Mahindra & Mahindra

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ACKNOWLEDGEMENT

Concentration, dedication and application are necessary but not sufficient to

achieve my goal.

They must be awarded by guidance, assistance and cooperation of some people to

make it enable.

Many people have given their valuable time and ideas to enable me to complete my

project and project report. I am deeply indebted to all for their ideas and assistance,

and I bear the entire responsibility for any kind of weaknesses in my report, if any.

I am highly obliged to express my praise and profound thanks to Mr. Vivek

Tripathi (Reporting Officer) for his expert guidance and cooperation and also to

Ms. Neha Swati (Circle HR) for their supervision, encouragement and

valuable advice.

Lastly, I would like to thank all those, who have, directly or indirectly, helped me

in making the project.

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DECLARATION BY THE LEARNER

This is to declare that I have carried out this project work myself in part fulfillment of the

PGDBM Program of TAXILA BUSINESS SCHOOL .

The work is original, has not been copied from anywhere else and has not been submitted

to any other university/Institute for an award of any degree/diploma.

Date: Signature:

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About Mahindra & Mahindra Group

The Mahindra Group is an Indian multinational conglomerate company

headquartered at Mahindra Towers in Mumbai, India, with operations in 79

countries across the globe.

Mahindra & Mahindra limited was started on October 2, 1945 by the Mahindra

brothers alongwith a distinguished gentleman named Ghulam Mohammad. The

company was then named as Mahindra & Mohammad. It was set up as a franchise

for assembling jeeps from Willys, USA.

Following the Partition of India in 1947, Malik Ghulam Mohammad left the

company and emigrated to Pakistan where he became the first finance minister of

the new state. In 1948, Keshub Mahindra (Chairman of the company), changed the

company’s name to Mahindra & Mahindra.

By 1956, the company was listed on the Bombay Stock Exchange, and by 1969 the

company had entered the world market as an exporter of utility vehicles and spare

parts. Mahindra & Mahindra created a tractor division in 1982 and a tech division

(now Tech Mahindra) in 1986. It has continue to diversify its operations ever since

through both Joint Ventures and Greenfield Investments.

By 1994, the Group had become so diverse that it undertook a fundamental

reorganisation dividing into six strategic business units: Automotive, Farm

Equipment, Infrastructure, Trade and Financial services, Information Technology

and Automotive components. In 2002, there was a successful launch of Mahindra

Scorpio. Together with an overhaul in production and manufacturing methods,

these changes helped make the company more competitive, and since then the

Group's reputation and revenues have risen noticeably. Currently, Mahindra &

Mahindra is one of the 20 largest companies in India. In 2009, Forbes ranked

Mahindra among the top 200 most reputable companies in the world.

In January 2011, the Mahindra Group launched a new corporate brand, Mahindra

Rise, to unify Mahindra's image across industries and geographies. The brand

positions Mahindra products and services as aspirational, supporting customers'

ambitions to 'Rise.'

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With over 62 years of manufacturing experience, the Mahindra group has built a

strong base in technology, engineering, marketing and distribution which are key to

its evolution as a customer-centric organisation. The Group employs over 75,000

people and has several state-of-the-art facilities in India and overseas.

Divisions of Mahindra & Mahindra Group

1. Automotive

2. Farm Equipment

3. Banking & Finance

4. Information Technology

5. Club Mahindra Holidays

6. Mahindra Defence

7. Mahindra Aerospace

8. Infrastructure & Real Estate

International Operations of Mahindra & Mahindra

Mahindra has been marching globally and has established presence across all the

continents barring Antartica.

Our strategic operations in Eurasia, Africa and South-America and assembly plants

in Brazil and Egypt, are testimony to our determination to provide our global

customers with quality products and reliable service.

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Mahindra & Mahindra Financial Services Limited

(MMFSL)

About MMFSL

Mahindra & Mahindra financial services limited is a subsidiary of Mahindra &

Mahindra Limited, a leading tractor and utility vehicle manufacturer with over 62

years of experience in the Indian market. MMFSL(Mahindra Finance) is one of the

leading non-banking finance companies focused on providing finance for utility

vehicles, tractors and cars in the rural and semi-urban sector.

History of MMFSL

MMFSL was incorporated on January 1, 1991 as Maxi Motors Financial Services

Limited and received certificate of commencement of business on February 19,

1991. Its name was changed to Mahindra & Mahindra Financial Services Limited

on November 3, 1992. It is also registered with the Reserve Bank of India as a non-

banking Financial Corporation with effect from September 4, 1998 under Section

45IA of the Reserve Bank of India Act, 1934.

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THE VISION AND THE MISSION

The Vision

The vision of the company is as follows:

Our vision is to be the leading Rural Finance Company and continue to retain the

leadership position for Mahindra Products.

The Mission

We will be recognised as the premium provider of financial services on the basis of

our contribution to the sale of Mahindra range of vehicles, tractors, services and

help M&M protect its sale through availability of finance.

We will specialize in financing products based on applications and build on the

competence developed in its focus area. We will target all segments of vehicle

financing and deploy the skills acquired through an in-depth understanding of the

chosen product market.

We will provide products and services tailored to the needs of M&M, our most

favoured customer, and always meet their needs. In case of demand-supply

mismatch of funds, we will do everything to find a solution.

We will help M&M develop better products by providing first-hand information

received from the target market.

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Management- Board of Directors at MMFSLAt Mahindra Finance we have nine noted directors vested with the charge of

general supervision, direction and management of the operations of our company.

The primary responsibility of the Board of Directors includes:

Overseeing high standards of corporate governance and compliance with

various laws

Overseeing our financial management and approving various lines of

business

Shaping our policies and procedures

Monitoring our performance and evolving the growth strategy

Setting up counter-party and other prudential risk management limits

Setting up counter-party and other prudential risk management limits

Board of Directors Designation

Mr. Bharat N. Doshi Chairman

Mr. U. Y. Phadke Vice Chairman

Mr. Ramesh Iyer Managing Director

Mr. Dhananjay Mungale Director

Dr. Pawan Kumar Goenka Director

Mr. M. G. Bhide Director

Mr. Piyush Mankad Director

Mrs. Rama Bijapurkar Director

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Mr. Bharat N. Doshi

Mr. Bharat Doshi is a fellow member of both, the Institute of

Chartered Accountants of India and the Institute of Company Secretaries of India

and has a Master’s Degree in Law from the University of Bombay. He has

participated in the Program for Management Development at the Harvard Business

School.

Mr. Bharat joined Mahindra & Mahindra Limited (M&M) in the year 1973. He is

presently designated as Executive Director and Group Chief Financial Officer

(Group CFO), M&M. Mr. Bharat Doshi is very actively involved with the work of

several Chambers of Commerce and Industry in India and is a member of various

Expert Committees, which influence economic and business policies of the

Government. He was a member of the High Powered Expert Committee constituted

by the Ministry of Finance, Government of India, on Making Mumbai an

International Financial Centre and is a member of the SEBI (Securities and

Exchange Board of India) Committee on Disclosures and Accounting Standards

(SCODA).

Mr. Bharat Doshi was the Chairman of Expert Committee on Economic Affairs of

Bombay Chamber of Commerce and Industry (BCCI) during 1996-97. He was a

member of the Managing Committee of Bombay Chamber of Commerce &

Industry from May 2005 to May 2007. Mr. Bharat Doshi has been elected as Vice

President of Bombay Chamber of Commerce & Industry (BCCI) for the year 2008-

09.

Mr. Bharat Doshi was adjudged ‘India’s Best CFO’ by the leading business

fortnightly ‘Business Today’ (India Today Group Publication) in April 2005. He

was also conferred the 'CFO of the Year' Award, honouring financial excellence,

instituted by IMA India, an associate of The Economist Group, in December 2005.

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In November 2007, Bharat Doshi was honoured with the prestigious CNBC CFO

of the Year 2007 award.

Mr. U. Y. Phadke

Mr. U. Y. Phadke is a member of the Institute of Chartered

Accountants of India and the Institute of Company Secretaries of India and has a

Bachelor's degree in Commerce and Law.

Mr. Phadke joined Mahindra & Mahindra in 1973. He is presently designated as

President - Finance, Legal and Financial Services Sector and Member of Group

Management Board.

Mr. Phadke is the Vice-Chairman of Mahindra & Mahindra Financial Services

Limited. Mr. Phadke has been Chairman of the Direct Taxes Committee of the

Bombay Chamber of Commerce and Industry and on the Accounting Standards of

Board of the Institute of Chartered Accountants of India. He is a Member on the

`National Committee on Professional Services' of CII & he is on the Governing

Council of Indian Association of Corporate CFOs and Treasurers. He is a Member

of the Working Group on ‘Employee Benefits’ constituted by the International

Accounting Standards Board. He is also a Special Invitee to the meetings of

National Advisory Committee on Accounting Standards constituted under the

Companies Act.

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Mr. Ramesh Iyer

Mr. Ramesh Iyer has been the Managing Director of the Company

since 2001 and is associated with the Company since its inception. Mr. Iyer, a

commerce graduate and an MBA from Mumbai University was working with

Ashok Leyland Finance Limited prior to joining the Company. He is also a member

of core committee of Finance Industry Development Council. Mr. Ramesh Iyer has

been awarded with the Udyog Rattan from The Institute of Economic Studies, New

Delhi and has also been presented with ‘Rashtriya Udyog Pratibha Award’ from the

Council for Economic Growth & Research, Pune in December, 2007. Presently he

is the Chairman of Banking & Finance Committee of Bombay Chamber of

Commerce & Industry.

Mr. Dhananjay Mungale

Mr. Dhananjay Mungale is a Chartered Accountant and a Law

graduate. He has spent a major part of his career in corporate and investment

banking in India and Europe with Bank of America and DSP Merrill Lynch Ltd. He

is presently acting as advisor to various corporations in India and Europe. He is on

the Board of various public and private limited companies.

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Dr. Pawan Kumar Goenka

Dr. Pawan Kumar Goenka is a Mechanical Engineer with a B. Tech

from the Indian Institute of Technology, Kanpur, and a Ph.D. from Cornell

University, USA. He has also done an Advanced Management Programme (AMP)

at the Harvard Business School.

Dr. Pawan Goenka joined the Mahindra Group in October 1993 as General

Manager – Research & Development, after a successful career spanning 14 years

with General Motors, USA. Under his leadership, Mahindra & Mahindra launched

a slew of new products such as Pick-Up, Marshal, Armada 98, Bolero and

Loadking. His best acknowledged contribution is his leadership of the Scorpio

project, which brought laurels to Mahindra & Mahindra, both in India and abroad.

He became Executive Vice President – Product Development in September 2001,

and was promoted to Chief Operating Officer of the Automotive Sector in April

2003. Dr. Goenka took over as President of the Automotive Sector on 26th

September 2005. Among other achievements, he has also played a key role in the

formation of both the Renault and International Truck joint ventures.

Dr. Goenka is an internationally acknowledged scientist – manager with several

citations to his credit. He received the Distinguished Alumni Award from the

Indian Institute of Technology, Kanpur in 2004 and is a Fellow of the Society of

Automotive Engineers (SAE) and of the Indian National Academy of Engineers.

He has been honored by General Motors through the Charles L McCuen

Achievement Award twice and the Extraordinary Accomplishment Award. Dr.

Goenka is the Vice President of SIAM Executive Council and Chairman of the

Technical Committee. He holds the position of President of the ARAI Governing

Council and is a past-President of SAE India.

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Mr. M. G. Bhide

Mr. M. G. Bhide is a M.A., CAIIB. He was the Chairman &

Managing Director of Bank of India. He was also the Managing Director & Group

Executive (National Banking) of State Bank of India. He has also served on various

Committees constituted by the Reserve Bank of India.

 Mr. Piyush Mankad

Mr. Piyush Mankad did his post graduation in History from St.

Stephen’s College, University of Delhi, and obtained a post graduation diploma in

Development Studies with Distinction from Cambridge, U. K.

Mr. Mankad is a retired civil servant. He was the Managing Director, State

Industrial Development and Investment Corporation and ex-officio Secretary to the

State Government. He has also held important positions including those of

Counsellor Economic, Embassy of India – Tokyo, Controller of Capital Issues –

Ministry of Finance, Director General – National Productivity Council of India,

Secretary – Departments of Industrial Development and Public Enterprises,

Secretary – Industrial Policy and Planning, Chairman – Foreign Investment

Promotion Board, Secretary Information and Broadcasting, Finance Secretary –

Government of India and Executive Director (India) and Board Member – Asian

Development Bank, Manila. He was also a member of Telecom Commission,

Space Commission and Atomic Energy Commission and is on the Board of IIM

Ahmedabad, IIM Calcutta and IIM Bangalore. He was a Member of the Investment

Advisory Committee of the Army Group Insurance Fund, India. He also served on

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the Asia Pacific Advisory Committee of Barclays Capital U.K. He is a Trustee of

the Vodafone India Foundation. He is also a Member of the Governing Body -

Lady Shriram College for Women, New Delhi and Association of Indian

Diplomats.

Mrs. Rama Bijapurkar

Ms. Rama Bijapurkar graduated with a B.Sc. (Hons.) degree in

Physics from Miranda House, Delhi University and a Post Graduate Diploma in

Management from Indian Institute of Management, Ahmedabad. She is an

independent market strategy consultant and also a visiting faculty and member,

Board of Governors of the Indian Institute of Management, Ahmedabad. She has

over 30 years of experience in industries such as advertising, marketing and

consultancy. She has previous work experience with McKinsey & Company,

MARG (now AC Nielsen India), and been a full time consultant with Hindustan

Unilever Ltd.

Mrs. Rama Bijapurkar has published extensively on emerging market and

consumer related issues and is the author of the book titled “Winning in the Indian

Market – Understanding the Transformation of Consumer India”. She serves as an

Independent Director on the Boards of various reputed Companies.

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Values of MMFSL

a) Effective Communication:

It is the essence for building a successful and healthy environment.

b) 110% Effort:

The organisation needs all its employees to contribute to the success an dgrowth of

the company for which employees need to give their 110% effort.

c) Quality of Contribution:

The company operates on the basis of being a team of equals, where the quality of

contribution being made by our colleagues is all that matters.

d) Assertiveness:

We expect every employee to be assertive and have enough confidence in you to be

positive, while at the same time understanding other people’s point of view.

e) Team Spirit:

The organisation intends to do its best so as to encourage an enjoyable working

atmosphere, proven to encourage good team spirit.

f) Flexibility:

It is a way to define how and when work gets done and how careers are organized.

The company encourages the employees to have flexibility in their work.

g) Sound Health:

The company believes in “sound mind in a sound body” and hence requests its

employees to maintain good mental and physical health. The company shall strive

to provide a work environment and welfare policies promoting the same.

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Strengths:

In depth knowledge of the rural and semi-urban market.

The relationship with Mahindra & Mahindra.

The branch network.

The association with dealers.

The client base.

The ability to borrow at competitive rates.

Business of MMFSL:

Mahindra Finance has a wide range of products and services, with something to

suit everyone’s needs. Right from finance for two wheelers, tractors, farm

equipment, cars and utility vehicles to commercial vehicles and construction

equipment, it also have a group of experts providing investment advice, surveying

available market products and choosing the most suitable product based on

customer requirements.

a) Utility Vehicle Loans:

MMFSL provide finance for a range of Mahindra Utility Vehicles. It also provides

trade advance facilities for dealers.

It is constantly trying to further enhance their services, and better reach their

approach. So that they can help their customer’s dreams of owing a Mahindra UV

come true, in the easiest and most convenient manner.

Their wide reach, speed and efficiency, flexible documentation process and

capability of our executives to take quick, smart decisions ensure that the process

of obtaining a loan is a quick and smooth one.

b) Tractor Loans:

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With the majority of our country’s population engaged in farming and agriculture,

our Farm Equipment loans help rural India surge ahead in a big way.

They understand the needs of rural India and customize loans to specific

requirements. This is seen in their flexible repayment options, including quarterly

and half-yearly repayment schedules, as well as our extensive network of branches,

enabling one to contact them anywhere. All this helps to ensure that the entire

process of obtaining a loan remains smooth and simple.

So, obtaining a Mahindra tractor and trailer is just a few steps away, with Mahindra

Finance.

It’s just one of the ways in which they bring Indians closer to their dreams.

c) Car Loans:

Mahindra Finance is a preferred financier for M&M as well as all other small car

manufacturers in the country like Hindustan Motors, Hyundai, General Motors,

Maruti Udyog limited.

They want to make sure that they can help customer’s dream of owning their

favourite car come true, in the most easiest and convenient manner.

d) Two Wheeler Loans:

With their flexible, convenient finance options, simple documentation, quick

processing and competitive interest rates, owning a two wheeler is just a few steps

away. Also, their extensive branch network in over 400 locations, makes it possible

for their customers to contact them easily and obtain a loan, wherever they are.

So, whether their customers want that moped, motorbike, scooter, they help their

customers with customised solutions and make the whole process as easy as child’s

play.

e) Refinance:

With their easy and quick finance options, customers will now have the power to

own a car soon. Be it a marriage in the family or a new job requiring travel,

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customers will be able to meet all their personal needs and obtain the vehicle of

their dreams.

It provide fast and easy finance for the purchase of used cars, utility vehicles, used

commercial vehicles and used tractors. It also provide loans against an existing car,

utility vehicle, commercial vehicle and tractors.

Customer identify the vehicle and M&M help them out.

f) Commercial Vehicle Loans:

At Mahindra Finance, we offer commercial vehicle and construction equipment

loans among many others. These vehicles include trucks, buses, tippers, excavators,

light commercial vehicles and more. We fund new vehicles as well as old, and will

even top-up existing loans.

With our simple documentation and quick turn-around time, customers can be sure

that we provide them the best and most flexible financing solutions to meet their

business requirements.

g) Investment Advisory Services-Mutual Fund Distribution:

When it comes to investing, everyone has unique needs based on their own

objectives and risk profile. While many investment avenues such as fixed deposits,

bonds etc. exist, it is usually seen that equities typically outperform these

investments, over a longer period of time. Hence, M&M is of the opinion that,

systematic investment in equity allows one to create substantial wealth.

However, investing in equity is not as simple as investing in bonds or bank

deposits, because only proper allocation of portfolio gives maximum return with

moderate risk, and this requires expertise and time.

M&M Investment Advisory Services help customers invest their money in equity

through different Mutual Fund Schemes. It ensures the best for its clients by

identifying products best suited to their individual needs.

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h) Personal Loans:

Mahindra Finance launches Personal Loans.

Now customers will never have to bother about the extra amount needed to fulfill

all their needs. They can get financial assistance for Marriage Related Expenses,

Children’s Higher Education, Medical Treatment, Consumer Durables, House

Furniture, Agricultural Needs, Exotic Needs or just squash a Temporary Cash

requirement. Whatever be the need, Personal Loans from Mahindra Finance are the

solution.

Milestones

1993

Commenced financing of M&M Utility Vehicles.

1995

Opened our first branch outside Mumbai, at Jaipur

1996

Commenced financing M&M dealers for the purchase of tractors

1998

Launched pilot project for retain tractor financing

1999

Commenced tractor retail financing in rural and semi-urban areas

2001

Total Assets crossed Rs. 10 billion

2002

Commenced financing of non-M&M vehicles Received Tier II debt from International Finance Corporation Made our first securitisation transaction of Rs. 434.8 million

2004

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Received a long-term credit rating of AA+/Stable Opened a branch in Port Blair Listing of non-convertible debentures on BSE on the wholesale debt market

segment Securitisation of tractor assets of Rs. 256.6 million Commenced Insurance Broking business through subsidiary Mahindra

Insurance Brokers Ltd.(MIBL)

2005

Tied up with HPCL Made MIBL our wholly owned subsidiary

2006

Issued our IPO Tied up with Maruti Udyog Limited Launched our marketing campaign Reached a new benchmark with 400 Branches

2007

Commenced Home Loans Business through our subsidiary Mahindra Rural Housing Finance Limited

Commenced Financing non Mahindra commercial vehicles Commenced financing of personal Loans

2008

Preferential allotment of shares to Standard Chartered Private Equity Ltd. & Axon Private Equity Ltd.

Received 12.5% equity participation from NHB for our Subsidiary Mahindra Rural Housing Finance Ltd.

2009

Commenced Fixed Deposits Program

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RECRUITMENT

It is the process of finding and attracting capable applicants for employment .It is

the process to discover sources of manpower to meet the requirements of the

staffing schedule and to employ effective measures for attracting that manpower in

adequate numbers to facilitate effective selection of an efficient working force.

Definitions & Meanings:

1. According to Edwin B. Flippo,” Recruitment is the process of searching the

candidates for employment and stimulating them to apply for the jobs in the

organisation.”

2. According to Taylor & Collins, ”Recruitment includes the set of activities

undertaken by the organisation for the primary purpose of identifying a

desirable group of applicants, attracting them into its employee ranks, and

retaining them at least for the short-term.

3. It is the process of locating and encouraging potential applicants to apply

for existing or anticipated job openings.

4. Recruitment refers to the process of attracting , screening and selecting

qualified people for a job at an organisation or firm.

5. It aims at :

a) Attracting a large no. of qualified applicants who are ready to take up

the job if it is offered.

b) Offering enough information for unqualified persons to self-select

themselves out.

6. It enables the management to select suitable employees for different jobs. It

involves listing of suitable candid ates for consideration of selection for

various jobs.

7. It may be defined as the process to discover sources of manpower to meet

the requirements or the staffing schedule and to employ effective measures

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for attracting that manpower in adequate number to facilitate the selection

of an efficient working force.

Sources of recruitment:

1. Internal sources

2. External sources

Internal Sources External Sources

1. Transfer

2. Promotions

3. Recalling of laid-off employees

4. Job posting

1. Campus recruitment

2. Management consultants

3. Advertisements

4. Gate hiring & Contractors

5. Unsolicited applicants/ Walk-ins

6. Internet recruitment

7. Employment exchanges

8. Recommendations

9. Head Hunters

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Internal sources

Persons who are already working with the organisation constitute internal sources.

Whenever any vacancy arises, someone from within the organisation is upgraded,

promoted, transferred or even demoted. In those cases, Organisations need to

develop their existing manpower adopting suitable training & development

functions. Training & Development may not necessarily always ensure availability

of the best talents internally. Organisations are then compelled to recruit from

outside sources.

a) Transfer :-

It involves shifting of one employee from one job to another, one dept. to

another, or from one shift to another. It is a good source of filling vacancies

with employees from overstaffed departments or shifts. It may lead to

change in duties & responsibilities, working conditions etc. but not

necessarily salary. It involves lateral movement within the same grade.

b) Promotion s :-

It leads to shifting an employee to a higher position, carrying higher

responsibilities, facilities, status& pay. Filling vacancies in higher jobs from

within the organisation has the benefit of motivating the existing

employees. It has the great psychological impact over the employees. A

promotion at a higher level may also lead to a chain of promotions at lower

levels in the organisation.

c) Recalling of laid – off employees :-

The term lay-off means temporary separation of employees from the

employer because of the lack of work or shortage of raw materials etc.

When the situation gets normal, the demand for the labour increase and the

management can recall the employees who have been laid off.

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d) Job posting :-

It is another way of hiring people from within. In this , the organisation

publicises job openings on bulletin boards, electronic media, and similar

outlets. It offers a chance to highly qualified applicants who are working

within the company to look for growth opportunities within the company

without looking for greener pastures outside.

External sources :

It lies outside the organisation. Here the organisation can have the services of:

Employees working in their organisation

Job aspirants working with the employment exchanges

Students from reputed educational institutions

Candidates referred by unions, friends etc.

Candidates responding to advertisements, etc.

Unsolicited applications/walk-ins.

Below specified are some of the sources from which the vacancy can be filled from

outside sources.

a) Campus recruitment :-

It is a method of recruiting by visiting and participating in college campuses

& their placement centres. Job seekers are provided the information about

the jobs, and the recruiters, in turn, get a snapshot of job seekers through

constant interchange of information with respective institutions. A

preliminary screening is done within the campus and the shortlisted students

are then subjected to the remainder of the selection process.

Advantages of this method include:

The placement centre helps locate applicants & provides resumes to

organisations.

Applicants can be pre-screened.

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Applicants will not have to be lured away from a current job

& hence lower salary expectations.

But one limitation is that, campus recruiting means hiring people

with little or no work experience. So, it will prove to be costly for the

organisations as it will have to provide some kind of training to the selected

candidates.

b) Management consultants :-

These firms help the organisations to recruit technical, professional and

managerial personnel. They specialise in middle level and top level

executive placement. They maintain data bank of the persons with different

qualifications & skills and they advertise the jobs to recruit right type of

personnel.

c) Advertisements :-

It includes ads in newspapers or trade & professional journals, radio,

television etc. Most of the senior positions in industry as well as commerce

are filled by this method. The ads generally give a brief outline of the job

responsibilities, compensation package, prospects in the organisation etc.

This method is appropriate when :

The organisation wants a fairly good number of talented people who

are geographically spread out.

The organisation intends to reach a large targeted group.

It also facilitate self-screening by the prospective candidates.

d) Gate hiring & Contractors :-

Gate hiring, where the job seekers , generally the blue collar employees,

present themselves at the factory gate & offer their services on a daily basis.

It is the direct recruitment by placing a notice on the notice board of the

enterprise, specifying the details of the jobs available. This method has the

following advantages :

It does not involve the cost of advertising the vacancies.

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It is the cheapest method to fill the vacancies.

Whenever there is rush of work or large no. of workers absent, this

source of labour may be easily used.

e) Unsolicited applicants / Walk – ins :-

Companies, generally receive unsolicited applications from job seekers at

various points of time. It, basically depends upon the image of the company,

& the applicant’s perception of the types

Of job available in the company. The co. Maintain a data bank of these

applications & whenever a job vacancy arises, it would intimate the

candidate to apply through the formal channels.

But, there is one problem with this method of recruitment, as the

job seekers generally apply to a no. of organisations and when they are

actually required by some company, either they are already employed

somewhere else or are simply not interested in the position offered.

f) Internet recruitment :-

Now a days, most of the companies have their own websites and they,

generally list their job openings on it. Internet recruiting generates fast, cost-

effective, timely responses from job applicants from different parts of the

world. After receiving of resumes, these are then converted into standard

format using the software that the co. has developed for short-listing the

candidates according to a set criteria i.e. qualifications, experience etc.

Apart from the company’s own website, there are some other sites

where the applicants can submit their resumes & potential employers can

search for the qualified candidates, such as: www.naukri.com,

www.monsterindia.com, www.timesjobs.com, etc.

But the only limitation of this method is that, the website may be

flooded with resumes from unqualified job seekers.

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g) Employment exchanges :-

As per the Employment Exchanges Act1959, all the employers are required

to notify the vacancies arising in their establishments from time to time to

the prescribed employment exchanges before they are filled. It covers all the

establishments in public sector and the non-agricultural establishments

employing 25 or more workers in the private sector.

But, with regard to the practical difficulties, involved in

implementing the provisions of this act, many organisations have

successfully fought court battles when they were asked to pick the

candidates from among those sponsored by the employment exchanges.

h) Recommendations :-

It means using personal contacts to locate job opportunities. It is a

recommendation from a current employee regarding a job applicant. The

main advantage of this method is that something about the candidate’s

background is known. Employees already associated with the co. are

encouraged to suggest or recommend some of their friends’ and relatives

names for filling up some vacancy in near future. In return, the co. give some

monetary rewards to those employees whose recommendations has been

accepted by the company, after the routine screening and examining process

is over.

To obtain the effective results, the details of referral scheme

should be given to all the levels using various means i.e. posters, e-mails,

etc. Employees should also understand that they have been entrusted with a

critical task and also, those making referrals should get quick feedback so

that they can come with more referrals. However, every attempt should be

made to ensure quality. And at last, the firm should constantly measure the

quality & performance of employees recruited through the programme.

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i) Head hunters:-

They are useful in specialised in skilled candidate working in a particular

company. An agent is sent to represent the recruiting company and an offer is

made to the candidate. This is a useful source when both the companies involved

are in the same field, and the is reluctant to take the offer since he fears that his

company is testing his loyalty.

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Difference between internal and external sources

Basis Internal sources External sources

1. Meaning It involves search of candidates

from within the organisation.

It involves finding candidates from

outside the organisation.

2. Process It is a very quick process. It is a lengthy process.

3. Cost This process is cheaper. It does not

involve any contacting the external

sources.

This process is costly as vacancies

have to be notified in newspapers etc.

4. Effect on

existing

staff

The existing staff is motivated to

improve their performance.

The existing staff feels dissatisfied if

external sources are used.

5.Choice Choice of candidates is limited. The business can hope for talented

candidates from outside.

6. Scope The scope of fresh talent is

diminished.

This means infusion of new blood and

new ideas into the enterprise.

7. Time

perspective

Internal sources help in saving time

of officials responsible for

recruitment.

External sources of recruitment are

expensive.

FACTORS AFFECTING RECRUITMENT

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The recruitment function of the organisation is affected and governed by a mix of

various internal & external forces. The internal forces or factors are the factors that

can be controlled by the organisation. And the External factors are the forces which

cannot be controlled by the organisation . The internal & external factors affecting

the Recruitment function of an organisation are :

Factors affecting recruitment are :

Internal factors :-

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Internal factors

Recruitment policyHuman resource planningSize of the firmCost of recruitmentGrowth & Expansion

External factors

Image / GoodwillSupply & DemandLabour MarketCompetitorsUnemployment ratePolitical-social-legal environment

a) Recruitment policy :-

The recruitment policy of an organisation specifies the objectives of

recruitment and provides a framework for implementation of

recruitment programme. It may involve organisational system to be

developed for implementing recruitment, programmes and

procedures by filling up vacancies with best qualified people.

Factors affecting recruitment policy are:

Organizational Objectives.

Personnel policies of the organisation & its competitors

Government policies on reservations

Preferred sources of recruitment

Need of an organisation

Recruitment costs & financial implications

b) Human resource planning :-

Effective human resource planning helps in determining the gaps

present in the existing manpower of the organisation. It also helps in

determining the number of employees to be recruited and what

qualification they must possess.

c) Size of the firm :-

The size of the firm is an important factor in the recruitment process.

If the organisation is planning to increase its operations and expand

its business, it will think of hiring more personnel, which will handle

its operations.

d) Cost to the firm :-

Recruitment incur cost to the employer, therefore, organisations try

to employ that source of recruitment which will bear a lower cost of

recruitment to the organisation for each candidate.

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e) Growth & Expansion :-

Organisations will employ or will think of employing more

personnel if it is expanding its operations.

External Factors :-

a) Supply & Demand :-

The availability of manpower both within & outside the organisation

is an important determinant in the recruitment process. If the

company has a demand for more professionals and there is limited

supply in the market for professionals demanded by the company,

then , the company will have to depend upon internal sources by

providing them special training & development programs.

b) Labour Market :-

Employment conditions i the community where the organisation is

located will influence the recruiting efforts of the organisation. If

there is surplus og manpower at the time of recruitment, even

informal attempts at the time of recruiting like notice boards display

of the requisition or announcement in the meeting etc. will attract

more than enough applicants.

c) Image & Goodwill :-

Image of the employer can work as a potential constraint for

recruitment. An organisation with positive image & goodwill as an

employer finds it easier to attract & retain employees than an

organisation with negative image. Image of the company is based on

what the company does and affected by industry. For example:-

Finance was taken up by fresher MBA’s when many finance

companies were coming up.

c) Competitors :-

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The recruitment policies of the competitors also affect the

recruitment function of the organisations. To face the competition,

many a times the organisations have to change their recruitment

policies according to the policies being followed by the competitors.

d) Unemployment rate :-

One of the factors that influence the availability of applicants is the

growth of the economy (whether economy is growing or not and its

rate). When the company is not creating new jobs, there is often

oversupply of qualified labour which in turn leas to unemployment.

e) Political-legal-social environment :-

Various government regulations prohibiting discrimination in hiring

& employment have direct impact on recruitment practices. For

Example, Government of India has introduced legislation for

reservation in employment for scheduled castes, scheduled tribes,

physically handicapped, etc. Also, Trade unions play an important

role in recruitment. This restricts management freedom to select

those individuals who it believes would be the best .

PROCESS OF RECRUITMENT

Recruitment process involves a systematic procedure from sourcing the

candidates to arranging and conducting the interviews and requires many

resources and time.

The process of recruitment involves:

a) Identifies the different sources of labour supply.

b) Assesses their ability.

c) Chooses the most suitable sources.

d) Invites applications from the prospective candidates for the vacant jobs.

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The above table represents the basic recruitment process followed by all the

organizations , though all the organisations have many different bases to select a

candidate for their organisation.

Explanation of the above process is as follows:

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Identify the vacancy

Prepare job description

Advertising the vacancy

Managing the responseShort-Listing

Arrange interviews

Conducting interviews &

Decision making

a) Identifying vacancy :-

The first step in recruitment is the identification of vacancy. Generally a

vacancy exists because of the following reasons:-

A resignation

A promotion, which has left a vacant job

Growth and expansion

The recruitment process must start with a check on whether a vacancy

actually exists, and whether there are other alternatives as opposed to recruiting a

new person.

If the vacancy has arised because of expansion and increased work

demands, it is important to ensure that the budget exists for the appointment of a

new employee. It must also be seen that whether a new employee is required

permanently or the increased work load is for a fixed period of time.

The decision of what skills are required and how many staff to employ must

be considered carefully. The goal is to place the right people, on the right job, at the

right time to ensure the success and productivity of the organisation.

b) Define the job:-

After being sure that a vacancy does exist in the organisation, the job needs

to be defined as precisely as possible, focusing on the following:-

The key functions that need to be fulfilled

The key competencies required by the employee to fulfil the roles

and duties

Other factors to decide upon include:

How urgent is it that the new employee starts with all the required

skills and experience?

To what extent is the organisation prepared to train?

Does the organisation have the time and resources to allow for the

new employee to be trained?

The nature of employment, is it a short term or permanent function?

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At the end of this point the, job has been defined and the required

competencies has been identified which will guide the selection of a

suitable applicant.

c) Define the job level:-

Once the job profile has been developed, then it must be ranked or graded

in relation to other job roles in the organisation. This process is called job

evaluation. The job evaluation systems may vary from organisation to

organisation.

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SELECTION

Selection involves a series of steps by which the candidates are screened for

choosing the most suitable persons for vacant jobs in the organisation. Selection

leads to employment of personnel and is an integral part of staffing. It facilitates

the selection of candidates who possess the ability and qualifications to perform the

jobs which have fallen vacant in the organisation. It divides the candidates for

employment into two categories:’ those who will be offered employment and those

who will not be’. This process could be called rejection since more candidates may

be turned away than those selected. That is why, selection is frequently described

as a negative process in contrast with the positive nature of recruitment.

The basic purpose of the selection process is choosing right type of

candidates to manage various positions in the organisation. In order to achieve this

purpose, a well organised selection procedure involves many steps. At each step

more and more information is obtained about the candidates so as to reject the

unsuitable candidates.

IMPORTANCE OF SELECTION

Following are some of the points which shows the benefits of selecting right kind

of people for various jobs:

1. Absenteeism & labour turnover:

Proper selection and placement of personnel go a long way towards building up a

suitable workforce. It will keep the rates of absenteeism and labour turnover low.

2. Efficiency:

Competent employees will show higher efficiency and enable the organisation to

achieve its objectives effectively.

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3. Industrial accidents:

The rate of industrial accidents will be considerably low if suitable employees are

placed on various jobs as they know very well how to use the machines effectively

an efficiently. They also make the optimum use of the resources available.

4. Job satisfaction:

When people get jobs of their taste and choice, they get higher job satisfaction.

This will build up a contended workforce for the organisation.

5. Morale:

The morale of the employees who are satisfied with their jobs is often high. And

because of this, they do their work with more of loyalty.

Comparison of Recruitment and Selection

BASIS RECRUITMENT SELECTION

1.

Meaning

It is the process of

searching candidates for

vacant jobs and making

them apply for the

same.

It is the process of selection of right type of

candidates and offering them jobs.

2. Nature It is a positive process

as more & more

candidates are sought to

be attracted.

It is a negative process as it aims at rejecting

unsuitable applicants.

3. Purpose Its purpose is to create a

pool of applicants for

various jobs in the

organisation.

But selection aims at eliminating unsuitable

candidates and ensuring most competent

people for the available vacancies.

4.

Sequence

It takes place prior to

selection.

It is done after recruitment.

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5.

Procedure

The firm notifies the

vacancies through

various sources and

distributes application

forms to candidates.

The firm asks the candidates to pass through a

number of stages such as filling of form,

employment tests, interview, medical exam etc.

6.

Contract

of service

No contractual relation

is created. Recruitment

implies communication

of vacancies only.

Selection follows recruitment and it leads to a

contract of service between the employer and

the employee.

7. Phase

of staffing

process

This is the first phase. It

envisages taking

decisions on the choice

of tapping the sources of

labour supply.

It is the second phase. It involves giving various

types of tests to the candidates and interviewing

them in order to select the suitable candidates

only.

SELECTION PROCESS

The selection process is concerned with selecting right type of candidates for

different jobs in the organisation. It involves:

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a) Obtaining information about the candidates.

b) Using information to choose the right type of people.

Selection process involves a number of steps. Each step should help in getting more

and more information about the applicants to facilitate right choice of people. The

major steps followed by modern organisations to get right type of persons are listed

below:

The points mentioned above are explained as follows:

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Preliminary Interview

Receiving Applications

Screening of Applications

Employment Tests

Employment Interview

Checking References

Medical Examination

Final Selection

1. Preliminary interview:

The preliminary interview is generally brief and it helps in eliminating the totally

unsuitable candidates. If an applicant is eliminated at this stage, the organisation

will be saved from the expenses of processing him through the remaining steps of

the selection procedure. During the course of interview, candidates are asked

questions relating to their experience, education etc. Those who come out

successfully from this interview are asked to fill the application forms.

2. Receiving applications:

An application form is designed to get a written record of candidate’s

qualifications, experience and other details. Application forms helps in securing the

necessary information about candidate’s qualifications, training, experience etc. in

his own handwriting. This all information is useful in determining the suitability of

the candidate for the concerned job.

3. Screening of applications:

This step is necessary as it helps in checking whether the candidates fulfil the

qualifications required to perform the job effectively. After the applications have

been received, these are checked properly with regards to the experience and

qualifications etc. by the screening committee. Unsuitable candidates are

eliminated at this very stage. After this, a list is prepared of the candidates to be

called for employment tests.

4. Employment tests:

These tests are widely used for judging the applicant’s suitability for the job. This

test brings out the qualities, strengths and weaknesses of individuals which could

be analysed before offering them jobs in the organisation so it must be designed in

a proper way. Also these tests should not be biased because then they will not be

the good indicators of one’s knowledge and skills and selection based on them will

be faulty. That is why, these tests should not be relied upon fully.

Individuals differ with respect to the physical characteristics, capacity, level of

mental ability, likes & dislikes and also with respect to personality traits. The

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differences among the individual candidates can be analysed with the help of

various psychological and trade tests. These tests can provide important

information about the candidate as regards his intelligence, aptitude interest,

personality, etc.

Importance of employment tests:

Employment tests have the following benefits:

i. A test is an objective and standardised sample of certain qualities. It tends

to eliminate the business in selection of personnel.

ii. Tests can identify talents of individuals which might otherwise be

overlooked.

iii. Tests reduce the cost of selection and placement because large number of

applicants can be evaluated within the least possible time.

iv. Psychological tests can measure the aptitude of candidates and predict their

success.

v. Tests provide a healthy basis for evaluating applicant’s performance. They

can compel the interviewers to think through their evaluation more

carefully.

Various types of tests available to match the characteristics of the candidates with

the requirements of the jobs advertised are as follows:

a) Intelligence tests:

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An intelligence test is used to judge the mental abilities and capacity of the

applicant. It measures the individual’s learning ability, i.e , ability to catch or

understand instructions and also the ability to take decisions. There are many

verbal and non-verbal intelligence tests constructed by psychologists for different

kind of jobs.

b) Aptitude tests:

Aptitude means the potential which an individual has for learning the skills

required to do a job efficiently. Aptitude tests measure an applicant’s capacity and

his potential for development. Aptitude tests are the most promising indices for

predicting worker’s success. There are two general types of aptitude tests:

i. Cognitive test

ii. Motor test

Cognitive test measures the mental and intellectual aptitude

Motor test measures the physical dimensions such as manual dexterity or hand –

eye coordination.

c) Achievement or proficiency tests:

Proficiency tests are those which are designed to measure the skills already acquire

by the individuals. They are also known as Occupational or trade tests. They are

used to test the level of knowledge and proficiency of an applicant to do a specific

job.

d) Interest or motivation tests:

Interest tests identify patterns of interest, that is, areas in which the individual

shows special concern, fascination and involvement. These tests would suggest

what type of jobs may be satisfying to the employees.

e) Situational or personality tests:

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Such tests are designed to observe how job applicants react to real life situations.

Personality tests probe for the qualities of the personality as a whole, the

combination of aptitude, interest and usual mood and temperament. They are

concerned with discovering clues to an individual’s value system, his emotional

reactions, maturity, etc. For example, a candidate for a managerial job may be

given a typical problem which requires on the spot decision making.

5. Employment interview:

Although applications and employment tests provide a lot of valuable information

about the candidates, still they do not provide the complete set of information

required of the applicant. Interview may be used to secure more information about

a candidate. For the selection of right types of people interview is very important.

Its objectives are to see the looks of the candidate, communication skills,

way of thinking, their conduct, temperament, their interest, presence of mind,

mental maturity etc. The main purposes of employment interview are:

a) to find out the suitability of the candidate

b) to seek more information about the candidate

c) to give the candidate an accurate picture of the job with details of terms and

conditions and some ideas of organisational policies.

This personal meeting between the panel of interviewers and the candidate may

also be used for testing the qualities and the capabilities of the candidate.

INTERVIEW

An interview is a face-to-face oral examination of a candidate by an employer. The

interview may be held at two stages:

i. Preliminary stage

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ii. Final stage

Interviewing the candidates is an important aspect of selection procedure. The final

selection is based partly on the performance of the candidate in different tests and

partly on his final interview. In the interview, the candidate has to appear before the

interviewer or a panel of interviewers. The candidate’s overall personality is judged

in the interview. It may last for 10-20 minutes. Various questions are asked from

the candidate in order to judge his ability, knowledge, capacity and so on. Usually,

it is used as a means of getting information from the candidate. It also involves

giving information that will help the applicant make up his mind about the

company.

Importance of Interview

Below given are some of the points which highlight the importance of employment

interview:

a) There is a face-to-face contact between the employer and the candidate. The

employer can assess the personality traits of the candidate.

b) The candidate can seek more information about the employer and the job. This

creates better understanding in the mind of the candidate.

c) The communication skill of the candidate can be judged in the interview. His

way of thinking can also be known.

d) Interview is important where the candidate has not to go through the

employment tests. The information contained in the application form can be

checked during the interview.

e) Many companies do not follow the elaborate selection procedure as it is costly

and time consuming. They can rely on interview if it is properly planned and

administered.

Types of interview

49

Interview may be of different types as given below:

Informal interview

Formal interview

Structured Interview

Unstructured Interview

Depth Interview

Stress Interview

Board Interview

Group Interview

Sequential interview

Mixed interview

Second interview

Telephonic interview

The points mentioned above are explained as follows:

a) Informal interview:

An informal interview is an oral interview and may take place anywhere. The

employee or the manager or the personnel manager may ask a few almost

inconsequential questions like name, place of birth, name of relatives etc. either in

their respective offices or anywhere outside the plant of the company. It is not at all

planned. This is used widely when the labour market is tight or when they are

demanded badly.

b) Formal interview:

Formal interviews may be held in the employment office in a more formal

atmosphere, with the help of well-structured questions, the time and place of the

interview will be stipulated by the employment office.

c) Structured interview:

Ina structured interview the interviewer has a list of questions with answers

prepared well in advance. The candidates interviewed are asked questions only

50

from the prepared list. Marks may be awarded to the candidates based on the

answer they give and thereby their suitability of the job may be assessed.

d) Unstructured interview:

In this case the interviewer does not keep any list of questions. He can ask any

question that he thinks is relevant and see how the interviewee responds.

Sometimes the interviewer may ask the candidate to express his views on the job he

has applied for, the work he did earlier, the organizations he served earlier, the

present organization and so on. The interviewer, in this kind of an interview, is a

patient listener. He does not interrupt the interviewee nor does he give his opinions

on what is stated.

e) Depth interview:

As the very name suggests depth interview attempts to know the in-depth

knowledge of the candidate in his chosen field of activity. This type of interview is

necessary where the candidates are expected to be experts in performing the job to

be assigned to them. For example, a person who is going to be appointed as the

office manager must be well versed in all aspects of office work. Similarly, a

person who is going to be employed as the labour welfare officer must be sound in

labour laws, human relations and so on.

f) Stress interview:

This kind of interview is necessary to select candidates for jobs that require

tremendous amount of patience, the capacity to overcome resistance or protest and

the mental courage to overcome stress and strain. Candidates, who are interviewed

for such jobs as those of sales representatives receptionists, public relations officers

etc., need to be subjected to a stress interview.

In a stress interview the interviewer may reach sharply to the views of the

candidate, criticize him or even try to provoke him. This he does deliberately to see

whether the candidate exercises patience and is able to overcome resistance or

protest. If the candidate fails to perform to the expected level, he may not be

considered for the post.

g) Board or panel interview:

51

In this kind of an interview the candidate is interviewed simultaneously by a panel

of experts. Such an interview is necessary where the employer desires that

assessment of the candidate by a group or a team of experts is required. Each

member of the board or panel may ask questions from certain specific areas. One

interviewer may ask questions pertaining to the candidate's field of work, another

person regarding his interests and so on. The selection of the candidate will depend

on the assessment of all the board members.

h) Group interview:

In this case a group of candidates will be interviewed simultaneously. Such an

approach is normally used for the selection of management trainees. A practical

problem is given to them and each one is asked to discuss it to find a solution. The

performance of each individual in the group discussion will decide whether he will

be selected or not.

On completion of the interview process, the employer will have a list of

provisionally select candidates. The final selection is done only after checking

references and subjecting the candidates to medical examination.

i) Sequential interview: The sequential interview takes the one-to-one a step further

and involves a series of interview, usually utilising the strength and knowledgebase

of each interviewers so that each interviewer can ask his or her subject area of each

candidate, as the candidate moves from room to room.

j) Mixed interview:

In practice, the interviewer while interviewing the job seekers uses a blend of

structured and unstructured questions. This approach is called mixed interview. The

structured questions provide a base of interview more conventional and permit

greater insights into the unique differences between the applicants.

k) Second interviews:

Job seekers are invited back after they have passed the first initial interview.

Middle or the senior management generally conducts the second interview,

52

together or separately. Applicants can expect more in-depth questions, and the

employer will be expecting a higher level of preparation on the art of the

candidates. Applicants should continue to research the employer after the first

interview, and be prepared to use any information gained through the previous

interview to their advantage.

l) Telephonic interview:

As its name depicts, these interviews are those which take place through telephone.

In this kind of interview it is better that you have a copy of your resume in your

hand and also if you are using your home phone then make sure that there is no

disturbance or noise from your family members. Speak a bit slower than usual. It is

crucial that you convey your enthusiasm verbally, since the interviewer cannot see

your face. If there are pauses, do not worry; the interviewer is likely taking some

notes.

6. Checking references:

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 on the application

form, references are not usually checked until an applicant has successfully reached

the fourth stage of the sequential selection process.

Organisations normally seek letters of reference or telephone references.

The latter is advantageous because of its accuracy and low cost. The telephone

reference has also the advantage of soliciting immediate, relatively candid

comments and attitude can sometimes be inferred from hesitations and inflections

in speech.

It may be stated that the information gathered from references hardly

influence the selection decision. The reasons are obvious:

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

or her.

b) People may write favourably about the candidate in order to get rid of him or

her.

c) People may not like to divulge the truth of the candidate, lest it might damage or

ruin his or her career.

7. Physical/ Medical examination:

The pre-employment physical examination or medical test of a candidate is an

essential step in the selection procedure. It has three objectives:

a) It serves to ascertain the applicant’s physical capabilities to meet the job

requirements.

b) It serves to protect the organisation against the unwarranted medi-claims by the

candidate.

c) It helps to prevent the communicable diseases from entering the organisation.

A qualified medical expert appointed by the organisation or a government

employee should certify whether the candidate is physically fit to the requirements

of a specific job. A proper medical examination will ensure higher standards of

health and physical fitness of the employees and will reduce the rates of accidents,

labour absenteeism and turnover.

8. Final selection and Appointment letter:

After a candidate has cleared all the hurdles in the selection procedure, he is

formally appointed by issuing him an appointment letter. The date by which he

must join the organisation is mentioned in the letter. The broad terms & conditions

of the employment, nature of job, pay scale etc. are also an integral part of the

appointment letter.

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But now-a- days, the candidate is given the offer letter first and all the

terms & conditions are mentioned in that and he has to accept it and revert back to

the organisation and then after the completion of some months of his employment

in the organisation, then the appointment letter has been issued to him.

HR hierarchy of Mahindra& Mahindra Group

HR Hierarchy at Mahindra Finance

55

Vinay Deshpande

(Vice president, HR)

Vinod Nair

Head, HR Operations

Aditi Chandra

Head, Learning & Development

Mahindra finance

Zonal HR Circle HR

Regional HR Area HR

Training at Mahindra & Mahindra Group

After crossing all the hurdles of selection process, when the candidate is finally

selected, then he will be given the offer letter of the company and he has to return

the same to the company after duly signing it. The offer letter gives all the

information regarding what is his role in the company, his joining date, respective

branch where he has to join etc.

But before the candidate joins the respective branch of the company, he has to

undertake a training which is provided by the company to all the freshers.

This training is called DRONA, and it is for a period of 5 days for all new joinees.

This training is held at Mumbai. The company bears all the expenses like,

accommodation, travelling expenditure, food etc. of all the employees who come

for this training.

In this period of 5 days, Viva’s and tests are conducted by the company and on that

basis employees are assessed as to on which level they currently stand. After the

completion of DRONA program , the employees join their respective branches.

After a period of 5 months, the company again makes an assessment of those

employees who have gone through DRONA. This time the employees have to give

presentations of what they have learnt during this period, they are required to give

several tests and viva’s again in order to prove their worth to the company.

The employees who will pass in this assessment, they will be issued the

confirmation letter of the company and from then they will be called the confirmed

employees of the company and will be given all the facilities which a confirmed

employees should get.

And, the employees who fail in this assessment, the company will give them 1

more chance to improve upon their performance.

After a period of 3 months, the employees who did not clear the previous

assessment, they will be assessed again by the company and he has to go through

various tests and other procedures and if this time he clears, then he will be

confirmed otherwise he will be terminated by the company.

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Regional HR Area HR

Facts & Findings

1. Working environment-: Working environment is an important factor to keep the

employees engages to the organization. Employees need different kind of working

environment at different levels. HR people must keep this factor in mind.

2. Performance appraisal-: Appraising performance should be done in such a way

that it does not threat the employee that any point of time. Otherwise employee

motivation and so employee engagement can come down dramatically.

3. Recognition-: Recognition is important to keep employee motivated and committed

to the organization. Different levels of hierarchy require different kind of recognition.

4. Communication-: Clear upwards and downwards communication is required for

the employee involvement in the organization. Communication barriers can create

high amount of dissatisfaction among the employees and some time it takes the form

of rumors and affect the organization badly.

5. Relationship-: Interpersonal bonding is essential for getting out of the employees

coaching and mentoring system not only developed the employee but also builds a

moral bonding for better engagement.

6. Transparency-: Transparency in the organization is required at all the levels and it

actually creates a good amount of enthusiasm especially among the middle and

bottom level of management.

7. Compensation-: Compensation is a major factor of motivation. Monetary and non-

monetary compensation can be used wisely to motivate the employees and keep the

engagement level higher.

8. Motivation-: Overall motivation of the employee depends on numerous factors and

it is a most important aspect of employee engagement.

9. Learning and growing opportunities-: this factor is especially important for the

bottom and middle level of management and it ensures long term employee

organization orientation and employee commitment.

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