4 PROJECT REPORT ON AT NEW DELHI INSTITUTE OF MANAGEMENT STUDIES OKHLA, NEW DELHI A Project Report submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MADURAI KAMARAJ UNIVERSITY, MADURAI BY PREET KANWAR SINGH SANDHU New Delhi Institute Of Management Studies
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4
PROJECT REPORT
ON
AT
NEW DELHI INSTITUTE OF MANAGEMENT STUDIESOKHLA, NEW DELHI
A Project Report submitted in partial fulfillment of the requirements for the
award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)TO
MADURAI KAMARAJ UNIVERSITY, MADURAI
BY
PREET KANWAR SINGH SANDHU Reg.No. - A8754324
Under the guidance of
“Ms.Vibha Kushwaha”
JULY 2009
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CERTIFICATE
This is to certify that the Project Report at
INDIABULLS HOUSE
Submitted in partial fulfillment of the requirements for the award of
The degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
To
MADURAI KAMARAJ UNIVERSITY, MADURAI
Is a record of bonafide Training carried out by
PREET KANWAR SINGH SANDHU
Under my supervision and guidance and that no part of this report has
Been submitted for the award of any other degree/ diploma/
Fellowship or similar titles or prizes.
Faculty Guide
Signature:
Name: Ms.Vibha Kushwaha
Qualifications: MSc (Applied Math’s) & PGDCA Signature & seal of the
learning center
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STUDENT’S DECLARATION
I hereby declare that the project conducted at
INDIABULLS HOUSE
Under the guidance of
Submitted in partial fulfillment of the Degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
TO
MADURAI KAMARAJ UNIVERSITY, MADURAI.
Is my original work and the same has not been submitted for the award of any other
Degree/Diploma/fellowship or other similar titles or prizes.
Place: New Delhi PREET KANWAR SINGH
SANDHU Reg.No. - A8754324
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Date: 02/07/2009
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Acknowledgement
I would like to sincerely acknowledge the constant support and guidance of my project
Mr. Karanjit Singh Sandhu has been instrumental in successful completion of the project. He
provided me with all the resources and autonomy which made me put in the best of Efforts.
I would also like to express my gratitude towards the NEW DELHI INSTITUTE OF MGMT.
STUDIES for giving me the opportunity to undergo summer internship at INDIABULLS
HOUSE.
I am extremely grateful to Ms. Chhavi Magoo, Placement Advisor, NDIMS, and New Delhi who
presented me with this opportunity to work for INDIABULLS HOUSE, which has enlightened
my approach towards the chosen field of this organization.
I would also like to thank Miss. Ekta, Program Coordinator NDIMS, New Delhi, for designing
such a course structure where real life projects are undertaken.
And my special thanks to the whole employee fraternity of INDIABULLS HOUSE. Who were
always there to extend a hand of co-operation. Also to all those respondents who facilitated me
in successfully completing my project.
PREET KANWAR SINGH SANDHU
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CONTENTS
Certificates Acknowledgment Executive Summary
Chapter 1. INTRODUCTION
1.1. General Introduction about the sector.
1.2. Industry Profile
1.2.1. Origin and development of the industry
1.2.2. Growth and present status of the industry
1.2.3. Future of the industry
Chapter 2. PROFILE OF THE ORGANIZATION
2.1 Origin of the organization.2.2 Growth and development of the organization.2.3 Present status of the organization2.4 Functional Departments of the organization2.5 Organization structure and organization chart2.6 Product and service profile of the organization competitors2.7 Market profile of the organization
Chapter 3. DISCUSSION ON TRANING
3.1 My work profile (Role and responsibilities)3.2 Description of live experiences
Chapter 4. STUDY OF SELECTED RESEARCH PROBLEM
4.1 Statement of research problem.4.2 Statement of research objectives.4.3 Research design and methodology.4.4 Analysis of data4.5 Summary of findings
Chapter 5. SUMMARY AND CONCLUSIONS.
5.1 Summary of learning Experience.5.2 Conclusion and Recommendations.
Appendix
a. Questionnaire
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b. Bibliography
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Executive Summary
The purpose of this report is to literally act as a window to the projects Undertaken as a part of
the Internship with the Organization INDIABULLS HOUSE, that aims to define the breadth depth
and scope of the various thinking processes and mechanics that actually synthesized the
projects undertaken.
The objective of the project was to understand the working environment, culture and offerings of
the company. This was to be done along with visiting Clients in New Delhi for the purpose of
increasing their awareness regarding Investment in the services domain and in turn identifying
potential prospects wherever possible.
The methodology followed was of finding out marketing strategy of clients and meeting them up
for the purpose of understanding their corporations.
The project proved to be a great learning experience which taught me that it is not only our
offerings but also our attitude, flexibility and innovation seconded by right amount of aggression
which is important for sales.
I would like to sincerely thank my guides Mr. Karanjit Singh Sandhu, whose constant guidance
and support have been instrumental in this endeavor.
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Chapter 1.
Introduction
1.1 General introduction about the sector
Financial services refer to services provided by the finance industry. The finance industry
encompasses a broad range of organizations that deal with the management of money. Among
these organizations are banks, credit card companies, insurance companies, consumer finance
companies, stock brokerages, investment funds and some government sponsored enterprises. As of
2004, the financial services industry represented 20% of the market capitalization of the S&P
500 in the United States. With increasing importance of money in every aspect of live it’s very
important to manage this crucial aspect with the development in hand and the changing scenario
of the world the need of the financial services industries was realized the concept was firstly
tailored in U.S.A. Thus in present situation we are having multiple organization providing financial
services other than banks. With the changing outfit of the financial market the attitude of the
service is transforming day by day with technical and other developments.
History of financial service
In the United States
The term "financial services" became more prevalent in the United States partly as a result of the Gramm-
Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S.
financial services industry at that time to merge. Companies usually have two distinct approaches to this
new type of business. One approach would be a bank which simply buys an insurance company or an
investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding
company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services
companies are permitted within the holding company. In this scenario, each company still looks
independent, and has its own customers, etc. In the other style, a bank would simply create its own
brokerage division or insurance division and attempt to sell those products to its own existing customers,
with incentives for combining all things with one company.
We plan to continuously innovate and introduce market leading products and services to add to
its competitive advantage.
Well capitalized player, with strong banking relationships and credit ratings:
Our consolidated networth is Rs. 1023.19 million making us a well capitalised company. Our
Company and ISL have received sanctioned facilities of Rs. 1760 million from 9 leading
commercial banks and financial institutions. The details of the banking relationships as of July
24, 2004 are as follows:
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The Rs. 320 million unsecured commercial paper of Indiabulls Securities Limited is rated as
‘PR1+’ by Credit Analysis and Research Limited. The high rating allows us to raise unsecured
debt at very attractive rates. Leading commercial banks have invested in our unsecured
commercial paper.
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GEOGRAPHICAL DISTRIBUTION OF BRANCHES
ISL has a national presence through its 70 branches in 55 cities, covering 17 states. The
locations of our offices have been selected based on the demand of financial products in any
particular city.
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2.4 Functional Departments of the Organization.
A company organized with a functional structure groups people together into functional
departments such as purchasing, accounts, production, sales, marketing, advertising,
subscriptions, Outstation business development, Book fairs and Seminar etc.. These
departments would normally have functional heads that may be called managers or directors
depending on whether the function is represented at board level.
Functional structures are perhaps the most common organizational model used by companies;
alternatives include matrix arrangements or business unit teams.
Our Company may be unable to use the proceeds of the Issue for the intended purpose, due to
unplanned acquisitions, unplanned capital expenditure requirements, unforeseen losses or
potential legal liabilities. The failure to use the proceeds for the intended purposes will be harmful
to us and would hamper our growth potential in the existing businesses. Our Company does not
have a proven track record in handling businesses that it may enter through the acquisition route
or otherwise and hence the success of new businesses in the overall growth
strategy of our Company cannot be predicted.
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SALES DEVELOPMENT
Responsible for making sure that customer is happy
Responsible for building a positive relationship with customer.Communicate with customer all the timeProcess and monitor customer order
PURCHASE DEPARTMENT
Responsible for doing all the shopping of business
Establish and maintain an excellent Supplier relationship.Manages stock.
FINANCE DEPARTMENT
Responsible for managing all the finance of the company.Pay bills on behalf of Organization.Works closely with HR department so the wages can be paid to employees.
HUMAN RESOURCE DEPARTMENT
Recruitment and training employees.Calculate wages.
Advertisement Department
Bring a product or service to tension and attention of potential and current customers.
Aims at profits as the advertising department generates resources for the company or institution.
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2.5 Organization Structure and Organization Chart:-
Marketing Department:-
Indiabulls House has many departments in organisation as marketing department,
Finance Department:-
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H.R. Department -
Parties, readings, panel discussions, special speakers, fairs and festivals hosted by your
magazine. These are key to building an audience for your magazine and reaching new readers,
while also potentially bringing in extra income. There’s much to be said on the subject of events,
but overall aim to be original, interactive and true to your magazine. The challenge is to come up
with novel ways to promote the theme of a particular issue or the zeitgeist of your magazine as a
whole that will both appeal to your regular readers and potentially entice new readers. But don’t
just hold a launch party and sit back and wait for people to arrive in droves. Come up with
alluring reasons for people to want to attend, usually some combination of: prizes/giveaways, live
entertainment (a band, a guest speaker, a panel discussion) and something fun and out of the
Ordinary.
Email Promotion If you’re on a shoestring budget, sending email is inexpensive. Ask your friends
to send to their friends and so on. With work and persistence, your magazine should be able to
develop a list of hundreds if not thousands of interested readers. At all events, collect emails for
the mailing list. On your website ask people to join your mailing list. Never miss an opportunity to
Get an email address so you can promote your events and issues for an incredibly low cost. You
should also develop an email list of the local media so you can quickly and easily send out press
releases about new issues and events.
Website Promotion:-
It’s cheap and easy to create a website and you should always have one for your magazine. On
the site you should ask people to join your mailing list, highlight exciting upcoming events, and
offer different, interesting ways that people can participate in the zeitgeist of your magazine
beyond just reading the articles. If you’re stuck for ideas, spend some time visiting different
magazine websites and see what they do.
Exchanges:-
Most small magazines are willing to exchange ads and banners. Develop a consistent look for
your own ads and banners and keep them appearing on a regular basis.
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Touring:-
Now that you’ve got a website, an email list, ad and banner exchanges and you’re a regular at
presenting great events in your local community, it’s time to expand! Touring doesn’t have to
involve hotels and expensive flights. You can tour cheaply if you sleep in living rooms and drive
Everywhere yourself. First, come up with an interactive and entertaining plan. Second, make
sure that you have local people chosen to get involved in every community you visit. The locals
are key to spreading the word and attracting an audience.
Local involvement should include local performers and a local venue such as a bookstore or art
gallery or reading series that is willing to help you promote. Choose your tour destinations based
on the interest of local partners. Then plan a feasible tour, about 8 venues. Post all the
information about the on the website and in your emails and ad exchanges. Presto, you have
yourself a tour. So, if you organize regular events in your community, develop a healthy email list
and an Informative website, run ads and banners and tour as much as possible, your magazine
will grow—slowly but surely.
2.6 Product and service profile of the organization competitors
The excess opportunity in the growing financial market number of player immerges thus the
financial market is now become a perfect competition market mainly the players in the financial
sector service providers also have varieties of products to attract client. In this context the main
competitors of organizations are:
BANKING SECTORS (due to product diversification)
RELIGARE
SMC
INDIA INFOLINE
UNICONN
Strengths
Sound, research-based advice
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Unbiased, independent and need-based advice
Prompt, courteous service
Honest, ethical dealings
Accessib
During 2005-08 the Global System for Mobile Communication (GSM), Code-Division
Multiple Access (CDMA), and wire line segments are expected to comprise 57 per cent, 37 per
cent and 6 per cent of new additions respectively. The Indian telecom industry has witnessed
consolidations, mergers and joint ventures, as large service providers are buying stakes in small
companies. .
With telecom subscription at a strategic inflection point, state-of-the-art high capacity national
backbone and proliferating database services, India is set to become a huge market for triple-
play broadband services in the near future. Rapid and sustained growth of telecom market in the
country also provides major investment opportunities for manufacturing and marketing /servicing
of telecom equipment.
2.7 Market profile of the Organization
The financial sector has kept pace with the growing needs of corporate and other borrowers. The
sector has demonstrated growth and displayed stability through resilience built into the system.
Banking
Indian Banks Association (IBA) has projected significant growth for the Indian Banking sector. By
2010 it expects the deposits to grow at 14.51 per cent, loans and advances at a CAGR of 14.42
per cent, investments at 13.07 per cent and reserves and surplus at 17.14 per cent.
The public sector banks (PSBs) are in the process of shedding their flab in terms of excessive
manpower, Non Performing Assets (NPAs) and governmental equity, while the private sector
banks are consolidating through mergers and acquisitions. Reserve Bank of India (RBI) has also
initiated various steps towards the improvement of the banking industry in line with the global
trends, for example, adoption of Basle II recommendations and deployment of Real Time Gross
Settlement.
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Capital Market
The Indian capital markets have witnessed a transformation over the last decade during which
various initiatives were taken. Depository and share de-materialization systems have enhanced
the efficiency of the transaction cycle.
Forward trading mechanism with rolling settlement has brought about transparency. India has a
vibrant capital market comprising 23 stock exchanges with over 9000 listed companies. Market
capitalization of stocks traded on the Indian bourse touched an all time high of USD 292 billion in
April 2004. The independent regulator for the sector, Securities and Exchange Board of India
(SEBI), with statutory powers is functioning effectively. .
The Mumbai stock exchange being the second largest in the world after the NYSE, continues to
be the premier exchange in the country with an increase in market capitalization from USD 40
billion in 1990-91 to over USD 250 billion in 2003. The stock exchange has about 5,600 listed
companies and an average daily volume of approximately USD 1 billion. The combined market
capitalization of over 5000 companies listed on BSE was estimated to be INR 17 lakh crore in
May 200512. .
India has one of the lowest transaction costs based on screen based transactions, paperless
trading and a T+2 settlements cycle. Many new instruments have been introduced in the
markets, including index futures, index options, derivative, options and futures in select stocks.
The volumes in derivatives trading have been increasing across the National Stock Exchange
and Mumbai Stock Exchange.
Asset Management
The Indian mutual fund industry had assets valued at nearly USD 30 billion under management
as at December 2003. In the one year ended 31 January 2005, the Indian Mutual Fund industry
added INR 6,787.55 crore (~ USD 1.5 billion) to its kitty.13 This industry has witnessed rapid
growth in the last four to five years, pursuant to the entry of a larger number of private sector
players. During this period, sales more than quadrupled and assets under management grew by
30 to 40 per cent.
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There are about 30 asset management companies with the largest seven players controlling
about 60 per cent of the assets under management. Overseas players too have entered the
asset management business in India either individually or with Indian companies as partners.
SEBI and an industry association of asset management companies, Association of Mutual Funds
in India (AMFI), regulate the industry.
INVESTMENT INDUSTRIES IN INDIA:-
Indian industry has been buoyant and has manifested a spirit of dynamism. New developments
are continuously being made in areas like oceanography, space, electronics and non-
conventional energy sources. India's large pool of scientific and technological personnel has
been contributing to research and development all over the world.
Rapid growth of the services sector has led to India's emergence as one of the fastest growing
economies of the world. The contribution of the services sector to the Indian GDP increased from
40.6 per cent in 1990 to 50 per cent in 2004, accounting for almost 62 per cent of the cumulative
increase in the country's GDP. During 2004-05, the services growth was a robust 8.9 per cent.
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Chapter 3.
Discussion On Training
3.1 Student’s work Profile
Knowledge is cumulative: every piece of research will contribute another piece to it.
That is why I commenced my research with a review of literature related to attrition and retention
of employees.
In today’s era of high competition, individualism, with opportunities available in abundance
etc., retaining talent in the IT Industry has become a big challenge. Good retention scheme not
only help in retaining the talent, but also acts as catalyst towards attracting more talent from
around the industry.
It is better to retain the existing talent then to keep on hiring continuously. A recent survey
calculated that the cost of replacing high level employee might be as much as 150% of the
departing employee’s salary. It helps to save and reduce on recruitment cost and portrays a
culture of loyalty among the employee towards the organization, helping the HR department to
concentrate on other important soft functions. “The major issue now-a-days is not just retention
but retaining the ‘talented employee’ whose turnover may destabilize the functioning of the
organizations and reduce the company’s competitiveness in the market.”
The company may adopt the following tips to retain for tomorrow:
Communicate the company vision to the employees showing everyone the role
they have and the contribution required by them.
Treat employee as the most valuable client
Recognition in various forms is a powerful retention tool.
Build mentoring relationships with people to strengthen their emotional ties with the
organization.
Celebrate longevity.
HR philosophy should be not to do different things but do things differently.
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These are some of the possible reasons of increasing executive movements:
1. Changing Lifestyles: Lifestyle has changed considerably since the past. People prefer
to break away from the monotony of doing the same job repeatedly. People today think
fast and change their jobs even faster. Someone is busy climbing the corporate ladder;
others are busy trying to prevent them from reaching the top.
2. Death of Motivation: There should be a system, in which whenever
someone gives the best he should be given recognition for it. It is due to lack of
appreciation that employees lose interest in the job.
3. Increased Expectations: Executive’s expectations have grown manifolds. While one
might have just passed out of college and joined a company as a management trainee,
the expectations are already skyrocketing. He not only wants the best salary in the
industry but also wants a corporate laptop, mobile connection, club memberships etc.
4. Increasing Opportunities: Another prominent reason for executives leaving a company
is the rise in opportunities. No matter what the perks the company offers, people will stay
in the organization only till they find reasons to grow professionally, thereafter, no deals
will work for them.
5. Assignments Abroad: People still have a fancy for overseas assignments and anyone
getting a better prospect and opportunity for an assignment abroad will more often
accept the offer. It is also due to international exposures, which will help them expand
their network and vision.
6. Decreasing of loyalty towards organizations: Employee loyalty towards the
organization has decreased considerably. Today they are only loyal to their career and
future prospects.
7. Job Misfit: Another reason for executive movement is the job misfit. Sometimes in an
effort to fill the gap, people are recruited fast without taking into consideration the job
competency fit.
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The attrition rate adds to the worries of the HR managers who routinely go round
and round on the merry-go-round of hiring and training. They face mainly two
challenges: attracting the best talent and retaining the best talent.
Talent Acquisition : There is a limit to which one can source good talent. Unless training
and educating the upcoming generation taps the demand for talented workforce, there will
only be poaching of talent. There is a need to draw a balance between what is just and
what is unjust. So what should the HR managers do for talent acquisition? Well they
should try to increase industry and academia interface so as to ensure that there is a
ready supply of talented workforce for the future corporate requirements.
Corporations should come forward and create customized programs for training students
and executives. More and more academic and industry interface must be organized and
opportunities for on-the-job training should increase.
These are some suggestions for attracting employees:
1. Find out what is the going average salary for a particular position and try to match it.
2. Offer an employee benefit program.
3. Emphasize the benefits your small business offers.
4. Be creative with perks.
5. Offer employees some way to move upwards.
6. Create an employee incentive program.
7. Institute a profit sharing program.
8. Widen the scope of your advertising.
Talent Retention : While talent acquisition needs collaborative effort from the industry, the
academia and the government, talent retention is a corporate prerogative. Salaries, perks,
challenges, designation, and foreign assignments may drive people for some time; most
of the people also seek stability for themselves. Therefore, an HR manager needs to
identify and create systems and processes that will retain employees. More often than not,
most jobs tend to become repetitive, and therefore, job escalation (assigning newer
responsibilities) is something that HR managers need to look at.
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HR executives are devoted in planning and executing innovative strategies to retain talent and
gain competitive advantage in the overcrowded market. “Exit Interview”, though not a very recent
practice attracts renewed importance as an effective tool for employee retention. It provides a
useful perspective on the organization’s performance and satisfaction level of the employees.
EXIT INTERVIEW are interviews of employees who are leaving the firm, conducted for the
purpose of obtaining information about the job related matters, to give the employer an insight
about the company. The prime reason of carrying out an exit interview is to identify the reason
for which an individual leaves an organization. This is the exit interview form used at HCL
Technologies Ltd.
The working profile in the organization includes following roles:
• Identifying and evaluating client’s recruitment needs.
• Negotiating terms of employment.
• Searching for the potential candidates.
• Providing candidates all the information required for the vacancy.
• Cold Calling employers in order to establish new contacts and their requirements.
• Documenting client’s details and vacancy requirements in brief.
• Clarifying and negotiating salary and benefits relating to vacancies.
• Negotiating fees relating to work that the consultant will undertake for the clients.
• Advertising, head hunting, reviewing applications, interviews and short listing of
candidates.
• Monitoring candidates after placed and collecting feedback.
• Acting as a mentor and advising the junior trainees.
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3.2 Description of live Experience
Responsibilities given to me as a HR Trainee were the same as given before in the
Work profile. My experience in the organization was awesome with the clients, with
Candidates as well as the colleagues.Responsibilites undertaken by me includes all the
Responsibilities of a HR Recruiter.
My work in the organization was to coordinate with the clients regarding vacant Positions in their
company, taking all information from the clients of the job vacancy like job description,CTC
offering, qualification required and all the important information, searching for the candidates
matching desired profile, making calls to the candidates and giving them information about the
company and job, then sending their profiles to the clients, taking interview details from the
clients for the shortlisted candidates and coordinating with the candidates and clients till their
final selection and joining in the company.
Other then this, business development was also my work in the organization.
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Chapter 4.
Study Of Selected Research Problem
4.1 Statement of research problem.
Research points to the importance of good recruitment systems in the organizations. The 1980s
brought downsizing, organizations were becoming too effective for their numbers of employees
employed by them. Most problems concerning Human resources commences when recruitment
is not handled properly. Resignations, low motivation, poor performance may be due to incorrect
procedures in the recruitment process.
This research discusses the importance of good recruitment at technical and managerial levels
and the implications that are encountered as a result of ad hoc recruitment processes.
Recruitment is a responsibility of every manager in the Organization.
Definition of Recruitment
According to Edvin Flippo, “Recruitment is the process of searching for the prospective
employees and stimulating them to apply for the jobs in the organization.”
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organizations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many resources
and time.
Recruitment refers to the process of sourcing, screening, and selecting people for a job
Or vacancy within an organization. Though individuals can undertake individual Components of
the recruitment process, mid- and large-size organizations generally Retain professional
recruiters.
RECRUITMENT IS THE HEART OF HUMAN RESOURCE MANAGEMENT.
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Recruitment Process:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company.
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
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The recruitment process is immediately followed by the selection process i.e. the final interviews
and the decision making, conveying the decision and the appointment formalities.
The main recruiting stages:
Sourcing
Sourcing involves:
1) Advertising, a common part of the recruiting process, often encompassing multiple media,
such as the Internet, general newspapers, job ad newspapers, professional publications,
window advertisements, job centers, and campus graduate recruitment programs;
2) Recruiting research, which is the proactive identification of relevant talent who may not
respond to job postings and other recruitment advertising methods done in #1. This initial
research for so-called passive prospects, also called name-generation, results in a list of
prospects who can then be contacted to solicit interest, obtain a resume/CV, and be
screened (see below).
Screening & selection
Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and
computer skills. Qualifications may be shown through résumés, job applications, interviews,
educational or professional experience, the testimony of references, or in-house testing, such as
for software knowledge, typing skills, numeracy, and literacy, through psychological tests or
employment testing.In some countries, employers are legally mandated to provide equal
opportunity in hiring.
On boarding
A well-planned introduction helps new employees become fully operational quickly and is often
integrated with the recruitment process.
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4.2 Statement of research objectives.
1. What are your primary goals? (Why hire?)
The first element of recruiting strategy is to determine "why" you are hiring outside people.
First, you must determine your firm's business goals and then what recruiting can do to
contribute to each of them.
Some of the more common business reasons for hiring include:
• Replacements for turnover
• Current or future business expansion
• Upsizing the caliber of talent because top talent has become available
• Limiting the talent available in the market in order to hurt a competitor's ability to staff
adequately
• L earning from other firms
• Increasing the capability of your firm by adding new skill sets
Which of these focus areas you select is important because each requires that you direct
your recruiting efforts in a different way. For example, if you are hiring for geographic
expansion, you will need to implement a strategy that allows you to enter new geographic
regions -- as opposed to hiring to hurt, where you need to focus on hiring away key talent
directly from competitors.
2. Prioritization of jobs
No recruiting function has enough resources to fill every position immediately with the top
quality hire. As a result, your recruiting strategy needs to include a prioritization element.
Priority can be assigned in the following ways:
• Hire all jobs equally with the same priority
• Focus on key strategic business units
• Focus on key jobs
• Focus on key or powerful managers
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3. Performance level to target
Recruiting top performers requires a different strategy and set of tools than recruiting average
performers. As a result, you must first determine what level of performance you are primarily
targeting before you determine the other elements of your recruiting strategy.
Performance targets include:
• "Butts in chairs" (hire the cheapest candidates with adequate skills in all jobs)
• Focus on average performers in all jobs
• Focus on top performers in all jobs
• Focus on top performers just in key jobs
4. Experience level to target
Some employment strategies require you to take the long-term approach and develop your
own talent, while other approaches target bringing in experienced talent for immediate help or
to bring in new skills.
Experience target ranges include:
• Inexperienced talent that can be trained
• Temporary and contract labor that can be converted
• Hire at the bottom and promote within
• Undergraduate college hires (interns, Internet and on-campus hires)
• Postgraduate hires
• Experienced hires
5. Category of candidate to target
Whether you target active or passive candidates has a tremendous impact on both the quality
of hire and the difficulty of getting an acceptance.
Active candidates (the easiest candidates to attract):
• Unemployed candidates
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• Currently employed but frustrated in their current job
Passive candidates (These are individuals who are currently employed and not actively
seeking employment. They represent over 80% of potential candidates, but they are the
hardest to attract.):
• Focus on currently employed average or above average performers
• Focus on currently employed top performers
Diverse candidates:
• Diverse candidates defined by using EEOC standards
• Diverse "thinkers" using a global standard
Magnet hires (Target magnet hires who are well-known individuals who, because of
their notoriety, by themselves help to attract others.):
• Magnet hires from within the industry
• Magnet hires from outside the industry
6. When to begin searching for candidates
Most firms begin a search once a requisition has been created. But there are a multitude of
approaches available:
• Begin recruiting when an opening occurs
• Continuous search (evergreen jobs where there is a constant need)
• Begin before an opening occurs (pre-need hiring can be done to build a talent pool or to
build a relationship over time, in order to increase applications and offer acceptance rates
from employed individuals and top performer candidates)
7. Where to look for candidates
There are three sub-categories within the "where" element. They include:
Internal versus external:
•Focus on all internal candidates (laterals or promotions)
•Settle on a fixed ratio of internal to external hires
•Hire primarily from college campuses
•Hire primarily from external sources Inside or outside the industry:
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•Target within the industry only
•A fixed proportion outside the industry
Geographic focus:
• Local commuting area only
• Within the region
• Within the U.S.
• A truly global search
8. Who does the recruiting?
There are two sub-categories under this element. They include: Internally, who is responsible
for recruiting?
• Generalists do most recruiting.
• Primarily internal recruiters working in HR
• Separate sourcing and recruiting efforts within a centralized recruiting function
• A mix of corporate and contract recruiters that work internally
• Line managers do most recruiting.
• Employees contribute significantly to recruiting through a heavy emphasis on employee
referrals.
Utilizing external recruiters:
• Utilize external recruiting agencies mostly at the very top or bottom jobs
• Third-party recruiters are utilized only for hard-to-fill or key jobs
• Primarily utilize external recruiting agencies
• Outsource the entire recruiting function
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9. Primary sourcing tools
Identifying candidates and convincing them to apply is essential to great recruiting. Some of
the possible sourcing focus areas include:
• Traditional media (newspapers, walk-ins)
• Sourcing using events (job fairs and industry events)
• Traditional Internet sourcing (large and niche job boards)
• Nontraditional Internet sourcing (Google-type name search for passives; chat rooms)
• Employment branding (a long-term sourcing strategy to build a steady long-term supply of
candidates)
• Acquiring intact teams and a large amount of talent through mergers and acquisitions (buy
firms for talent)
10.What skills should you prioritize when selecting candidates?
When selecting the most appropriate candidates from the candidate pool organizations can
use a variety of approaches. Those target skills or competencies could include:
• Hiring brains or intelligence
• Selecting based primarily on personality
• Selecting based on the technical skills required for this job
• Selecting based on skills (technical and people) required for this and "the next" job
• Selecting primarily based on pre-identified, company-wide competency needs (present and
future)
• Selecting primarily based on the candidate's experience (industry or job)
• Selecting primarily based on the candidate's contacts and network
• Selecting the "best athlete" available at the time (hire and then find the best job for them)
• Selecting primarily based on cultural fit
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11.How to assess candidates
An essential part of any recruiting strategy is the process you will utilize to assess the
candidates. Common choices include:
• Interviews
• Personality tests
• Skills tests
• References (business, personal or educational)
• Grades or academic performance (primarily for college hires)
• Drug screening
• Job simulations
• On-the-job assessment (primarily for temp-to-permanent conversions)
• Hire more than you need and intentionally "wash out" the poor performers
12.Primary sales approach
Candidates can be "sold" on a job and company based on a variety of strategies. They often
include:
• Compensation
• Opportunities for promotion
• Benefits
• A great team and manager
• An excellent culture and values
• Bonus and stock option opportunities
• Challenge, growth, and learning opportunities
• The firm's employment brand and image
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4.3 Research design and methodology.
Line managers often do not understand the whole process of recruitment. Managers involved in
the recruitment should not hire employees that should start as soon as possible. This habit leads
to poor recruitment and mis-profiling of individuals who will in turn become part of the problems
in the system. Recruitment at an officer and managerial level should be done effectively and one
should remember that once you make the mistake it takes sometime before that mistake is
corrected. It may be costly to the organization.
Many people we see in organizations today are in the wrong jobs and as a result, they are not
utilizing their full potential. This is compounded by the fact that some companies have built a
tradition of hiring people based on personal connections when the person is not qualified for the
job. This is a vivid case in most Organizations today. From my colleagues experience, most
recruitment that involves managers are done during discussions at lunch hour, at social clubs or
during the coffee break time. All the other processes that follows will only be a formality as the
decision would have been made by line managers involved in the process.
This practice suffocates the Organization for professionalism and to some extend leads to
obsolete policies. Many of those appointed may not have the necessary skills and competencies
to carry out the functions competently. Also they may not have proper qualifications in the field
they are working. Such people will not have much desire to make any contributions in terms of
growth and development. Their contributions are marginal if any, they are just passengers in the
system and are protected by those who recommenced them.
The other thing observed is that, those line managers who are involved in the recruitment are not
given courses to enlighten them on the importance of the process.
Why it is necessary always to be systematic in recruitment process?
Certain type of managers can make a significant impact on Organizations or Companies.
Consequently, a process or a strategy is necessary to deal effectively with equal opportunity
issues, to hire the right people, to minimize cost and most importantly, to identify marginal
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performers before they are hired. Inadequate recruitment procedures will result in a number of
staff not being sufficiently qualified either for the positions they hold or their grades levels,
especially in management positions. Most formal systems are flawed in such fundamental
respects that there is a tendency to circumvent it through the application of ad hoc measures,
which often rely heavily on personal contacts.
Main Causes of Problem
The three main causes of the problem includes
lack of specialist skills
poor quality applicants
pay inflexibility
all of which are particularly acute in the public sector. The cost of living is also cited as a major
reason. Meanwhile, the number of organizations reporting retention difficulties has jumped even
more markedly in the past year from half in 2008 to more than seven out of ten this year.
The problem is even more acute in the public sector, where more than eight out of ten report
problems. Retaining administrative staff is also proving difficult. "Recruiting and retaining staff
remains HR's biggest challenge in spite of the economic downturn. While some may see this as
surprising, a combination of low unemployment and a massive expansion in public sector
recruitment has meant that staff at all levels, in all sectors and in all regions are difficult to recruit
and retain.
"The problems are particularly acute in the public sector where the demand for trained specialist
staff currently exceeds supply. However, this should even itself out over time as more trained
staff come on stream."
One result of these recruitment problems is that employers are now more prepared to train new
recruits and lower the level of experience required. Seven out of ten organizations now say that
they will appoint people with potential who do not currently meet the job requirements, while the
use of coaching and mentoring has also increased sharply.
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Although more than a third of organizations have improved their starting salaries to recruit staff,
the number that have increased pay to retain staff has dropped, a reflection of difficult economic
conditions.
4.4 Analysis of data
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
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Recent Trends in Recruitment
The following trends are being seen in recruitment:
1. OUTSOURCING:
In India, the HR processes are being outsourced from more than a decade now. A company
may draw required personnel from outsourcing firms. The outsourcing firms help the
organisation by the initial screening of the candidates according to the needs of the
organisation and creating a suitable pool of talent for the final selection by the organisation.
Outsourcing firms develop their human resource pool by employing people for them and
make available personnel to various companies as per their needs. In turn, the outsourcing
firms or the intermediaries charge the organisations for their services. Advantages of
outsourcing are:
Company need not plan for human resources much in advance.
Value creation, operational flexibility and competitive advantage
turning the management's focus to strategic level processes of HRM
Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
Company can save a lot of its resources and time
2. POACHING/RAIDING:
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“Buying talent” (rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organisation might be a competitor in the industry. A company can attract talent from another
firm by offering attractive pay packages and other terms and conditions, better than the
current employer of the candidate. But it is seen as an unethical practice and not openly
talked about. Indian software and the retail sector are the sectors facing the most severe
brunt of poaching today. It has become a challenge for human resource managers to face
and tackle poaching, as it weakens the competitive strength of the firm.
3. E-RECRUITMENT:
Many big organizations use Internet as a source of recruitment. E- recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through worldwide
web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using
the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn
by prospective employees depending upon their requirements.
4.5 Summary of findings:
At Indiabulls, they value their people. This is because they believe that their services will be
only as good as those who deliver it. They are in the business of guiding their investors about
where to put their hard-earned money, and helping them achieve their financial goals through
wise investments. Trust and goodwill form the fundamental basis of their relationships with
clients.
This not only demands thorough professional knowledge and an enchanting personality, but
also calls for a missionary zeal to help others selflessly.
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Though the work is demanding, most team members feel that working at Bajaj Capital is a
satisfying experience due to the following reasons:
Professional Work Environment: They have a growing pool of talented professionals,
including CAs, MBAs, CFPs, CSs, and others. This provides a good opportunity to interact
and learn from each other.
Professional Growth: Performance is the key element that matters at Bajaj Capital, when it
comes to rising up the corporate ladder. Bajaj Capital has a transparent policy of recognizing
and rewarding deserving people. Many of those who occupy top positions in the organization
today have worked their way up. Their performance management systems ensure that the
credit goes to those who deserve it.
Personal Growth: Qualities like leadership, communication skills, negotiating skills and an
impressive personality get developed automatically, largely due to the contagiously
professional atmosphere and rigorous training programmes at Bajaj Capital.
Job Satisfaction: A true spirit of philanthropy is at the heart of every thing that they do. Many of
their efforts are aimed at genuinely helping people, irrespective of whether they are their clients
or not. It obviously feels great to know that you’ve been of help to someone.
Opportunity to Improve Skills: They lay a lot of emphasis on continuing education. Every team
member is encouraged to undergo professional training. The Company even offers incentives to
those pursuing professional programmes like those offered by the International College of
Financial Planning. Skill-building workshops and meets are also organized from time to time.
Balance Between Work and Play: All work and no play is no fun. Bajaj Capital ensures that all
team members are adequately rewarded for the efforts put in. They regularly organize trips to
various exotic locations in India and abroad for their top performers.
Value-Driven Organization: Bajaj Capital is today a respected name in India primarily due to
the strict adherence to values such as honesty and ethics. Qualities of sincerity, fair play,
leadership and initiative are strongly encouraged.
Job Security: At Bajaj Capital, quality is the watchword in every sphere of activity. That’s
why they have a rigorous screening procedure. Once selected, every team member is treated
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like a family member. Everyone is given a chance to work in different departments in order to
get acclimatized. No wonder, many of their team
Members have been with us for years. Honest and performing team members will always find
their jobs secure.
Family Life: One of the major reasons why a lot of their team members prefer to work with
Bajaj Capital is because they have a culture of striking a fine balance between work and
home. They firmly believe if you are productive, you won’t have to miss out on your personal
life.
Culture of Health: Bajaj Capital encourages healthy living. All their offices are no-smoking
areas. Efforts are also made to inculcate healthy habits among all by disseminating health-
related information through a dedicated e-newsletter. There are no night shifts. They also
organize yoga sessions to improve the health and well-being of their team members.
Open-door Policy: The entire top management and the leaders at Bajaj Capital are always
accessible. They are ever-willing to help and hear you out whenever you need them.
Positive Work Culture: There is a supportive, healthy work culture where everyone is
treated equally. Bajaj Capital has also made a successful effort to cut down stress levels.
Humane Environment: Unlike many other companies, they are not guided by blind statistics.
Every team member is treated as a human being and not a machine. The atmosphere is
friendly, and the management is always around to share the happiness and grief of every
team member.
Recognition: Every team member is given a chance to excel, and the efforts of every
performer is recognized.
Good Compensation: Last but not the least, Bajaj Capital offers a compensation package
that’s one of the best in the industry. They believe and ask their team members to write their
own cheques. Apart from fixed salaries, they offer aggressive entrepreneurial incentives.
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Chapter 5.
Summary and Conclusions.
5.1 Summary of Learning Experience
My experience in the organization was awesome with the clients, with candidates as well as the
colleagues. Responsibilities undertaken by me includes all the responsibilities of a HR Recruiter.
My work in the organization was to coordinate with the clients regarding vacant positions in their
company,taking all information from the clients of the job vacancy like job description,CTC
offering,qualification required and all the important information, searching for the candidates
matching desired profile,making calls to the candidates and giving them information about the
company and job,then sending their profiles to the clients, taking interview details from the clients
for the shortlisted candidates and coordinating with the candidates and clients till their final
selection and joining in the company.
Other then this, business development was also my work in the organization.
5.2 Recommendations & Conclusion:
Recruitment is essential to effective Human Resources Management. It is the heart of the whole
HR systems in the organization. The effectiveness of many other HR activities, such as selection
and training depends largely on the quality of new employees attracted through the recruitment
the recruitment process.
Management should get specific training on the process of recruitment to increase their
awareness on the dangers of wrong placements.
HR practitioners should be on the guard against all the malpractices and advocate for
professional approach through out the system. The HR should indicate disagreement in the
event that biasing toward certain candidates is creeping in and point out the repercussions that
may follow in terms of performance and motivation.
It is conviction of research that, the recruitment process should be seen in the context of ongoing
staff planning that is linked to the strategic and financial planning of the organization.
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Appendix
QUESTIONARE
Challenges of Recruitment
Name:
Designation:
Company:
Please rank top five questions in as per their criticality in recruitment on a rating scale of 1 to 5. Where most critical problem should get a rating of 5, second most important problem 4 and so on.
What motivates talent to join Ranking
Working Culture of the organization
Perception about the management: Market Standing
Challenging profile
Industry leader: best technology, updated systems
Job security
Compensation and benefits
Career advancement and growth prospects
Geographical location
Acceptable pace of work and stress
Benefits: canteen, bus facility, mobile phone reimbursement, etc
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Problem Ranking
Fierce competition for IT professionals amongst IT companies
Shortage of qualified applicants (Talent Shortage)
Low recruitment cost approved for hiring by the management
Screening right candidates in case of niche profiles
Attracting candidates with right skills and experience from other organizations ( Employer Branding )
No show after accepting the offer
Tug of War: rope being compensation
Lack of appropriate HR / Recruitment tool: managing database is getting difficult
Hiring right candidates within short deadlines
Wrong hires adding to additional recruitment cost
False information provided on the resume
4
Please mention any other problems which you feel are very critical in recruitment.
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BIBLIOGRAPHY
“Malhotra Naresh (2002) Marketing Research - Prentice Hall of India”.
“Kotler Philip (2002) Marketing Management - Prentice Hall of India”.
“Love Lock Christopher (2001) – Service Marketing Pearson Education Asia”.