A PROJECT REPORT

ON

RECRUITMENT & SELECTION

AT
(HDFC)
SUBMITTED TO:
UP TECHNICAL UNIVERSITY, LUCKNOW
IN THE PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF

Master of Business Administration

( Session 2008-10 )

SUBMITTED BY:
ANAMIKA SHARMA
MBA 3rd Sem
Roll No - 0811970405

INSTITUTE OF PROFESSIONAL EXCELLENCE AND

1

MANAGEMENT ,GHAZIABAD.
(A -13/1,S.S.G.T. Road, Industrial Area , NH -24, Ghaziabad -201010 )

PREFACE
There are number forces that make marketing an endlessly changing activity. The constantly
activity sociological, psychological and political environment may represent the uncontrollable
marketing factors. To understanding these factors in better way marketing research is of almost
importance.
This Project Report has been completed in Partial fulfillment of my Management Program, Post
Graduate Diploma in Business Management (MBA) in the company HDFC STANDARD LIFE
INSURANCE. The objective of my project was RECRUITMENT AND SELECTION AT
HDFC BANK
HDFC STANDARD LIFE is the name which is working as one of the best private insurance
company in insurance sector.
With such large population and the untapped market of populations insurance happens to be very
big opportunity in India. Today it stands as a business growing at the rate of 15-20 percent
annually. Together with banking services, It adds about 7 percent to the countrys GDP. In spite
of all this growth the statistics of the penetration of the insurance in the country is very poor.
Nearly 80% of Indian populations are without Life Insurance cover and the Health Insurance.
This is an indicator that growth potential for the insurance sector is immense in India.

ACKNOWLEDGEMENT
Progress in life, business or any projects comes through taking initiatives & continuing to
progress on new concepts & ideas. The original momentum is not enough to keep you moving
forward. Your progress will grit to halt unless you refill your engine for inspiration with fuel of
fresh ideas with enthusiasm & proper guidance. Accomplishment requires the effort of many
people and this work is no different. I would like to thank all those who helped me directly or
indirectly and whose diligent efforts made this project possible.
I am grateful to Prof. Satish Gupta (DG) of Institute of Management Education for creating a
conducive environment in the institute for a purposeful education.
I express my profound gratitude to Dr. D.P. Goyal (Director), Dr. Taruna Gautam (Assistant
Director) & Mr. Gurpreet Singh Sachdeva (Project Co-ordinator) of Institute of Management
Education for their encouragement.
I would like to thank most to Ms. Aarti Singh (HR Manager) whose initiative and guidance
enabled me to conceptualize and construct the project Recruitment & Selection . It has been
great to work under their guidance.
I also take this opportunity to express my profound gratitude to all those respondents who made
this project successful by cooperating with me.
Last but not the least; I would like to thank my parents and colleagues for their kind support.

Beenu Kumari

DECLARATION

I hereby declare that the project report entitled Recruitment & Selection at submitted for the
Master of Business Administration is my original work and the Project Report has not formed
the basis for the award of any degree, diploma, associated, or other similar title.

Date: - 5th June 2009 to 10th July

Place:- New Delhi

ANAMIKA SHARMA
MBA 3rd Semester

CONTENTS
Page No.

1. Cover Page

1-1

2. Preface

2-2

3. Acknowledgement

3-3

4. Declaration

4-4

5. Table of Content

5-5
Part 1

6. Brief History of Organization

6-7

7. Organization structure

11-

11
8. Vision, Mission & Value

12-

16
9. Performance

17-21

10. Product and service

22-46

11. Problem of the organization

47-

48
Part 2
12. Objective
13. Research Methodology

49-50
51-

90
14. Analysis (SWOT)

91-

94
15. Findings

95-96
5

16. Conclusion

97-

110
17. Limitation

111-

111
18. Annexure

112-113

19. Bibliography

114-117

PART - I

BRIEF HISTORY OF THE ORGANIZATION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry. The bank was
incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in
Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January
1995.
Promoter
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the clear market leader in
mortgages and banking services in India. Its outstanding loan portfolio covers over a million
7

dwelling units. HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large shareholder base
and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

Business Focus
HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a sound
customer franchise across distinct businesses so as to be the preferred provider of banking
services in the niche segments that the bank operates in and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank aims to ensure the highest level of
ethical standards, professional integrity and regulatory compliance. HDFC Bank's business
philosophy is based on four core values: Operational Excellence, Customer Focus, Product
Leadership and People. The Bank signed a strategic business collaboration agreement with Chase
Manhattan Bank in February 1999.

Capital Structure
The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2 crores.
The HDFC Group holds 24.5% of the bank's equity while about 13.3% of the equity is held by
the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue).
The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holdings Ltd.,
Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase Capital Partners)
together hold about 11.6% of the bank's equity. Roughly 18% of the equity is held by FIIs,
NRIs/OCBs while the balance is widely held by about 300,000 shareholders. The shares are
listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's
American Depository Shares are listed on the New York Stock Exchange under the symbol
"HDB".

TimesBank Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by
the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamation added
significant value to HDFC Bank in terms of increased branch network, expanded geographic
reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage
alternative delivery channels.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
branches spread over cities all across the country. All branches are linked on an online real-time
basis. Customers in 39 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the need to build a
strong retail customer base. Being a clearing/settlement bank to various leading stock exchanges,
the Bank has branches in the centres where the NSE/BSE have a strong and active member base.
The Bank also has a network of almost over networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. It is the
only bank in India which provides access to all the 3 major International Card Networks on its
ATM network.

Management
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.Capoor was
a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 20 years, and
before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience
in public policy & administration and commercial banking. Senior executives representing
HDFC and J P Morgan Partners (formerly Chase Capital Partners) are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise
of the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.

Technology
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have connectivity which enables the bank to
offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to
retail customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. In terms of software the
Corporate Banking business is supported by Flexcube, while the Retail Banking business by
Finware, both from I-flex Solutions Ltd. (formerly Citicorp Information Technology India Ltd.).
The systems are open, scaleable and web-enabled.
The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.

10

11

ORGANIZATION STRUCTURE

12

MISSION & VISION

13

14

15

16

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PERFORMANCE
HDFC Bank caters to a wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional / branch banking on the retail side.
The bank has three key business areas:a) Wholesale Banking Services
The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a small extent, emerging mid-sized corporates. For these corporates, the
Bank provides a wide range of banking services, including working capital finance, trade
services, transactional services, cash management, etc. Based on its superior product delivery /
service levels and strong customer orientation, the Bank has made significant inroads into the
banking consortia of a number of leading Indian corporate including multinationals, companies
from the domestic business houses and prime Public Sector companies. It is recognized as a
leading provider of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
b) Retail Banking Services
The objective of the Retail Bank is to provide a full range of financial products and banking
services, giving the customer a one-stop window for all his banking requirements. The products
are backed by world class service and delivered to the customers through various delivery
channels including the branch network, as well as alternative delivery channels like ATMs,
Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Loans against shares, Auto Loans,
18

Personal Loans and Loans for Consumer Durables and Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The debit card
allows the user to directly debit his account at the point of purchase at a merchant establishment,
in India and overseas. The Bank launched its credit card in association with VISA in November
2001. The Bank is well positioned as a leader in various net based B2C opportunities including a
wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
c)

Treasury Operations
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the bank's Treasury team.

Rating
HDFC Bank's programme for Certificates of Deposits has been rated by the Indian rating agency
Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the highest rating for
short term instruments indicating superior capacity for repayment.
Financial Strength
Year End - Mar 2008
Credit/Deposit

46.39 %

Investment/Deposit

63.43 %

Cash/Deposit

8.23 %

19

Cash/Deposit ; 7%
Credit/Deposit; 39%
Investment/Deposit; 54%

Share Information
21/07/2008
Recent Price (Rs)

277.85

Volume

50277

Year To Date High (Rs)

303

Year To Date Low (Rs)

187

Face Value (Rs)

10

Market Capitalization (Rs Crore)

7876.49

Shares Outstanding (Lakhs)

2820.5

Market Lot

Valuation Ratios
Year End - Mar 2008
Price/Earnings

20.8

Price/Book

3.49

Price/Sales

3.87

Dividend Yield (%)

1.08
Per-Share Data

Year End - Mar 2008

Book Value (Rs)

79.59
20

Cash (Rs)
Dividend (Rs)

:
:

Total Income (Rs)

Earnings (Rs)

3
:

112.36
71.72

13.36
Income Statement

Year End - Mar 2008 (Rs Crore)

Total Income

2022.97

Other Income

473.1

Operating Profit

387.6

Interest

1191.96

Depreciation
Net Profit

106.14
:

387.6

21

BOARD OF DIRECTOR

Chairman

Jagdesh Capoor

Managing director

Aditya puri

Director

Venkat Rao Gadwal

Director

Anil Ahuja

Additional Director

Vineet Jain

Additional Director

Arvind pande

Additional Director

Renu S Kamad

Additional Director

K.M.Mistry

Vice President & CS

Sanjay Domgre

22

23

PRODUCT AND SERVICE

24

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26

27

28

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30

31

32

33

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37

38

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47

48

Problem of the Organization and future of the Organization

49

50

PART -II

OBJECTIVE

To study the Recruitment & Selection Practices at HDFC BANK LIMITED

To identify the various factors companies undertake prior to the recruitment process.

To study how the companies establish a fit between their business strategy and

recruitment strategy.

To study how the companies have coped with change in the market vis a vis its

recruitment process.
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52

RESEARCH MYTHOLOGY
The purpose of the methodology is to describe the research procedure. This includes overall
research design, the sampling procedure, the data collection method, and the fried methods
and analysis procedure.
Out of total universe 30 respondents from company have been taken for convenience. The
sample procedure chosen for this are statistical sampling method. Here randomly employees are
selected and interviewed. An in depth interview is conducted with the Human Resource Head.
Information, which I collected, was based on the questionnaires filled up by the sample
employees.
Under secondary method I took the help of various reference books which I have mentioned in
bibliography and also by way of surfing through the company website.
Primary Data

Questionnaire: Corresponding to the nature of the study direct, structured questionnaires

with a mixture of close and open-ended questions will be administered to the relevant
respondents within the Personnel and other Departments of the organisation.

In-depth interviews will be conducted with the top level management personnel involved as
panel members of the recruitment & selection committees of the organisation to substantiate
the questionnaire administered.

53

 Secondary Data

Organisational literature: Any relevant literature available from the organisation on the
Company profile, recruitment & selection procedures, Job specifications (KSAs),
department-wise break up of manpower strength and the orgnaisational structure.

Other Sources: Appropriate journals, magazines such as Human Capital, relevant

newspaper articles, company brochures and articles on www sites will also be used to
substantiate the identified objectives.

Sampling Plan and Design

A questionnaire will be used for the purpose of research:

Questionnaire: To test the validity and effectiveness of the recruitment and selection
procedures within the organisation and to test the validity and effectiveness of the policies
and procedures within the organisation.

The basic rationale of Questionnaire is to ascertain the perception of the non-HR

departments in terms of the validity and effectiveness of the policies and procedures used by
the organisation. It is also in line with the assessment of any suggestions/recommendations
that the respondents from these Departments might have in terms of the use of an alternative
source/device of recruitment and selection, than what already forms the current practice of
the HR Department.

54

Questionnaire would be administered to 15 respondents, holding a senior designation within

the Personnel Department of the organisation. It will also be administered to at least 15
respondents belonging to typical Departments within the organisation and holding senior
designations within their respective Departments.

In depth interviews would also be conducted with these respondents with the aim of
substantiating their views entailed from the Questionnaire.

The total number of employees covered in the questionnaires are 30, 20 Business Executives
and 10 Non-Business Executives.

Sampling Element

For the purpose of administering the Questionnaire, the respondents would comprise of
personnel holding senior designations within the Personnel Department of the organisation.
The respondents for the Questionnaire will also be preferably be panel members of the
Recruitment & Selection Board of the organisation.

55

The respondents would comprise of personnel holding senior designations within certain

typical Departments identified within the organisation, namely:

Stores

Finance

Operations

Electronics

Engineering

Sampling Technique

Judgement Sampling would be used for the purpose of choosing the sample for the purpose
of administering Questionnaire. The identified expert would have a thorough knowledge
about all the respondents within the Personnel Department of the organisation. Thus his/her
expertise would be incorporated in locating, identifying and contacting the required
respondents.

Again Judgement sampling would be effectively used in identifying the typical non - HR
Departments within the organisation and subsequently for the location and identification of
suitable respondents for Questionnaire.

56

DIAGNOSTIC MODEL

57

of labor force and locationInternal

of organization
ExternalComposition
Environmental
Environmental
Influences
Influences
Govt.Regulations &
Strategy
Laws
Goals
As the number
of legal requirements has increased, it has
become more
important for an
The Union
Organizational
Culture
Economic Conditions:
Nature Of the task
organization
to analyze
Such analysis is done to determine
domestic
& the composition of workforce.
Work group
International
Leaders
style & of the organization
whether
firm's employment
The location
the
Composition
Of labor practices are discriminatory.
experience
force
and the relevant market will play a major role in the composition of the work force.
Therefore, government
andRESOURCE
union restrictions
labor market conditions, the make up of the work
HUMAN
PROCESSES
force and the location
of the organization Developing
are external forces that
affect each
Rewarding
Protecting
andother. None of these
Acquiring
Human
Evaluating
Human
Human
forces
are
necessarily
more
important
than
any
other
force.
Each
of them must be considered in
resources
Resources
Resources
Safety,
Performanc
HR
Orientation
health &
developing
a
sound
recruitment
plan
that
results
in an effectively functioning
e Evaluation
wellness organization.
planning
& Training
Compensati
Evaluation
Job Analysis
Developme
INTERACTIONS
OF
THE
RECRUITAND
THE
ORGANIZATION
on
& design
nt
Benefits &
Recruitment
Career
Services and the goals
& Selection
Planning
The
nature of the organization
of the manager are highlighted in the above
diagram, as is the nature of the task. The techniques used and the sources of recruits vary with
Desirable End Results
Socially responsible &
high
Ethical practices

Competitive, high quality

Competitive,

products

quality services

the job.

As

afar

the

as

applicants are
concerned,

their abilities and past work experience affect how they go about seeking a job.

58

The organization's view of recruiting

Several aspects affect recruiting from organization's view point : the recruiting requirements set,
organization policies and procedures, and the organizational image.
Recruiting requirements
The recruiting process necessarily begins with a detailed job description and job specification.
Without these, it is impossible for recruiters to determine how well any particular applicant's fits
the job. It should be made clear to the recruiter which requirements are absolutely essential and
which ones are merely desirable.

This can help the organization avoid having unrealistic

expectations of potential employees : an employer might expect applicants who stand first in
their class, are president of all extra curricular activities, have worked their way through school,
have 10 years of experience and are willing to work for long hours.
Contrasted with this unrealistic approach, the effective organization examines the specifications
that are absolutely necessary for the job. Then it uses these as its beginning expectations for
recruits.
Finding applicants who possess the needed skills for a job is the "science" of recruiting. Beyond
determining whether an applicant has the skills needed for the job, recruitment in the coming
years will also have to determine whether the applicant will function well within the culture and
value system of the organization. Interview performances in terms of interpersonal styles is one
of the most critical factors used by recruiters to evaluate prospective job candidates.

59

Organization policies and practices

In some organization's, HRM policies and practices affect recruiting and who is recruited. One
of the most significant of these is promotion from within. This policy means that organization's
recruit from outside the organization only at the initial hiring level. They feel this is fair to
present loyal employees and assures them a secure future and a fair chance of promotion, and
most employees favor this approach. Some employers also feel this practice helps protect trade
secrets.
Organizational image
The image of the employer generally held by the public can also affect the recruitment. all else
being equal it is easier for the organization with a positive corporate image to attract and retain
employees than an organization with a negative image.

The good or bad, well-known or unknown images of these organization's will affect how they are
viewed by the job recruits. The organizations image is complex, but it is probably based on what
the organization does and whether it is perceived as providing a good place of work. The larger
the organization, the more likely it is to have a well-developed image. A firm that produces a
product or service the potential employee knows about or uses is also more likely to have an
image for the applicant.
The organization's image is also affected by its industry. These images change. Job applicants
can seldom have interviews with all the organizations that have job openings of interest to them.
Because there are time and energy limits to the job search, they do some preliminary screening.

60

One of these screens is the image the applicants have of the organization, which can attract or
repel them.
In sum, the ideal job specifications preferred by an organization may have to be adjusted to meet
the realities of the labor market, government or union restrictions, the limitations of its policies
and practices and its image. If an adequate number of quality people apply, the organization may
have to adjust the job to fit the best applicant or increase its recruiting efforts.
The potential employees view of recruiting
The applicants have abilities, attitudes and preferences based on past work experiences and
influences by parents, teachers and others. These factors affect recruits in two ways: how they
set their job preferences and how they go about seeking a job.
Preferences of recruits for organization and jobs
Recruits have a set of preferences for a job. The recruit also faces the limitation of labor market,
government and union restrictions and the limits og organizational policies and practices. The
recruit must anticipate the compromises just as the organization does.
What factors affect the organization decision? A more educated set knows the labor market
better, have higher expectations of work and find organization's that pay more and provide and
more stable employment.

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Job search and finding a job: the recruit

It is not always enough to be simply in the right place at the right time. The effective job
searcher creates opportunities in a systematic way. Effective job search involves several steps
including self-assessment, information gathering and networking, targeting specific jobs and
successful presentation.
The job search process begins with self-assessment. The purpose of self-assessment is for job
searchers to recognize their career goals, their strength's and weaknesses, interests values and
preferred life styles. This information is later used in the search process to help the applicant
assess whether there is a fit with a particular job offer. The assessment is similar to what
organizational recruiters will be doing, only from the perspective of the applicant.
Information gathering and networking are methods for generating lists of potential employers
and jobs, information sources include newspapers, trade publications, college recruitment offices
and organizational insiders.

METHODS OF RECRUITING

Most job openings are filled with people from within the organization and entry-level positions
are the most likely to be filled by external sources. Methods for internal recruiting include job
posting, skill inventories, job bidding and referrals. Methods of external recruiting include
school and college recruiting, advertising, and using employment agencies and executive
research firms and the internet.

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Internal versus external recruiting methods

Internal recruiting methods include posting position openings, distributing memos within the
organization and searching organizational databases for a match between the skills required to
perform the job and the skills held by the current employees. This method of recruiting looks to
internal sources to fill positions and encourages promotions from within. External recruiting
methods include advertising position. Whether managers choose internal or external-recruiting
methods depends on the degree to which organization's strategy encourages promotions and
transfers from within the organization. Recruiting from within can lead to job satisfaction and
motivation if employees see new career opportunities available. In addition filling positions with
existing employees ensures to large ext6ent that these employees are socialized as to the
organization's culture and personality. However problems can arise if the internal promotion
system is not viewed as fair.
The best way to avoid negative backlash when hiring or promoting from within is to install fair
practices and procedures. If steps are taken to ensure a fair internal promotional process, most
people will accept their loss and remain productive and useful organizational citizen. External
recruiting method helps bring new ideas and approaches to the organization.
Internal recruiting methods
Job positioning
Many position can be filled as a result of posting the job opening on the bulletin boards,
announcing the opening in a company newsletter or posting announcement on the companies
intranet. A job posting procedure enables employees to strive for a better position within the
company. Notices of important openings should include all-important information about the job.

63

Some firms have turned to computers to make their job posting more fruitful. All employees
who wish to participate complete questionnaires about themselves, which include items
concerning relocation willingness and preferences as well as training and educational
backgrounds. A few skills are selected out of the total that best represent their functional skills.
When a position needs to be filled the requirements are matched and candidates selected.
Although positing jobs can be an efficient method of recruiting, number of problems have been
associated. Example it can lead to personal bias and stiff competition.

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Skills inventory
Another recruiting method is the use of skill inventories. Essentially a skills inventory includes a
list of employee names, their education, training, present position, work experience, relevant job
skills and abilities and other qualifications. The organization can search through the company
skill inventory to identify potential candidates for the position opening.
Job bidding
These procedures typically specify that qualified applicants from within the bargaining unit must
fit all jobs covered by the agreement. Those interested in the vacancy bid for the job by applying
if they are qualified. The individual fills the position with the highest seniority from among the
qualified applicants. In some cases applicants take competitive examinations. However only
current employees are eligible.
Using a job bidding system is normally very easy. However it can present some difficulties.
Referrals
An excellent source of information is current employees who may know someone who would be
qualified and interested in the open position. To entice employees to make job referrals, some
companies offer a referral bonus. People tend to associate with people like themselves, if the
employee fits the organization, chances are his or her referrals will be good. Employees, whose
referrals are hired, are often willing to serve as a mentor to ensure their referrals succeed in the
company.

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EXTERNAL RECRUITING METHOD

School and college recruiting
Recruiting at high school or vocational schools is often a strategic approach adopted by
organizations with position openings at the entry level or internal training programs. Recruiting
at the college level serves as a major source for acquiring managerial, professional and technical
skills.
The gap that exists between the skills that organizations will need over the next several years
and those currently possessed by potential employees is growing. The number of jobs requiring
a college degree is on the increase.

Unfortunately for the organization it is a very time

consuming and expensive exercise. But pressures from the external environment will continue to
force organizations to be highly visible and active in this kind of recruiting.
In college recruiting the organization sends an employee usually called a recruiter, to a campus
interview candidates and describes the organization to them. Coinciding with the visit, brochures
and other literature about the organization are often distributed. The organization also runs ads
to attract the candidates.
In the typical procedure, those seeking employment register at the college placement service.
This placement service is a labor market exchange providing opportunities for students and
employers to meet and discuss potential hiring. Preliminary interview with employers is done.
Students are given detailed influence about the job and the profile. Salaries are negotiated. The
expenses are borne by the organization. Many of the changes are designed to reduce overall
recruiting costs while maintaining a strong applicant's flow into the organization. The trend

66

seems to be for an organization to develop a stronger, ongoing relationship with a relatively

select number of schools.
Advertising
Advertising job openings in newspapers, magazines, newsletters and other media sources is a
relatively inexpensive recruiting mechanism. Advertising is useful for filling open position
quickly. Advertising usually does not target a specific audience. Specified defined advertisements
will attract qualified applicants, dissuade unqualified ones from applying and make the
recruitment process more efficient.
Private employment agencies
Private employment agencies vary considerably in size and effectiveness as good sources of
employee and must be chosen carefully by employers and job seeking alike. A preliminary
interview is conducted for the applicants. Unfortunately some agencies are more concerned with
placing employees quickly than in effecting a good match between the employee and the
organization. The discrepancy can be reduced if the HR managers give detailed and specific
requirements.
The internet and the WWW
One of the fastest growing recruitment methods is the internet and the WWW. Companies who
do use the lnternet as a recruiting source appear to be happy with the process and the results. It
allows access to broader set of people and hence broader set of expertise and skills. It is also
faster and convenient. However it may not be accessible to all.

67

UTILIZING RECRUITING RESOURCES

Companies frequently use a variety of internal and external recruiting strategies to locate and
hire their workers. Although one technique may work well for some organizations, the same
technique may prove ineffective for others.

Some technique may mesh well with the

organization's competitive strategy, but others do not.

By integrating both internal and external recruiting techniques, a company can develop an
overall recruiting plan that is specifically tailored to support its overall strategy and result in
selection of highly qualified applicants.
Exactly how many recruits are needed can be determined from past recruitment efforts.
Specifically a yield ratio can be developed for each position to be filled. A yield ratio is the
number of candidates who pass a particular recruitment hurdle divided by the number who
attempted the hurdle.
It is important to keep in mind that the plan should support the companies overall strategic
approach.
Re- Recruitment strategies
Re-Recruitment strategy is a series of steps a company can take and retain key employees. ReRecruitment strategies are a good idea, but essential in turbulent times such as after downsizing
or a major organizational restructuring. Key employees are defined as employees whose loss
would have a most detrimental effect on the organization.
Once the key employers have been located, the next step is to determine what can be done to
motivate them to remain with the organization. A flexible work arrangement will mean
something different to every employee, so it is important to dearly delineate what key employees
68

want and need with respect to flexibility.

Flexibility can also be offered by introducing

compressed work weeks, flexible starting times and comp time where workers can leave work
for an hour or two to deal with family matters. An increase in the compensation can also help
retain a key employee. Retention bonuses have also been used successfully as a means of getting
technical staffers.

Without a salary adjustment key employees may be stolen away by

competitors,
Career development opportunities
College graduates entering work force for the first time are clear about their expectations and are
less willing to adapt their values and work styles to accommodate to their employers.
The following factors entice first careerist to stay with the job and the company:
1.

Immediate involvement in the essential work of the firm.

2.

The ability to apply newly learned knowledge and skills.

3.

The opportunity to understand the big picture of the firm.

4.

Rapid career development.

5.

Rapid salary advancement.

6.

The opportunity to learn new skills.

Companies are responding to these needs by offering a variety of programs for new employees.
One factor that should be considered prior to selection is the "fit" between the individual career
objectives and the career path that can be realistically offered by the firm. Career plateauing
which refers to the point in a career where future hierarchical movement is unlikely, has become

69

a real problem in organization's today. Downsizing and restructuring has severely restricted the
potential for vertical movement in many managerial career paths.

70

ALTERNATIVES TO RECRUITMENT
Another strategic business decision can be made is not to recruit. Instead they can rely on
alternative staffing options.
Common alternative staffing options

Traditional temporary help

A potential employee is recruited, tested, screened and employed by a temporary staffing
agency. They assign qualified individuals to work at a clients site, generally to support or
supplement the current work force.

Long term temporary assignments

It is becoming increasing popular for an organization to staff part of its work force with
temporary workers on an ongoing basis. These individuals are not considered short-term
replacements, but more a part of the regular work force.

Part time employees

Workers who work less than 40 hours a week are considered part time employees. They
can be organization's pay roll or assigned via a temporary agency.

Employee leasing
A Company will transfer some of its employees to a leasing firm. The leasing firm then
leases back the workers to perform the same job they did for the Client Company. However
the leasing firm is now responsible for cost and work associated with the typical HR
functions such as Payroll, benefits and record keeping.

Independent contractors
71

Independent contractors are self-employed individuals who market a specific skill they
posses to a variety of companies. A Company will hire them for a specific project or
contract. Payment is usually based on the time and effort the individuals put forth on the
project and expenses are frequently reimbursed.

Outsourcing services
An independent company with expertise area will contract with a firm to take full
responsibility for that specific function in the organization.

72

EVALUATING THE RECRUITING METHODS

Given the importance of recruiting to the organization the method used in recruiting should be
evaluated periodically. One of the most important reasons to evaluate recruiting method is to
determine the cost versus benefits of various methods. When recruiting method do not attract
enough applicants many organizations respond by raising the salaries. Although some job
applicants may be enticed by money, this may not be a cost-effective method of recruiting.
Further employees within the organization may perceive inequity if new employees are brought
in at a similar or even higher salary.
Recruiting costs include factors such as the cost of advertising, the salaries and travel expenses
of recruiters, travel expenses of potential job applicants and recruiting agencies. These costs
must be weighed against factors such as the potion of acceptance offers. At a minimum,
organizations should compare the length of time applicants from each recruiting source stay with
the organization with the cost of hiring from a particular source. The effectiveness of recruiting
method varies among organizations and even jobs within the same organization.

73

THE SELECTION PROCESS

Selection is the process of choosing individuals who have the qualifications to perform a
particular job well. Organization differs as to the complexity of their selection systems. Some
organization's make a strategic decision to fill positions quickly and inexpensively by scanning
application forms and hiring individuals based on this information alone. Other organization's
however makes a strategic decision to choose the best person possible by having an elaborate
and sometimes costly selection system. These systems may require potential employees to fill
out application forms and provide information for a background check, take a number of job
related tests, and perform well through a series of interviews. Most organization's have. more
than one selection process.
Application blanks and resumes
The initial screening of potential employees is usually done by examining resumes and 1 or
having applicants fill out an application blank. Items that should be requested on an application
include general biographical information. Much of information gathered on application blanks is
objective so that the human resources manager can verify it. Verification of information on an
application is becoming increasingly important to avoid claims of negligent hiring. An employer
is guilty of negligent hiring if he or she failed to perform a thorough background check on an
employee whose infliction of harm could have been predicted.
Once the application has been verified, it can be numerically scored to make it comparable to
others. The process of qualifying an application is called weighting an application. The use of a
weighted application blank involves placing a value or score for the items on the application

74

that have been found to predict successful job performance. Applicants receive points according
to the information they report on the form and can then be ranked based on their total points.
Although weighted applicants blanks have been found to be predictive of future performance, the
time and cost of developing an effective are often prohibitive.
Resumes are often instead of application blanks. Job applicants develop their own resumes,
which should include essentially standard information.
TYPES OF SELECTION TESTS
A number of selection tests have been developed to aid the human resources manager in hiring
employees. The following section covers mental ability test, work sample tests, trainability tests,
personality and interest inventories and honesty tests as selection devices.
Mental ability tests
Paper and pencil tests have been developed by psychologists and are used by organization's to
measure mental ability and aptitude. Ability and aptitude tests examine a variety of tests such as
general intelligence, an understanding of spatial relationships, numerical skills, reasoning and
comprehension.
Work samples
Also called performance tests, work sample tests measure the ability to do something rather than
the ability to know something. These tests may measure motor skills or verbal skills. Work
sample tests should test the important aspects of the job. Since job applicants are actually
performing a small portion of the job, it is difficult to "fake" ones ability on these tests.
One of the most effective ways to design work sample tests is by using the results of a job
analysis, because the results of a job analysis indicate which tasks are most critical and which are
75

required for successful competition of the task. It is easy to determine which activities need to
be represented on the tests.
Trainability tests
For jobs in which training is necessary due to
1.

The skills level of the job applicants

2.

Changing nature of the job, trainability tests are useful.

Essentially the goal is to determine the trainability of the candidate. In the first step of the
process, the trainer demonstrates how to perform a particular task. Then the job applicants are
asked to perform the task while the trainer helps to coach him or her through the process several
t8mes. Finally the candidate monitors the performance, recording any errors, to determine the
overall trainability of the job applicant.
But work sample tests and trainability test have shown to have high to moderate success
predicting job performance.
Personality and general interest inventories
Personality and general interest inventories are tests that have no "correct" or "incorrect"
answers.

Interest tests are used to measure an individual's work and career orientations.

Personality tests focus on identifying traits or typical behaviors of individuals and are used to
measure a variety of traits including aggression, self-esteem and type A behavior. Although
personality and general interest inventories are tests that have no "correct" or "incorrect"
answers.

Interest tests are used to measure an individual's work and career orientations.

Personality tests focus on identifying traits or typical behaviors of individuals and are used to
measure a variety of traits including aggression, self-esteem and type A behavior. Although
76

personality tests can be costly, they can help human resources manager's determiner individual
characteristics opt obtained from a resume, thus increasing the likelihood of finding a go "fit"
between the job position and the employee.
A serious criticism of personality inventories is their tendency to be invasive in that they seek to
"uncover revealing data about a person's psyche.

Companies that use this type of pre

employment tests must therefore ensure that the information they seek and the way they use this
information are relevant to the job in order to prevent lawsuits by rejected applicants.

77

THE INTERVIEW
Most organization's, regardless of size, use interviewing as a selection method. Interestingly,
interviews have been criticized for being unreliable sources of information due to perceptual and
judgment errors on the part of the interviewer.

Example interviewers often form a first

impression of the job applicant based on the influence obtained on the application blank or the
first two minutes of the interview.
Another type of perceptual error is called the Halo effect. In this case, one characteristic or
behavior of the job applicant overrides all or most other characteristics.
Contrast effects have also been found to distort interviewer judgments about job applicants.
Contrast effects occur when the interviewer evaluates a job applicant by comparing this person to
previous job applicants.
Other perceptual errors can distort an interviewers evaluation include stereotyping, leniency,
strictness and central tendency errors.
Establishing a system for conducting an interview can improve the reliability and validity of
interview assessments.
Types of interviews
Interviews can be classified into three general categories: structured, semi structured and
unstructured.

Structured
When conducting a structured interview, the interviewer asks questions from a prepared list
and does not deviate from it except for some follow up questions. During the interview,
78

the interviewer records his or her thoughts and reactions on a standard organizational form.
When different interviewer reach the same or similar conclusion about a given candidate,
the interpretation reliability is high. Unfortunately this type of interview is very restricted.
Two most common types of structured interviews are the behavioral description interview
and the situational interview.
The behavioral description interview allows you to gather and evaluate information
about what candidates have done in the past to predict how they will act in the future. A
thorough job analysis of the job is done for which the interview is being developed. The
specific KSA0s are uncovered, required by the job as well as appropriate and important
behaviors performed by the job incumbents. Next questions will have to be designed
which elicit the behaviors.
The second type of structured interview is the situational interview. In this job experts
develop questions that focus on situations that might arise in the actual job. It is conducted
with a panel of interviewers, each of them independently rate the applicants. This type of
interview is kinder to the applicant because a past example does not have to be provided.

Semi structured
Here only the major questions are prepared in advance and are recorded on a standardized
form. This type of interview involves some planning on the part of the interviewer but
allows for some flexibility regarding exactly what and how questions are asked. Although
the inter rater reliability is not so high as with structured interview, the information
obtained may be richer and possibly more relevant

Unstructured interview
79

The unstructured interview involves little planning or no planning on the part of the
interviewer.

Due to lack of planning, the interviews tend to vary greatly between

interviewers and also between interviewees. Unstructured interviews have low reliability
and seldom yield valid and useful information.

80

MANAGERIAL SELECTION DEVICES

Selection devices for managers can differ from non-managerial employee selection. Assessment
centers were developed to tap these numerous managerial skills by collecting work sample
information. an assessment center is not a place but a process.

In this process trained

professional evaluators, called assessors, observe and record and evaluate how a candidate
performs in simulated job situations.
Although the validity of assessment center tends to be high, some problems recently have been
identified with this selection device.

81

RECRUITMENT AND SELECTION - OVERVIEW

Till recently the rules of recruitment were very retrogressive. Companies simply hired fresh
graduates or MBAs - seeking out the top rankers - started them off as trainees, paternally
oversaw their vertical progress and repeated the process every year. On the rare occasions that
they had to recruit at higher levels, they advertised - the discreetness of the address matching the
stature of the company as a coveted employer - or used services of a head hunter and chose on
the basis of a track record. Job hoppers were never favored and companies hired everyone for
lifetime.
Now a recruitment revolution is beginning. And the people whom company will soon compete
for most fiercely will be those who have earned their spurs in different functions, companies,
industries- and not one company, one function specialist. Having succeeded in hiring them,
CE0s must not expect all of them to stay. Some will leave the company when the company
changes its operational focus - as it must to stay ahead of change and needs different kind of
people. Others will opt for entrepreneurial careers in favor of -,employment. Yet others will go
back to school to restrictions -educate themselves and proceed to the next phase of their portfolio
careers'
Abandoning their old policies of hiring only at the bottom, therefore companies will have to
induct new talent at every level, including those where internal promotions were once developed
rigueur. Even the search for CE0s will intensify as new competitors look for team captains and
existing companies feel the need for new qualities - not available in house - in their CE0s. lnfact
the search for the right people at every level will pick up pace.

82

And while companies will have to develop innovative techniques to beat the competition at
recruitment hotspots like campuses, they must also look outside their conventional hunting
grounds. For that is where people with unorthodox Winning ideas will come from CE0s looking
for breakthrough marketers will have to recruit them from other industries since everyone
already in the sector will only offer tired ideas. Hunting for knowledge workers, company va
have to raid research laboratories, non-governmental organization's, college staff-rooms and even
sports fields. And the quest for managers with the ability to lead mega projects will have to be
global and not limited to the country.
At the organizational level, companies must tailor their manpower recruitment plan to corporate
objectives, drawing up the profiles of suitable fires accordingly. Company focusing

on new

business development will have to seek entrepreneurial abilities; companies planning to

withdraw from diversification's must look for pragmatists; companies chasing growth through
alliances should hire people comfortable in different cultural backgrounds. Above all companies
must hire for the future, anticipating jobs that may not be in existence yet.
So recruitment of managers must focus not on functional expertise, but for attitudes and
approaches that fit the corporate goals and culture. Among the qualities that companies will have
to screen, therefore will be interests, disposition, attainments, general intelligence, special
aptitudes are even physical makeup. For every job that a company seeks to fill therefore the
must prepare psychological profiles of the ideal candidate. And to test candidates for a fit with
that profile, companies will increasingly have to use psychographics testing techniques such as
Thomas Profiling. Myers- Bdgg Type irdicator, or the particular preference Inventory that draw
up the complete psychological and behavioral characteristics of an individual.

83

The test for personality traits will involve using unconventional tools like graphology. Also on test will be candidates result orientation analytical
ability, initiative, communication skills and innovativeness, giving employers as much information as possible with which they decide whether an
individual will be appropriate for the job. To validate the conclusions of the tests, line managers and human resources personnel who conduct
interviews will have to be trained interviewing skills. And companies will have to use multi-session depth interviews ad of one off interactions to
explore different facets of a candidate under different circumstances and varying degrees of pressure.

What are the elements which companies must use to entice top talent? Compensation will be
crucial only till it isn't absurdly below. The competitor offer. Instead recruiting teams will have
to market their company as a place where employees have fun working, particularly to people
that the company is trying to hire from old-fashioned organizations.
A corporate culture that cares for people and gives them room to grow will be a company's
strongest magnet for attracting good people. CEOs will have to ensure that their line managers
and human resources department design unconventional jobs and daring responsibilities to create
offers that their targets cannot refuse. And if pursuing the right person and convincing him to
agree takes time, the companies should be willing for it. In the knowledge economy the
corporate quest for intellectual capital will be a continuous process.
Recruitment costs
Low cost per hire may affect the quality of recruiting. Companies may think that the cost of hire
may be high but if the company is able to attract the best talent, the company is successful.
Quality of hire is a useful metric. to assess the strength of the recruiting process.
Some companies evaluate candidates through multiple interviewers, assessment tests, reference
and credit checks, background and educational verifications. Even with all of these techniques
companies continue to realize the same "bell curve" distribution of employee performance.
Others are smarter, they apply the technique of position, profiling to identify top performers and
to change the bell curve.
84

Companies can design a brief performance evaluation process and use it on new entrants, within
six and 18 months of joining. The quality of performance puts the recruiting process to test.
While filling internal positions, the recruiting manager responds to his internal customer - the
line manager. Measure of customer satisfaction proves to be a precious technique for fine
tuning the system. Recruiting managers use post hire surveys and evaluations for this purpose.
It is important for companies to document pre hire requirements and conduct objective post hire
evaluations. Managers also seek feedback from the candidates themselves. Such data could give
insights into further streamlining the recruiting process.
How long before they are in?
Recruitment cycle time is measured by the time taken to fill a vacancy. Another metric is
staffing time ratio - the ratio of actual time in days to start to pre-contracted time to start. The
contracted time to start is agreed upon between the hiring manager and the recruiter and it can be
changed during the recruiting process with mutual consent.
Internal hiring a more viable option
Corporate recruiters have a dangerous bias towards hiring from an outside source. Industry
giants like HLL and Tata's believe in homegrown talent. More often than not heavy recruitment
happens at entry level and incumbents move along a structured career path as they grow with the
company. The pool of talent keeps widening and gains richness with time. As a result it is never
a daunting task to fill roles created out of unexpected situations.
On the other hand fast growing, innovative relatively newer firms tend to focus more on external
hires, a strategy guided partly by default and partly by design. By and large all companies end
up using a mixed strategy.
85

Some companies believe that external hiring give facts about the competitors. External hiring
brings in new ideas, perspectives, competencies and readymade skills that do away with the need
for much investment on training. On the other hand internal recruitment works fine, sometimes
better. The culture of certain companies may be such so as to mould the existing employees for
further vacancies. Such companies boast of low employee turnover rate. Internal recruitment
may have its benefits but it also demands a great deal from the HR of the company.

86

Internal hiring cut out on downsizing

Building an internal talent pool works as an innovative answer to overstaffing, especially if the
company is wary of downsizing as the option.
Internal hiring: more than just filling a slot
Recruiting by itself serves a single purpose filling a slot. But when a company favors internal
over external sources, it also addresses the critical issue of succession planning. It does not cater
to executive replacement alone, it underlines a commitment to leadership development. A
greater pool of talent can be harnessed at a short notice without the hassles of an elaborate search
externally and without investing in further hiring and training costs.
The above kind of a process involves psychometric profilers, offsite interactive workshops, multi
rater feedback processes, management games and options as simple as observation and past
performance records.
Recruiting ... in spite of odds.
Recruitment business has dropped by almost 40% lately and the situation may remain low profile
at least for the coming months. There is general reduction in intake, recruiters are shying away
from taking fresher or even people from cross-functional industries so that there is less
investment in training. Organization's are trying to reallocate jobs, add portfolios to existing
positions even considering outsourcing. Jobs are diminishing, merging or even disappearing
altogether. While there are definite signs of conventional recruitment activity having slowed
down, there are strong signals that organization's are successfully experimenting with more
innovative techniques of talent scouting and sourcing of requisite skills need to be replenished.

87

Innovative sourcing .... Its happening

70% of recruitment in India happens through the direct advertising route. Use of recruitment
consultants is the second most favorite technique. Head hunting is very much in demand along
with in depth interviewing.

The Indian recruiter may have access to the best of Indian

recruitment consultancy firms as well as the cream of international search firms, all fiercely
competing on grounds of quality and value added service. But he has started looking for
different sourcing options. Employee referrals, for one is gaining popularity.
Employee referrals
HDFC BANK LIMITED on personal contacts is still a strong source of recruitment worldwide
and is being capitalized in more sophisticated ways by many organization's. Hewlett Packard in
the computing sector is reported to have adopted "company-opting schemes" whereby employees
are promoted to recruitment positions and rewarded for their ability to become good recruiters.
Recruiters have accepted the fact that recruitment advertising is an intricate process, involving a
psychic attitude change. Its not about a simple job announcement in a newspaper. It is about
attracting quality people who are not desperately looking for a job. An international restaurant
chain realize that the candidates need to have a feel of the company before they decide to apply
for a job. The company planned a two day event for potential recruits to walk in and meet
managers personally, see videos and slide shows about the company. The open days also marked
a change in direction as far as the recruiting process was concerned. Instead of screening for
basic skills and past experience, the company concentrates on recruiting people for their
personality, so that people could fit in.
A new selection aid

88

All India Management Association (AIMA) has taken a useful initiative by introducing an all
India level test for the employability of prospective management employees (TEM). The test is
administered to candidates who are in the second 1 final year of MBA programs or an equivalent
course or have less than 2 years of post qualification work experience. Candidates are tested on
parameters like general management skills, thinking skills, awareness of current business and
economic environment and on their functional areas like marketing, finance, HRD, operations.
Etc.
TEM has been endorsed by 62 companies like HLL, Ceat LTD, ITC Ltd, Labor&T, GEC
Alsthom Ltd, DCM Shriram etc. the scores achieved by the candidates in this test along with
other details are sent to corporates to be short listed for 'Interviews and subsequent placement.
Corporate houses get access to scientifically evaluated candidates from allover the country
without having to visit each and every campus, thus saving time and effort. On the other hand,
the candidates get access to a host of companies without individually applying to them.

89

A suitable recruitment strategy

An effective recruitment system like any other HR sub-system needs to be sync with the business
strategy and objectives of the organization. Organizations adopt specific recruiting strategies
tailored to their business needs. These business needs may change depending on the stage of
growth of the organization.

90

Recruitment strategy varied with stage of growth of the

organization
Business situation
Starting a new business

Characteristics of business

Characteristics of

situation
Financial risk

candidate
Vision

No systems/procedures

In-depth knowledge

/ Organization

Staffing

Operational experience base is

Organizing and team

lacking.

Building.

Limited relation with

Turnaround

Suppliers, customers.
Need for rapid decision

Strong leader

making.

Strong analytical skills

Weak competitive position.

Business strategist

Low esteem/morale.

Good crisis management

Bureaucratic organization

Skills.

structure.

Credibility.

Incompetent/inefficient
New acquisitions

personnel.
New management proving

Analytical ability

themselves

Relationship building

Existing management

skills

defensive about change

Credibility.

Need to integrate acquired

91

Liquidation of business

Redeployment

company with parent

Weak competitive positions

Determination

Low returns

Highly analytical in case

Low morale, deficiency of

of cost/benefits

skills

Willing to do dirty jobs

Need to cut losses and make

Wants to be respected not

decisions
Low short term/long term risks

just liked
Good manager of change.

Resistance to change

Highly persuasive.

Mismatch of organization

Supportive.

resources and need

Risk taker.

Lack of strategic plan for quite

some time.

What are the skill sets

Process skills are being given more importance as compared to solely technical skills. Recruiters
are keenly selecting for general attributes like ability to cope with change, leadership,
entrepreneurship, project management, tolerance of uncertainty, management skills and
communication ability. The five top skills sought in entry level candidates on campus are
communication skills, team working, listening and problem solving.

92

ANALYSIS

93

94

95

96

FINDING

97

98

CONCLUSION
1. I have given various options for joining of the candidates in the organization in the
questionnaire. Also I got more options from the employees while interacting with them. Most
of the employees(28%) have mentioned the salary package as a reason for joining the
organization. 16% of the employees have mentioned or pointed it out the working
environment as the reason for joining the organization. 17% talked about the reputation of
company and 23% mentioned about career growth opportunity. So I can say salary package
and career growth opportunity are the more attractive to the employees.

2. From the analysis of recruitment and selection procedure it is clear that for recruiting
employees both the companies following government procedures that consist of mainly
written examination followed by interview. Written exam is mandatory for mainly all types
of recruitment. For selection of the technical candidates they have to go through three
mandatory interviews, out of which two are technical interviews and one is the interview
with the Human Resource head.

99

Employees satisfaction
7

Fe eling'in' on things

Understanding

Appre ciation

Tactful Disipline

M anagem ent Loyalty

Inte re sting Work

Working Condition

Prom otion

9
6

Job Security

Good Salary

Rating scale

100

 Other findings of the qualitative response entailed from the HR Department (based on
Questionnaire)

The organisation deploys both internal as well as external sources for the process of
recruitment.

The internal sources of recruitment mainly comprise of:

Promotions

Transfers.

The external sources of recruitment include:

Employment exchange

Advertisements

The pipeline for recruitment with reference to the internal sources of recruitment is 1
month, wherein in the case of the external sources, it is 3 months.

The detailed breakup of the process of selection is as follows:

Employment exchange
Trait tests

Written tests

Receipt of applications
Interview (panel of judges)

Screening of applications
Final selection.

Walk ins/write ins are deployed by the organisation only on compassionate grounds. This is
applicable under certain special circumstances wherein, in the event of the death of an
employee of the organisation, the laid job specifications (in terms of KSAs) would be relaxed
for recruiting a family successor/son/daughter.

Background investigations are not used as a means for the verification of data furnished by
the candidate in the application blank.

101

Physical examinations are conducted on a very thorough basis for the selection of lower
level management. The organisation lays specific Job specifications in terms of specialised
abilities, viz. height, eyesight and weight for potential candidates, applying at this level. E.g.
All

selection

for

Lower

level

management

employees,

within

the

Fire

Department/Technical station, requires potential candidates to possess specific

requirements, in terms of physical dimensions.

As an indicator of job proficiency:

The Application form is not considered effective, as it simply furnishes the biodata/personal information of the applicant.

At the non-managerial level designations, involving routinised operations, traditional

paper-and-pencil tests constitute an effective device.

Interviews are considered as a moderately effective device.

Other tests deployed as effective selection devices by the organisation are:

Aptitude tests

Trait tests

Typing tests

General communication tests

Shorthand tests

Driving tests

These tests form highly effective indicators/predictors for job proficiency.

102

 Summary of the recommendations given by the Non-HR departments as entailed from

the analysis

The recommendations given by the different Departments constituting the sample for the
analysis, are in terms of additional sources of recruitment and selection devices that should be
deployed/used by the organisation in addition to current practice (specific for these
Departments)
Departme

Recommendations in terms of

Recommendations in terms of

nt

sources of recruitment to be

selection devices to be deployed

deployed in addition to current

in addition to current practice

Stores

Finance

practice
Employee referrals

Work samples

Employee Job pools

Employment exchange

Reference checks
Work Samples

Operations

Employee referrals

Reference checks
-

Electronics

Consultants
Campus interviews (Middle Level

Work samples

Management)

Reference

checks

Complex
Engineerin
g

for

managerial

Campus interviews (Top, middle

operations)
Work samples

and Lower Level Management)

Reference
Complex

checks

for

managerial

operations)
103

 Qualitative responses (COMMENTS) given by the various Department respondents (as

entailed from Questionnaire)

Departments

From the point of view of the

From the point of view of the

Stores

organisation
Willing employees based on their

Department
There is no cadre in the Stores

performance should be recruited,

Department, therefore the staff

instead of giving promotion on

working in Stores on rotation is

seniority basis.

incorrect. The cadre should have

been there, which gives moral
backup to existing hard working

Finance

Operations

Engineering

employees

for

Right candidate for the right job

prospects.
Experience

should

should be selected irrespective of

preference

for

constraints regarding caste, creed,

managerial positions over new

age etc.
There should be no reservations

candidates.
In all promotions, physical fitness

for any category; the only criteria

should be a specific criterion.

should be competence.
Selection of candidates for various

Qualification of candidates along

posts in different cadres should be

with

strictly

of

consideration for promotion of

qualification and the merit of the

candidates in the Engineering

on

the

basis

merit

their

future

be

given

middle

level

should

be

the

104

candidates. Management should

Department.

lay

selecting

engineers should have promotions

qualified

only to a certain level.

emphasis

on

professionally
Electronics

Low

Qualified

individuals.
As per the merit of the candidate,

We must segregate good and bad

selection should be done.

workers

during

selection/promotion

105

 Recommendations enclosed to HDFC Bank Limitedbased on the research

The organisation should deploy a segmentation matrix for the purpose of talent sourcing.
This is in line with the identification of the talents that the organisation needs to attract for
value creation. At the same time, the matrix also serves to screen any redundant talents that
the organisation does not require within its pool of KSAs.

HIGH

LOW

Large number of best talent Low attraction of suitable

is attracted from the target talent from target profile of
profile of the applicants
1. RETAIN

HIGH

Attracts

talent

in

the applicants
2. CONTAIN

large Develop strategies to attract Keep

numbers

and retain talent at any cost

LOW

Attracts mediocre talent

3. ATTAIN

attracting

talent

within specified cost limits

(not at any cost)
4. ABSTAIN

Focus and go after/attack to Do not put much energy in

attract talent from the target talent sourcing
profile

106

The AI should endeavor to find out as to what attracts the right employees to apply to the
organisation. Thus, knowing what the potential candidates who apply expect from the
organisation and the reasons behind their desire to work for the organisation will help in
'working out' relevant recruitment policies. AI could emerge as a highly successful
organisation in recruiting and retaining desired applicants, when such applicants experience
work culture consistent with their expectations. For the same, the HR Department needs to
'learn' the patterns and develop programs that support recruitment and retention strategies.
They can follow a simplified 'waterfall recruitment process' to recruit 'world class' talent.

107

Recruitment
Detailed design & plan
Cultivate resources
Integrate selection
tests/interviews

Offer

Induct
Integrate into
Train
Deploy

Structured interviews: Interviews conducted by the Recruitment & Selection Committee of

AI , while hiring for senior executive positions, should cover the following basic aspects:
108

 Decision making
Problem solving
Achievement
Deadline consciousness
Crisis management
Customer orientation
Leadership
Motivation
Communication
Inter-personal skills
Planning
Adjustment

Emotional Intelligence: The recruitment policy of AI should incorporate an evaluation of

'emotional intelligence', thus entailing the assessment of self-awareness, self-regulation,
motivation, empathy and social skills, during the evaluation of the potential candidate.

Containing political pressure: Political pressure exerted by trade unions is one of the biggest
problems faced by AI. These trade unions leaning towards particular political groups hamper the
natural process of recruitment. The relevant authorities within the organisation should induce
requisite efforts in containing this emergent political influence coupled with appropriate
government assistance.

109

Suggestion/Recommendation
Summary of the recommendations given by the Non-HR departments as entailed from
the analysis

The recommendations given by the different Departments constituting the sample for the
analysis, are in terms of additional sources of recruitment and selection devices that should be
deployed/used by the organisation in addition to current practice (specific for these
Departments)

Departme

Recommendations in terms of

Recommendations in terms of

nt

sources of recruitment to be

selection devices to be deployed

deployed in addition to current

in addition to current practice

Stores

practice
Employee referrals

Finance

Employee Job pools

Employment exchange

Reference checks
Work Samples

Work samples

Operations

Employee referrals

Reference checks
-

Electronics

Consultants
Campus interviews (Middle Level

Work samples

Management)

Reference
Complex

checks

for

managerial

operations)
110

Engineerin

Campus interviews (Top, middle

Work samples

and Lower Level Management)

Reference

checks

Complex

for

managerial

operations)

Qualitative responses (COMMENTS) given by the various Department respondents (as

entailed from Questionnaire)

Departments

From the point of view of the

From the point of view of the

Stores

organisation
Willing employees based on their

Department
There is no cadre in the Stores

performance should be recruited,

Department, therefore the staff

instead of giving promotion on

working in Stores on rotation is

seniority basis.

incorrect. The cadre should have

been there, which gives moral
backup to existing hard working

Finance

Operations

employees

for

their

future

Right candidate for the right job

prospects.
Experience

should

should be selected irrespective of

preference

for

constraints regarding caste, creed,

managerial positions over new

age etc.
There should be no reservations

candidates.
In all promotions, physical fitness

for any category; the only criteria

should be a specific criterion.

be

given

middle

level

111

Engineering

should be competence.
Selection of candidates for various

Qualification of candidates along

posts in different cadres should be

with

strictly

of

consideration for promotion of

qualification and the merit of the

candidates in the Engineering

candidates. Management should

Department.

lay

selecting

engineers should have promotions

qualified

only to a certain level.

on

emphasis

the

basis

on

professionally
Electronics

merit

should

Low

be

the

Qualified

individuals.
As per the merit of the candidate,

We must segregate good and bad

selection should be done.

workers

during

selection/promotion

112

Limitation

The organisation should deploy a segmentation matrix for the purpose of talent sourcing.
This is in line with the identification of the talents that the organisation needs to attract for
value creation. At the same time, the matrix also serves to screen any redundant talents that
the organisation does not require within its pool of KSAs.

HIGH

LOW

Large number of best talent Low attraction of suitable

is attracted from the target talent from target profile of
profile of the applicants
5. RETAIN

HIGH

Attracts

talent

in

the applicants
6. CONTAIN

large Develop strategies to attract Keep

numbers

and retain talent at any cost

LOW

Attracts mediocre talent

7. ATTAIN

attracting

talent

within specified cost limits

(not at any cost)
8. ABSTAIN

Focus and go after/attack to Do not put much energy in

attract talent from the target talent sourcing
profile

Annexure
113

114

115

BIBLIOGRAPHY
1. News Paper

Times of India

Hindustan Times

Economic Times

The Pioneer

The Hindu

Catalyst

Financial Express

Economic and Political Weekly

2. Magazines

India Today

Todays traveller

A&M

Business Today

Business World

Business Digest

3. Web sites

www.hdfc.com

www.indiatimes.com

4. BOOKS

Robbins P. Stephens, Organisational Behavior, Prentice Hall, 7th Edition, Chapter 16, pages
636-641.

Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw Hill, 5th Edition,
Chapter 11, pages 217-245.

116

Decenzo A. David & Robbins P. Stephen, Personnel/HR Management, Prentice Hall, 3rd
Edition, Chapters 6,7 & 8, pages 117-209.

MAGAZINE

Name of the
Magazine
Human Capital

Human Capital

Human Capital

Human Capital

Vol.
3

No.

Month &

Publishing

Name of

Name of

Pg. No.

year
Sep.'03

agency
HR

the article
'The Trick

the writer
Brahma

12,13

Information

of not losing

Gautam

Services
HR

them'
'The Metrics

14 - 17

Information

of Hiring'

Services
HR

'Ready get

Jomon

40 - 44

Information

set & go'

M.G.

Services
HR

'Scaling

Bhatnagar

Information

heights

Jyotsna &

Services

together'

Menon

Sep.'03

Dec.'03

July'2004

40 - 46

Deepti

117

QUESTIONNAIRE
NAME:
COMPANY:
DESIGNATION:
DEPARTMENT:
1. What is the working period of employees in the company? (Tick any one)
Within 1 year
Between 1-2 years
Between 2-3 years
Between 3-5 years
2. What are the reason of the candidate to join the company? (Tick all that apply)
Reputation of the company
Working environment

salary package
job prospects

Location of the company

career growth opportunity

3. How candidates are recruited in the company?

Written exam

written exam and interview

Written exam, GD and interview

others

4. Did you get the same job specification as offered during the interview?
Yes

No

5. Is there any role of Union in the organization?

Yes

No

6. Is there any changes occurred in the recruitment and selection procedures of the company in
the last five years?
Yes

No

7. Is there any effect of recruitment and selection procedure towards gratitude of employees?
Yes

No

8. Is the organization doing anything to reduce the employee turnover ration? (Tick all that
apply)
118

Better salary package

More benefits
Changing / Improving working conditions
Better promotion / Career Development Opportunity
9. Are you satisfied with the salary and job security provided by the company?
Yes

No

10. Is the company understanding, appreciating, providing interesting working conditions,

promotion/ career growth opportunities for an employee?
Yes

No

11. In your views, do you think the way you are recruited in the company is fair. (If answer to
this question is No, Please attend next question too)
Yes

No

12. If No, What all changes do you think required for fair recruitment and selection process in
your company.
______________________________________________________________________________
______________________________________________________________________________
______________________________

119