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TO STUDY THE CONTRASTING BEHAVIOR OF THE TRADITIONAL PRACTICES TO THE CONTEMPORARY PRACTICES IN RECRUITMENT PROCESS. With reference to AUROBINDO PHARMA LIMITED HYDERABAD A 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 MANAGEMENT Submitted By: SOMA KIRAN GONELLA (ROLL NO: 1308013) Under the Esteemed Guidance of Dr. JAGAN MOHAN REDDY Professor INSTITUTE OF PUBLIC ENTERPRISE SHAMEERPET CAMPUS 1
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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