TO STUDY THE CONTRASTING BEHAVIOR OF THE TRADITIONAL PRACTICES
TO THE CONTEMPORARY PRACTICES IN RECRUITMENT PROCESS.With reference
toAUROBINDO PHARMA LIMITEDHYDERABADA Project Report Submitted to
Institute of Public Enterprise, Hyderabad in partial fulfillment of
the requirement for the award of degree of
POST GRADUATE DIPLOMA IN MANAGEMENT HUMAN RESOURCE
MANAGEMENTSubmitted By: SOMA KIRAN GONELLA(ROLL NO: 1308013) Under
the Esteemed Guidance ofDr. JAGAN MOHAN REDDY Professor
INSTITUTE OF PUBLIC ENTERPRISESHAMEERPET CAMPUSHYDERABAD -
5000782013-2015
DECLARATION
I, hereby declare that the SIP Work titled, TO STUDY THE
CONTRASTING BEHAVIOR OF THE TRADITIONAL PRACTICES TO THE
CONTEMPORARY PRACTICES IN RECRUITMENT PROCESS is an original work
done by me under the Supervision of Dr. JAGAN MOHAN REDDY,
PROFESSOR, PGDM-HRM, IPE, Shameerpet Campus, Hyderabad and Mr.
SRINIVASN M, Dy. Manager, Aurobindo Pharma Ltd. This project has
not been submitted elsewhere for the award of any degree or diploma
either in part or full in any university/institution.
Place: - Hyderabad. Soma Kiran GonellaDate: -
ACKNOWLEDGEMENTNo task however small can be completed without
proper guidance and encouragement. It is a pleasure to acknowledge
my debt to the many people involved directly or indirectly, in the
successful completion of the project.I would like to acknowledge
the help rendered to me by Prof. R.K. Mishra, Director, IPE,
Hyderabad.I would like to thank CS Anil Kumar, Coordinator,
PGDM-HRM, IPE, Hyderabad, for guidance and support throughout the
course of this project. I express my deep sense of gratitude to Dr.
JAGAN MOHAN REDDY, PGDM-HRM, IPE, Hyderabad, for his timely help
and integrity in handling my needs. I take this opportunity to
thank his profusely for his excellent guidance and support
throughout the course of this project.My Sincere thanks to Mr.
Srinivasan M, Dy. Manager, APL, Hyderabad for their guidance and
co-operation.I extend my thanks to the HR department of APL,
Hyderabad for their guidance during my interaction with them.
Place: - Soma Kiran GonellaDate:-
Contents:PAGE1 INTRODUCTION-5
2 COMPANY PROFILE-20
3 LITERATURE REVIEW-35
4 DATA ANALYSIS AND FINDINGS-59
5 CONCLUSIONS-70
6 BIBILOGRAPHY -72
INTRODUCTION
Make in India elevates the openness of India in encourage the
manufacturing sector and sends a vibrating sound to the world.
After three decades approximately after chinas initiation of the
concept of make in China, India understood the significance of
attracting manufacturing companies that wide spread across the
world. India is not the only country, already Indonesia,
Philippines and most of the South Asian countries understood the
importance of it and initiated already and accepted the processing
industries. But, Indias strategy clearly understood by the
corporate world, Aging factor is what is becoming our strength and
the size of the population, diversity, huge band gap for the Middle
class people and yes Strategy for Indias Market is already put up
by the C.K Prahalad in his Book of fortune at the bottom of
pyramid. Corporate companys strategy can be intuited easily they
have a wide range of disparities not in just social context but
economically to market their product and have enough of labor. No
loss no profit strategy is the right game to be played by both the
corporate and Government of India. Though the initiative of Make in
India showcases the Ideology of Capitalism, It has both the pros
and cons. Well, the good thing about the Capitalistic Idea is,
Country will have a abundant flow of currency in it and the balance
sheet of the country take a positive side, Legacy of our
Constitutional frame workers definitely, put us in front when
compared to other countries and the whole and sole credit should be
delivered to them because for gifting India with the succession
instrument of Democracy, Making It leaders in keeping the country
in the right and on success track. A plethora of initiatives taken
and taking by our leaders might increase in the factors like Human
Development Index Factor, Rise in GDP, Flow of Foreign Exchange and
so on. Globally, India will have its reputation which is a positive
sign for a capitalistic country. Considering the other side of the
coin, there might be a chance of exploiting the human, which is not
correct, socially, there is Human Rights commission positioned in
the Constitution, so it can be regulated by these commissions and
many of the NGOs are working on these practices. Intense
initiatives of Make in India concept may break the equilibrium
between the Ecology and the Environment and a sustainable outcome
may not be accepted and in a sense it has got a serious problem but
can overcome through proper initiatives, government should and it
is a must, if these capitalistic ideas are put in practice. But the
bottom of line is India should accept this transformation bringing
by their leaders as the globe is driven by mostly through
capitalistic ideas and no one can escape from the eye of this
capitalism.Cascading the topic from international level to the
National Level, India is creating a good opportunities for the
Industries, In more clear sense, Manufacturing sectors contribution
to the GDP is increasing year by year and it is clear, a positive
sign for the whole Manufacturing sector. There is a positive shift
taking place after approximately, 150 years after the Industrial
revolution. Though India is good at producing a good amount of
Software Engineers, in recent context India does not restricting
itself to certain sectors, but trying to create that gambit for
other industries. India producing a pool of talent required for all
industries and our expertise in English compared to other countries
making us unique from the rest of South Asian countries. Being an
intellect one should accept and appreciate that the hurdles we
Indians came across in Indias legacy of success. Being a Knowledge
Industry, Indians have a wrong perception about the Pharmaceutical
Industry by resisting themselves from investing in Research and
development leading to placing ourselves a step down compared to
other Pharma companies across the Globe, this Ceiling glass should
be broken. Current scenario in India and across the globe is a
positive factor for Indian Pharma Companies, though there are some
ups and down in the industry, in all the performance of Indian
Pharma Industry is going outstanding, which is a positive sign for
the companies across the globe. The Gross Domestic Product (GDP)
growth rate for the past two years has successively slowed, down to
6.2% in 2011-12 and further to 5% in 2012-13. Despite this, the
compound annual growth rate (CAGR) of GDP at factor cost, over the
decade ending 2012-13 was 7.9%. The economy slowed down rapidly
despite recovering from the global financial crisis, due to a
variety of reasons such as, high inflation, reduced consumption
demand, deceleration in corporate and infrastructure investment and
tighter monetary policy. The economy was also hit by additional
shocks of a slowing global economy, weighed down by the crisis in
the Euro area and uncertainties about fiscal policy in the United
States. As growth turned sluggish and government revenues did not
keep pace with spending, the fiscal deficit threatened to breach
the target. With government savings falling, and private savings
also shrinking, the current account deficit, which is the
investment that cannot be financed by domestic savings and has to
be financed through trade surplus, also widened.India's
pharmaceutical sector is poised to grow from the present US$ 15.6
billion, to US$ 35.9 billion by 2017. A similar forecast has been
published in a Pricewaterhouse Coopers (PwC) report which believes
that the industry size could possibly touch US$ 74 billion by 2020.
The Indian Government's Pharma Vision 2020 also aims at making
India a global leader in end-to-end manufacture by 2020, and hence
the Government is planning to set up a US$ 640 million venture
capital fund to boost drug discovery and further strengthen the
pharmaceutical sector. According to industry estimates, the Indian
pharmaceutical industry produces about 60,000 generic brands in 60
therapeutic categories and manufactures more than 400 different
APIs. Presently, generics dominate the market while the
expectations are that patent-protected products are likely to
constitute 10% of the industry cake by 2015. Both Indian and
foreign multinationals are set to launch patented drugs across
India. Rural India is likely to witness a step-up in demand since
manufacturers are reaching out to chemists by expanding their
distribution network. Pharma industry is likely to see greater
vibrancy when the networks start to impact manufacturing by 2015.
India is considered a high-value hub for clinical trials due to the
presence of genetically diverse population and availability of
skilled doctors. In its bid to step up Indian exports from the
present tally of US$ 310 billion and reach a target of US$ 500
billion by 2014, the government believes that pharma is a major
thrust sector growing at 15% annually and generics is a major
strength area. Pharma industry is considered a focus area to
achieve the overall target. India is expected to double
pharmaceutical exports in the next few years, with the
Pharmaceutical Export Promotion Council (Pharmexcil) eyeing
overseas sales worth US$ 20 billion by the end of 2014-15. The
figure stood at around $10 billion in 2010-11Traditionally India
has been exporting to regulated markets, the US and the EU markets
accounting for a major share apart from other regulated markets
such as Oceania and Japan and less regulated markets such as Latin
America, Africa and parts of Asia. India witnessed a phenomenal
growth in the EU and North America, with growth in Africa also
being spectacular. In the former markets India has largely been
existent in the upper end of the value chain. Japan offers a fresh
opportunity for quality conscious manufacturers. Given the heavy
pressure on the health requirements, specially its aging
population, Japan which is a US$ 109 billion market, of which
generics constitute 8%, has decided to enlarge its generics
portfolio. Japan today represents an opportunity for the Indian
pharmaceutical industry. India has also entered into an FTA with
Japan, which is a conscious agreement to mutually increase
cooperation in the pharma sector. An element of this is the fact
that Japan has extended national treatment to Indian
companies.Salient features of the Indian pharma industry are:
Accounts for over 10% of global pharmaceutical production;
Manufactures over 60,000 generic brands across 60 therapeutic
categories; Produces more than 400 different APIs; Over 120 US FDA
and 84 UK MHRA approved manufacturing facilities in India;
Manufacturing cost of Indian pharma companies is up to 65% lower
than that of US firms and almost half of that of European
manufacturers; Lower cost of production and R&D capabilities
boosts competitiveness of Indian pharma companies; Comparative cost
advantage enhances Indian pharma exports; and, Pharma industry
exports amount to approximately US$ 310 bn a year.
Human Resource Management: For more than a century now, human
resources management, as a discipline and practice in the
management of people in an organization, has evolved and developed
into different areas. Humans always plan, develop and manage
relations, both consciously and unconsciously, relations what a
human maintain are the outcomes of their actions and depend to
great extent upon the liability of humans in managing their
actions. Literal meaning for the resource is a source, from which
the benefit is produced. Human beings in the form of labor provide
services to an organization and expect benefit in return. The whole
term Human Resources refers to skills, energy, talent, abilities
and knowledge possessed by humans and uses them in producing the
goods and also in rendering the services. Management is defined as
the activity of planning, organizing, staffing, controlling and
directing the resources. So the whole term Human Resource
Management refers to controlling, planning and organizing the men.
Human resources management in an organization is designed to
perform functions like improving the employee performance,
recruitments, Training and Development, compensation and benefits,
Rewards and recognition, Talent Management, labor relations,
personal relations, succession planning, diversity management,
performance appraisal of employees, corporate social
responsibilities, Organizational development, etc. The core
philosophy in Human Resource Management is drawn from different
theories, like Motivational theories, Wage theories, Learning
theories, Personality theory, Leadership theory etc. These theories
are grouped up based on their characteristics and time bound;
Classical theories of organization, Humanistic theories of
organization, Human resource theory. Classical theory completely
emphasizes on the coercion, control, punishments and focuses on
production rather than the human needs- Taylors theory of
management, Fayols administrative theory and Webers theory of
Bureaucracy. Humanistic theory is characterized by a shift in
emphasis from task to individual worker; this theory emphasized
more on the dyadic conceptualization of communication, social
relationships- The hawthrone studies, Chester Bernard, Mc Gregors
Theory X and Theory Y are some theories contributed to the Human
relations theory. Human resource theory is designed by considering
the drawbacks in both Classical and Humanistic theory, It
emphasizes more on making the workers engaging in the decision
making process-Theory by Rensis Liker and theory by Blake and
Mouton.Human resource management had a history over a century, in
past it was personal management, but a wide diversifications over
decades in personal management led to Human resource management.
The history of Human Resource Management had reflected prevailing
beliefs and attitudes held in society about employees, the response
of employers to the public policy and reactions to trade union
growth. In the early stages of the industrial revolution,
extraordinary codes of disciplines and fines are imposed by the
factory owners. These developments led to chaos between the workers
and the factory owners, a number of philanthropic employers began
to develop a paternalistic care and concern for their employees.
The word Imperialism affected World War-I and its after effects led
to Personal management and emerged with a great power and
established a new orthodox. The post World War-II had very deep
interventions in personal management; Government interventions in
the functioning of labor, creating Industrial peace by avoiding
Industrial disputes through special legislatures- Trade unions Act,
ID act, Sex discrimination act, Bonus act, Factory act are some of
them. These interventions by government drove the changes in the
personal management strategically into Human Resource Management.
The capitalistic world drives the economy and the pool of companies
to face many challenges, especially in the HRM. It has become more
dynamic for the companies to withstand the socio-economic
environment and wide diversifications in the technologies. Managers
of today have to face these dynamic changes with strategic
approaches. Some of the challenges that both managers and the
companies face in this environment are- Increasing the size of the
work force, Education level, Deep understanding in technology
advances, Dynamic changes in the political environment, Increasing
aspirations of employees, changing psychosocial systems,
computerized information system, Mobility of personnel
professional, changes in the legal environment, management of human
relations. The Hr has undergone a great revolution by questioning
the accepted practices and re-inventing the organizations and
structures, traditional approaches have been thrown out-
Hierarchies are vanishing and there is great emphasis on flat
organizations. The new role of HRM is more strategic than the
traditional- A facilitator to change, an integrated approach to
change, as a mediator. Not only in the Roles and responsibilities
but also there is a change in the functions of Hr manager as a
Intellectual, Educator, Discriminator, Executive, Leader, Humanist,
Visionary and so on. While practicing as a manager in an
organization Hr has to perform both managerial and operations
functions. Managerial functions like planning, organizing directing
and controlling, Operational functions like recruitment, selection,
training, placement and framing Hr policies and also settle
industrial disputes.No organization can exist and function well
without formal rules of engagement in managing the people; these
are general guide lines that express how the management intended to
manage the people and what is expected of the employees. Policies
could be implicitly embodied in the organizations vision and
mission statements or explicitly established in its strategic plan
and human resource strategic plan and they define the values and
the philosophies of the company. A policy must ensure peoples
management in line with the corporate values; Decisions pertaining
to the HR are made consistently, Minimizing the inequality among
the Facilitates decentralization, delegation and local
empowerment.It is a staff function concerned with hiring,
motivating and maintaining people in an organization that human
talent is used effectively and efficiently to accomplish
organizational goals. In short, the aim is to achieve mission,
vision, goals and objectives of an organization using people as
valuable resource. In comparison with the traditional approach the
new management has intervened into the employee engagement and
appraising them for their performance, Utilizing the staff capacity
in most effective way; proper concern for the man power planning
and also for HR metrics are considered- This manifests itself in
different approaches used in job design, recruitment and placement
and also includes redesigning of the jobs, hiring of the
multi-skilled employees and so on. Employee commitment to the work
should be encouraged; otherwise, it could result in the low morale
among the employees these can be regularized through minimizing the
conflicts, nurturing and mentoring them, integrating the
organizational systems, processes and activities through synergized
approach; in turn a unique culture is made with proper values,
attitudes, norms and practices. In pursuit, in performing these
human resource functions, mangers should be able to adapt to a
dynamic change in the external system interlaying with the
organizational goals and principles. Achieving a dynamic change is
not possible with the traditional bureaucratic style or with
adhocracy; a proper decentralized decision making should be made at
each and every level- How the job is done is not an important
aspect rather how it is achieved is important. In decentralization,
mangers who are not directly involved in the production line are
considered as the staff managers, who are directly involving in the
production line or vertical line are considered to be line
managers. The objectives of human resource management implied that
the HR department does not quantify to one department rather it has
wider duties and responsibilities to perform at every vertical and
at every level in the organization. So, HR department has to
perform both the Line functions and the Staff functions as well.
While decentralizing the functions, a proper organization structure
should be designed in such a way that decision making level
authority and the roles and responsibilities of a job is
classified. In designing the organizational structure, make sure
that it should be a rigid structure and proper concerns should be
taken care off.
Organization Structure:Organizationalstructuredetermines how
theroles, power andresponsibilities areassigned, controlled, and
coordinated and howinformation flowsbetween the differentlevels of
management. In designing the organization structure choosing
weather the organization to follow functional or divisional
structure is mandatory. Effective structure facilities management
and clarifies relationships, roles and responsibilities, levels of
authority and supervisory or reporting lines, overall review of
organization structure gives a brief idea to a manager in
determining human financial and technical resources are available
and how they should be allocated, and which resources are lacking.
The structure of the organization describes the functions, tasks
and authorities of the departments divisions and individual
employees by maintaining healthy relationship between them, it also
describes the number of employees in each division unit and
department on the basis of tasks, functions and authorities these
structural coordinates of different units work in conjunction as
organization as a whole. The structure should be in a way that the
organization should enhance its efficiency and profitability, the
duties and responsibilities of those in the company must be
identified and the line of authorities must be carefully
delineated, so that all the members of the organization understands
about their job role and responsibilities. This initiative of
framing the organization structure emanates the formal and detailed
structure and everyone in the organization will understand who
reports to whom, who are the decision makers and which advisory
personnel is on hand to assist in decision making process. The
manager determine the activities in getting the job finished and
writes job description and organize people into groups and assigns
them to supervisors for the establishment of goals and deadlines
and establishes standards of performance. Organization in general
they choose Matrix type of structure as this structure proven to be
efficient enough in carrying away the daily operations. It is both
dynamic and functional, that it is the combination of two
structures and allows team members to share information more
readily across the task boundaries. It also allows for
specialization that can increase depth of knowledge in a specific
sector or segment. There are some proven hardships in its
structure, it increases the complexity in the chain of command and
there is wide contrast between the functional and project managers,
which confuses employees in understanding the chain of command. An
additional disadvantage in this structure is superior to
sub-ordinate ratio, this result in conflicting loyalties among the
employees. Yet, matrix structure also has significant advantages
that make it valuable for companies, it is designed upon the silo
critique of functional management where it diminishes the vertical
structure of functional and creates a more horizontal structure
which helps in spreading of information across departments to be
happen quicker. Moreover matrix structure allows for specialization
that can increase depth of knowledge and allows individuals to
choose accordingly to project needs. Individuals and Project needs
are interlaid and produce the concept of maximizing strengths and
minimizing weaknesses.
IT Practices:In new millennium, not only HR practices but also
IT practices have been booming. Evolution of HRM intertwined with
developments in IT and describing how IT has played important role
in the HRM function. HRM in the firm has changed over time from
primarily being concerned with routine transactions and traditional
HR practices in dealing the complex issues. Transactional
activities are routine book keeping tasks, Traditional HR
activities are focused on HR programs like selection compensation,
and performing appraisals. However, transformational HR activities
are those actions of an organization that add value to the
consumption of the firm. Thus, transformational activities increase
the strategic importance and visibility of HR function in the
organization. With the intervention of technology into the HR
activities, the whole process of HR has been made easy and quick.
This intervention of technology into the HR is known as HRIS- Human
Resource Information Systems, Primary purpose of HRIS is to provide
service with accurate and timely information, to the clients of the
system. As a HR information may be used for the strategic, tactical
and operational decision making to avoid litigations, to evaluate
day to day programs, policies and also to support daily operations.
All these functions are powered by the information systems and the
Internet, almost every process in every function of HRM has been
computerized today. Electronic Human resource management reflects a
philosophy for the delivery of the HR; it uses informational
technology, particularly the web, as the central component of
delivering efficient and effective HR services. Organizations
embracing an e-HRM approach dont simply utilize the technology in
the support of the human resources but instead technology is
enabling the HR function to be done differently by modifying the
information flows, social interaction patterns and communication
processes. HRIS comprises the technology and processes underlying
this new way of conducting human resource management. An HRIS
include technologies such as databases small functional systems
focused on a single HR application or a large scale, integrated
enterprise resource planning architecture and web based
applications, Mobiles and social networking sites that enable the
employees to access the HR data remotely or to connect with others
in the Organization. Major difference between the HRIS and the
E-HRM is that e-HRm tends to be more application and HR function
focused and an HRIS is more focused on the systems and technology
underlying the design and acquisition of systems supporting the
move to e-HRM. Issues such as need analysis, cost benefit analysis
and the entire cycle of HRIS implementation and
post-implementation, including project management and change
management should be addressed when implementing HRIS.
Organizational Development:OD is an educational process designed
to change the character or culture of an organization and to
improve organizational performance. Tied closely to societys
increasing concern for the welfare of the worker, OD evolved as an
attempt to apply some of the values and its insight of behavioral
scientists to total organizations. A long term effort led and
supported by top management, to improve an organizations visioning
empowerment learning and problem- solving processes, through an
ongoing collaborative management of organizations culture- with
special emphasis on the culture of the intact work teams and other
team configurations- utilizing the consultant- facilitator role and
theory and technology of applied behavioral science including
action research. OD mainly, focuses on the culture and the
processes, encourages collaborations between organizational leaders
and members in managing culture and processes, Task
accomplishments, focuses on the human and social side of the
organization.Features of OD - participation and involvement in
problem solving and decision making at all levels of organization,
focuses on systematic change, focuses on imparting of the
problem-solving skills and knowledge of continuous learning through
self-analytical methods to client to enable it to solve problems on
its own, reliance on action research model with extensive
participation by client system members. Values in OD A specific set
of values are beliefs about the people are associated with OD.
These values concern the nature of man and his work in the
organization. In essence OD practitioner imposes these values on
the organization he is attempting to change. These values are basic
assumptions about the people which underline the programs for
OD.Apart to the Hr practices inside the organization, how well they
are executed inside the organizations and restricts its anomalies
inside the organization to a great extent is well defined and
practiced under HR operations. Retrenchments, Attendance
management, Pay roll process, Training programs, recruitment
process, Compensation and benefits and Appraisal process helps the
organization to understand the normalitys and how well they are
executed inside the organization.Recruitment process: Traditional
recruitment and selection procedures have been around for decades,
which is at odds with the ever changing internal and external
environment of organizations. Hence, practitioners often wonder
whether there are any new research-based ways for recruiting and
selecting personnel. Another image problem for recruitment and
selection is that a false dichotomy is often created between
so-called macro HR (examining HR systems more broadly) and micro HR
(examining individual differences). It is further sometimes argued
that organizations should value macro approaches and write off
micro approaches as not being relevant to the business world. We
posit that these image problems and debates only serve to distract
and fracture the field and hide the fact that excellent HR research
and practice needs to take both macro and micro issues into
consideration. For example, creating an effective recruiting
strategy (some would describe this as a macro process) requires
considerable understanding of the decision making processes of
potential applicants (viewed as micro processes). The same can be
said with respect to designing effective selection systems, etc.
The challenge for many researchers then has been to demonstrate how
scientifically derived recruiting and selection practices add value
to organizations. Unfortunately, when the quality and impact of
recruitment and selection procedures for business outcomes are
investigated, they are often described in rather simplistic terms.
For example, in large-scale HR surveys (e.g., Becker and Huselid,
1998; Huselid, 1995; Wright et al., 2001; 2005) sound selection
practice is often equated with whether or not formal tests were
administered or whether or not structured interviews were used.
Similarly, effective recruitment is associated with the number of
qualified applicants for positions most frequently hired by the
firm. Although such questions tackle important aspects of
recruitment and selection we also feel that such descriptions do
not capture the sophisticated level that recruitment and selection
research and practice has attained in recent years. This
oversimplification in largescale HR surveys is understandable due
to the difficulty of getting usable survey data across a diverse
set of companies.
Information Technology: Organizations have had to adjust to the
new reality of online recruiting. These technologies have created
both problems and opportunities for organizations. Organizations
can significantly reduce costs to advertise positions by using
third party job boards (e.g., Monster.com) or through company
websites. The inexpensive nature of online recruiting permits the
conveyance of large amounts of information to potential applicants
at a minimal cost relative to traditional advertising venues such
as newspapers. Media content can be substantially richer including
graphics, photos, interactive text, and video. The potential also
exists for the immediate tailoring of recruiting information to
target the needs of prospective applicants. For example, after
completing a needs questionnaire online, a prospective applicant
could conceivably be provided with targeted information about the
organization, its benefit programs, and opportunities that
addresses their individual needs. Along these lines the customized
information about likely fit decreased viewing time and recall of
low- fitting individuals, suggesting a means to avoid these
individuals of being attracted to the organization. Clearly,
customized realtime recruiting approaches are within the realm of
existing technologies. Despite the benefits and efficiencies of
online recruiting, a downside is that many employers complain about
the flood of unqualified applicants that can result from online
advertising. This deluge of applicants can inflict considerable
costs on the organization if the online recruiting process is not
accompanied by an effective and efficient screening technology. The
importance of integrating efficient screening tools and online
recruitment needs to be emphasized to a greater extent in HR
practice. Researchers have also begun to focus more specifically on
what makes an effective company website for recruiting purposes.
Specifically, these authors suggest that web site content,
appearance and navigability are all important for recruiting
purposes. Perceptions of the website aesthetics and usability
accounted for 33 per cent of the variance in pursuit intentions and
31 per cent of the variance in recommendation intentions. Clearly,
investing resources in web site aesthetics such as the use of
pleasing colors, pictures of smiling employees, and easy to
navigate functions such as direct links to application forms can
have appreciable benefits for recruiting. Setting up a recruiting
oriented web site (instead of a screening oriented web site) was
associated with significantly higher attraction by prospective
applicants.Research Methodology:The data for the study recruitment
and selection process in Aurobindo was collected from the companys
database. The research was conducted to examine the efficacies of
Recruitment and selection process. The study gives in depth
knowledge about of how effectively; the process is implemented in
the organization as a part of HR activities in the
organization.AIM: To study the contrasting behavior of the
traditional practices to the contemporary practices in Recruitment
process at Aurobindo.Place: Aurobindo Pharma Limited, Hyderabad
Objectives of the study: To study the existing recruitment policies
at AurobindoTo study the effectiveness of the Recruitment process
at AurobindoTo analyze the vacuums created by the traditional
practices against the contemporary practicesNeed for the
study:Recruitment process is one of the core processes of any
organization, The world has become more competitive and globalized.
There is a need for the landscape of the processes in the
organization should be shifted from the current trending
traditional practices to Contemporary practices. The shift is
paradigm but it just not gives the organization a competitive
advantage, In a line parallel to this the quality can be
anticipated and is phenomenal. Is this phenomenal behavior can be
adopted by the Aurobindo? It is the Question to be answered in
foremost a research should be carried to know the efficiencies of
the process and this is possible from the previous data, like how
the different sources are identified and the numbers plays a great
game and this process will be the barometer for the Recruitments at
Aurobindo.
Research Design: The inception of the process starts from the
collecting the data from the different sources and getting the
numbers, like how many employees were selected to the organization
and to which department they were selected.Data Sources:All the
data regarding to the study is collected from the Secondary
Sources. As the study do not require any primary sources of
data
COMPANY PROFILE
Overview of the company: Among the top-5 Indian Pharma companies
Second largest API Business in Asia. More than 85% of business
coming from international operations across 125+ countries Focus on
complex molecules, differentiated and specialty products Wide
diverse product basket with 2,100+ formulation filings &
c.2,500 API filings worldwide In-house R&D for rapid filing of
Patents, DMFs and ANDAs 18 Manufacturing plants and 2 R&D
Centers. Most plants are USFDA, MHRA, TGA, MCC, Health Canada
approved. Well spread global marketing network through 34
subsidiaries & 3 joint ventures Employee strength of 11000+ on
rolls (API: 5665, FDF: 4140 and R&D: 800)
Vision:to become Asia's leading and one among the top 15 Generic
Pharma companies in the World by 2015.
Corporate Values:Business Care:1. Operational Excellence2. Stake
Holder Orientation3. Quality4. InnovationPeople Care:1. Fairness2.
Humility3. Respect4. Synergy5. Applied LearningOrganizational
Care:1. Accountability2. Integrity3. Achievement
Strength:Is derived from its robust, vertically integrated
infrastructure, intelligent research and development of wide
portfolio of products quality processes and talented and motivated
people who are commited to our values
Manufacturing Base- APIUnit I India Non betalactamNon-sterile
API
Unit VIII India Non betalactamNon-sterile API
Unit XIB India Non betalactamNon-sterile API
Unit XIV India Non betalactamNon-sterile API
Silicon LS India Penem Non-sterile API
Unit IA India CephalosporinNon-sterile API
Unit VIA India CephalosporinSterile API
Unit V India SSP Sterile &Non-sterile API
Unit IX India SSP Non-sterile API
Unit II India Betalactum Non-sterileIntermediates
Unit XIU India Betalactum Non-sterile API (EM)
Manufacturing Base FormulationsAuroLife USA Non
betalactam,Controlled substances Solid Orals
Unit III India Non betalactam Solid & Liquid Orals
Unit IV India Non betalactam Injectables & Ophthalmic
Unit VII (SEZ) India Non betalactam Solid Orals
AuroNext India Penem Injectables;Sterile API (EM)
Unit VIB India Cephalosporin Solid & Liquid Orals;
Injectables (EM)
Brazil Brazi SSP / Amoxi Solid & Liquid Orals
Unit XII India SSP Solid & Liquid OralsInjectables
Eugia India Oncology and Hormones Injectables and Soft Gel
Capsules
Natrol Inc USA Nutraceuticals Solid & Liquid Orals
AuroHealth USA Pharma OTC Liquid Orals
Approved by Regulatory Agencies like USFDA, UKMHRA, WHO, Health
Canada, MCC SA, TGA, ANVISA BrazilMarketing reach closer to
customers:
ThailandAustraliaChinaRussiaMaltaSpainswissHungaryU.KNigeriaS.AfricaBrazilUSACanada
Present in more than 25+ countriesU.S, Canada, U.K, Brazil,
South Africa, Hungary, Portugal, Spain, Netherlands, Switzerland,
Russia, China, Nigeria, Thailand and Australia34 subsidiries and 3
joint ventures outside IndiaOperations in more than 125+ countries
across the globe90% Aurobindos API requirements are met
internally
Journey of Aurobindo:
Facts about Aurobindo: FY 2009-103651FY 2010-114480FY
2011-124300FY 2012-135451FY 2013-148099FY 2014-159500 (till
Q3)Total Employee Base: 11000+ employees (on roll) 22,000+
employees (off roll)Total Number of Units : 18Average Age of
Employees: 32.6Qualified Workforce since it is Knowledge based
CompanyReaches US $2 billion by this March (Currently nearly 11,000
crores)650+ scientists including 35 Ph.DsAssociated with UNO for
development of ARVs 2 R and D units Formulations and APIs each90%
of Aurobindos API requirements is met internally Human Resource
Philosophy at Aurobindo:To attract, build and retain right talent
at all levels; To create and nurture performance culture through
continuous capability building, performance measurement and
leveraging of IT; To foster leadership at all levels through trust,
empowerment and openness; To strengthen collaborative approach for
business excellence; and, To promote a vibrant work culture based
on innovation and to incentivize people based on
productivity/outstanding performancePhilosophy of Talent Management
at Aurobindo:Establishment of vibrant organizational culture;
Talent attraction and retention; Continuous capability building;
Recognition of outstanding performance of the team/individuals;
and, Staff welfare
Talent Management at Aurobindo:Aurobindo has professionally
managed Organization with meritocracy and scientific
temperAurobindo Training and Development Centre (ATDC) to train
entry Level professionals. In House journal Auropulse to share
company news and employee welfare.E- enabled HR process,
Professional HR team
Learning and Nurturing Culture:Some of the learning and
development projects implemented, recently are:FEiT: Functional
Experts in team an initiative that involves operators and
executives directly from the shop floor. The program focuses on
building ownership to identify process improvements and immediately
implement them. Each employee identifies projects that can improve
productivity, reduce cycle time and meet timelines and have covered
six manufacturing units through this initiative.GB - Green Belt
certification: This is an effort to institutionalize process
improvements that reduce cycle time, boost productivity, enhance
capacity utilization and sensitize employees with problem solving
concepts and toolsInternal trainers: As part of enhancing employee
engagement, we identified in-house subject matter experts (SME) and
trained them on train-the-trainer programs. Aurobindo today have
165 SMEs who train in subjects such as cGMP, SOP training and audit
preparedness.Boot Camp: Trainers take sessions on planning,
communication, OAR (Ownership, Accountability & Responsibility)
and team work and use live examples straight from the shop floor to
encourage participants, motivate supervisors and seek improvement
right away. This is a high impact, high recall and high
productivity effort.SMT - Self managed teams: An intensive three
month program, training permanent workmen on handling production
and small time maintenance with emphasis on cGMP, critical SOPs,
chemical handling and safety procedures.Safety Mantra: These
programs are organized for the entire production, maintenance,
warehouse and QC teams which has lowered incidents and accidents
related to earthing practices, nitrogen handling, use of plastic
liners & insulated material, proper control of static
electricity and accumulation of solvent concentrations in work
areas.
Strengths of the Company:Strict confidentiality and utmost
secrecy are maintained through absolute adherence to the
nondisclosure clause; Efficient supply chain management and optimal
utilization of capacities, are ensured enabling Aurobindo to pass
on substantial cost benefits to its customers; Sticking to set
deadlines. For instance, the Company commercialized an API
involving a 14-step process with five chiral centers in just 13
weeks; A huge library with syndicated databases is available and
the latest software ensures quick and efficient literature/patent
survey and retrieval of information; Multi-disciplinary project
teams interface with the customers' right from the start to ensure
a seamless integrated approach. Their responsiveness enables rapid
execution of projects;Besides conforming to cGMP and cGLP due
attention is given to safety, health and environment aspects; The
Company has harnessed the latest in communication technology - a
dedicated server for on-line data processing, video conferencing,
teleconferencing, etc. to ensure constant communication throughout
the life of the project; A right mix of instrumentation and
production expertise with due emphasis on profiling,
characterization of compounds and reduction in impurities, chiral
resolution and impurity profiling ensure the highest quality of
deliverables and yield optimization; The manufacturing
infrastructure, the knowledge base at the research centers and the
ability to deal successfully with its process chemistry strengths
are the forte of Aurobindo.
Career Growth at Aurobindo: For Manufacturing UnitFor Management
LevelTrainee PositionTrainee PositionProbation PeriodProbation
PeriodAssistant S4AssistantAssistant S3Sr. AssistantAssistant
S2ExecutiveAssistant S1Sr. ExecutiveExecutive E1Assistant
MangerExecutive E2Deputy MangerExecutive E3MangerExecutive E4Sr.
MangerAssistant Manger A.MA.G.MDeputy Manger D.MD.G.MManager G.MSr.
ManagerA.V.PAssistant General Manger - A.G.MV.PDeputy General
Manger D.G.MGeneral Manager - GMAssociate Vice President A.V.PVice
PresidentIn all Aurobindo have good career opportunities for its
employees and promotions are purely based on the Performance and
the experience.Learning Sharing and Growing at Aurobindo: Aurobindo
is a hive of activity and employ over 9000+ people across its
offices and Manufacturing Units. It strives to provide its people
with opportunities for professional development and personal
fulfillment. Though the process is driven by people focused
programs it is identifying competencies in order to build
leadership skills by enhancing the capabilities of its people at
all levels and promoting skilled workforce to address the process
improvements, increase productivity and most importantly Aurobindo
strongly believes in the Employee communication and engagement
through periodic newsletters and emails. Twice a year, we conduct a
town hall meeting for employees of our API and Formulation units,
In this senior managers listen to the group, discuss ideas and new
developments, set near and long term goals. It also encourages its
people to participate in CSR activities like adopting a tree,
Medical Camps, Water Camps, Womens Day, Water Harvesting programs
Aurobindo seriously Committed to provide intense learning and
development opportunities for its employees to ensure that they
maximize their peoples potential in both professional and personal
life. A skill gap analysis has been introduced to understand the
skills that are to be imparted at every level. Once they identify
the gaps the team provide with the relevant training programs. It
just doesnt stop at training programs but the journey continues and
strives to increase the scope of the training programs by Action
learning Programs that use the new skills and learning to execute
real improvements in working of the company. Aurobindo to increase
its scope of its business activities, it created Cross-functional
teams for some of the critical business domains like quality and
productivity and members for this team are picked across all the
divisions and oversee the companys shop floor and engage their
colleagues in improvising the processes Aurobindo trusts that
employee performance and contribution to the companys overall
growth. Appraisal are conducted periodically for senior management
level it is quarterly, setting ambitious goals by ensuring the
salaries, incentives and benefits are competitive and motivational.
Leadership development program an initiative taken by the
management in partner with leading consultancy firm aiming at
providing the clarity, Mapping of functional and behavioral skills
and creates individual development plan. This initiative will cover
middle and top Management level positions across API and the
Formulations.
Future Strategies of Aurobindo Pharma:Strategic
Acquisition:Aurobindo Pharmas future growth is expected to come
mainly from its international operations. Therefore, the company
plans to focus on the Europe and the US markets. It intends to
spend up to EUR 165 million on acquisitions, mainly in Europe,
where it is considering at least four to five acquisitions each in
the range of EUR 15 to 40 million.This is expected to provide the
company a wide marketing presence in this region.Focus on API
sales:In EU,Aurobindo Pharma will focus on the sales of API and
dossiers, along with the finished formulation contracts. It plans
to acquire several generic pharmaceutical companies for supplying
API, and aims at marketing its own formulations to large
distributors and generic companiesStrengthening Marketing
Infrastructure:Aurobindo Pharma has concentrated its efforts on
developing the infrastructure of its manufacturing and R&D
facilities across the globe.The company now intends to strengthen
its marketing infrastructure, in addition to its established
manufacturing infrastructure in India. It aims to increase
profitability by manufacturing and supplying products from its own
facilities.
Capitalizing on Patent Expiries:In the next five years, patents
worth several billion dollars are set to expire.The company plans
to benefit from the opportunity presented by capturing a sizeable
portion of the market thus createdThreats and Challenges:Aurobindo
is in a competitive market and the challenges are from both Indian
manufacturers who have similar production facilities as well as
those in China and Europe. Human resources with similar skills,
talents and experiences in the industry are mobile between
competing companies. Yet, it must be appreciated that Indian
manufacturers in general, and Aurobindo in particular, have made an
impact on the global stage and have worked hard to get shelf space.
Price sensitivities get tested in a crowded market where price
tends to sag while volume business gets done. Competing
pharmaceutical companies have several similar bio-equivalent
products in the same market manufactured at facilities that have
been approved by the highest regulatory authorities. All of them
stay focused on the same markets resulting in price elasticity
being tested and margins eroding.The Company is a dominant player
in the active ingredients business and has been able to control its
quality, save on timelines, control its costs and has the ability
to deliver at short notice. Pricing power i.e. the ability to price
lower and yet manage to get higher return on sales than the
competitors, is a potent strength. This is a unique advantage that
Aurobindo enjoys over manufacturers across the world. So the Threat
does not affect the Aurobindo infact.
LITERATURE REVIEW
Successful human resource should identify human resource needs
in the organization. Once the needs are identified, the process of
recruitment or acquisition function starts. Recruitment is the
discovering of potential candidates for actual or anticipated
organizational vacancies. Or, from another perspective, it is a
linking activity bringing together those with jobs to fill and
those seeking job. The ideal recruitment effort will attract a
large number of qualified applicants who will take the job if it is
offered. It should also provide information so that unqualified
applicants can self select themselves out of job candidacy; this
is, a good recruiting program should attract the qualified and not
attract the unqualified. This dual objective will minimize the cost
of processing unqualified candidatesRECRUITMENT: Introduction
People are integral part of any organization today. No organization
can run without its human resources. In todays highly complex and
competitive situation, choice of right person at the right place at
right time has far reaching implications for an organizations
functioning. An employee well selected and well placed would not
only contribute to the efficient running of the organization but
also offer significant potential for future replacement. Thus,
hiring is an important function. The process of hiring begins with
human resource planning (HRP) which helps to determine the number
and type of people an organization needs. Job analysis and job
design enables to specify the task and duties of jobs and
qualification expected from prospective job. HRP, job analysis and
job design helps to identify the kind of people required in an
organization and hence hiring. It should be noted that hiring is an
ongoing process and not confined to formative stages of an
organization. Employees leave the organization in search of greener
pastures, some retire and some die in the saddle. More importantly
an enterprises grows, diversifies, take over the other units all
necessitating hiring of new men and women. In fact the hiring
function stops only when the organization ceases to
existDefinition: Recruitment According to Edwin B. Flippo,
Recruitment is the process of searching the candidate for
employment and stimulating them to apply for jobs in the
organization. (Flippo, 1984) It is the activity which links the
employer and the job seekers. According to Yoder, Recruitment is a
process to discover the 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.Recruitment is the development and maintenance of adequate
manpower resources. It involves the creation of a pool of available
labor upon whom the organization can draw when it needs additional
employees. (Beach, 1975) Thus, we can say that: Recruitment is the
activity that links the employers and the job seekers. It is a
process of finding and attracting capable applicants for
employment. It begins when new recruits are sought and ends when
their applications are submitted. The result is a pool of
applications from which new employees are selected. It is the
process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection
of an efficient working force. Recruitment of candidates is the
function preceding the selection, which helps create a pool of
prospective employees for the organization so that the management
can select the right candidate for the right job from this pool.
The main objective of the recruitment process is to expedite the
selection process. Recruitment is a continuous process whereby the
firm attempts to develop a pool of qualified applicants for the
future human resources needs even though specific vacancies do not
exist. Usually, the recruitment process starts when a manger
initiates an employee requisition for a specific vacancy or an
anticipated vacancy.Purpose and Importance of Recruitment: 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
Steps in Recruitment:The process of recruitment can be divided into
following steps: Identification of job vacancy Job Description and
person specification Advertise the vacancy Manage the response
Short-listing Arranging interviewThe first step in recruitment
process is requisition for recruitment by planning department. The
human resource department or its wing responsible for recruitment
receives information about the job vacancies to be filled. The
details provided to recruitment people contain information about:
Post to be filled Number of people required New vacancy or
replacement etcJob Description and Person Specification: Once the
job vacancy has been identified, it is important to understand the
job for which a person is to be hired. It involves looking into the
duties to be performed, the qualifications required. One has to
take holistic approach during this stage, it is important that the
job environment should also be taken into account. This helps in
understanding the person specification in terms of behavioral
attributes rather than just the technical parameters and
qualifications. For example it is important to know whether the job
requires cross-functional approach which requires working in teams
having people from different departments and background which may
be problematic for some people whereas for some it may be the best
condition.Advertise the Vacancy: Once the job vacancy has been
identified and the job description and person specifications have
been understood. It is important to advertise the vacancy, so as to
find the job seekers with relevant skills and qualifications. This
is one of the most crucial phases of recruitment where a recruiter
has to strike a fine balance between the advertising costs, the
legal provisions and quality sources for recruitment. The
recruitment team has to identify appropriate sources of recruitment
(which have been described in following text) and manage the
advertisements in judicious manner. It is important for the
recruitment team to comply with all legal provisions, and to build
the employers brand in job seekers. It is also important to
advertise the desired qualification and necessary qualifications in
the clearest term possible.Managing Response: A carefully managed
advertising campaign results in a large pool of applicants with
desired occupational and educational qualifications. Such a large
pool of applicants has to be managed for further short listing.
This stage may involve scheduling of candidates or informing them
about next stage of recruitment, collecting more information about
applicants etcShort listing of Applicants: After receiving the
applications and details about applicants, a short-listing has to
be done in order to find people with most appropriate skills and
qualifications required for the job and to reject any
under-qualified candidate. This stage helps in saving a lot
expenditure and time which is to be incurred in later stages of
hiring. It also increases the chances of finding the best fit for
the job.Sources of Recruitment The sources of recruitment can be
broadly classified into 2 types: Internal sources of recruitment
External sources of recruitmentInternal Sources of Recruitment 1.
TRANSFERS: The employees are transferred from one department to
another according to their efficiency and experience. 2.
PROMOTIONS: The employees are promoted from one department to
another with more benefits and greater responsibility based on
efficiency and experience. 3. UPGRADING AND DEMOTION: Upgrading and
Demotion of present employees according to their performance. 4.
RETIRED AND RETRENCHED EMPLOYEES: Retired and Retrenched employees
may also be recruited once again in case of shortage of qualified
personnel or increase in load of work. Recruitment such people save
time and costs of the organizations as the people are already aware
of the organizational culture and the policies and procedures5.
DEPENDANTS AND RELATIVES OF EMPLOYEES: The dependents and relatives
of Deceased employees and Disabled employees are also done by many
companies so that the members of the family do not become dependent
on the mercy of others. 6. JOB POSTINGS: Job vacancy can also be
posted on company notice board for finding a suitable candidate
from within the organization
Advantages and Disadvantages of Internal Sources Of
Recruitment
AdvantagesDisadvantages
Motivated employees and Higher morale Employees familiar with
the organization Higher probability of success Industrial Peace
Relatively inexpensive Training and skill enhancement Overcoming
surpluses and shortages Reduced scope for fresh talent. Employees
may become lethargic if they are sure of time bound promotions
Spirit of competition may be hampered Frequent transfers of
employees may reduce the overall productivity of the organization.
Political infighting for promotion
External Sources of Recruitment PRESS ADVERTISEMENTS:
Advertisements of the vacancy in newspapers and journals are a
widely used source of recruitment. The main advantage of this
method is that it has a wide reach. EDUCATIONAL INSTITUTES: Various
management institutes, engineering colleges, medical Colleges etc.
are a good source of recruiting well qualified executives,
engineers, medical staff etc. They provide facilities for campus
interviews and placements. This source is known as Campus
Recruitment. PLACEMENT AGENCIES: Several private consultancy firms
perform recruitment functions on behalf of client companies by
charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO
(Recruitment Process Outsourcing) EMPLOYMENT EXCHANGES: Government
establishes public employment exchanges throughout the country.
These exchanges provide job information to job seekers and help
employers in identifying suitable candidates. LABOUR CONTRACTORS:
Manual workers can be recruited through contractors who maintain
close contacts with the sources of such workers. This source is
used to recruit labor for construction jobs. UNSOLICITED
APPLICANTS: Many job seekers visit the office of well-known
companies on their own. Such callers are considered nuisance to the
daily work routine of the enterprise. But can help in creating the
talent pool or the database of the probable candidates for the
organization. EMPLOYEE REFERRALS / RECOMMENDATIONS: Many
organizations have structured system where the current employees of
the organization can refer their friends and relatives for some
position in their organization. Also, the office bearers of trade
unions are often aware of the suitability of candidates. Management
can inquire these leaders for suitable jobs. In some organizations
these are formal agreements to give priority in recruitment to the
candidates recommended by the trade union. RECRUITMENT AT FACTORY
GATE: Unskilled workers may be recruited atthe factory gate these
may be employed whenever a permanent worker is absent. More
efficient among these may be recruited to fill permanent vacancies.
PROFESSIONAL & TRADE ASSOCATIONS: Many associations provide
placement service to its members. It consists of compiling job
seekers lists and providing access to members during regional or
national conventions. Also, the publications of these associations
carry classified advertisements from employers interested in
recruiting their members. These are particularly useful for
attracting highly educated, experienced or skilled personnel. Also,
the recruiters can zero on in specific job seekers, especially for
hard-to-fill technical posts.
Advantages and Disadvantages of External Sources Of
Recruitment
AdvantagesDisadvantages
Qualified Personnel Wider Choice Fresh Talent Competitive
SpiritDissatisfaction amongst existing staff Lengthy process
(Increased adjustment period) Costly Process Uncertain Process
Factors Affecting Recruitment The recruitment function of the
organizations is affected and governed by a mix of various internal
and external forces. The internal forces or factors are the factors
that can be controlled by the organization. And the external
factors are those factors which cannot be controlled by the
organization.
Factors affecting Recruitment Process
InternalExternal
Recruitment Policy Human Resource Planning Size Of The Firm Cost
Growth And Expansion Supply & Demand Labour Market Employers
Brand/ Goodwill Socio - Political - Legal Environment
Competitors
Internal Factors1. RECRUITMENT POLICY: The recruitment policy of
an organization specifies the objectives of recruitment and
provides a framework for implementation of recruitment strategy. It
may involve organizational system to be developed for implementing
recruitment strategies and procedures by filling up vacancies with
best qualified people. The recruitment policies of an organization
may be affected by following factors: Organizational Objectives
Personnel policies of the organization Government policies on
reservation Preferred sources of recruitment Need of the
organization Recruitment costs and financial implications
2. HUMAN RESOURCE PLANNING: Effective human resource planning
helps in determining the gaps present in the existing manpower of
the organization. It also helps in determining the number of
employees to be recruited and what qualification they must possess.
3. SIZE OF THE FIRM: The size of the firm is an important factor in
recruitment process. If the organization is planning to increase
its operations and expand its business, it will think of hiring
more personnel, which will handle its operations. 4. COST:
Recruitment incur cost to the employer, therefore, organizations
try to employ that source of recruitment which will bear a lower
cost of recruitment to the organization for each candidate. 5.
GROWTH AND EXPANSION: Organization will employ or think of
employing more personnel if it is expanding its operations.External
Factors 1. SUPPLY AND DEMAND: The availability of manpower both
within and outside the organization 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 the
professionals demanded by the company, then the company will have
to depend upon internal sources by providing them special training
and development programs. 2. LABOUR MARKET: Employment conditions
in the community where the organization is located will influence
the recruiting efforts of the organization. If there is surplus of
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 3. EMPLOYERS BRAND/ GOODWILL: Image of the employer can
work as a potential constraint for recruitment. An organization
with positive image and goodwill as an employer finds it easier to
attract and retain employees than an organization with negative
image. Image of a company is based on what organization does and
affected by industry. 4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT:
Various government regulations prohibiting discrimination in hiring
and employment have direct impact on recruitment practices. For
example, if Government introduces legislation for reservation in
employment for scheduled castes, scheduled tribes, physically
handicapped etc. it becomes an obligation for the employer. Also,
trade unions play important role in recruitment. This restricts
management freedom to select those individuals who it believes
would be the best performers. 5. COMPETITORS: The recruitment
policies of the competitors also affect the recruitment function of
the organizations. To face the competition, many a times the
organizations have to change their recruitment policies according
to the policies being followed by the competitors. Recent trends in
recruitment 1. RECRUITMENT OUTSOURCING: Recruitment outsourcing has
emerged as one of the preferred solution for companies. A company
may draw required personnel from outsourcing firms. The outsourcing
firms help the organization by the initial screening of the
candidates according to the needs of the organization and creating
a suitable pool of talent for the final selection by the
organization. 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 organizations for their
services. 2. POACHING/RAIDING: Buying talent (rather than
developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and
experienced person already working with another reputed company in
the same or different industry; the organization 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 E-
Recruitment is the use of technology to assist the recruitment
process. Many big organizations use Internet as a source of
E-Recruitment. 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 CVs in worldwide web, which can be drawn by prospective
employees depending upon their requirements. The two kinds of e-
recruitment that an organization can use are Job portals i.e.
posting the position with the job description and the job
specification on the job portal and also searching for the suitable
resumes posted on the site corresponding to the opening in the
organization. Creating a complete online recruitment/application
section in the companys own website. Companies have added an
application system to in their website, where the passive job
seekers can submit their resumes into the database of the
organization for consideration in future, as and when the roles
become available. 4. RECRUITMENT STRATEGIES: Recruitment is of the
most crucial roles of the human resource professionals. The level
of performance of an organization depends on the effectiveness of
its recruitment function. Organizations have developed and follow
recruitment strategies to hire the best talent for their
organization and to utilize their resources optimally. A successful
recruitment strategy should be well planned and practical to
attract more and good talent to apply in the organization. For
formulating an effective and successful recruitment strategy, the
strategy should cover the following elements: 1. Identifying and
prioritizing jobs: Requirements keep arising at various levels in
every organization; it is almost a never-ending process. It is
impossible to fill all the positions immediately. Therefore, there
is a need to identify the positions requiring immediate attention
and action. To maintain the quality of the recruitment activities,
it is useful to prioritize the vacancies whether to focus on all
vacancies equally or focusing on key jobs first.2. Candidates to
target: The recruitment process can be effective only if the
organization completely understands the requirements of the type of
candidates that are required and will be beneficial for the
organization. This covers the following parameters as well:
Performance level required: Different strategies are required for
focusing on hiring high performers and average performers.
Experience level required: the strategy should be clear as to what
is the experience level required by the organisation. The
candidates experience can range from being a fresher to experienced
senior professionals Category of the candidate: the strategy should
clearly define the target candidate. He/she can be from the same
industry, different industry, unemployed, top performers of the
industry etc. 3. Sources of recruitment: The strategy should define
various sources (external and internal) of recruitment. Which are
the sources to be used and focused for the recruitment purposes for
various positions? Employee referral is one of the most effective
sources of recruitment. 4. Trained recruiters: The recruitment
professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the
activities. They should also be aware of the major parameters and
skills (e.g.: behavioral, technical etc.) to focus while
interviewing and selecting a candidate. 5. How to evaluate the
candidate: The various parameters and the ways to judge them i.e.
the entire recruitment process should be planned in advance. Like
the rounds of technical interviews, HR interviews, written tests,
psychometric tests etc
SELECTION:The selection process is a decision making process.
This step consists of a number of activities. A candidate who fails
to qualify for a particular step is not eligible for appearing for
the subsequent step. Employee Selection is the process of putting
right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of
people. Effective selection can be done only when there is
effective matching. By selecting best candidate for the required
job, the organization will get quality performance of employees.
Moreover, organization will face less of absenteeism and employee
turnover problems. By selecting right candidate for the required
job, organization will also save time and money. Proper screening
of candidates takes place during selection procedure. All the
potential candidates who apply for the given job are tested. The
process of selection starts with preliminary interview of
candidates and ends with contract of employment. Following are the
steps which are generally involved in any selection
process:Preliminary Interview: The applications received from job
seekers are subjected to scrutiny, so as to eliminate unqualified
applicants. This is usually followed by a preliminary interview the
purpose of which is more or less the same as scrutiny of
application, that is, eliminate of unqualified applicants. Scrutiny
enables the HR specialists to eliminate unqualified jobseekers
based on the information supplied in their application forms.
Preliminary interview, on the other hand, helps reject misfits for
reason, which did not appear in the application forms. Besides,
preliminary interview, often called courtesy interview, is a good
public relation exercise. 1.2.2 Selection Test Job seekers who pass
the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job
and the company. Generally, tests are used to determine the
applicants ability, aptitude and personality. Following are the
types of tests which may be used:1. Ability test: Assists in
determining how well an individual can perform tasks related to the
job. An excellent illustration of this is the typing tests given to
a prospective employee for secretarial job. Also called as
ACHEIVEMENT TESTS. It is concerned with what one has accomplished.
When applicant claims to know something, an achievement test is
taken to measure how well they know it. Trade tests are the most
common type of achievement test given. Questions have been prepared
and tested for such trades as asbestos worker, punch-press
operators, electricians and machinists. There are, of course, many
nonstandardized achievement tests given in industries, such as
typing or dictation tests for an applicant for a stenographic
position. 2. Aptitude test: Aptitude tests measure whether an
individual has the capacity or latent ability to learn a given job
if given adequate training. The use of aptitude test is advisable
when an applicant has had little or no experience along the line of
the job opening. Aptitudes tests help determine a persons potential
to learn in a given area. An example of such test is the general
management aptitude tests (GMAT), which many business students take
prior to gaining admission to a graduate business school programme.
Aptitude test indicates the ability or fitness of an individual to
engage successfully in any number of specialized activities. They
cover such areas as clerical aptitude, numerical aptitude,
mechanical aptitude, motor co-ordination, finger dexterity and
manual dexterity. These tests help to detect positive-negative
points in a persons sensory or intellectual ability. They focus
attention on a particular type of talent such as learning or
reasoning in respect of a particular field of work. They can be of
three types which are as follows: Mental or Intelligence Test: They
measure the overall intellectual ability of a person and enable to
know whether the person has the mental ability to deal with certain
problems. Mechanical Aptitude Test: They measure the ability of a
person to learn a particular type of mechanical work. These tests
helps to measure specialized technical knowledge and problem
solving abilities if the candidate. They are useful in selection of
mechanics, maintenance workers, etc. Psychomotor or Skill Test:
They are those, which measure a persons ability to do a specific
job. Such tests are conducted in respect of semiskilled and
repetitive jobs such as packing, testing and inspection, etc. 3.
Intelligence test: This test helps to evaluate traits of
intelligence. Mental ability, presence of mind (alertness),
numerical ability, memory and such other aspects can be measured.
The intelligence test is probably the most widely administered
standardized test in industry. It is taken to judge numerical,
skills, reasoning, memory and such other abilities. 4. Interest
Test: This is conducted to find out likes and dislikes of
candidates towards occupations, hobbies, etc. such tests indicate
which occupations are more in line with a persons interest. It is
used to measure an individuals activity preferences. This test is
particularly useful for students considering many careers or
employees deciding upon career changes. Such tests also enable the
company to provide vocational guidance to the selected candidates
and even to the existing employees. 5. Personality Tests: It is
conducted to judge maturity, social or interpersonal skills,
behaviour under stress and strain, etc. this test is very much
essential on case of selection of sales force, public relation
staff, etc. where personality plays an important role. 6.
Projective Tests: This test requires interpretation of problems or
situations. For example, a photograph or a picture can be shown to
the candidates and they are asked to give their views, and opinions
about the picture. 7. Graphology Test: It is designed to analyze
the handwriting of individual. It has been said that an individuals
handwriting can suggest the degree of energy, inhibition and
spontaneity, as well as disclose the idiosyncrasies and elements of
balance and control. For example, big letters and emphasis on
capital letters indicate a tendency towards domination and
competitiveness. A slant to the right, moderate pressure and good
legibility show leadership potential. 8. Perception Test: At times
perception tests can be conducted to find out beliefs, attitudes,
and mental sharpness.etc. 9. General Knowledge Test: days G.K.
Tests are very common, they are used for finding general awareness
of the candidates in the field of sports, politics, world affairs,
current affairs. 10. Polygraph Test: Polygraph is a lie detector,
which is designed to ensure accuracy of the information given in
the applications. Department store, banks, treasury offices and
jewellery shops, that is, those highly vulnerable to theft or
swindling may find polygraph tests useful. Interview: The next step
in the selection process is an interview. Interview is formal,
in-depth conversation conducted to evaluate the applicants
acceptability. It is considered to be excellent selection device.
It is face-to-face exchange of view, ideas and opinion between the
candidates and interviewers. Basically, interview is nothing but an
oral examination of candidates. Interview can be adapted to
unskilled, skilled, managerial and profession employees. Interviews
can be of various types depending upon the setting, number of
interviewers, structuring. Some of them are as follows: 1. Non-
Directive Interview: Non-directive interview or unstructured
interview is designed to let the interviewee speak his mind freely.
The interviewer has no formal or directive questions, but his all
attention is to the candidate. He encourages the candidate to talk
by a little prodding whenever he is silent e.g. Mr. Ray, please
tell us about yourself after your graduation from high school. The
idea is to give the candidate complete freedom to sell himself,
without the encumbrances of the interviewers question. But the
interviewer must be of higher calibre and must guide and relate the
information given by the applicant to the objective of the
interview.2. Stress Interview: It is designed to test the candidate
and his conduct and behaviour under conditions of stress and
strain. The interviewer may start with Mr. Joseph, we do not think
your qualifications and experience are adequate for this position,
and watch the reaction of the candidates. A good candidates will
not yield, on the contrary he may substantiate why he is qualified
to handle the job. This type of interview is borrowed from the
Military organisation and this is very useful to test behaviour of
individuals when they are faced with disagreeable and trying
situations. 3. Panel Interview: A panel or interviewing board or
selection committee may interview the candidate, usually in the
case of supervisory and managerial positions. This type of
interview pools the collective judgment and wisdom of the panel in
the assessment of the candidate and also in questioning the
faculties of the candidate. 4. Structured Interview: A panel or
interviewing board or selection committee may interview the
candidate, usually in the case of supervisory and managerial
positions. This type of interview pools the collective judgment and
wisdom of the panel in the assessment of the candidate and also in
questioning the faculties of the candidate. 5. Unstructured
Interview: It is also known as Un-patterned interview, the
interview is largely unplanned and the interviewee does most of the
talking. Unstructured interview is advantageous in as much as it
leads to a friendly conversation between the interviewer and the
interviewee and in the process, the later reveals more of his or
her desire and problems. But the Unstructured interview lacks
uniformity and worse, this approach may overlook key areas of the
applicants skills or background. It is useful when the interviewer
tries to probe personal details of the candidate it analyse why
they are not right for the job. 6. Mixed Interview: In practice,
the interviewer while interviewing the job seekers uses a blend of
structured and unstructured questions. This approach is called the
Mixed Interview. The structured questions provide a base for
interview whereas unstructured questions permit greater insights
into the unique differences between applicants. 7. Dinner
Interview: These interviews may be structured, informal, or
socially situated, such as in a restaurant. Decide what to eat
quickly, some interviewers will ask you to order first (do not
appear indecisive). Avoid potentially messy foods, such as
spaghetti. Be prepared for the conversation to abruptly change from
friendly chat to direct interview questions, however, do not
underestimate the value of casual discussion, some employers place
a great value on it. Be prepared to switch gears rapidly, from fun
talk to business talk. 8. Telephonic Interview: On many occasions
when it is not possible to arrange face to face interview with the
candidates, telephonic interviews are used by companies. A
candidate should be ready for such interview and can do following
preparations. Have a copy of your resume and any points you want to
remember to say nearby. If you are on your home telephone, make
sure that all roommates or family members are aware of the
interview (no loud stereos, barking dogs etc.). 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 just taking some notes.9.
Reference Test: Many employers request names, addresses, and
telephone numbers of references for the purpose of verifying the
information and perhaps, gaining additional background information
on an applicant. Although listed on the application form,
references are not usually checked until an applicant has
successfully reached the fourth stage of a sequential selection
process. When the labour market is very tight, organisations
sometimes hire applicants before checking references. Previous
employers, known public figures, university professors, neighbours
or friends can act as references. Previous employers are preferable
because they are already aware of the applicants performance. But,
the problem with this reference is the tendency on the part of the
previous employers to over-rate the applicants performance just to
get rid of the person.Organisations normally seek letter of
reference or telephone references. The latter is advantageous
because of its accuracy and low cost. The telephone reference also
has the advantage of soliciting immediate, relatively candid
comments and attitude can sometimes be inferred from hesitations
and inflections in speech. Selection decision: After obtaining
information through the preceding steps, selection decision (the
most critical of all the steps) must be made. The other stages in
the selection process are meant for narrowing down the number of
the candidates. The final decision has to be made from pool of
individuals who pass the tests, interviews and reference checks.
The view of the line manager is generally considered in the final
selection because it is he/she who is responsible for the
performance of the new employee. The supervisor is better able to
evaluate the applicant's technical capabilities and is in a better
position to answer the interviewee's job-related questions.
Further, the supervisor's personal commitment to the success of the
new employee is higher if the supervisor has played a role in the
hiring decision. In fact, in a majority of firms, the supervisor
has the authority to make the final hiring decision. In these
cases, it is the role of the HR department to do the initial
screening and to ensure that hiring does not violate laws such as
Human Rights legislation or Labour legislation. This step may or
may not be followed be followed by realistic job previews which
involves showing the applicant(s) the job site in order to acquaint
them with the work setting, commonly used equipment, and
prospective co-workers . The realistic job preview is intended to
prevent initial job dissatisfaction with a job by presenting a
realistic view of the job. Research shows that job turnover is
lower when realistic job previews are used.
Physical Examination: After the selection decision and before
the job offer is made, the candidate is required to undergo a
physical fitness test. A job offer is, often, contingent upon the
candidate being declared fit after the physical examination. The
results of the medical fitness test are recorded in a statement and
are preserved in the personnel records. There are several
objectives behind a physical test. Obviously, one reason for a
physical test is to detect if the individual carries any infectious
disease. Secondly, the test assists in determining whether an
applicant is physically fit to perform the work. Thirdly, the
physical examination information can be used to determine if there
are certain physical capabilities, which differentiate successful
and less successful employees. Fourth, medical check-up protects
applicants with health defects from undertaking work that could be
detrimental to them or might otherwise endanger the employers
property. Finally, such an examination will protect the employer
from workers compensation claims that are not valid because the
injuries or illness were present when the employee was hired. Job
Offer: The next step in the selection process is job offer to those
applicants who have crossed all the previous hurdles. Job offer is
made through a letter of appointment. Such a letter generally
contains a date by which the appointee must report on duty. The
appointee must be given reasonable time for reporting. This is
particularly necessary when he or she is already in employment, in
which case the appointee is required to obtain a relieving
certificate from the previous employer. Again, a new job may
require movement to another city, which means considerable
preparation, and movement of property.
Contract of Employment: After the job offer has been made and
the candidate accepts the offer, certain documents need to be
executed by the employer and the candidate. One such document is
the attestation form. This form contains vital details about the
candidate, which are authenticated and attested by him/her.
Attestation form will be a valid record for the future reference.
There is also a need for preparing a contract of employment. The
basic information that should be included in a written contract of
employment will vary according to the level of the job, but the
following checklist sets out the typical headings: 1. Job title 2.
Duties, including a parse such as The employee will perform such
duties and will be responsible to such a person, as the company may
from time to time direct. 3. Date when continuous employment starts
and the basis for calculating service. 4. Rate of pay, allowance,
overtime and shift rates, method of payments. 5. Hours of work
including lunch break and overtime and shift arrangements. 6.
Holiday arrangements: i. Paid holidays per year. ii. Calculation of
holiday pay. iii. Qualifying period. iv. Accrual of holidays and
holiday pay. v. Details of holiday year. vi. Dates when holidays
can be taken. vii. Maximum holi