

respondents are says the feedback of the performance appraisal is not assist to performance

of their job.

78

FIGURE 3.5.13 EMPLOYEE PERFORMANCE EVALUATIONS PROVIDE

FEEDBACK TO ASSIST YOU IN THE PERFORMANCE OF YOUR JOB

79

3.5.14 SUPPORTIVE WAS THE WORK ENVIRONMENT ROLE AS

AN EMPLOYEE

TABLE 3.5.14 SUPPORTIVE WAS THE WORK ENVIRONMENT ROLE AS AN

EMPLOYEE

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Excellent 52 52%

2 Above Average 21 21%

3 Average 15 15%

4 Below average 12 12%

5 Poor 0 0%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 52% of the respondents are says the

work environment is excellent, 21% of the respondents are says the work environment is

Above Average, 15% of the respondents are says the work environment is average, 12% of

the respondents are says the work environment is below Average.

80

FIGURE 3.5.14 SUPPORTIVE WAS EMPLOYEE WORK ENVIRONMENT ROLE

AS AN EMPLOYEE

81

3.5.15 EMPLOYEE LOOK AT HATSUN AGRO PRODUCT LTD.,

WEBSITE FOR RECRUITMENT

TABLE 3.5.15 EMPLOYEE LOOK AT HATSUN AGRO PRODUCT LTD.,

WEBSITE FOR RECRUITMENT

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Yes 12 12%

4 No 88 88%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 12% of the respondents are look at

Hatsun website for recruitment and 88% of the respondents are not look at Hatsun website

for recruitment.

82

FIGURE 3.5.15 EMPLOYEE LOOK AT HATSUN AGRO PRODUCT

LTD., WEBSITE FOR RECRUITMENT

83

3.5.16 EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND

INDUCTION FROM HATSUN AGRO PRODUCT LTD

TABLE 3.5.16 EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND

INDUCTION FROM HATSUN AGRO PRODUCT LTD

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Yes 12 12%

4 No 88 88%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 12% of the respondents are receive

adequate orientation and induction for Hatsun Agro Product Ltd., 88% of the respondents

are not receive adequate orientation and induction for Hatsun Agro Product Ltd.,

84

FIGURE 3.2.16 EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND

INDUCTION FROM HATSUN AGRO PRODUCT LTD

85

3.5.17 EMPLOYEE SATISFY WITH THE PRESENT RECRUITMENT

AND SELECTION SYSTEM IN HATSUN AGRO PRODUCT LTD.

TABLE 3.5.17 EMPLOYEE SATISFY WITH THE PRESENT RECRUITMENT

AND SELECTION SYSTEM IN HATSUN AGRO PRODUCT LTD.

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Highly Satisfaction 22 22%

2 Satisfaction 21 21%

3 Neutral 15 15%

4 Dissatisfaction 42 42%

5 Highly Dissatisfaction 0 0%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 42% of the respondents are

dissatisfaction with present recruitment and selection system, 22% of the respondents are

highly satisfaction with present recruitment and selection system, 21% of the respondents

are satisfaction with present recruitment and selection system, 15% of the respondents are

neutral with present recruitment and selection system at Hatsun Agro Product Ltd.

86

FIGURE 3.2.17 EMPLOYEE SATISFIES WITH THE PRESENT

RECRUITMENT AND SELECTION SYSTEM IN HATSUN AGRO

PRODUCT LTD.

87

3.5.18 EMPLOYEE MOTIVATED AND ACKNOWLEDGED BY

SUPERIOR

TABLE 3.5.18 EMPLOYEE MOTIVATED AND ACKNOWLEDGED BY

SUPERIOR

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Yes 67 67%

4 No 33 33%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 67% of the respondents are motivated

and acknowledged by their superior and 33% of respondents are not motivated and

acknowledged by their superior.

88

FIGURE 3.2.18 EMPLOYEE MOTIVATED AND ACKNOWLEDGED

BY YOUR SUPERIOR

89

3.5.19 EMPLOYEE FEEL ABOUT BENEFITS

table 3.5.19 employee feel about benefits

S. NO PARTICULARS

NO. OF

RESPONDENTS

AVG OF

RESPONDENTS

1 Excellent 2 2%

2 Above Average 11 11%

3 Average 43 43%

4 Below average 27 27%

5 Poor 17 17%

TOTAL 100 100%

Source: Primary Data

INFERENCE:-

From the above table it can be inferred that 43% of the respondents are says that they

feel about their benefit is average, 27% of the respondents are says that they feel about their

benefit is below average, 17% of the respondents are says that they feel about their benefit is

poor and 2% of the respondents are says that they feel about their benefit is excellent.

90

FIGURE 3.2.19 EMPLOYEE FEELS ABOUT BENEFITS

91

3.6 STATISTICAL ANALYSIS

CHI-SQUARE TEST

Table 3.6.1.1 Cross tabulation for satisfaction on the present recruitment system and

rules and procedure followed in Hatsun Agro Product Ltd

Rules &

procedure

SatisfactionExcellent

Above Average Average

Below average Poor Total

Highly Satisfaction 0 2 11 5 4 22

Satisfaction 0 3 12 4 2 21

Neutral 0 3 10 1 1 15

Dissatisfaction 0 1 28 9 4 42

Highly Dissatisfaction 0 0 0 0 0 0

Total 0 9 61 19 11  100

92

STEP: 1

SETTING AN HYPOTHESIS

H0: There is no significant relationship between the rules and procedure

followed and recruitment system

H1: There is significant relationship between the rules and procedure

followed and recruitment system

STEP: 2

TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3

CALCULATION OF CHI-SQUARE VALUE

Formula

(O-E) 2 2 = E

O = Observed frequency

E = Expected frequency

2 = Chi square

93

Table 3.6.1.2 Computation Table for 2

O E O-E (O-E)2 (O-E)2/E

0 0.00 0.00 0.00 0.00

2 1.98 0.02 0.00 0.00

11 13.42 -2.42 5.86 0.44

5 4.18 0.82 0.67 0.16

4 2.42 1.58 2.50 1.03

0 0.00 0.00 0.00 0.00

3 1.89 1.11 1.23 0.65

12 12.81 -0.81 0.66 0.05

4 3.99 0.01 0.00 0.00

2 2.31 -0.31 0.10 0.04

0 0.00 0.00 0.00 0.00

3 1.35 1.65 2.72 2.02

10 9.15 0.85 0.72 0.08

1 2.85 -1.85 3.42 1.20

1 1.65 -0.65 0.42 0.26

0 0.00 0.00 0.00 0.00

1 3.78 -2.78 7.73 2.04

28 25.62 2.38 5.66 0.22

9 7.98 1.02 1.04 0.13

4 4.62 -0.62 0.38 0.08

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

94

Total 8.41

STEP: 4

Level of significance α = 0.05

Degrees of freedom = (R-1) (C-1)

= (5-1) (5-1) = 16Tabulated value at 5% level of significance and degree of freedom 16 is 26.296

STEP: 5

The calculated value is lesser than the tabulated value: 8.41 < 26.296

RESULT

Therefore, accept the Null Hypothesis H0 and reject the alternate Hypothesis H1

INFERENCE

There is no significant relationship between the rules and procedure followed and

recruitment system

95

Table 3.6.1.2 Cross tabulation for employee feel about pay and employee feel

about benefits

Employee

feel about

pay

BenefitsExcellent

Above Average Average

Below average Poor Total

Highly Satisfaction 0 0 0 0 0 0

Satisfaction 0 1 1 5 0 7

Neutral 1 8 10 11 4 34

Dissatisfaction 1 2 18 0 5 26

Highly Dissatisfaction 0 0 14 11 8 33

Total 2 11 43 27 17  100

96

STEP: 1

SETTING AN HYPOTHESIS

H0: There is no significant different between employee feel about pay and

employee feel about their benefits

H1: There is significant different between employee feel about pay and

employee feel about their benefits.

STEP: 2

TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3

CALCULATION OF CHI-SQUARE VALUE

Formula

(O-E) 2 2 = E

O = Observed frequency

E = Expected frequency

2 = Chi square

97

Table 3.6.1.2 Computation Table for 2

O E O-E (O-E)2 (O-E)2/E

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.14 -0.14 0.02 0.14

1 0.77 0.23 0.05 0.07

1 3.01 -2.01 4.04 1.34

5 1.89 3.11 9.67 5.12

0 1.19 -1.19 1.42 1.19

1 0.68 0.32 0.10 0.15

8 3.74 4.26 18.15 4.85

10 14.62 -4.62 21.34 1.46

11 9.18 1.82 3.31 0.36

4 5.78 -1.78 3.17 0.55

1 0.52 0.48 0.23 0.44

2 2.86 -0.86 0.74 0.26

18 11.18 6.82 46.51 4.16

0 7.02 -7.02 49.28 7.02

5 4.42 0.58 0.34 0.08

0 0.66 -0.66 0.44 0.66

0 3.63 -3.63 13.18 3.63

14 14.19 -0.19 0.04 0.00

11 8.91 2.09 4.37 0.49

8 5.61 2.39 5.71 1.02

98

Total 32.99

STEP: 4

Level of significance α = 0.05

Degrees of freedom = (R-1) (C-1)

= (5-1) (5-1) = 16Tabulated value at 5% level of significance and degree of freedom 16 is 26.296

STEP: 5

The calculated value is greater than tabulated value: 32.99 > 26.296

RESULT

Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1

INFERENCE

There is significant different between employee feel about pay and employee

feel about their benefits

99

4. FINDINGS, SUGGESTIONS & CONCLUSION

4.1 FINDINGS

The majority of respondents 65% are in the age between 26 – 30.

The majority of respondents 77% are male.

The majority of respondents 33% of respondents have done UG .

The majority of respondents 40% of respondents have 3 – 4 years of experience.

From the analysis it is noted that 74% have joined at Hatsun Agro Product Ltd., through

referrals.

It is observed from the analysis that 41% of the respondents are quit the previous job

because of no use of job skills.

It is clear from the analysis 46% of the respondents are chosen the Hatsun Agro Product

Ltd., because of career development.

The most of the respondents 61% are says the rules and procedure followed in Hatsun

Agro Product Ltd is average.

It is observed from the analysis that 54% of the respondents are says that the morale and

ethics followed in department at Hatsun Agro Product Ltd is Average,

It is clear from the above analysis that 54% of the respondents are selected on the basis

of Technical skills.

From the analysis the majority of 78% of the respondents are find it useful having the

interview date detailed in the advertisement.

It is inferred that 34% of the respondents are feel about their pay is average and 33% of

the respondents are feel about their pay is poor.

100

Majority 82% of the respondents are says the feedback of the performance appraisal is

assist to performance of their job.

Majority 52% of the respondents are says the work environment is excellent

From the above analysis it is clear that 88% of the respondents are not look at Hatsun

website for recruitment.

Most 88% of the respondents are not receive adequate orientation and induction for

Hatsun Agro Product Ltd.,

The majority 42% of the respondents are dissatisfaction with present recruitment and

selection system.

From the above analysis it can be inferred that 67% of the respondents are motivated

and acknowledged by their superior.

Majority 43% of the respondents are says that they feel about their benefit is average.

Statistical Findings:

No significant relationship between the rules and procedure followed and

recruitment system

There is significant different between employee feel about pay and employee feel

about their benefits.

101

4.2 SUGGESTIONS

From the analysis it is noted that 74% have joined at Hatsun Agro Product Ltd., through

referrals, The advertisement in newspaper and magazine should make more effective

through advertising in standard to recruit skilled employees.

The most of the respondents 61% are says the rules and procedure followed in Hatsun

Agro Product Ltd is average, The rules and procedure of Hatsun Agro Product Ltd

should changed to present scenario.

It is observed from the analysis that 54% of the respondents are says that the morale and

ethics followed in department at Hatsun Agro Product Ltd is Average, The morale and

ethics should by improved by making effective rules and regulation.

It is inferred that 34% of the respondents are feel about their pay is average and 33% of

the respondents are feel about their pay is poor. The salary package should be increased

to the present employees as well as to the new comers to hire skilled employees.

Majority 52% of the respondents are says the work environment is excellent, the

environment should be maintained well.

From the above analysis it is clear that 12% of the respondents are look at Hatsun

website for recruitment and 88% of the respondents are not look at Hatsun website for

recruitment. The awareness about the career on company website should be improved to

reduce advertisement expenses.

102

From the above analysis 12% of the respondents are receive adequate orientation and

induction for Hatsun Agro Product Ltd., 88% of the respondents are not receive

adequate orientation and induction for Hatsun Agro Product Ltd., the induction program

should be effective, the time should be allocated to the new comers.

The majority 42% of the respondents are dissatisfaction with present recruitment and

selection system, the recruitment system should be improved by proper implementation

of advertisement, salary package increment, making the rules and procedure for the

present scenario.

From the above analysis it can be inferred that 67% of the respondents are motivated

and acknowledged by their superior and 33% of respondents are not motivated and

acknowledged by their superior, the time should be allocated to reward the employees.

Majority 43% of the respondents are says that they feel about their benefit is average,

benefit should be improved by giving more esi, insurance, and school facility to the

employees’ children.

103

4.3 CONCLUSION

The employees of any organization are its life blood, without doubt. With the dawn of this

realization upon the present day business organizations, there appears to be a major shift

towards human resource management. In fact, the employees of today are encouraged to

participate in the major decisions and thus play a vital role in the management of the firm.

The performance of the organization depends on the efficiency that its employees exhibit.

Hence it is of crucial importance that employees with the most suitable qualifications be

selected. This is where the processes of recruitment and selection come in. It is difficult to

separate one from the other.

The process of recruitment and selection has to be at its best to get suitable candidates to

carry out the job. Hence each company is concentrating on recruitment and selection

process. Due to the added burden on the part of the organization they go for consultancies to

get their manpower. Thus in Consultancy has the responsibility to satisfy the need of the

companies.

104

APPENDIX

1. Name :

2. Age

Below 20 years 21-25 years 26-30 years

31-35 years Above 35 years

3. Gender

Male Female

4. Qualification

Below SSLC SSLC HSC

UG PG

5. Experience

Below One Year 1-2 Years 2-3 Years

3-4 Years Above 4 years

6. How do you joined in Hatsun?

Referrals Newspaper Consultancy

Walk-in Jobsite

7. Why did you quit your previous company?

Better use of job skills Increase in salary No promotion

Far from house Flexible work schedule

8. Why did you choose Hatsun Agro Ltd?

Career Development Monetary benefits Appraisal system

Near to home Working condition

9. How did you describe the rules and procedures followed at Hatsun Agro Ltd?

Excellent Above Average Average

Below average Poor

10. How would you describe employee morale and ethics followed in your department?

105

Excellent Above Average Average

Below average Poor

11. On what basis you have been selected?

Experience Qualification Technical skills

Family members References

12. Did you find it useful having the interview date detailed in the advert?

Yes No

13. How did you feel about your pay? chi-2

Excellent Above Average Average

Below average Poor

14. Did your performance evaluations provide feedback to assist you in the performance of

your job?

Yes No

15. How supportive was your work environment to you in your role as an Employee?

Excellent Above Average Average

Below average Poor

16. Did you look at Hatsun Agro Product Ltd., website for recruitment?

Yes No

17. Did you receive adequate orientation and induction from Hatsun Agro Product Ltd.,?

Yes No

18. Do you satisfy with the present recruitment and selection system in Hatsun Agro

Product Ltd.,?

Highly Satisfaction Satisfaction Neutral

Dissatisfaction Highly Dissatisfaction

19. Are you motivated and acknowledged by your superior?

Yes No

20. How did you feel about your benefits? chi-2

Excellent Above Average Average

Below average Poor

21. Suggestions

…………………………………………………………………………………………………

106

…………………………………………………………………………………………………

…………………………………………………………………………………………………

….

REFERENCES

BOOKS

1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech

Publication, 2007.

3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age

international (P) Ltd., Publishers, Second Edition,2004.

4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan

Chand & Sons Publishers, 2005.

WEBSITE

www.citehr.com

www.hatsun.com

www.wikepedia.in

107

108