Akzo Nobel Project

Acknowledgement

I express my sincere gratitude to Mr. JS Guleria, Admn. & HR Executive Akzo Noble (ICI) for their guidance, encouragement, support and cooperation extended to me during my stay at Akzo Noble (ICI).

I would like to express my gratefulness to Mr.Rajul Sharma as a senior executive and for answering all the queries & too provide me with invaluable insight and guidance for project, making it a great learning experience.

I am thankful to all supervisors and employees at Akzo Noble (ICI).

I also acknowledge and thank employees at Akzo Noble (ICI) for their assistance and cooperation in furnishing all details necessary and required to complete this project,. Lastly, I also wish to express my thanks to all those persons who directly or indirectly helped me in completing this project.

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Preface

This industrial training I had the great opportunity to intern with Akzo Noble for the first time. The HR department at Akzo Noble (ICI) provide me this opportunity to better understand the field I am studying, to learn what is recruitment. Because of the internship program, I was able to prepare myself for my future goals, all while meeting new people.

Having a little experience under my belt allowed me to tackle a broader range of assignments. One of the most important things I learned from this project, though, was something I couldn’t learn from a book or a professor. I learned what is recruitment. With all the skills, experience, and relationship. I could not have found a better opportunity to get plugged into a great company and learn what ‘real – world” management. I have connection with a great company and a great resume. No other job could prepare me for the future as this one has.

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EXECUTIVE SUMMARY

Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings. It is actually a liking function joining together those jobs to fill and those seeking job.

Recruitment logically aims at:

Attracting a large number of qualified applicants.

Offering enough information for unqualified persons to self – select themselves.

Recruiting is very important factor for the organisation. Organisation sources of recruitment are internal and external. Organisations use these sources for the recruitment of the candidate. Objective of this report is to know the recruitment procedure opted by organisations.

Thus by going through this report we will get to know about the recruitment steps and recruitment procedure in Akzo Noble (ICI).

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INDIAN PAINT INDUSRTY

AN OVERVIEW

The industrial paints are slated to grow at an annual rate of 10 t 12 percent per annum for the next few years. The industrial paint manufacturers would benefit from the burst in the passenger car sales. The two – wheeler industry has also registred a good show in the current year. The commercial vehicles segment, a star performer last year with 33 percent grow, is expected to average a growth of only 15 percent this year. However, the raising titanium dioxide prices and the negligible growth in agriculture this year play spoilsport. Considering the past trend, the paint industry is expected to show at least twice of Indian GDP in the ensuring years. The reduction of excise duties from a high of 40 percent to 16 percent in the last five years has made the numerous small – scale units unviable, as they no longer have a price advantage over the organized sector. This has helped the organized paint industry a lot. The industry is in a consolidation phase and only those Indian paint companies with a strong technical alliance, better distribution network and an ability to complete in the global markets would emerge victorious in the paint war.

If the global Goliaths are foraying into the Indian paints market aggressively, the Indian paint companies are also spreading their wings. Asian Paint exports its paints to over 15 countries. It also has joint ventures in Fiji, Tonga, Nepal, Vanuata, Solomon Island Australia, Oman and Maurties. In October 1999 it acquired 76 percent equity stake in Delmege Gorsyth & Co(Paints) Ltd, the second largest paint company in Sri Lanka with a short span of just five years, the company has emerged as the number one player in these markets.

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Highlights

The Indian paint industry is an Rs 49 Billion sector. The demand for paints is relatively price – elastic but is linked to the

industrial and economical growth. The per capita consumption of paints in India is very low at 0.5 kg annum if

compared with 4 kgs in South East Asian nations and 22 kgs in developed countries. The global average per capita consumption is 15 kg.

In India the organized sector controls 70 percent of the total market with the remaining 30 percent being in the hands of nearly 2000 small-scale units.

In India the industrial paint segment accounts for 30 percent of the paint market while the decorative paint segment accounts for 70 percent of paints sold in India.

In most developed countries, the ratio of decorative paints visa-a-visa industrial paints is around 50:50.

All the industries major have a vast dealership network and are required to maintain high inventory levels.

Most of the paint leadership have technical tie-ups with global leaders.

Sector comments

Paint is a mixture of four elements – solvents, binders, pigments and additives. Solvents give the paint a liquid flow while the binder binds it to the surface. Pigments impart color and opacity to the paint and the additives give it special resistance properties.

Sector trends

The recession in the construction and automobiles sector had thrown in shades of grey across the industry spectrum, but the revival in these sectors is cause for

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cheer for the paint industry as well. The balance sheets of the industry majors are now painted with bright colors.

Sector specifics

On product lines, paints can be differentiated into decorative or architectural paints and industrial paints. While the former caters to the housing sector, the automotive segment is a major consumer of the latter. Decorative paints can further be classified into premium, medium and distemper segments. Premium decorative paints are acrylic emulsion used mostly in the metros. The medium range consists of enamels, popular in smaller cities and towns. Distempers are economy products demanded in the suburban and rural markets. Nearly 20 percent of all decorative paints sold in India are distempers and it is here that the unorganized sector has dominance. Industrial paints include powder coatings, high performance coating and automotive and marine paints. But two-third of the industrial paints produced in the country are automotive paints.

Market profile

The leaders in the organized paint industry are Asian Paints (India) Ltd.(APIL), Goodlass Nerolac Paints Ltd.(GNPL), Berger Paints, Jenson & Nicholson Ltd. (J&N)And ICI(India) Ltd.

Asian paints are the industry leader with an overall market share of 3 percent in the organized paint market. It has the largest distribution network among the players and in the aggressive marketing has earned it strong brand equity. The Berger Group and ICI share the second slot in the industry with shares of 17 percent. GNPL has a market share of 15 percent in the organized sector.

The market can be further split into decorative paints and industrial paints. The demand for decorative paints is highly price-sensitive and also cyclical. Monsoon is a slack season while the peak business period is Diwali festival time, when most people repaint their houses. The industrial paints segment, on the other hand, is a

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high volume-low margin business. In the decorative segment, it is the distribution network that counts while in the industrial segment the deciding factor are technological superiority and tie-up with automobile manufacturing for assured business.

APIL dominates the decorative segment with a 38 percent market share. The company has more than 15,000 retail outlets and its brands Tractor, Apcolite, Utsav, Apex and Ace are entrenchment in the market. GNPL, the number-two in the decorative segment, with a 14 percent market share too, has now increased its distribution network to 10,700 outlets to complete with APIL effectively. Berger and ICI have 9 percent and 8 percent share respectively in this segment followed by J&N and Shalimar with 1 and 6 percent shares.

The share of industrial paints in the total paint consumption of the nation is very low compared to global standards. It accounts for 30 percent of the paint market with 70 percent of paints sold in India for decorative purposes. In most developed countries, the ratio of decorative paints vis-à-vis industrial paints is around 50:50. But, with the decorative segment bottoming out, companies are increasingly focusing on industrial paints. The future for industrial paints is bright. In the next few, its share would go upto 50 percent, in line with the global trend. Berger and ICI are the other players in the sector with 10 percent and 9 percent shares respectively. Shalimar too has an 8 percent share.

Price sensitivity factors

Various factors that have influenced the pricing of paints are summarized below:

The industry is a raw-material intensive. Of the 300 odd raw materials, nearly half of them are imported petroleum products. Thus, any deficit in global oil reserves affects the bottom-line of the players.

The major raw materials titanium dioxide, phthalic anhydrite and peutraithrithol constitute 50 percent of the total cost. Besides, this, there

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are other raw materials such as castor, linseed and soybean oils, turpentine. The raw materials cost sums up to a whopping 70 percent. Any increase in the price of these raw materials could adversely affect paint prices.

Most of the paint majors have to import nearly 30 percent of the raw material requirements thus changes in import policies can affect the industry.

The prices of packing materials such as HDPE,BOPP and tinplate have reduced considerably. However, the decision of the Central Government to ban import of tinplate waste could lead to a spurt in the prices of the tinplate in the near future.

Exports

In its latest survey of the world paint scene, IRL has identified the 25 fastest-growing paint exports markets around the globe. They are:

Albania Algeria Azerbaijan Bulgaria Costa Rica Cyprus Ecuador FYR Macedonia Georgia Hungry India Jordon Kazakhstan

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Madagascar Malaysia Malta Nicaragua Paraguay Qatar Republic of Moldova Singapore Slovakia Tanzania Togo Turkey

The world’s Fastest-Growing Exports Markets provides a statistical and numerical characterization of these markets, offering an insight into their potential. These rapid growth markets are found in all the major economic regions, spread throughout Eastern Europe, the Middle East and Africa, as well as some parts of Asia and Central America.

Where these markets being served from and what are the relative strengths of water-based and solvent-based paint demand? The answers to these questions are also included in the data and analysis. Germany, Italy, Turkey, UAE, the UK and the USA are the leading suppliers to at least two of the above 25 paint markets but a host of regional activity also prevails, especially in the Americas, Africa and Eastern Europe.

This unique survey will be ideal for paint makers’ export and business development managers and for any companies looking to identify new growth

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opportunities in emerging markets. For raw materials suppliers, it will highlight all of the major economic to be active in order to capitalize to formulated products that are delivered overseas.

Global coating report

Paint and coating industry is going through a phase of acquisition, with market share shifting from large US and Europe based manufacturers to those based in Asian countries including Japan, Korea, China and India. Asia and Eastern Europe markets are showing growth potential for industrial coating. North America is the leading country in global coating industry. China is the largest consumer of coating additives in Asia, approximately one third of the market. India’s market is dominated by the decorative paint and coating segment.

Growth in the marine coating market can be attribute to a surge in new building in the Asia-Pacific region, as well as high demand for exported goods from the region. The automotive coating market is growing on the back of increasing new car sales in Europe and growth in car manufacturing in China.

One of the major challenges facing the industrial coating industry is the unprecedented escalation in the price of oil, natural gas and raw materials, which is having a significant impact on the marine coating industry.

The report analyze worldwide coating market with an overview of the major markets and market segments. It also focuses on major factors dividing growth and key issues affecting the market. It discusses the current industry trends. The report also profiles the affecting the market. It discusses the current industry trends. The report also profiles the major competitors in the market and outlook of the paint and coating industry.

Major players

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In the Paints industry, following are the key manufactures.

AKZO NOBLE Paints

AKZONOBLE India manufactures and markets paints, specialty chemicals, rubber chemicals, adhesives & starch.

50 million households, all over the world, use AKZONOBLE paints every year.

Indolac paints

Indolac paints is brought to you by Super Aquacem(India) Pvt. Ltd. Which is a very old name in Paint manufacturing. It has now set up an ultra Modern Factory in the industrial belt of Gurgaon, Haryana.

Classic Paints

Classic Paints-Manufacturing of decorative & industrial paints including acrylic emulsion paints, exterior paints specialty coir coating and distempers.

Artilin Paints India Limited

Artilin Paints India Limited is the sole authorized distributor in India and Nepal for the functional paints manufactured with unique technology by ARTILIN S.A. France. Artilin Paints India Limited is promoted by experts in manufacture and concept selling of building materials.

Acro Paints Ltd

Acro Paints Ltd. Is a multi Product Company with a glorious track record of over 3 decades. The highly innovative product range includes Acrylic Emulsion paints for exteriors & interiors. Synthetic Enamels, Primers, Premium Cement Paints, complete range of Decorative & Protective Paints, high performance coatings & specialized paints as per IS/BS/ASTM etc.

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Asian Paints

Asian Paints is India’s largest paint company and ranks among the top ten decorative coating companies in the world today, with a turnover of Rs. 22.6 billion (around USD 513 million).

Asian Paints(India)

Asian Paints (India) Limited-Engaged in manufacturing and exporting of decorative paints, emulsion paints, protective coatings, industrial paints and automotive paints.

Bharat Paint and Chemical Industrial

Manufacturer of Picture Varnish, Water Based Paper Coating, Paper Glazers, Reducers, Thinners and Synthetic Resins. For more than three decades, they have remained as one of the premier manufacturer of picture varnishes, water-based paper coating, synthetic resins, reduces, thinners and other allied products in India.

Grand Color & Paint Pvt. Ltd.

Grand Polycoats Company Pvt. Ltd.-manufacturer of Industrial paints, coatings and protective system.

Jenson & Nicholson

Jenson & Nicholson, a leading company in the country today was established in the year 1922. It has a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati(near Calcutta), Sikandrabad (near Delhi) and Panvel (near Mumbai).

Jayant Color & Chemical Industries

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Jayant color & chemical Industries was established in the year 1960 by Late Shri A.K. Parekh, with a futuristic vision to manufacture quality paints and coating with a futuristic vision to manufacture quality paints and coatings with strong niche market in India.

Mangalam Paints

They provides custom manufactured paints and coatings for industrial and specialty application.

Metcon Coatings & Chemicals (India) Pvt. Ltd.

Metcon Coatings & Chemicals (India) Pvt. Ltd. Manufacturers sophisticated industrial paints chemicals for protection of steel and concrete structures in various industries.

Nerolac Paints

They are esteemed to be a subsidiary of Kansai Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world. They are the second largest coating company in India with a market share of around 20%.

Nitco Paints

Nitco Paints, an associate company of Nitco Tiles, Asia’s largest manufactures of flooring tiles, is one of India’s leading manufacturers of exterior paints & coatings.

Noble Paints Pvt. Ltd.

Noble Paints Pvt. Ltd. was established in 1934 by the Late Mr. Jal Jamshedji in Bombay. It was one of the first Indian paint manufacturing and is one of the Nations Oldest.

Shalimar Paints Limited

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Shalimar paints is one of the leading paints manufacturing companies of India. It has three manufacturing units and more than 45 branches and depots all across the country.

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Challenges for Paints Industry

Increasing demands Higher expectations on comfort levels Importance for styling and appearance Better finish (paint finish like cars) Importance for brand identities Improve quality of service delivery for customer satisfaction Increase transparency in process to ensure timeliness of delivery Allow us to build a base for a long term, continuous relationship with an

existing customer. How: Use IT to build an infrastructure back bone to enable the processes

which would enhance customer centricity The above challenges led to the genesis of Project ‘Tantra’(customized

extension on SAP Net Weaver to SAP CRM) HSSP to manage the entire process from receiving the lead to executing the

service Including transactional facilities like-pricing, billing and collections Provide visibility to the AKZONOBLE Paints team of the status once the lead

is passed onto the HSSP Improve financial controls and increase efficiency through process

integration Integrate tightly with CRM solution to ensure a single view of the consumer

for other marketing initiatives like-customer surveys, service guarantee, customer complaints etc.

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Effect of slowdown of paints industry

Paint industry not prone to slowdown:

“The industry did panic initially but we have gradually realized that we are safe. While some players may have felt the panic of slowdown, overall the Indian paint industry is growing consistently.” Said Percy Jijina,general manager – decorative, Jotun India Private Limited.

According to Jijina, the Indian paint industry itself is growing at 12 percent annually against 4 kg in the south-east Asian nations and 22 kg in developed countries. “the global average per capita consumption is 15 kg. hence, the growth opportunities for paint makers.

The industrial paints segment accounts for 30 percent of the paint market in India while the decorative paint segment accounts for 70 percent of paints sold as against a global average of around 50:50.

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INTRODUCTION OF COMPANY

AKZONOBLE INDIA LIMITED

Type: Multinational company (ICI) UK based

Founded : 1929

Headquarters: Gurgaon

Key people: Mr. Amit Jain

(Chairman & MD of AKZONOBLE INDIA LIMITED)

Industry: Chemical

Products: Decorative Painting

Performance Painting

Specialty Painting

Employees: 60000 Employees working in 80 countries

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About AkzoNobel India

Adding cheer to your world

Our commitment to the future means continued improvement in safety, health and environmental performance.

AkzoNobel India (previously known as ICI India) manufactures and markets paints, specialty chemicals and starch.

With an employee strength of about 900, AkzoNobel India's manufacturing sites, business and sales offices and distribution network span the length and breadth of the country.

Overview

AkzoNoble is the largest global paints and coatings company and a major producer of specialty chemicals.

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We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answer for our customers. Our portfolio includes well known brands such as Dulux, Sikkens, International and Eka.

Headquarter in Amsrerdam,the Netherland, we are a Global Fortune 500 company and are consistently ranked as one of the leader on the Dow Jones Sustainability Indexes.

With employ around 60,000 people in more than 80 countries and are committed to developing innovative products and cutting-edge technologies, with a heavy emphasis on sustainability. We have the scale and expertise to deliver whatever our customers require, whatever and whenever they need it.”

Often people achieve only incremental progress, because their view of tomorrow is determined by what they see today.

At AkzoNoble, we believe the future belongs to those smart enough to challenge it. We believe that real progress belongs to those who not only think with courage, but also have the courage to deliver on the thought. Tomorrow’s answers, delivered today.

What drives us knows that they what is good for our customers today is not necessarily good enough for them tomorrow. What excites us is asking the unasked question. What inspires us is seeing the opportunity others cannot. What unites us is the intelligence to deliver where others have not.

Akzo Nobel India Limited

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A brief history

How did we get where we are today?

The story began way back in 1911 when Brunner Mond & Co, one of the four companies that combined in 1926 to form ICI in UK, opened a trading office in Calcutta to sell alkalis and dyes. In 1923, it became Brunner Mond & Co (India) and in 1929 the name was changed to Imperial Chemical Industries (India) Ltd. This was followed by a period of sustained expansion, diversification and growth.

The manufacturing activities in India commenced in 1939 with the setting up of Alkali and Chemical Corporation of India Ltd in Rishra, West Bengal. Indian Explosives Ltd was set up in Gomia in 1954, the result of an agreement with the government of India. Chemical and Fibres of India Ltd came up in Thane in 1963, manufacturing polyester staple fibre. When fertilizer manufacturing operations began in Panki near Kanpur in 1969 it was the largest private sector investment in fertilizers in India. On completion of the 3rd stream, the plant had a capacity to manufacture 675,000 tpa of urea fertilizer. Crop Protection Chemicals and Pharmaceuticals unit came up in Ennore, near Chennai in 1978.

The company also commissioned its catalyst business at Panki in 1984.

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The ICI India Research and Technology Centre was established in Thane in 1976.

Consolidation and Restructuring

In 1984, the ICI group companies in India were merged in what was one of corporate India's largest mergers of that time.

Nalco Chemicals India Ltd was formed in 1987 with Nalco Chemical Company USA and AkzoNobel India Ltd, each holding 40% of the equity.

The first phase of AkzoNobel India's restructuring was completed in 1993 with the divestment of the seeds, fibres and fertilizers businesses while the agrochemicals business was transferred to a joint venture with Zeneca Limited of UK in 1995.

1996 saw the establishment of a joint venture, Initiating Explosives Systems India Ltd., with The Ensign-Bickford Company of the USA for the manufacture of Initiating Explosives Systems. The company has exited from the joint venture in late 2003.

While the new paints plant and polyurethanes systems house were commissioned at Thane in 1997, another paints plant was commissioned at Mohali near Chandigarh and the Uniqema Innovation Centre opened at Thane the following year.

In 1998 ICI exited from its joint ventures with Nalco Chemical Company, USA and Zeneca, UK, as part of its continuing restructuring exercise.

The explosives business was transferred to Indian Explosives Limited, a joint venture between the company and Orica Investments Pty Ltd., Australia in 1999. The company has exited from the joint venture in late 2003.

Trading in National Starch Adhesives products commenced in 1999, followed by the commissioning of a plant at Thane in 2000. The business has since been

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strengthened with the acquisition of the portfolio from Hindustan Lever Ltd and the plant has further been strengthened through de-bottlenecking.

In line with AkzoNobel India's strategic objective, the Polyurethanes business was sold to the Huntsman Group of USA in 2001.

The Motors and Industrial Paints business was transferred to a Joint Venture with Berger Paints India Limited, also in 2001, from which the company exited in 2002.

The flavours and fragrances business was taken over as a joint venture (with ICI India holding a majority stake) with Hindustan Lever Limited and Quest International B.V. in 2001. The company was converted into a wholly owned Subsidiary in 2006, which was later sold to Givaudan Group in 2007.

The Pharmaceuticals business of the company was divested to Nicholas Piramal India Limited in 2002.

The catalyst business of the company has been divested to Johnson Matthey Group in late 2002.

The Nitrocellulose and Trading businesses were divested in 2004 to Nitrex Chemicals India Ltd (owned / funded by ACTIS), in which the company holds a minority stake.

The Rubber Chemicals business was transferred to a subsidiary of PMC Group International, USA in December 2005, where the company held a minority stake, which was sold in 2008.

The company has acquired controlling interest during 2006 in Polyinks Limited, Hyderabad, which manufactures Hot Melt Adhesives; which was sold to Henkel Group in 2008.

The Uniqema business was divested to Croda Group of UK in early 2007.

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The Advanced Refinish Paints Business ("2K") was divested in March 2007 to an affiliate of PPG Industries, USA.

The Adhesives Business Group of the National Starch Business was divested to Henkel Group in 2008.

In 2008, Akzo Nobel N.V., became the owner of the entire equity share capital of Imperial Chemical Industries Ltd., through a scheme of arrangement under section 425 of the UK Companies Act 1985, by virtue of which the Company has become a subsidiary of Akzo Nobel N.V. In order to leverage the global strengths of AkzoNobel brand, the name of the Company has been changed from ICI India Limited to Akzo Nobel India Limited in 2010.

In late 2010, the National Starch Business of the Company was sold to an affiliate of Corn Products Group of the USA.

The continuing portfolio with the Company at present consists of:

Paints

Surface Chemistry

Dulux is an internationally available brand of paint. It is produced by AkzoNobel (formerly Imperial Chemical Industries). The brand name Dulux has been used by both ICI and DuPont since 1931 and was one of the first alkyd-based paints.

In the early days of its existence, decorators and their suppliers were the main customers for Dulux, with Say Dulux to your decorator used as an advertising slogan in the 1950s. By 1953, Dulux was available in the retail market and ten years later the famous Old English Sheepdog was used in advertisements, to the

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point where "Dulux dog" has become a common nickname for the breed. The name Dulux is derived from the words DuPont and Luxury.

ICI is a major paints, adhesive and speciality products business with products and ingredients developed for a wide range of markets. ICI is present in Asia Pacific, Europe and Americas.

Paints

AkzoNobel's Paints business in India owes its success to innovative technology and strong brands such as Dulux and Duco.

In the decoratives business, AkzoNobel's exterior paints portfolio exhibited a strong performance. Commendable growth was registered by our exterior emulsion brands - Weathershield and Supercote. Our retail tinting package 'Colour Solutions' is emerging as the preferred choice for top quality paint retailers in the country, backed by strong retail brands like Dulux Velvet Touch, Acrylic Emulsion and Gloss.

Our decorative products are free from any added lead, mercury or chromium compounds.

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VISION

Our vision is to become the leader in formulation science. We have, and will continue to build, a portfolio of businesses that are leaders with in respective industries, bringing together outstanding knowledge of customers needs with leading edge technology platform to create and deliver that provide superior performance.

As a result of significant and sustained performance improvement, we aim to be one of the leading creators of shareholders return in our industry, without compromising our commitment to safety, health and the environment and the communities in which we operate.

AKZONOBLE INDIA LIMITED will genuine leader in information science. AKZONOBLE INDIA LIMITED will lead set up the pace in the decorative and

conventional refinish market by delivering the superior and sustainable value to our customer, employees partners and shareholders.

Safety, Health & Environmental Vision

AKZONOBLE INDIA LIMITED Paints will develop, produce, distribute and market its products and services in a way that does not cause any harm to people or damage to the environment. Through our SHE Management System we will strive to reach and maintain standards safety, health and environment cares that are world class and with a performance equal to the best.

“Our work is never so urgent or important that

We cannot take the time to do it safety”

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Principles:

Our unfailing beliefs are that:

All injuries and work-related illness can be prevented. All losses of containment can be avoided. All waste can be eliminated. Employees and others who work on our behalf have the right tp safe and

health environment. We will meet all regulatory requirements. Customers, and those who handle our products, have the right to safe and

environmentally sound products. Communities have the right to safe factories with minimal environmental

impact on the community. All employees have a responsibility and are accountable for achieving a

continuous improvement in SHE performance toward the elimination of all injuries, work-related illness and environmental releases.

Line management/supervision is directly accountable for the SHE performance of their area of responsibility and the continuous improvement of that performance.

Safety, health and concern for the environment are of prime importance both at and away from work.

The foremost priority of every individual carrying out any action on behalf of AKZONOBLE Paints is to ensure the safety and health of themselves, their colleagues, and the community at large.

“Help us balance economic progress with environmental care

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Mission

AKZONOBLE INDIA LIMITED will enrich the people lives by bringing visual delight and lasting case to other surroundings.

We will be leader in India in chosen specialty products to delight our customers while creating superlative value for our shareholders.

We will have an inspiring high performance culture underpinned by responsible care for all people and the environment and innovation as the key driver for winning in the market place.

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Values

AKZONOBLE INDIA LIMITED shall

Show unrivalled understanding of customers and their markets. Seize opportunities rapidly, taking intelligent risks when required to bring

measurably better products to market. Meet demanding year on year growth targets above industry norms and

constantly improve our operational performance Hire, inspire and develop outstanding people by encouraging initiative,

supporting new ideas and rewarding delivery.

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Board of directors

Mr Nihal Kaviratne CBE

Chairman

Mr Nihal Kaviratne CBE is the Chairman of the Company with effect from 1 October 2010. He joined the Board of the Company on 30 March 2009.

Mr Amit Jain

Managing Director

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Mr Amit Jain is the Managing Director of the Company since 1 June 2009. Mr Jain has over 20 years of multi-function management experience. Before joining ICI India, he was Executive Vice President & Managing Director, MTV Networks India, China & South East Asia, based at Singapore.

Mr Partha Sarathi Basu

CFO and Wholetime Director

Mr Partha Sarathi Basu is the Chief Financial Officer and Wholetime Director of the Company since 1 November 2010.

Mr Graeme Armstrong

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Non-Executive Director

Mr Graeme Armstrong has joined the Board of the Company as a Non-Executive Director with effect from 01 April 2011.

Mr Armstrong is currently the Head of Research, Development & Innovation, AkzoNobel Group and is a member of the Executive Committee.

He joined AkzoNobel in 2008 through the acquisition of ICI where he lead the Company’s Research, Development & Innovation function.

Ms Sucheta Govil

Alternate Director

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Ms Sucheta Govil has joined the Board of the Company as an Alternate Director with effect from 01 April 2011.

Ms Govil is currently the Global Marketing Director of Deco Paints, AkzoNobel Group. She joined AkzoNobel from PepsiCo, where she was employed as VP and Executive Director Innovations and New Business. Her main responsibilities included setting the long-term strategy for innovation and business transformation across the foods and beverages segment in the critical markets of China, India, Australia, Southeast Asia, the Middle East and Africa.

Mr R Gopalakrishnan

Non-Executive Director

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Mr R Gopalakrishnan is a Non-Executive Director of the Company since May 1999. He is currently the Chairman/Director of several companies of the Tata Group, which he joined in 1998. Prior to this, he had worked in Unilever Group for over 20 years at senior positions, including that of the Vice Chairman of Hindustan Lever Limited.

Ms R S Karnad

Non-Executive Director

Ms R S Karnad is a Non Executive Director of the Company since August 2003. She is currently the Managing Director of Housing Development Finance Corporation Ltd, which she joined in 1978.

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Dr Sanjiv Misra

Non-Executive Director

Dr Sanjiv Misra has joined the Board of the Company as a Non Executive Director w.e.f. 14 May 2010.

Mr Arvind Uppal

Non-Executive Director

Mr Arvind Uppal has joined the Board of the Company as a Non-Executive Director with effect from 01 April 2011.

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Principles

Introduction

Responsibilities of the Board

Committees

Introduction

The Board believes in and supports the principles of corporate governance and seeks to discharge its operational, strategic and fiduciary responsibilities to ensure good management practices. The Board represents the shareholders’ interest in terms of optimizing long-term financial returns and is committed to its responsibilities for all the constituents of its business i.e., customers, employees, suppliers and the general public.

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The Board, which is accountable for achieving and maintaining such standards of good governance, comprises the Non-Executive Chairman, the Managing Director and five Non-Executive Directors.

Responsibilities of the Board

In ICI India's corporate structure, the roles and responsibilities of the Chairman and the Managing Director have been clearly demarcated and laid down.

All significant issues requiring strategic direction are decided after they have been critically examined by the Board with the full involvement of the Non-Executive Directors, who impart the benefit of their vast experience and skills to bring qualitative improvement to the decision-making process.

The Board, through its effective supervision of the business operations of the Company, ensures that each business remains committed to achieving operational excellence while observing the highest ethical standards.

CommitteesThe functioning of the Board is further supplemented by its Audit Committee, Remuneration and Nominations Committee and Shareholders/Investors Grievance Committee.

Ms R S Karnad chairs the Audit Committee, Mr Nihal Kaviratne CBE, the Remuneration and Nominations Committee and Mr A Narayan, the Shareholders / Investors Grievance Committee.

The Audit Committee is assisted by the internal audit function. It has full access to all relevant information to independently and comprehensively review all internal controls.

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The Remuneration and Nominations Committee reviews the performance of the Managing Director and recommends the remuneration payable as well as recommends nominations for appointment to the Board, when required to do so.

The Shareholders/Investors Grievance Committee, assisted by the Company Secretary, performs the crucial role of overview of shareholder servicing and redressing complaints.

Security, Safety, Health & Environment

ICI INDIA SSHE POLICY

The Company’s objective is at all times to ensure that:

(a) Its activities are conducted safely;

(b) The health of its employees, its customers and the public will be protected;

(c) Environmental performance will meet contemporary requirements;

(d) Its operations are run in a manner acceptable to the local communities;

(e)Employees, capital, information and other assets will be protected from deliberate harm, damage or loss.

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In particular ICI India will:

(1) Comply with relevant laws and regulations and take such additional measures as may be considered necessary.

(2) Ensure that all activities are conducted in a manner consistent with ICI India Safety, Security, Health and Environmental Standards.

(3) Set demanding targets and measure progress to ensure continuous improvement in safety, security, health and environmental performance.

(4) Require every member of staff, and those who work on our behalf, to exercise personal responsibility in preventing harm to themselves, others and the environment, and enable them to contribute to every aspect of safety, security, health and environmental protection.

(5) Manufacture only those products that can be transported, stored, used and disposed of safely.

(6) Seek to develop new or modified products which assist in conserving the environment and lead to sustainable development.

(7) Provide appropriate safety, security, health and environmental training and information for all staff.

(8) Provide appropriate safety, security, health and environmental information for all contractors and others who work with us, handle our products, or operate our technologies.

(9) Communicate openly on the nature of our activities, encourage dialogue and report progress on our safety, security, health and environmental performance.

(10) Promote the interchange of safety, security, health and environmental information and technology throughout ICI India and make our expertise and knowledge available to relevant statutory authorities.

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(11) Encourage, through positive interaction within the industry, the worldwide development and implementation of the principles of the Chemical Industries ‘Responsible Care’ initiative.

(12) Regularly monitor the application of this SSHE Policy.

This Policy applies throughout ICI India.

RESPONSIBILITIES

The Board

The Board has overall responsibility for compliance with the Safety, Security, Health and Environment (SSH&E) policy of the Company.

The Managing Director

The Managing Director, subject to the control and supervision by the Board, is responsible for ensuring that reasonable care and precautions, commensurate with the norms of prudent management, are taken in conducting the Company’s operations, so that the above policy is fully implemented.

Whole-time Director

To assist the Managing Director in evolving effective mechanisms for the Company’s diverse operations to ensure full compliance with this policy, one Whole-time/Executive Director is nominated to maintain an overview of safety,

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security, health and environment across the businesses of the Company. The nominated Director will be responsible for provision of standards and reporting procedures.

Business Chief Executives

Business Chief Executives and Heads of Functional Departments will be responsible for establishing, implementing and monitoring the SSH&E policy for

their respective businesses/functions consistent with local laws and the standards and procedures provided.

Line Management

Safety, health, protection of the environment and protecting assets and information from deliberate harm, damage or loss are primarily Line Management accountabilities and the Business Chief Executives/Heads of Functional Departments will discharge their responsibility for compliance with the Company’s SSH&E policy through their General Managers, Business Managers, Works/Site Managers and Line Managers in their respective areas of activity.

Employees

It is the duty of all employees to exercise personal responsibility and co-operate in doing all they can to prevent harm to themselves and others and to the environment and protect assets and information from deliberate harm, damage or loss. The Business Chief Executives/Heads of Functional Departments will take suitable measures through their staff to ensure that the employees discharge their duties and extend their co-operation in this regard.

SUPPORT AND ADVICE

The Board will provide adequate resources for the implementation and monitoring of the Company’s SSH&E policy as indicated above.

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Each site and department, where appropriate, will have its written procedures for safety, security, health and environmental protection which will be prominently displayed so as to bring to the attention of all their employees. It will be made clear to all employees that their efforts in the area of safety, security, health and environment will be valued equally with their contributions to the Company’s

business. The Business Chief Executives/Heads of Functional Departments will be responsible for ensuring that these written procedures are made known and complied with fully and effectively and that employees operating any plant or conducting any operation which carries any safety, security, health or environmental hazard have been equipped with appropriate training for this purpose.

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Sustainability at AkzoNobel

What are we doing to be a more responsible company?

We're committed to delivering sustainable products and solutions to our customers. But of course we can only do this if sustainability is at the heart of everything we do. That's why we've integrated sustainability into every area of our business - for the benefit of our clients, shareholders, employees and the world around us.

Our commitments

We’ve made a commitment to our employees and their health and safety. Guided by our core common values, we’ve also set down our commitments to the environment, including how we aim to improve our energy efficiency. And although we can’t put a stop to global issues and dilemmas, we have strong principles for dealing with them.

Sustainable products

Sustainability isn’t just about producing more sustainable products. It’s about finding new ways to do things. With this in mind, we’ve designed our own eco-efficiency strategy. We also have a program of sustainable innovation, using sustainability tools to measure our success. Read our case study of surfactants for an example of what we’ve achieved so far.

Our people

As a company, we can do a lot for the communities we work in. As individuals, we can do even more. That’s why AkzoNobel is creating opportunities for our people

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to make a difference. This includes investing in the AkzoNobel Art Foundation, and supporting community programs and projects around the world.

Planet

With the growing threat of climate change and the scarcity of raw materials, sustainability is crucial to the future of our planet. We’re constantly looking to minimize our effect on the world and its resources, focusing on materials efficiency, energy & climate, water usage and cleaning up the land and air around us.

Our performance

We manage and monitor every aspect of our sustainability performance. Our 2007 Sustainability Report covers what we’re doing – and aiming to do, how we measure our performance, and how our shareholders and the financial community can measure our overall sustainability. It also includes the sustainability and integration issues surrounding our acquisition of ICI.

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Locations

With an employee strength of about 900, AkzoNobel India's manufacturing sites, business and sales offices and distribution network is spread across the country.

BusinessHeadquarters

Manufacturing

Paints Gurgaon, Haryana

Mohali, Punjab Hyderabad, Andhra Pradesh Thane, Maharashtra

Surface Chemistry

Thane, Maharashtra

Research & Technology Centre

Thane, Maharashtra

Corporate Office

DLF Plaza Tower, 10th Floor DLF Qutab Enclave Phase 1

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Gurgaon 122 002 Haryana, India

Registered office

Geetanjali Apartment 1st Floor 8-B, Middleton Street Kolkata - 700071, India

Thane office

Plot No 1/1 TTC Industrial Area Thane Belapur Road, Kopar Khairane Navi Mumbai 400 709 Maharashtra, India

AKZONOBLE Decorative Paint Markets

We are the world leader in decorative coatings and home to some of the best-known brands in the business. Every day, our products protect the buildings and

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infrastructure around the globe and promote safely and good health. They bring color to the world, allow us to travel and communicate, and furnish our homes and offices. And, most importantly, they help to create a more sustainable society.

The regional markets for decorative paint are at different stages of growth and maturity, and our strategy at AKZONOBLE Paints has reflected this.

Paint markets tend to be fragmented, with a large number of country-specific competitors. Obtaining competitive advantages across the region requires leveraging marketing and manufacturing capabilities and transforming best practice in innovation, purchasing marketing and central development.

The Asia region is one of generally high growth. The key focus of the business is to maintain accelerate, profitable growth, with particular focus on China, India, Indonesia, Thailand and Vietnam.

The European region has some large mature markets and a number of developing growth markets in Eastern and Central Europe. AKZONOBLE Paints has a leading position in UK, with strong brands underpinned by a focus innovation. There is significant brand equity with ‘Dulux’, ‘Hammerite’,’Cuprional’ and ‘Polycell’.

The focus of European business is on improvement of product range, expansion in developing markets, reduction of the cost-base and the improvement of operational efficiency and profitable of the Continental European operation.

The Latin America business has strong positions in Brazil, Argentina and Uruguay where brand strength is maintained through capability in marketing and focus on innovation. AKZONOBLE Paints has a significant relationship in this market The Home Depot, a leading retailer.

We are focusing on growth in the emerging markets of Asia, Eastern and Central Europe, and South and Central America though autonomous development and

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acquisitions. We will also continue to enhance our presence in the mature markets through selected acquisitions. Our ambition is to remain the biggest coatings company in the world and also a leader in all our product markets and the key geographic regions. We intend to participate in the consolidation of the coatings industry, which we believe is inevitable as our supplier and customer bases strengthen globally.

AKZONOBLE Packaging & Control Markets

“AKZONOBLE Paints has been a market leader in internal and external coatings for food and beverage cans. It manufactures and distributes a broad product offering of packaging coating with significant market positions in the established markets of Europe and North America and the emerging markets of Asia and Latin America.

The strategy of this business is to focus on profitable growth in South East Asia and Latin America, to explore opportunities for growth in non-metal packaging, in a particular with PET(polythene terephthalate) bottle coatings, and to optimize the supply chain.

AkzoNoble is the leading company in the manufacturing coatings sector and has earned a global reputation for producing reliable top quality brands, unrivalled technologies, first class service and flexible distribution solutions.”

Quality Control & Policy

To maintain Quality Leadership in all Products & Services.

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Total Customer Satisfaction through Quality Goods and Services

Commitment of management to quality. To create a Culture amongst all Employees towards Total Quality Concepts. Total Quality through Performance leadership. They progressively increasing their investment in research and

development towards. They increase the innovation efforts will allow them the better

differentiation of their activity in high competitive market in which they operates.

Technology and Innovation

“Technology and Innovation have been important factors in the growth of AKZONOBLE Paints. Success is enhanced by being first to the market with

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innovative, value-adding products and services that meet market needs. AKZONOBLE Paints has benefited technologically from the colloid, polymer and particle related science base and research carried out by other parts of the AKZONOBLE Group AkzoNoble committed to developing innovative products and cutting-edge technologies, with a heavy emphasis on sustainability.”

Facts and Figures

50 million households, all over the world, use AKZONOBLE paints every year.

AkzoNoble supplied more than 15,000 liters of specialist coatings to protect the 135-metre high BA London Eye from the elements. The total area of steelwork coats was around 13,000 square meters-and another 2,000square meters underwear.

AKZONOBLE Paints produce 1.1 billion liters of paint which if in 1 liter cans placed on top of one another, would be 13,000 times the height of Mount Everest.

After being asked to help supply paint for the restoration of the original home of wartime diarist Ann Frank in Amsterdam, AkzoNoble’s paint experts have recreated the original colors from paint fragments found in her home.

Each year AKZONOBLE Paints produce enough paint to decorate every house in all of Los Angles, London and Beijing.

The AKZONOBLE owned International Paint business has successfully complete coating one of the world’s largest crude oil carriers-the 442,500 dwtV-Plus TI Africa. Owned and operated by Overseas Shipholding Group (OSG), the 2002 Korean-built vessel-one of four sister ships’ recently dry-docked in Dubai.

Coatings from AkzoNoble have been used on four kilometers of high-adrenaline rollercoaster rides in the USA, Germany, Spain and Japan for one of the world’s

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biggest manufacturers of amusement park attractions, International Amusement Installations, which supplies help protect the rides from banking sun and driving rain and help bright colors gleaming.

Strong Manufacturing Base:

AKZONOBLE INDIA LIMITED (earlier known as ICI paints) commenced its operations AT MOHALI in 11 Sept 1998. This unit is the main unit today integrated with manufacturing facilities for 21400 kiloliters paint in a year. Besides, there are two assembly units at THANE (Maharashtra) and Hyderabad (Andhra Pardesh, India). All the three units are certified with ISO 9001 Quality Standards.

Apart from catering to needs of Indian market, AKZONOBLE INDIA LIMITED has exported its paints to countries like USA, India, Malaysia, Singapore etc.

Corporate Governance

Good corporate governance is a continuous process and the Company relentlessly purchase it through full regulatory compliance, transparency, efficient operational practices, strong internal control and risk management systems and operating with fairness and integrity to enhance the interest of all stakeholders.

The board believes in and supports the principals of corporate governance and seeks to discharge its operational, strategic and fiduciary responsibilities to ensure good management practices. The board represents the shareholders’ interest in terms of optimizing long-term financial returns and is committed to its responsibilities for all the constituents of its business i.e., customers, employees, suppliers and the general public.

Corporate Strength

Backed by engineering technologies developed over the years High Brand Equity

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Integrated plant employing the best of the machines including a captive

foundry An in-house R&D Centre Highly skilled human resource A vast network of dealers and marketing set-up for efficient after sales

service.

Corporate Goals

To establish ourselves as one of the world’s premier companies in the Chemical field having international competitiveness

To achieve market leadership in India through ensuring customer satisfaction by supplying internationally competitive products and services

To achieve sustained growth in the earnings of the group on behalf of shareholders

To encourage the modernization of Indian Industry though the supply of Chemical goods and services of world class excellence.

To maintain technological leadership through continuous efforts to update product technology and manufacturing methods.

To globalize our operations by developing a mix of international markets and businesses.

To ensure a satisfactory return on capital employed, to meet the growth needs and the aspirations of our stakeholders

To present an active, pleasant and productive working environment.

Responsibilities of the board

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In AKZONOBLE India’s corporate structure, the roles and responsibilities of the Chairman and the Managing Director have been clearly demarcated and laid down. The whole time Directors’s responsibilities have been well-defined.

All significant issues requiring strategic direction are decided after they have been critically examined by Board with the full involvement of the Non-Executive Directors, who impart the benefit of their vast experience and skills to bring qualitative improvement to the decision-making.

The Board, through its effective supervision of the business operations of the Company, ensures that each business remains committed to achieving operational excellence while observing the highest ethical standards.

SWOT ANALYSIS OF COMPANY

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STRENGTHS

Strong brand equity Highly skilled professional qualified workforce Well-established manufacturing base Strong technological network

WEAKNESSES

AKZONOBLE INDIA LIMITED is facing the problem of funds for the Purchasing of raw material and they are depending upon the supplier credit, this halts the production.

As the production has to depend upon its head for its major decisions, it delaying the major decisions which can affect the competitions in the market

Companies are paying high FIXED COST in case of labour cost. It is increasing the cost of production.

OPPORTUNTIES

AKZONOBLE INDIA LIMITED has become a generous name of decorative paints. So the company has great opportunities in this market, if supply is made as according to the demand and prices are made reasonable.

THREATS

Its competitors are availing opportunities, which the company is not availing, which attract the customers towards other competitors.

Expansion of the paints industry creates new threats for the existing players.

Increase in the price of Raw material in increasing the cost of production of the company. Which is already higher than the other competitors?

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Products of Akzo Noble(ICI)

A new year is a fresh start, it’s a new beginning and it’s an incessant urge to

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renew. After a great reception last year, Colour Futures is back with its 2006 version.

The Colour Futures team has again drawn on a variety of sources to create a contemporary colour palette which is driven by society’s changing moods and interests.

The three colour themes identified are

The collection has been supplemented with soothing Natural Whites to give just a hint of colour to the walls.

At ICI, our effort is to provide you the means that can bring your ideas and vision to life. Helping you realize your dreams of a perfect home. Colour Futures 2006.

Trends

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ICI paints prides itself on the knowledge of colour and colour formulations in paint. ColourFutures™ provides the consumer with international trends in colour and lifestyle.

ColourFutures™ is the result of ongoing worldwide colour trend research, forecasting and development conducted by the international team of colour experts at ICI Paints.

This team draws on variety of sources : research groups, colour marketing and trade, influences from the worlds of fashion, technology, architecture, music, nature and popular culture. This results in a contemporary colour palette which is driven by society’s changing moods and interests.

The ColourFutures™ team predicts colours in two ways – Colour families and Lifestyle Themes.

Colour families are collection of colours that fit into the same hue. There are 8 hues in all, reds, oranges, yellows, warm neutrals, greens, blues, violets and cool neutrals

A Theme is a colour collection that draws on colours from several of the families that work together to reflect trends in style.

Interior Paints

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Dulux Super Smooth Dulux Light & Space Dulux 3-in-1 Stayclean Dulux Acrylic Emulsion Dulux Lustre Finish ICI Supercote Interior Emulsion ICI Maxilite Distemper Dulux Velvet Touch

Exterior Paints

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Dulux WeatherShield MaxDulux WeatherShield Dulux WeatherShield Ultra Clean

Metal Paints

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Dulux Satin Finish Dulux Supergloss 5-in-1 Dulux Gloss

Wood Paints

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Clear Coatings Opaque Coatings

Undercoatings

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Interior ICI Acrylic Wall PuttyICI Acrylic PrimerICI Solvent Based Cement PrimerICI water Based Cement Primer

ExteriorDulux Whether Shield Alkali Bloc PrimerICI Paints Exterior Acrylic Primer

Metal ICI Red Oxide Metal Primer

WoodDuco NC Sanding Sealer Dulux Water White Melamine SealerDulux Melamine Sealer

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About MOHALI Plant

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Mohali plant was started in 1998. In this plant decorative paints are manufactured. There are two plants ICI(Imperical Chemical Indusry) and AIC(Autopaint Innovation Centre). In ICI plant decorative paints are manufactured. But in AIC they research & test of chemicals. Basically this is a UK based company. In 2008 AkzoNoble took over the ICI. So now this is AkzoNoble India Limited.

Head of Plant: Mr. Anuj Mishra

Admn. & HR Executive: Mr.JS Guleria

Total Employees: 108

Departments of AkzoNoble Mohali

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Purchase

Production

Quality

Engineering

Dispatch

Accounts

HR

Purchase department

Purchase department purchase the raw materials, etc.

Production department

Production department produce the paints.

Quality department

Quality department checks the quality of paints manufactured.

Engineering department

Dispatch department

Dispatch department pack the paints manufactured.

Accounts department

Accounts department controls finances required.

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HR department

HR department plays the following functions:

Recruitment Induction Compensation Training & Development Performance Appraisal

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RECRUITMENT,

SELECTION

&

INDUCTION

IN

Akzo Noble

(ICI)

HUMAN RESOURES OUTSOURCING

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One very important trend in the recent times has been the growth of human resource outsourcing. HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, education/training, recruitment personnel, administrative, to realize economies of scale and achieve standardization of services.

Rapidly changing market dynamics and global competitive pressure have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can’t be all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner.

As a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing HR activities continues to rise, and the scope of outsourcing HR activities continues to expand. HR outsourcing can happen in HR functions, like patrol administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits(Health, Medical, Life insurance, Cafeteria, etc), human resources management (hiring and firing, background interviews, exit interviews and reviews), risk management, etc. Outsourcing has become a common response to manage costs more effectively.

Outsourcing non-core activities allow HR professional to move away from routine administration to a more strategic role. The organization can focus on higher value-added activities while the outsourcing provide takes care of the day-to-day administrative. Critical internal resources, such as technology and talent, can be devoted to company’s core business. Outsourcing reduces the need for large capital expenditures in non-core functions. Thus, outsourcing becomes a strategy for expenditure in non-core functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility

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necessary to compete in today’s business environment. A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognizes outsourcing relationship as long-term partnerships created to further the strategic goals of the organization.

The HR outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. India, with its intrinsic advantages such as low cost, ready pool of English speaking manpower and geographic positioning, is emerging as a viable destination for HR outsourcing companies to set up their business.

But still here people are not very clear about what exactly is manpower outsourcing all about, and issues like quality and trust needs to be addressed properly. Experts say the basic reasons hampering the growth of HR outsourcing in India are confidentiality and cost factors. Moreover, the fear of losing jobs, losing control over confidential data, ethics and quality of outsourcing vendors, security breaches and overall confidence in the vendors deters many organizations. The biggest problem – and this is why the HR outsourcing industry in India is on the back foot – is the government and industry’s failure to tackle issues like data security and data privacy. This Indian government is still grappling with drafting a data protection law designed to quell privacy concerns from their offshore clients.

In the current scenario, Recruitment and selection of the right person at the right place is an important function of the Human resource department of all

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companies. And it is no surprise that retention of employees is a major challenge for the companies.

WHAT IS RECRUITMENT?

Recruitment refers to the process of finding possible candidates for a job or function, undertaken by recruiters. It may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means: through newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc.

Suitability for a job is typically assessed by looking for skills, e.g. communication skills, typing skills, computer skills. Evidence for skills required for a job may be provided in the form of qualifications (educational or professional), experience in a job requiring the relevant skills or the testimony of references. Employment agencies may also give computerized tests to assess an individual's "off-hand" knowledge of software packages or typing skills. At a more basic level written tests may be given to assess numeracy and literacy. A candidate may also be assessed on the basis of an interview. Sometimes candidates will be requested to provide a résumé (also known as a CV) or to complete an application form to provide this evidence.

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

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The recruitment industry has four main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and niche agencies which specialize in a particular area of staffing. Some organizations use employer branding strategy and in-house recruitment instead of agencies. Recruitment-related functions are generally carried out by an organization's human resources staff.

The stages in recruitment include sourcing candidates by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively.

Factors Affecting Recruitment Process:

A number of factors exert an influence over the kind of recruiting plan an organization enacts. These factors include (1) organizational policies regarding recruiting; (2) type of labor to be recruited; (3) conditions of the labor market; and (4) cost and time constraints.

Organizational Recruiting Policies:

Organizations with a philosophy of developing their human resources and of providing opportunities for growth favor internal recruiting policies. Employees who desire the opportunity to advance in an organization generally prefer such a policy. Organizations with internal recruiting policies tend to spend relatively

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large sums on training and development programs so as to prepare employees for higher-level jobs.

Type of Labor to Be Recruited:

It is important to clearly specify recruiting goals in terms of number and type of labor to be recruited. The type of labor to be recruited affects the scope of the recruiting effort. Each type of labor has its own labor market. Generally, labor markets are smaller in number for labor types that are highly specialized or that require higher levels of education and experience.

Conditions of the Labor Market:

Labor market conditions also affect the nature of recruiting plans. Labor markets are local, regional, national, or international, depending on the geographical area in which the forces of supply and demand operate for a particular labor type. Jobs that require less highly skilled labor (such as clerical, sales, and service occupations) can usually be recruited from local labor markets, while jobs requiring more highly skilled labor (for example, water pollution specialists, computer programmers, and registered nurses) can be recruited from regional markets. Professionals and executives are generally recruited from national markets, while engineers and various scientific specialists such as astronomers, physicists, and chemists, enjoy international markets. The implications for recruiters are that different recruiting methods must be used to reach different types of labor.

Cost and Time Constraints:

Cost and time constraints pose obvious limitations on recruiting efforts. For example, an organization with very little money budgeted for recruiting will not

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even consider hiring a graphic artist to design attractive recruiting materials. Rather than spend money to advertise openings, an organization with few cash resources for recruiting will often use a system of employee referrals in which potential applicants are referred to the organization by present employees. Such organizations may also make use of public employment agencies, which refer applicants to an organization at no cost.

Company policy

The company policy on recruitment provides for equal employment opportunity to all applicants, without regard to religion, caste, color, gender, and disability or veteran status. The recruitment is carried in a transparent manner, paving no room for malpractices /unprofessional conduct such as extending preferential treatment or favoring those having influence of political outfit, bureaucrats or worker representative bodies, unless the candidate is found suitable/apt for the position concerned, possessing the right required qualifications and skills and relevant experience, provided he or she passes through the company selection process - interview/test. Kirtilals adopts an action plan composed of three strategies – Attract the best talent; develop each individual to their fullest potential and retain its employees at all levels.

Objective of the policy

To attract and retain highly qualified, talented workforce available to us To disseminate information about employment opportunities with the Company through numerous channels, to ensure necessary attraction.

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Elements of Good Recruitment Policy

A recruitment policy must contain the following elements:

1. Organizational objectives: Both short term and long term organizational objectives must be taken into consideration as a basic parameter for recruitment decision.

2. Identification of Recruitment Needs: The recruiters should prepare profile for each category of workers and accordingly work out the man specifications, decide the sections, department or branches where they should be placed and identify the particular responsibilities which may be immediately assigned to them.

3. Preferred sources of recruitment: Preferred sources of recruitment which would be tapped by the organization for different classes of employees must be identified.

4. Criteria for Selection and Preferences: Selection and preferences should be based on conscious thought and serious deliberations.

5. Monetary Aspect: The cost of recruitment and financial implications of the same have to be kept in mind also.

Pre – requisites of good Recruitment Policy

The recruitment policy of an organization must satisfy the following conditions:

1. It should be in conformity with the general personnel policies.

2. It should be flexible enough to meet the changing needs of an organization.

3. It should provide employees with job security and continuous employment.

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4. It should match the qualities of the employees with the requirements of

the work for which they are employed.

5. It should highlight the necessity of establishing job analysis.

6. It should integrate organizational needs and employee needs.

7. It should provide suitable jobs to handicapped, women and minority groups.

Recruitment Process

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Recruitment is a process of finding and attracting capable applicants for employment. The process begins when new recruiters are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. A well-planned and well-managed recruiting effort will result in high quality applicants, whereas a haphazard and piecemeal effort will result in mediocre once. Several factors such as external factors like supply and demand unemployment rate, labour markets and political and legal consideration, internal factors like recruiting policy, size, cost of recruiting etc govern the recruiting process.

The process comprises of 5 inter related stages:-

1. Planning

2. Strategy development

3. Searching

4. Screening

5. Evaluation

Planning

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

Number of contacts: organisations always plan to attract more applicants than they plan to hire. Some of these contracted will be uninterested unqualified or both. Each time a recruitment process is contemplated, one task is to estimate the number of applicants necessary to fill all the vacancies with qualified people.

Type of contacts: this refers to the type of people to be informed about the job openings. The types of people depend on the tasks and responsibilities involved and the qualifications and experience expected. These details are available through job description and job specification.

Strategy development

Once it is known how many and what type of recruiters are required, consideration needs to be given or buy employees, technical sophistication of recruitment and selection devices, geographic distribution of labour markets comprising job seekers, sources of recruitment, and sequencing the activities in the recruitment process.

Make or buy refers to hire less skilled employees ad to invest in training and education programmes or hire skilled professional. The second decision in strategic relates to the methods used in recruitment and selection. The advent of computers has made it possible for employers to scan national and international applicants qualifications. It has also made possible for job seekers to gain better

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access. In order to reduce costs, companies look into the national markets for managerial employees, regional or local markets for technical employees, and local markets for clerical and blue-collar employees.

The sources for recruitment may be internal or external. The internal sources would be present employees, referrals given by the employees, former employees or previous applicants. Whereas the external sources would be consultant, headhunters, advertisements, employees exchanges, campus recruitment contractors, international recruitment etc. then both the sources of recruitment are evaluated. Both have their own advantages and disadvantages.

Searching

Once a recruitment plan and strategy are worked out, the search process can begin. It involves two steps:

1. Sources aviation

2. Selling

1. Source Aviation:

Typically sources and search method are issuances of an employee requisition. This means that no actual recruiting takes place until line managers have verified that a vacancy does exist or will exist. If the organisation has planned well and done a good job of developing its sources and search methods, activation soon results in a flood of applications and/or resumes. The application received must

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be screened. Those who pass have to be contracted, and invited for interview. Unsuccessful applicants must be sent letters of regret.

2. Selling

The second issue to be addressed in the searching process concerns communication. Here, contacts are tightrope. On tone hand they want as many applicants and on the other hand they must resist overselling of their virtues. In selling the organisation both message and the media need attention. Selection of medium or media has to be done with lot of care.

Screening

Screening of applicants can be regarded as an integral part of recruiting process. The selection process will begin after the applications have been scrutinized and short-listed. Applicants received in response to advertisement are screened and only the eligible applicants are called for interview.

The purpose of screening is to remove from the recruiting process, at an early stage applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must be taken that potentially good employees are not lost and women and minorities receive full and fair consideration.

In screening, clear job specifications are invaluable. Applications are judged on the basis of their knowledge, skills, abilities, and interests required to do the job. The techniques used to screen applicants vary depending on the

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candidate sources and recruiting method used. Interviews and application blanks are used to screen walk ins. Campus recruiters and agency representative’s use in interviews and resumes. References checks are also useful in screening.

Evaluation and Control

Evaluation and control is necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are:

Salaries for recruiters

Management and professional time spent on preparing job description, job specification, advertisement, agency liaison and so forth

The cost of advertisement and other recruitment methods like agency fees

Cost of producing supporting literature

Recruitment overheads and advertisement expenses

Cost of overtime and outsourcing while the vacancies are remain unfilled

Cost of recruiting unsuitable candidates for selection process

Questions should always be asked as to whether the recruitment methods used are valid and whether the recruitment process itself is valid. Statistical information on the cost of advertisement, time taken for the process

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etc should be gathered and evaluated. However, exercises seem to be seldom out in practice.

Evaluation of recruitment process:

The recruitment process has the objective of searching for and obtaining applications from job seekers in sufficient numbers and quality. Keeping in mind these objectives, the evaluation might include:

Return rate of application sent out

Number of suitable candidates for selection

Retention and performance of the candidates selected

Cost of recruitment process

Time lapsed data

Comments on image projected

Evaluation of recruitment methods:

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The evaluation of recruitment methods include:

Number of initial inquiries received which resulted in completed application forms.

Number of candidates at various stages of the recruitment and selection process, especially those short-listed.

Number of candidates recruited.

Number of candidates retained in the organisation after six months.

PURPOSES AND IMPORTANCE

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

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

Increase the pool of job candidates at minimum cost.

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

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

Meet the organisation legal and social obligations regarding the composition of its workforce.

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Begin identifying and preparing potential job applicants who will be

appropriate candidates.

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

Evaluate the effectiveness of various recruiting and sources for all types of job applicants.

Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it. A well-planned and well-managed recruiting effort will result in high-quality applicants, whereas, a haphazard and piecemeal effort will result in mediocre do not ones. High-quality employees cannot be selected when better candidates do not know of job openings, are not interested in working for the company, and do not apply. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant position.

Sources of Recruitment

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Internal Sources

External Sources

Internal sources: internal source is one of the important sources of recruitment. The employees already working in the organization may be suitable for higher jobs than recruited from outside. The present employees may help in the recruitment of new persons also. Internal sources consist of the following:

1. Present employees:

i) Transfer: Transfer involves shifting of persons from present jobs to other similar places.

ii) Promotions: Promotion refers to shifting of persons to positions carrying better prestige, higher responsibilities and more salaries. The higher positions falling vacant may be filled up from within the organization.

• Seniority V/s Merit

2. Employees Referrals: Most employees know from their own about the requirements of the job and what sort of persons the company is looking for. Often employees have friends or acquaintances who meet these requirements.

3. Former Employees: Some retired employees may be willing to come back to work on a part time basis or recommended someone who would be interested in working for the company. Sometimes, people who have left

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the company for some reasons or the other are willing to come back and work.

4. Previous Applicants: Although not an internal source, in the true sense, those who have previously applied for jobs can be contracted by mail. This is quick and an inexpensive way to fill an unexpected vacancy. This is a very suitable method for filling the professional openings.

External sources:

Every enterprise has to use external sources for recruitment to higher positions when expansions are undertaken. External methods are discussed as follows:

i) Advertisement: Advertisement is the best method of recruiting persons for higher and experienced jobs. The advertisements are given in local or national press, trade or professional journals. The requirements of the jobs are given in the advertisement. Management gets a wider range of candidates for selection. The flood of applications may create difficulties in the process.

ii) Employment exchanges: Employment exchanges run by the government are also a good source of recruitment. Unemployed persons get themselves registred with these exchanges. The vacancies supllies a list of candidates fulfilling required qualifications. Exchanges are a suitable source of recruitment for fulfilling unskilled, semi-skilled, skilled and operative posts. The job – seekers and job – givers are brought into contact by the employment exchanges.

iii) Unsolicited Applicants: persons in search of employment may contact employers through telephone, by post or in person. Generally, employers with good reputation get unsolicited applications. If an

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opening is there or is likely to be there then these persons are considered for such jobs.

iv) Data Banks: the recruiting firms can prepare a data bank about various persons in different fields. They can collect information from educational institutions, employment exchanges, professional organisations etc. It will become another source and the firm can get the particulars as and when it needed to recruit.

v) Similar Organisations: The organisations producing similar products or having the same line business act as an important source of recruitment. The persons having same experiences as required by the recruiting firms will be available in similar organizations.

vi) Casual Callers: management may appoint persons who casually call on them for meeting short-term demands. This will avoid following a regular procedure of selection. These persons are appointed for short periods only. They need not be paid retrenchment or lay off allowance. This method of recruitment is economical because management does not incur a liability in pensions, insurance and fringe benefits.

vii) Labour Contractors: it is quite common to engage contractors for the supply of labour. When workers are required for short periods and are hired without going through the full procedure of selection etc. Contractors or jobbers are the best source of getting them. The contractors maintain regular contracts with workers at their places and also bring them to the cities at their own expenses. The persons hired under this system are generally unskilled workers.

viii) Trade unions: Generally, unemployment and underemployed persons make a request to trade union leaders for finding suitable jobs for them. Union leaders are aware of various vacancies in the firms and also know

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the management. These leaders can help in the recruitment of suitable persons. In some organisations trade unions are consulted before starting a recruitment process for certain categories of employees. In such situation trade union leaders can give the names of persons available for recruitment.

ix) Gate Recruitment: Unskilled workers may be recruited at the factory gate. In some industries like jute a large number of workers work as badly or absent.

x) Campus Recruitment: Colleges, universities, research laboratories are fertile grounds for recruiters. Campus recruitment is often an expensive method. The Indian Institute of Management(IIMS) and Indian Institute of Technology (IITS) are on the top list of avenues for the recruiters.

xi) Recruiting agencies: several private consultancy firms e.g. A.F. Ferguson Asociates, Price Water house, ABC consultants etc. perform recruiting function on the behalf if client companies by charging fees. These agencies are particularly suitable for recruitment of executives and specialists.

xii) Walk-ins, Write-ins and talk-ins: Now-a-days walking are becoming a very popular method of recruitment. Today’s newspapers are full of new openings to be tapped in newer ways. Six out of ten are through walk-in-interviews to be tapped in newer ways. The applicants just walk in with their resumes for interviews. However, the walk in interviews post a tough challenge for the interviewers who do not know how many candidates are to be interviewed. The number of candidates sometimes be varying directly with the temperature outside. From employee view point, walk ins are preferably as they temperature outside. From employee view point, walk ins are preferably as they temperature outside. From employee view point, walk ins are preferably as the

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temperature outside. From employees view point, walk ins are preferably as they are free from the hassles associated with other methods of recruitment.

In write ins, job seekers send written enquiries and they asked to complete application forms for further processing.

Talk inns are also becoming popular now-a-days. Job aspirants are required to meet the recruiter, on an appropriate date for detailed talks. No application is required to be submitted in this case.

Evaluation of External Recruitment:

External sources of recruitment have both merits and demerits:

The merits are:

The organisation will have the benefits of new skills, new talents and new experiences, if people are hired from external sources.

The management will be able to fulfill reservation requirement in favour of the disadvantages sections of the society.

Scope for resentment, heartburn and jealousy can be avoided by recruiting from outside.

The demerits are:

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Better motivation and increased morale associated with promoting own

employees re lost to the organization.

External recruiting is costly.

If recruitment and selection processes are not properly carried out, chances of right candidates being rejected and wrong applicants being selected occur.

High training time is associated with external recruitment.

What is Selection?

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To select means to choose. Selection is the process of picking up individuals (out of the poo of job applicants) with requisite qualifications and competence to fill jobs in the organisation.

According to Dale Yoder:

“Selection is the process in which candidates for employment are divide into two classes-those who are to be offered employment or those who are not.”

According to Thomas stone:

“Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in job.”

Thus, the selection process is a tool in the hands of management to differentiate between the qualified and unqualified applicants by applying various techniques such as interviews, tests etc. In this sense, it is a negative process of employment in which only a few who qualify for job are offered employment and others are denied the opportunities. A sound selection policy ensures the selection of suitable candidates.

Selection Procedure

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The selection procedure consists of a series of methods or steps or stages by which additional information is secured about an applicant. At each stage facts may come to light which may lead to the rejection of an applicant. Selection procedure may be compared to a series of barriers which an applicant is required to cross before he is finally selected.

Essential of a Selection Procedure

The selection procedure should be prepared in such a way that it suits the organisation’s need. The procedure will be successful if it satisfies the following requirement:

1. There should be sufficient number of applicants from whom the required number of candidates may be selected. The selection will not be proper if number of candidates is less.

2. There should be some persons who is assigned the authority to select. The authority is given on the basis of type of persons to be selected and the nature of work they will take up.

3. There should be some standard of personnel with which a prospective employee may be compared i.e. there should be available before hand a

comprehensive job specification as developed by job analysis.

Significance of Selection Procedure

The success of an organisation depends on the quality of personnel selected for the jobs. Thus, selection of personnel is a very important function of management. The importance of selection can be judged from the following factors:

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1. Procurement of Skilled Workers: only the suitable candidates who are fit

for the job are selected from among the prospective candidates for employment. In this may, selection is a process by which only desirable candidates are hired and others are denied the opportunities.

2. Reduction in the Cost of Training: proper selection of candidates reduces the cost of training because (i) qualified personnel have better grasping power, they can understand the techniques of work better and in no time (ii) the organisation can develop different training programmes for different persons on the basis of their individual differences, thus, reducing the time and cost of training considerably.

3. Solution to Personnel Problems: proper selection of personnel reduces personnel problems in the organisation. Many problems like labour turnover, absenteeism and monotony shall not be experienced in severity in the organisation. Labour relations will be better because workers will be fully satisfied by their work.

Thus, the selection of proper personnel, helps the management in getting the work done by the people effectively.

Selection Process

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Selection is the process of picking individuals with requisite qualifications and competence to fill jobs in the organisation. A formal definition is it is the process of differentiation between applicants in order to identify those with a greater likelihood of success.

Selection is significance as it has its impact on work performance and employee cost. Selection is generally done by HR department often in consultation with the line managers.

Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. In practice, the process differs among organisations and between two different jobs within the same organisation. Selection procedure for senior managers will be long-drawn and rigorous, but it is simple and short while shop-floor workers.

Environmental Factors Affecting Selection

Selection is influenced by several factors. More prominent among them are supply and demand of specific skills in the labour market, unemployment rate, labour-market conditions, legal and political considerations, company’s image, company’s policy, HRP, and cost of hiring. The last three constitute the internal environment and the remaining from the external environment of the selection process.

1. Preliminary Interview:

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The applicants received from job seekers are subject to scrutiny so as to eliminate unqualified applicants. This is usually followed by a preliminary interview the purpose of which is more or less the same as scrutiny of applicants, that is, elimination of unqualified applications. Scrutiny enables the HR specialists to eliminate unqualified jobseekers based on the information supplied in their application forms. Preliminary interview, on the other hand, helps reject misfits for reasons, which did not appear in the application forms. Besides, preliminary interview, often called ‘courtesy interview’ is a good public relations exercise.

2. Selection Tests:

Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administrated, depending on the job and the company. Generally, tests are used to determine ate applicant’s ability, aptitude and personality. Ability tests assist in determining how well an individual can perform tasks related to the job. An excellent example of this is the typing test given to a prospective employee for a secretarial job. An aptitude test helps to determine a person’s potential to learn in a given area. An example of such a test is the General Management Aptitude Test which many business students take prior to gaining admission to a graduate business school programme.

Personality tests are given to measure a prospective employee’s motivation to function in a particular working environment.

There are various tests designed to assess a candidate’s personality.

Aptitude tests indicate the ability or fitness of an individual to engage successfully in any number of specialized activities. They cover such areas as clerical aptitude, numerical aptitude, mechanical aptitude, motor-coordination, finger dexterity and manual dexterity.

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Interest tests are used to measure an individual’ activity preferences. These tests are particularly useful for students considering many careers or employees deciding upon career changes.

3. Employment interview:

The next step in the selection process is employment interview. An interview is conducted at the beginning and at the end of the selection process. The emphasis here is on the latter.

Interview is a formal, in-depth conversation conducted to evaluate the applicant’s acceptability. It is considered to be an excellent selection device. Its popularity stems from its flexibility. Interview can be adapted to unskilled, skilled, managerial and professional employees. It allows a two-way exchange of information, the interviews learn about the applicant, and the applicant learns about employer.

However, interview do have Shortcomings. Absence of reliability is limitation. No two interviewers offer similar scoring after interviewing an applicant. Lack of validity is another limitation. This is because, few departments use standardized questions upon which validation students can be conducted. Finally, biases of interviewers may could the objectivity of interviews.

The employment interview can be one-to-one, sequential or panel. In one-to-one interview, there are only two participation – the interviewer and the interviewee. This can be the same as the preliminary interview discussed earlier. The sequential interview takes the one-to-one a step further and involves a series of interviews, usually utilizing the strength and knowledge-base of each interviewer, so that each interviewer can ask questions in relation to his subject area of each candidate, as the candidate moves from room to room.

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The panel interview consist of two or more interviewers and the figure may go up to as many 15. Any panel interview is less intimate and more formal than the one-to-one, but if handled carefully, the panel interview can provide a wealth of information. If not handled carefully, the panel interview can provide a wealth of feel ill at ease and confused about whose question to answer and whom to address. Interviewers themselves are likely to experience nightmare, no knowing who will ask which question and in what order.

4. Reference & Background Checks

Many employees request names, addresses, and telephone numbers of references, for the purpose of verifying information and perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. When the labour market is very tight, organisations sometimes hire applicants before checking references.

Previous employers, known public figures, university professors, neighbours or friends can act as references. Previous employers are preferable because they are already aware of the applicant’s performance. But, the problem with the reference is the tendency on the previous employer to over – rate the applicant’s performance just to get rid of the person.

Organisation normally seek latters references or telephone reference. The latter is advantageous because of its accuracy and low cost. The telephone reference also has the advantage of soliciting immediate, relatively candid comments, and attitudes can sometimes be inferred hesitations and inflections in speech.

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It may be stated that the information gathered through references hardly influence selection decisions. The reasons are obvious:

The candidate approaches only those persons who would speak well about him.

People may write favorably about the candidate in order to get rid of him.

People may not like to divulge the truth about a candidate, last it might damage or ruin his career.

In several cases, references are a formality and are seldom verified by the employer.

5. Selection decision:

After obtaining information through the preceding steps, selection decision – the most critical of all the steps – must be made. The other stages in the selection process have been used to narrow the number of candidates. The final decision has to be made from the pool of individuals who pass the tests, interviews and reference checks.

The view of the line manager will be generally considered in the final selection because it is he who is responsible for the performance of the employee. The HR manager plays a critical role in the final selection.

6. Physical Examination:

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After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate being declared fir after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personnel records. There are several objectives behind a physical test. Obviously, one reason for a physical test is to detect if the individual carries any infectious diseases. Secondly, the test assists in determining whether an applicant is physically fit to perform the work. Third, the physical examination information may be used to determine if there are certain physical capabilities which differentiate successful and less successful employees. Fourth, medical check-up protects applicants with health defects from undertaking work that could be detrimental to themselves or might otherwise endanger the employer’s property. Finally, such an examination will protect the employer from worker’s compensation claims that are not valid because the injuries or illness were present when employee was hired.

7. Job Offer:

The next step in the selection process is job offer to these applicants who have crossed all the previous hurdles. Job offer is made through a letter of appointment. Such a letter generally contains a date by which the appointee must report on duty. The appointment necessary when he is already in employment, in which case the appointee is required to obtain a relieving certificate from the previous employer. Again, a new job may required movement to another city which considerable preparation and movement of property.

The company may also want the individual to delay the date of reporting in duty. If the new employee’s first job joining the company is to go on training, the organisation may request that the individual delays joining the company until perhaps a week before such training begins. Naturally this practice cannot be

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abused especially if the individual is unemployed and does not have sufficient finances.

Decency demands that the rejected applicants be informed about their non-selection. Their applications may be preserved for future use, if any. It needs no emphasis that the applications of selected candidates must also be preserved for future references.

8. Contracts of Employment:

After the job offer has been made and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is the attestation form. This form contains vital details about the candidate which are authenticated and attested by him. Attestation form will be a valid record for future reference. There is also a need for preparing a contract of employment. The basic information that should be included in a written contract of employment will vary according to the level of the job, but the following checklist sets out the typical headings.

Job Title

Duties, including a perhaps such as “the employee will perform such duties and will be responsible to such a person as the company may from time to time direct.”

Date when continuous employment starts and the basic for calculating service.

Rate of pay, allowances, overtime and shift rates, method of payments.

Hours of work including lunch break and overtime and shift arrangements.

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Holiday arrangements.

Length of notice due to and from employees.

Grievance procedure.

Disciplinary procedure.

Work rules

Arrangements for terminating employment

Arrangements for union membership

Special terms relating to rights to patents and designs, confidential information and restraints on trade after termination of employment.

Employer’s right to vary terms of the contract subject to proper notification being given.

Alternatively called employment agreements or simply bonds, contracts of employment serve many useful purposes. Such contracts seek to restrain job hopers, to protect knowledge and information that might be vital to a company’s health bottom line, and to prevent competitors from poaching highly valued employees.

Great care is taken to draft the contract forms. Often, services of law firms are engaged to get the forms drafted and finalized.

Most employers insist on agreements being signed by newly hired employees. Employee turnover sectors such as software, advertising and media are more prone to use such contracts.

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The drawback with the contracts is that it is impossible to enforce them. A determined employee is bound to leave the organisation, contract or no contract. The employee is prepared to pay the penalty for breaching the agreement or the new employer will provide compensations. It is for this reason that several companies have scrappewd the contracts altogether.

Concluding the Selection Process

Contrary to popular perception, the selection process will not end with executive the employment contract. There is another step – a more sensitive one-reassuring those candidates who have not been selected. Such candidates must be told that they were not selected not because of any serious deficiencies in their personalities, but because their profile did not match the requirements of the organisation. They must be told that those who were selected were done purely on relative merit.

9. Evaluation of the Selection Programme:

Broad test of the effectiveness of the selection process is the quality of the personnel hired. An organisation must have competent and committed personnel. The selection process if properly done will ensure availability of such employees. How to evaluate the effectiveness of a selection programme? A periodic audit is the answer. Audit must be conducted by people who work independent of the HR represents the leasing of employees by a client company from a third party. The two alternative methods of selection are participative selection and employee leasing. In participative selection, subordinates participate in selection and employee leasing. In participative selection, subordinates participate in selection of their co-employees.

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New methods for selection

In recent years, new methods of selection have been found out be HR specialist these approaches are deemed to be alternatives to the traditional methods of selection.

Participative Selection

Employee Selection

Participative selection

Two interesting alternatives are participative selection and employee leasing. Participative selection means that subordinates participate in the selection of their co-workers and supervisors. The idea is that such participation will improve quality, increase support for the selected supervisor and co-wprkers, and improve employee morale.

Employee Leasing

In employee leasing, the client company leases employees from a third party, not on temporary basis, but rather are leased as full-time, long term help. An interesting feature of this method is that the client company need not perform such personnel activities as hiring, compensation or record keeping. Employees already working elsewhere are leased. They are not directly employed by the company where they are working. The advantages of employee leasing are significant. The client is relieved of many administration burdens, as well as the need to employ specialized personnel employees. Further, employee not recruited by one client are sent to another client company for employment.

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Recruitment process in Akzo Noble(ICI)

Recruitment section initiates the process of recruitment either through internal promotion/transfer or external recruitment.

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All operational band non-engineering vacancies are advertised internally through notices.

Vacancies are also advertised internally through notices also.

External recruitment is done if suitable candidate are not available internally.

External sources for recruitment

Campus interview at engineering & management institutes.

Newspaper advertisements or placement agencies.

Through consultants

Walk in/casual applicants

Through Employee Referral Scheme

Process:

Four types recruitment in AkzoNoble(ICI):

PA(Production Associates)

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Officers Executives Managers

Recruitment of officers, executives and mangers is done in Gurgaon. All officers, executives and managers all selected in Gurgaon and send to different plants.

Only PAs are recruited in AkzoNoble Mohali. When the PAs are selected then trainers are give them training for 1 year. And after that they give them job in plant where the vacancy. PAs have to knowledge about chemicals, Paints. There is always a pool of trainees available.

The process of select PAs is following:

All short-listed candidates, are required to undergo preliminary test(written test about chemistry, liquids & paints. (for 3 Year diploma holder in chemical, electrical field. ).On successful attempt, the candidates are interview through Selection Panel and if found suitable, are taken in to appointment.

After the candidate is found suitable, he is required to fill up an Employment Application form, where all details, such as his name, address, parents details, educational and professional qualifications, places where he has already worked, references etc. are recorded and along with testimonial and after he is declared fit medically, papers sent to Corporation Personnel Dept. for release of his offer letter. On the basis of the offer letter the candidate joins, and the day he joins, Corporate Personnel Dept. is informed of his joining after obtaining copy of relieving / experience letter from his past employer, on the basis of which Letter of Appointment is issued.

Entry of New Recruiters

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Department to report

Recruitment Section, Corporate Personnel Department or the Branch concerned, as the case may be.

1. Appointment letter

Appointment letter is issued at the recruitment section the branch concerned.

2. Salary code

o The appointment contains a code number which will be used & referred for various purposes like wages/salary, attendance, etc.

o This code number is a unique code & should never be used again for any other employee at any time in future.

1. Permanency of a salary code

2. Date of Birth

Appointment letter contains D.O.B. / Internal or External experience of the employee along with Business Code and Responsibility Centre to which he belongs. These codes too are important to him as is his salary code as they too are mentioned in all his future references within the organisation, indicating the department and the location he is working in.

Security

Requirements-An employee is required to produce his/her appointment letter and a stamp size photography to the Time Office for obtaining identity card.

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Permanent identity card

Temporary identity card

Recruitment process for temporary workmen in ICI

Steps:

1. Receive intimation from manufacturing

2. Sourcing

a. Publicity through word of mouth

b. Visit to local villages, meet seniors, and get announcements at gurudwara.

c. Newspapers ads.

3. Short listing/filtering at the main gate (age, physical appearance, check photographs, certificate, date of birth, whether previously worked with Godrej etc.)

For first time joinees:

1. Bring the short listed candidates in conference room.

2. Fill up the one page application form, with all details.

3. Check in the data base/salary code master, to see whether he has worked in the past with us and has any earlier salary code.

4. Personal interviews – to check the correctness of all information.(cross check family background, antecedents behavior, culture etc.)

5. Documents verification all certificates with originals.

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6. Documents verification all certificates with originals.

7. Pre employment formalities – get all the forms like PF, ESIC, etc, filled up with necessary documents like photographs etc.

8. Medical test at dispensary (send candidates to dispensary) medical examination report filled up by the doctor on duty.

9. Send workmen to shop floor for trials of three days.

10.Collect trials report from shop floor supervisors.

11.Allot salary code and issue appointment letter.

12.Start individual files. Put all papers, one page application form, appointment letter, medical examination report etc. into individual files.

13.Entry of all necessary data into the bank system for tracking (salary code, data of entry, data of joining, termination data PF/ESIC numbers etc.)

14.Upon services termination, issue termination letter and file the same.

For repeat appointments:

1. Check in the database/salary code master for his salary code.

2. Check in the database for the number of days worked in passed calander year.

3. Remove his individual file.

4. Allot same salary code and issue appointment letter.

5. Entry of necessary data into the bank system for tracking (data of joining, date of termination etc.)

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6. Upon termination, issue termination letter and update databank individual

file.

Induction

when a new employee joins an organisation, he should be welcomed as a new member of the organisation and must be helped to get acquainted and adjusted with his fellows employee and work environment. The new employee is a complete stranger to the people, work place and work environment. He must be introduced with the fellow emloyees, to the working conditions, rules and

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regulations etc. The first day of employment is long remembered by the employee towards the job and the company.

Definitions

Inductions may be viewed as the socialisting process by which the organisation seeks to make an individual its agent for the achievement of its objectives and the individual seeks to make an agency of the organisation for achievement of his personal goals. A few definitions of induction are as follows:

According to Edvin B. Flippo: Induction is the welcoming process to make the new employee feel at home and generate in him a feeling of belongingness to the organisation.”

According to Michael Armstrong: “Orientation or Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work.”

Orientation or Induction is thus the process of introduction, welcoming, acclimatization, acculturasiation and socialization.

Objectives of Induction

An organisation especially a large one should have a systematic induction process to achieve the following aims:

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1. To promote a feeling of belonging and loyalty to the organisations among

new comers so that they may not form false impression regarding the company because first impression is the last impression.

2. To built up the new employee’s confidence in the organisation and in himself so that he may become an efficient employee.

3. To bring an agreement between the organisation goals and the personal goals of the organisation.

4. To give the new employee information regarding company (its structure, product, policies, rules and regulations) and facilities provided by the company such as cafeteria, locker room, break time, leave rules etc.

5. To introduce the new worker to the supervisor and the fellow workers with whom he has to work.

6. To create a sense of security for the worker in his job by impressing upon the idea that fairness to the worker is the inherent policy of the organisation.

7. To lesson or reduce the cost of replacing the worker in the early impressionable period because of lack of information or incorrect business impressions.

Contents of Induction Programme

Every organisation has an obligation to make integration of the individual into it as smooth and comfortable as possible. Small organisations may do it though informal orientation by the employee’s immediate programmes. The range of information that may be covered under orientation training is as follows:

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(i) Company’s history, philosophy and operations

(ii) Products and services of the company

(iii) Company’s organisation structure

(iv) Location of departments and employee services

(v) Personnel policies and practices

(vi) Employee’s activities

(vii) Rules and regulations

(viii) Grievance procedure

(ix) Safety measures

(x) Terms and conditions of services

(xi) Benefits and services for employees

(xii) Opportunities for training, promotions, tranfers etc.

Elements of good Induction Programme

A good induction programme has three main elements:-

i) Introductory Information

Introductory information regarding the history of the company and company’s products, its organistion structure, policies, rules, and regulations etc. should be given informally or in group session in the personnel department. It will help the candidates to understand the company and the organizational ploicies and standars well.

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ii) On the Job Information

Further information should be given to the new employee by the department supervisor in the department concerned where he is placed on the job about department facilities and requirements such as nature of the job, the extent of his liability and employee’s activities such as recreational facilities, safety measures, job routine etc.

iii) Follow up Interview

A follow up interview should be arranged weeks after the employee has been on the job by the supervisor or a representative of the personnel department to answer the problems that a new employee may have on the job.

Induction procedure

There is no model induction procedure. Each industry developes its own induction procedure as per its needs. The procedure should basically follow the following steps:

1. The new person should be given a definite time and place to report.

2. A very important step is that the supervisor or the immediate boss should meet and welcome ate new employee to the organisation.

3. Administrative work should be completed as early as possible. Such items as vacations, probationary period, medical leave, suggestion systems etc. should be conveyed to the employee.

4. Departmental orientation should be conducted. This should include a get acquitted talk, introduction to the department, explanation of the functions of the department, job instructions and to whom he should look for help and guidance when ha has any problem.

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5. Verbal explanations are, usually, supplemented by a wide variety of printed

material, employee hand book, employee manuals, house journals, picture stories, pamlets etc. along with short guided four around the plant.

Orientation programme usually covers things like employee compensation benefits, personnel policies, employee’s daily routine, company organisation and operation, safety measure and regulations. The supervisor should ensure that he covers all the necessary orientation steps.

Problems in Induction

An orientation programme can go wrong for a number of reasons. The HR department should try to avoid these errors:

1. The supervisor who has to induct the employee may not be trained or may be too bossy.

2. Employee is overwhelmed with too much information in a short time.

3. Employee is confused with a wide variety of forms to be filled.

4. In the initial stages, employee is given only manual jobs that discourage job interest and company loyalty.

5. Employee is asked to perform challenging jobs where there are high chances of failure that could needlessly discourage the employee.

6. Employee is given only a sketchy induction under the mistaken belief that “trial and error” method is the best induvtion.

7. Employee is forced to balance between a broad orientation by HR department and a narrow orientation at the department level.

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8. Employee is thrown into action too soon. His mistakes can damage the

company.

9. Employee may be asked to work on a number of jobs and he may develop wrong perception because of short periods spent on each job.

When the new employees are joining the AkzoNoble (ICI) the following procedure is followed:

ICI India Limited, Paints Business Mohali Works

STANDING OPERATING PROCEDURES MANUAL-INDUCTION

Section No: Ref :

Issue Date: Page No:

Name Of SOPr:

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START

Explanation & handling over of training format by Trainer Trainee

JSG/RP

Site rules by JSG/ RP Trainer Trainee

SHE Induction by JS & Get Signed Copy Of SHE Expectations Trainer Trainee

Paint manufacturing Basics by SSB Trainer Trainee

Plant round and overview by Shift Officer Trainer Trainee

Induction by Cell Co-ordinate of the cell identified Trainer Trainee

SHE induction by cell SHE co-ordinate Trainer Trainee

One day induction (each) with all cells. Trainer Trainee

Development of Skill matrix by cell training co-ordinator Trainer Trainee

Discussion with Works Manager Trainer Trainee

STOP

ICI India Limited, Paints Business

EMPLOYEE ADMINISTRATION INDUCTION CHECKLIST

Trainer:

Trainee:

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Date:

1. Organisation structure & introduction to Mohali team.

2. Overview of cell concept.

3. Attendance marking & time office.

4. Uniform

5. Leave rules

6. Canteen rules & tea – coffee vending machine operation.

7. Locker room

8. Bank account & PF transfer

9. Standing order

EMPLOYEE SAFETY, HEALTH & ENVIRONMENT INDUCTION CHECKLIST

Trainer:

Trainee:

Date:

1. Key Safety Rules

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2. Employee Rules SHE CHARTER

3. Emergency Shower/Eye wash Location

4. Emergency Plan/Evaluation Procedures

5. Smoking Regulations

6. Procedure – Reporting unsafe conditions

7. Location of first and equipment and first aiders.

8. PPF requirements and usage

9. Safe use of hand tools/equipment

10. SIRE codes/MSDS

11. Personal Hygiene

12. Housekeeping

13. Safety handbook/Rulebook

14. Reporting Incidents

15. On the job health protection

16. Fire safety with special emphasis on static

17. Permit to work procedure

18. BPT/STECKER

19. LIFT & HPOST

20. LOCKERS

21. Earth it Worth it – VCD

22. Risk Recognition – VCD

23. Spills & its Control

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24. HAND RAILS

EMPLOYEE QUALITY INDUCTION CHECKLIST

Trainer:

Trainee:

Date:

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1. Product ranges manufactured at Mohali

2. Brief knowledge of paints and associated raw material

3. Brief knowledge of paints manufacturing process

4. Testing and final approval process

5. Batch release protocol

6. Can and carton coding requirements

7. Filling operation and related checks

8. Statutory requirements on filling weights and livery priting matter

9. Quality audit process

10. MSDS/ Material handling precautions

11. ISO 9002

EMPLOYEE CELL INDUCTION CHECKLIST

Trainer:

Trainee:

Date:

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1. Introduction to team members & roles

2. Manufacturing process & hardware

3. Quality process

4. Documentation

5. Team process

6. Emergency Shower/Eye wash Location

7. Location of first aid equipment and first aiders

8. PPF requisition procedure

9. Safe use of hand tools/equipment

10. House keeping

11. Reporting incidents

12. Raising Learning Incidents

13. On the Job health protection

14. Basics of filling machine operations

SSHE EXPECTATIONS

Following SHE Expectations have been developed by the Mohali Team Members.

I will report to work, fit for duty, without impairment from drugs, medications or other influences.

I will be responsible for maintaining the proper level of safety awareness and will do my jobs without causing injury to myself or my coworkers.

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I will understand the SSHE requirements for my jobs and follow these requirements at all times.

I will participate in the Safety process, I understand that it is a job requirement.

I will correct improper SHE practices observed in my coworkers.

I will learn and follow all SHE requirements, I understand that failure to do so result in disciplinary action upto and including termination.

I will be responsible for continually auditing my work environment for hazards which could lead to injury or incident and will promptly initiate correction action.

I will maintain a clean and orderly work area continuously during work period.

I will promptly report all injuries, sustected injuries and SHE indicates to Supervision.

I understand that if injured, I am expected to comeback to work on subsequent days and make contribution through light duty/activity which will not cause further injury or lengthen the recovery time.

ICI India Limited, Paints Business

Mohali Works

Research Methodology

Research is a scientific and systematic search for pertinent information on a specific topic. In fact research is scientific investigation. Redman and Mory define research as a “systematized effort to gain new knowledge.”

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making

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deductions and researching conclusions; and at last carefully testing the conclusions to determine whether they fit formulating hypothesis.

Methods of data collection:

Primary data Secondary data

Primary data:-

We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then we obtain primary data either through observation or direct communication with respondents in one form or another or through personal interview.

Observation Method

Observation is method of data collection for researcher, when it serves a formulated research purpose, is systematically planned and record and is subjected to checks and controls on validity and reliability. In this study this method is used for research in ICI.

Interview method

The interview method of collecting data involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interviews and, if possible, through telephone interviews.

Questionnaires

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This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organisations and even by governments. In this method a questionnaire is sent to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consists of a number of questions printed or typed in a in a definite order on a form or set of forms.

Secondary method:-

Secondary data means data that are already available i.e., they refer to the data have already been collected and analysed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this study this method of data collection is also used.

MY LEARNINGS

The industrial internship at Akzo Noble (ICI) was a great learning experience as to how the manufacturing sector is and the qualities that I should inculcate within myself to be a successful Human Resources Manager. It was all

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under the guidance of my project guide and my faculity guide that I could successfully finish the project. To be quite modest I would like to mention the point that in the manufacturing company is quite different from those we read in the book. Few of the learnings are:

What exactly recruitment is all about.

Life in the manufacturing world.

How to take interviews.

Getting in minds of the people to some extent.

Communication skills.

How to understand the needs of the person.

Training skills.

With all the learning I hope that I would be able to take up the challenges that come in my corporate life and also succeed as a Human Resource Manager.

Bibliography

www.google.com www.akzonoble.in www.explorehr.com

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