Recruitment and Selection

A Study on
RECRUITMENT AND SELECTION

With reference to
COROMANDEL INTERNATIONAL LIMITED, VISAKHAPATNAM
A project report submitted to JNTUK, Kakinada in partial fulfillment for the award of the
degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
MANAPURAM PRIYANKA
(Reg. No. 14U41E0013)
Under the esteem guidance of
(Dr. A.V.NAGESWAR RAO
Professor & HOD
Department Of MBA)
SCHOOL OF MANAGEMENT STUDIES

DADI INSTITUTE OF ENGINEERING & TECHNOLOGY (Approved by
A.I.C.T.E.., New Delhi & Affiliated to JNTUK, Kakinada) ISO 9001:2004;
ISO 14001:2004 & OHSAS 18001:2007 Certified Institution NH 16,
ANAKAPALLI 531002, Visakhapatnam, A.P.
(2014 -2016)
DECLARATION
M.PRIYANKA, here by declare that the project report entitled
RECRUITMENT AND SELECTION with reference to COROMANDEL INTERNATIONAL

LIMITED, VISAKHAPATNAM being submitted by me during the academic year 2014-2016 to the
Department of Management Studies, JNTUK, in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION is a bonafide work carried out by me under the
guidance of Dr. A.V.NAGESWAR RAO.
I also declare that this project work is the result of my own effort and that it has not been
submitted to any other University for the award of the degree or diploma earlier.
Place:
M.PRIYANKA
Date:
Regd No: 14U41E0013
DADI INSTITUTE OF ENGINEERING & TECHNOLOGY

(Approved by A.I.C.T.E.., New Delhi & Affiliated to JNTUK, Kakinada)
ISO 9001:2004; ISO 14001:2004 & OHSAS 18001:2007 Certified Institution
NH 16, ANAKAPALLI 531002, Visakhapatnam, A.P.
E-MAIL: info@diet.edu.in; Website: WWW.diet.edu.in
MASTER OF BUSINESS ADMINISTRATION
CERTIFICATE
This is to certify that the project work entitled A STUDY ON RECRUITMENT
AND SELECTION by M.PRIYANKA (14U41E0013) in partial fulfillment of the curriculum of Master
of Business Administration during the academic year 2014 2016.
PROJECT GUIDE
HEAD OF THE DEPARTMENT
EXTERNAL EXAMINER
ACKNOWLEDGEMENT
We would like to express our sincere gratitude to (Dr.A.V.NAGESWAR RAO, Professor,

Department Of Management Studies) for his valuable guidance, wholehearted cooperation under
unfailing inspiration. Throughout the project, his suggestions and constant encouragement has given a
right direction towards learning. We were indebted for his excellent and enlightened guidance,
We also wish to express our deepest gratitude to (Dr.A.V.NAGESWAR RAO, Head,

Department Of MBA) for his valuable suggestions in completing the project work.
We also consider it as our privilege to express our gratitude in thanking Dr.Ch.SRINIVASU,

principal, for providing us this opportunity to complete the project work.
With great solemnity and sincerity, we offer our profuse thanks to Sri DADI RATNAKAR,
correspondent for providing all the resources that greatly helped the project work to get successfully
completed.
We sincerely thank all the members of the staff in the department of management studies for
their sustained help in the pursuit. We also thank all those who contributed directly or indirectly in
successfully carrying out this work.
M.PRIYANKA
(14U41E0013)
INDEX
S.NO
CHAPTER NO.
01
CHAPTER
02
03
04
CHAPTER
CHAPTER
CHAPTER
PARTICULARS
PAGE NO.
1.1 INTRODUCTION
8-10
1.2 NEED FOR THE STUDY
11
1.3 OBJECTIVES OF THE STUDY
12
1.4 SCOPE OF THE STUDY
13
1.5 METHODOLOGY
14
1.6 LIMITATIONS OF THE STUDY
15
2.1 INDUSTRY PROFILE
16-22
2.2 COMPANY PROFILE
23-65
3.1 THEORETICAL FRAME WORK
66-81
3.2 LITERATURE REVIEW
82-96
4.1DATA
ANALYSIS
& 97-112
INTERPRETATION
05
CHAPTER
ANNEXURE
5.1 FINDINGS
114
5.2 SUGGESTIONS
115
5.3 CONCLUSION
116
5.4 SUMMARY
117
QUESTIONNAIRE
119-120
REFERENCES
121-122
BIBLIOGRAPHY
123
LIST OF FIGURES
SERIAL NO
DESCRIPTION
PAGE NO
The Spirit of murugappa group
25
Organisation Structure
41
Range of products and customers
48
Coromandel plant
51
Manufacturing process
53
Sources of recruitment
69
Recruitment Factors
74
Differences between Recruitment and selection
81
CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
RECRUITMENTAND SELECTION
Recruitment refers to the process of finding possible candidates for a job or function,
undertaken by recruiters. An employment agency or a member of staff at the business or organization
looking for recruits may undertake it. Advertising is commonly part of recruiting process, and can occur
through several means: through newspapers, using newspapers dedicated to job advertisement, through
professional publication, using advertisements placed in windows, through a job center, through campus
interviews, etc...
Once the required number and kind of human resources are determined, the management has
to find the places where required human resources are/will be available and also find the means of attracting
them towards the organization before selecting suitable candidates for jobs. All this process is generally
known as recruitment. Some people use the term recruitment for employment. These two are not one and the
same. Recruitment is only one of the steps in the entire employment process. Some others use the term
recruitment for selection. These two terms are not one and the same either.
Technically speaking the function of recruitment precedes the selection function and it
includes only finding, developing the sources of prospective employees and attracting them to apply for jobs
in an organization, whereas the selection is the process of finding out the most suitable candidate to the job
out of the candidates attracted. Formal definition of recruitment would give a clear cut about the function of
recruitment.
The increasing competition in sourcing right talent and lack of potential database
of candidates paved the way of raise in the consultancy industry. Consultancies serve organizations by
providing suitable human resource at right time from their employee database. Continuously changing
technology demands resource with different skill sets and thus the recruitment and selection process of
consultancies keep in tune with the changing needs of the industry.
Another reason for the organization to concentrate on the consultancies is to get more time to focus in
the core functions of the human resources in the organization. Consultancies take care of the behavior and
attitude of the personnel that influences the successful performance and success of the organization.
Consultancies conduct behavioral interviews for picking up the resources with right attitude and by
conducting various tests. Hence, there is an increasing relevance of recruiting consultancies in the staffing
activities of the organizations. Thus, the important is ever growing and their contribution to the industry is
praise worthy.
Definition of Recruitment and Selection:

Recruitment is defined as a process to discover the sources of manpower to meet the recruitments of the
staffing schedule and to employ effective selection of an efficient workforce.
Edwin B Flippo defined Recruitment as the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.
It is the process of differentiating between applicants in order to identify those with a greater likelihood of
success in a job.
10
1.2 NEED FOR THE STUDY
1. Human resource is playing major role in the fertilizers industry. It is very important to select right
person for the right job at the right time, who can perform the job successfully with high
standards.
2. People with friendly and outgoing personality, self discipline are mainly needed for this type of
industry because a customer sees a company through its employees.
The employees are mainly in contact with the customer depending upon the jobs they are performing.
Recruitment and selection has been regarded as the most important function of personal
administration, because unless the right people are hired, even the best plans of the organizations and control
system would not do much good to the organization.
Human resources are the assets to the organization. Any organization will get its recognition
through its employees performance, skills, innovativeness and their professional knowledge.
Hence we can say selection and recruitment plays major role in the organization. Because right
people should be selected for the right job and at the right time. It is the responsibility of the organization to
hire that right personnel to increase their productivity and overall performance of the organization.
Thus, the study is conducted in Coromandel International Limited. To know about their
recruitment and selection process and what are the internal and external sources they are opting for
recruitment.
11
1.3 OBJECTIVES OF THE STUDY
To study the various recruitment practices of Coromandel international

limited, Visakhapatnam.
2
3
4
To examine the recruitment and selection process in the organisation.

To analyse the recruitment procedures in the organisation.
To analyse the impact of recruitment and selection process on organisation

productivity.
. To assess the challenges associated with the recruitment and selection

practices in the organisation.
To identify factors that will improve recruitment and selection practices in the
organisation.
12
1.4 SCOPE OF THE STUDY:
1To structure the recruitment policy of the different categeories of employees.

2To analyze the recruitment policy of the organization.
3To provide a systematic recruitment process.
4With extent the organization with covered officers, sites, works, appointment over all India.
5 It covers workers , clerical staff , junior management , middle management and senior management .
13
1.5 METHODOLOGY
The data for the present study is collected from primary and secondary sources.
1. Primary Sources:
Data is collected by personal discussions with senior officer-management development and training
manager and also contacts with various staff members of the personnel department.
Sample size:
Questionnaires were prepared by keeping in view of the objective of the study. The second
one was the canvass among the sampled employers to find out their opinion on recruitment. The
questionnaire was distributed to 120 and the response to 110. The study is confined to a sample of 100 only.
2. Secondary Sources:
The information regarding the study is also collected from various reports and journals of
Coromandel international limited and also from various textbooks. It was also sourced through the use of
Electronic search engines such as the internet and Encarta encyclopedia .
HYPOTHESIS OF THE STUDY:

H0: Recruitment & selection practices plays a significant role in the organisation.
H1: Recruitment & selection practices do not play a significant role in the organisation.
14
1.6 LIMITATIONS OF THE STUDY
1As the managers of the organisation are busy with their work schedule it was difficult to collect
detailed data.
2Time was the major constraint as the mentioned period was not enough to collect the data in detail.
3Collection of current data is also limiting factor because it is confidential.
4Employees were busy with their works so few of them are not respond.
5Little information is made available to make the study.
15
Chapter - II
COMPANY NAME
COROMANDEL
INTERNATIONAL
LIMITED
COMPANY LOGO:
16
2.1 INDUSTRY PROFILE

FERTILIZER INDUSTRY AT NATIONAL LEVEL
Fertilizers are of immense value to man. They help the growth of agriculture production. India
is primarily an agricultural or an agro based country. Hence, it provides an immense role in providing
support to millions of people of the country.
The use of fertilizers enables the plant to increase the crop production by absorbing greater amount
of nutrients present in the soil. Hence, the fertilizers sector is one of the vital sectors in the economy of the
country.
Of late, a large number of private and public sector fertilizer plants have come up in the
country. These plants engage themselves in the production of several simple and complex fertilizers such as
urea, ammonium, phosphate and other complex nitrogenous and phosphate fertilizers, which play a strategic
role in catering to the needs of the various sectors of the society.
Indian economy is presently an under developed economy. Almost all important characteristic
features of an under developed economy were present in the Indian economy at the time of Independence
and have not much changed since then. In the under developed economy not only the per capita income is
low but also the capital per head is very little. Due to wide spread poverty, most of them have virtually no
abilities to save and whatever capital accumulation is done, it remains highly concentrate in the hands of
people whose value are not conducive to investment in industry or agriculture, more people spend major
portion of their income on food and necessities, and the food grains remain the principle wage.
India has made substantial development in agriculture since independence in terms of
growth in output, yield and areas under many crops. It has gone through a green revolution, a white
revolution, a yellow revolution and a blue revolution.
Today, India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world. The second
largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. The
per capita availability of food grains has risen in the country from 350 grams in 1951 to about 500 grams per
day now despite the increase in population from 350 millions to 1250 millions.
17
Some of the major fertilizers making companies are Nagarjuna Fertilizers and chemicals Ltd.,
Coromondel Fertilizers Ltd., are the major Phosphoric plants in the country. In fact, all the other fertilizer
Nagarjuna Fertilizers and Chemicals Ltd., Coromandel Fertilizers Ltd., are the major Phosphoric plants in
the country. In fact, all the other fertilizer plants in the country are either nitrogenous or Potash based.
GROWTH IN FOOD GRAIN PRODUCTION

The food grain production in India in 1950 rose because of expansion in area. In 1960,
growth rate was very poor which resulted in large-scale imports. The development, production and use of
better seeds increased the productivity of wheat In 1970 and rice in 1980. The eighties was also a period of
green revolution, which enabled India to become self sufficient in food grain production and even a marginal
exporter.
In the nineties, however the annual growth rate in production has fallen to 1.66% from
3.54 % recorded in the Eighties. This is matter of serious concern for the country as this growth rate is just
matching to annual growth rate of population and 26.10 % of the population in the country is still living
below the poverty line.
MEANING AND ESSENTIAL ELEMENTS:

Fertilizer is defined as any material, organic or inorganic, natural or synthetic, which supplies
one or more of the chemical elements required for the plant growth
A fertilizer containing two or more nutrients and during the productions of which, chemical
reaction takes place is called Compound or Complex Fertilizer. Primary nutrients Nitrogen (N),
Phosphorus (P2O5) and Potash (K2O) are normally supplied through chemical fertilizers.
FERTILIZERS-CLASSIFICATION:
Fertilizers may be classified into:
Natural Fertilizers
(b) Artificial Fertilizers
Natural fertilizer is nothing but "Compost and manure". The action of soil bacteria in
breaking down dead organism and dung of animals into nitrogenous compound easily available by very
18
good source of 'Natural Fertilizer'. When large areas of land brought under cultivation and natural fertilizer
are inadequate to compensate the soil of its rapid decreasing nutrient values, artificial Fertilizers have to be
added to the soil.
NEED TO PRODUCE MORE FERTILIZERS IN INDIA:
The three types of nutrients are required for proper growth N,P, and K. however, Indian soil
is not very seriously deficient in Potassium. It is estimated that India at present needs a minimum of 6,00,000
tones of nitrogen per year, 23,40,000 tones of P205 per year, 13,10,000 tones of K 20 per year. The present
production capacity is only about 50% of our requirements and the remaining is being imported from other
countries. With increased consumption, it is obvious that India must greatly increase the production capacity
of Fertilizers.
FACTORS AFFECTING FERTILIZER CONSUMPTION:

1Some of factors affecting Fertilizer consumption are:2Weather
3Adequate moisture - through irrigation and assured rains
4Location imbalance ready and timely availability of Fertilizers
5Credit availability
6Seasonality of consumption
7Inadequate movement facilities
8Other cost economies
HISTORY OF INDIAN FERTILIZER INDUSTRY:

The first fertilizer factory in India was established at Ranipath, Tamil Nadu by EID Parry Ltd., in
1906 to produce super phosphate from the acidulation of crushed bones with an annual capacity of 6,400
tons. This was followed by Dharma Maorajrji Chemical Company Factory at Ambernath in Maharastra in
1924 and DCM at Delhi in 1964, both produced any Super Phosphate. The first production of nitrogenous
fertilizers viz., Ammonium Sulphate was in 1993 as a by-product in the Tata Iron and Steel Company at
Jamshpur. This was followed in 1941 by production of small qualities of Ammonium Sulphate at Belagula,
Mysore.
The acute shortage of food immediately after the Second World War necessitated a fresh look at the
ways of increasing production of food grains in the country. In this process, the needs for fertilizers as an
19
essential input for increased yields were realized. As a result the Government of India started a fertilizer
plant in Sindri. India was the fourth larges producer of Nitrogenous fertilizers in the world. It was ranked 8
th
in the phosphate fertilizers.
ROLE OF FERTILIZERS IN AGRICULTURS WITH REFERENCE TO INDIAN

AGRICULTURE:
Agriculture is a very vital sector of Indias economy. It accounts for 32% of the countries
GDP, provides employment to 65% of the work force and earns 27% of the Indias foreign exchange.
Growth of agriculture is an indicator of health of the overall economy. The most important factor that
contributes to the growth of agriculture is the use of fertilizers. The following point highlights the needs for
fertilizers.
The development of fertilizer industry in India has been synonymous with rapidly growing
agriculture. About 50% of the increase in crop productivity in recent times can be credited to the use of
fertilizers.India has different kinds of soils and agro-climatic regions. Centuries of cropping and inadequate
manure have left the Indian soil largely depleted of plant nutrients.
To advise and educate the farmers about the use of fertilizers and ensure the supply of qualitative products, a
number of soil testing laboratories have been set up. These helped the farmers in judicious use of fertilizers.
The consumption of fertilizers is directly related to the availability of subsoil and surface water for irrigation
and on the vagaries of the weather.
The consumption of fertilizers is not evenly distributed. The imbalance has to be removed to
bring about the optimum usage of fertilizers. The India economic growth largely depends on agriculture.
Health of the fertilizer indicates the trend of economic upturn and/or recession.
Earlier, the government used to fix the selling prices of fertilizers providing for distributors
margins, in 1977, the Government introduced a retention price scheme for nitrogenous fertilizers, which was
lager extended to other fertilizers.To make adequate quality of fertilizers available to farmers in time,
Government also gave a freight subsidy, which covered the movement of fertilizers to the block head
quarters.
Due to ample mishandling political interference, Government gave up all those plans and gave
permissions for decontrol of Phosphate and Potassium fertilizers to the block headquarters.
20
PRESENT TRENDS:
th
During the 8 plant in 1992-98, production came very close to 100% capacity utilization in spite of
the problems of sickness and raw material constraints. There would have been no shortfall in production
th
during the 8 plan but for the failure of planned capacity addition of seven lakh tones for nitrogen and 2 lakh
tones for phosphate due to feed stock supply constraints (natural gas)
In case of phosphate fertilizer which depends wholly on imported raw material only a small
th
capacity addition was included in the 8 plan with the adoption of pipe-reactor technology in the existing
plans to enable them to achieve a production increase of 25-30%. This did not help the units because of the
policy changes in 1992 resulting in decontrol of phosphate fertilizers.
The major objective of 9
th
plant (1997-2002) strategy is to frame long term feed stock and price
policies for fertilizers and the steady tapering off of subsidies. It also aims to encourage inflow of fresh
investments and bring about an increase in fertilizer consumption. To realize optimum application, the large
price disparity between the different nutrients to rely optimum applications will also have to be corrected.
Infrastructure will have to be strengthened to ensure smooth rail movement of fertilizers and port handling of
imported nutrients.
The lack of coherent fertilizer policy made difficult by the political uncertainties created by coalition
compulsion at the Centre, is telling on the health of this vital industry, through production wise it has a better
year in 1997-98 than in the previous year. This underlined the need for the comprehensive fertilizer policy.
As a response to this, a high power committee recommended scrapping of unit wise retention price cum
subsidies scheme for both urea and complex fertilizers to facilitate balanced application by farmers. The
pricing methodology was based on long-range marginal cost principle to enhance production efficiency. This
pricing formula was also proposed to increase new investments and efficient use of feedstock.
Fertilizer Association of India welcomed the suggestions to bring the price DAP and other complex
fertilizers in line with the selling price or urea to minimize in balance in price ration and promote balance
rd
fertilizer use. Having become the 3 largest producer, Indias production of plant nutrients during 1997-98
registered growth of 17 and 16 percent. The major factor responsible for improve production was the
improvement in the feedstock supply position.With 83.9% self sufficient in fertilizers at present and with
establishment of new plans and expansion of existing once it should not be difficult to meet the projected
th
demand 16.6% by the end of 9 plan with less and less imports.
21
LEGAL IMPLICATIONS
In order to enforce discipline among the fertilizer manufacturers, government introduced
number of legislative measures for supply of standard fertilizers to the ultimate consumers.
ESSENTIAL COMMODITIES ACT, 1955(ECA)

This was enacted by Parliament on 1-4-55 to regulate the production, supply distribution, trade and
commerce of essential commodities in India, Fertilizer defined as one of the essential commodities.
FERTILIZER MOVEMENT CONTROL ORDER, 1973

This was promulgated under Sec-3 or ECA to ensure equitable distribution of fertilizers in different
parts of the country, movement of fertilizers from one state to another is possible when authorized by Central
or State Government.
FERTILIZER CONTROL ORDER, 1985(FCO)

With a view to ensure that the quality of fertilizers is checked at manufacturing stage, statutory
provisions have been made in the FCO that each manufacturer has certain minimum testing facilities in their
factory. The production of standard quality of fertilizers alone does not ensure but the fertilizers are
delivered in the same chemical and physical condition duly protecting the nutrient contents. Most of
fertilizers being hygroscope in nature, their quality gets deteriorated if they are not properly packed, stored
and distributed.
STANDARD OF WEIGHTS & MEASURES (PACKED COMMODITIES) RULES,

1977
Under Section -83 of the Act, every package shall bear thereon a label securely affixed. A definite
plan and conspicuous declaration made in accordance with the provisions of the chapter in respect of name,
address, net quantity, month and year of manufacture, common or genetic name of the commodity unit sale
price etc.
SUBSIDIES TO FERTILIZERS INDUSTRIES IN INDIA:

Fertilizer subsidy is one of the important subsides related to agriculture sector in India. The other
major subsidies are food subsidies electricity and canal water subsidy.
Fertilizer and food subsidies explicitly appear in the union budget, the power and subsidies are
implicitly subsidies arising on account of lower user charged recovered from the consumers than the average
cost associated with these inputs.
22
2.2 COMPANY PROFILE
Introduction:
Coromandel International Limited is in the business segments of Fertilisers, Speciality
Nutrients, Crop Protection and Retail.
Coromandel manufactures a wide range of fertilisers and markets around 2.9 million tons
making it a leader in its addressable markets and the second largest phosphatic fertiliser player in India.
In its endeavour to be a complete plant nutrition solutions company, Coromandel
has also introduced a range of Specialty Nutrient products including Organic Fertilisers.
The Crop Protection business produces insecticides, fungicides and herbicides and markets
these products in India and across the globe. Coromandel is the second largest manufacturer of Malathion
and only the second manufacturer of Phenthoate.
Coromandel has also ventured into the retail business setting up more than 425 rural retail
centers in the agri and lifestyle segments.
The Company clocked a turnover of Rs.9668 crores (USD 2.2 billion) in 2008-09.
Coromandel was ranked among the top 20 best companies to work for by Business Today
and was also voted as one of the ten greenest companies in India by TERI, reflecting its commitment to the
environment and society.
Coromandel is a part of the Rs.15,907 crore (USD 3.14 billion) Murugappa Group.
VISION,MISSION & PHILOSOPHY

VISION:
To be the leader in the phosphatic fertilizer industry, producing high quality fertilizers at low cost
and giving satisfaction to all stake holders.
23
MISSION:
To enhance the prosperity of farmer through the supply of quality farm inputs and related
services to ensure value for money.
PHILOSOPHY:
The fundamental principal of economic activity is that no man you transact with will lose then
you shall not.
VALUES AND BELIEF: THE FIVE LIGHTS

Adhere-To ethical norms in all dealings with shareholders, employees, customers, suppliers, financial
institutions and government.
Provide-Value for money to customers through quality products and services.

Treat-Our people with respect and concern provide opportunities to learn, contribute and advance,
recognize and reward initiative, innovativeness and creativity.
Maintain-An organizational climate conducive to trust, open communication and team spirit a style of
operation, benefiting our size, but reflecting moderation and humility.
Manage-Environment effectively for harnessing opportunities.

Discharge-Responsibilities to various sections of society thereby preserve environment.
Grow-In an accelerated manner, consistent with values and benefits, by continuous organization renewal.
24
THE SPIRIT OF THE MURUGAPPA GROUP:
FIGURE NO:1
INTEGRITY: We value professional and personal integrity above all else. We achieve our goals by being
honesty and straightforward with all our stakeholders. We earn trust with every action, every minute of every
day.
PASSION: We play to win. We have a healthy desire to stretch, achieve personal goals and accelerate
business growth. We strive constantly to improve and be energetic in everything that we do.
QUALITY: We take ownership of our work. We unfailingly meet high standard of quality in both what
we do and the way we do it. We take pride in excellence.
RESPECT: We respect the dignity of every individual. We are open and transparent with each other. We
inspired and enable people to achieve high standard and challenging goals. We provide everyone equal
opportunities to progress and grow.
RESPONSIBILITY: We are responsible corporate citizens. We believe we can help make a difference
to our environment and change lives for the better. We will do this in a manner that befits our size and also
reflects our humidity.
OBJECTIVES OF COROMANDEL
1To enable the farmers grow more by producing and supplying highly nutritious complex fertilizers
at minimum cost.
25
1To maximize, the efficiency of both the men and machinery through continuous up gradation of
technology and providing training investment.
2To satisfy shareholders by giving them handsome returns on their investment.
SWOT ANALYSIS
STRENGTHS:
1Very long experience in the field of producing and selling fertilizers.
2Up-to-date technology and continuous up gradation.
3Optimum capacity utilization
4Enjoying great brand and corporate image
5Dealer and farmer loyalty.
6Financially strong and firm.
7Niche Marketing
8Strong promotional attractive
9Widespread sales network
10
Minimum Labour problem
11
Well-trained employees and good work culture.
WEAKNESS
1Neglecting study based on sales promotion of retail outlets.
2Marketing by intermediaries
26
1Poor availability of product.

2Import of major raw materials
OPPORTUNITIES
1Increasing trend in using complex fertilizer areas.
2Large areas under each and oil seed crops
Growling awareness and education among farmers community
1Modern farming practices
2The wide gap between demand and supply in Indian fertilizer market
1Giving more emphasis the use of complex fertilizer for balanced fertilization.
2Government subsidy reduction on urea for facilitating the use of complex fertilizer.
THREATS
1The heavy competition in fertilizer market.
2Frequent/subsequent changes in government policies.
3Shifting of demand from the companys products to competitors DAP
4Huge consumption of urea cover complex that is offered at lessor cost in the market.
5Tynerance of the Agricultural sector by the present government.
6Almost complete dependence on import of raw materials which will effect the company performance
if the import prices are increased.
BANKERS
1State Bank of India
2HDFC Bank Limited
3IDBI Bank Limited
27
1ICICI Bank Limited

2Hongkong and Shanghai
3Banking Corporation Limited
COMPANY HISTORY
1959
Independent India realized that its largely agrarian economy needed a thrust in the right direction
for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford Foundation to carry
out a comprehensive study of Indian agriculture and give its recommendations. The study revealed a crucial
need to produce indigenous chemical fertilizers to increase agricultural output to meet the countrys everincreasing food demand.
1961
An industrial license was granted to three companies IMC (the worlds largest producer of
fertilizers then), Chevron Chemical Company (a major American player in fertilizers / industrial chemicals)
and E.I.D.Parry (India) Limited (Indias largest private fertilizer producer with 60 years standing) to set up
a giant chemical fertilizer complex.
The first Board of Directors was constituted on October 16, with H V R Iengar as its Chairman. Others on
the Board included J Q Cope, Charles Dennison, J K John, Dr L Bharat Ram, A W Horton, J T Gibson, S C
Dholakia, V K Rao and Raja Rameswar Rao. L L Powell and P J Davies were the first Managing Director
and Dy. Managing Direct respectively. Donald I Meikle was the first Company Secretary.
1962
Market development commence in the form of a seeding programme. E.I.D. Parry was
appointed COROMANDEL principal sales agent in India for our product aptly name GROMOR
epitomizing the idea of Growing More food for the nation.
A 483.5 acres site was identified at Visakhapatnam along the Coromandel coast (Indias east coast), from where the Company derived its name. The land, taken under a 50-year lease from Visakhapatnam
Port Trust, has a private jetty just 5 km from the plant site. With a capital investment of Rs.50 crores, Lumus
Company undertook construction of the plant.
28
1967
On December 10, Mr. Korari Desai, the then Deputy Prime Minister of India, dedicated the
fertilizer plant to the nation, in the presence of Mr. Kasu Brahmananda Reddy, the Chief Minister of Andhra
Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour of cutting the ribbon.
The 245 ft high Urea prill tower was one of the tallest industrial structures in India then. Though
not operational today, it still presents a formidable sight, towering against the skyline, recalling old
memories for those who were associated with its operation.
1970
The GROMOR farmer was developed as a marketing symbol and introduced on our bags to
spread the message of higher yields, bigger profits. Today, farmer house holds across our addressable
markets identify COROMANDEL brand by this symbol.
1971
The Coromandel Lecture was instituted to provide a forum for thinkers, economists, social and
agricultural research scientists around the world to share their thoughts on issues of global concern such as
food security, environment and extension activity.
The Borlaug Award, instituted in honour of Nobel Laureate Dr Norman Borlaug (father of the
wheat revolution), honours eminent men of science and industry for their distinctive contribution to the
cause of agriculture. This reflects COROMENDEL concern to develop a symbiotic interaction between
agriculture, industry and academia.
1976
Our fertilizer retail outlet at Secunderabad got a boost with garden lovers fervently seeking small
quantities of fertilizers for bigger and richer blooms and fruit.
1977
COROMANDEL completed a decade of participation in augmenting agricultural production for the
nation. Its vital role covered soil nourishment, sharing agronomic expertise, supporting agricultural
education and rewarding research all of which had progressively grown in width and depth during the
decade.
1980 - 90
Plans to diversify were afoot. A groundbreaking ceremony was performed in November 1980 at
Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a one million tonne cement plant.
29
The fully computerized plant (designed by world-renowned cement manufacturer Krupp Polysius of West
Germany) was commissioned in 1984. It was later sold to India Cements in 19903
1995 - 99
Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I) Limited in 1995,
followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority shareholding in COROMANDEL
making it a part of the Murugappa Group, a highly reputed industrial conglomerate.
2000
COROMANDEL growth over the years has been punctuated with several path-breaking
modernization / up gradation programmers. Begun in 1975, the programmers gathered momentum in 199295, when the Sulphuric Acid, Phosphoric Acid and Complex Granulation plants were debottlenecked.
Production capacity wend up from the original 247,000 MT to 400,000 MT. On September 29, Mr. N
Chandrababu Naidu, the then Chief Minister of Andhra Pradesh, inaugurated a new complex granulation
train. This further augmented capacity to 600,000 MT, a boon to the entire farming community.
2003
On July 12, COROMANDEL consolidated its business by acquiring controlling stake in Godavari
Fertilizers & Chemicals Limited (GFCL).
To optimize synergy of operations in the Group, the Farm Inputs Division of E.I.D Parry (I)
Limited was merged with COROMANDEL on December 1.
2004
Mr. V. Ravichandran took over as President & WTD on January 22. Mr. A.Vellayan took over as
Chairman on September 1. Other Directors on the Board are Mr. J.Jayaraman, Mr.M.M.Murugappan, Mr.
T.M.M Nambiar , Mr. M.K.Tandon, Mr. D.E.Udwadia, Mr. S.Viswanathan and Mr. K.A.Nair. The first postmerger AGM of the Company was held on July 15.
2005
COROMANDEL signs a Business Assistance Agreement with Foskor Limited, South Africa.
2006
Plant protection business expands coromandel acquired FICOM organics LTD.
30
2007
Innovation
in retial marketing coromandel lunched its retial business to serve the rural
markets.Today,coromandel has a chain of over four hundred outlets in rural Andhra Pradesh.
2008
1Product innovation
1- Coromandels speciality Nutrient range including Micro Nutrients and water soluble products were
launched.The company also launched a new line of organic fertilizers.
2009
NEW BRAND IDENTITY AND LOGO
25-09-2009 the name of the company was changed to coromandel international limited and the
new logo unveliled.
2010
On may 30,2011 coromandel signed a definitive share purchase agreement to acquire promoters stake in
sabero organics Gujarat Ltd.
HIGHLIGHTS OF THE YEAR 2011-2012

STRATEGIC BUSINESS UNIT: (GOLDEN YEAR)
FERTILISERS: Formulating a new solution for sustainable growth
Coromandel strives to provide comprehensive nutrient solutions to enhance Indias
agricultural output. Over the past 50 years, the company has been playing a pivotal role in securing the
nations food requirements by providing quality agri-inputs to the Indian farmer.
Indias grain output needs to cross 280 million mt by the year 2020 in order to meet the food
requirements of its growing population. With limited arable land, increasing crop productivity is the only 31
solution to address the ever increasing demand. The need to provide crop specific, location specific and site
specific grades of fertiliser is of paramount importance. The fertiliser business strategy of Coromandel is
oriented towards achieving this objective. With a strong sourcing strategy and an effective distribution
network through a national foot print, Coromandel has emerged as the most versatile agri-nutrition provider.
In the current environment where both raw material prices and the rupee exchange rate
have moved adversely, Coromandel has embarked upon a mission to contain costs by improving operational
efficiencies and by producing value added products.
The company has been investing continuously in meeting its obligations towards
protecting the environment. Towards this step, during the year a new effluent treatment plant (ETP) has been
commissioned at Visakhapatnam plant. The company will continue to undertake investments in further
improving the safety culture at its plants.
CROP PROTECTION: Improving crop yields through loss reduction

Pests and diseases account for about 30% of crop losses in India. The Indian Crop
Protection industry plays a significant role in minimising these losses. To meet the challenges of growing
food requirements and changing food consumption patterns, the need to increase yields through loss
reduction has become paramount.
Over the last one and a half decades, the Crop Protection business of Coromandel has
supported the Indian farmers efforts with education and solutions through its diversified product portfolio.
As part of its long term vision, the Company in the year 2011-12, acquired Sabero
Organics Gujarat Limited. This acquisition catapulted Coromandel into the top 5 branded formulation
players in India. The acquisition has also helped the Company expand its product range to 15 technical
products and has given Coromandel a larger international presence, especially in Latin America.
SPECIALITY NUTRIENTS AND ORGANIC FERTILISERS:

Breathing new life into soil.It is important to educate the farmers on the need to maintain soil
health by using a judicious mix of Organic and Chemical Fertilisers to ensure good yields.
32
Coromandel ventured into the Organic Fertilisers business and is present in both the
Municipal Solid Waste Compost and Press Mud segments. During the financial year, the Company has
successfully launched new variants like KASH, PhosGold and N-Rich.
Organic fertiliser being a more environmental friendly option, strengthens our commitment
to grow responsibly.
Coromandel continues to be the market leader in Bentonite Sulphur with 14% growth
over the last year. The new Water Soluble Fertiliser (WSF) plant, set up as a joint venture with SQM, Chile,
commenced its operations in March 2012. This venture will help Coromandel increase its market share
through higher volumes and new product offerings.
RETAIL: Growing in the heart of every farmer

Coromandel started its Retail business to reach out to the Indian farmer with a wide
range of quality products and services. Today, with internet still out of reach for many Indian villages,
Coromandel is bridging the knowledge gap of farmers with its 641 retail outlets in Andhra Pradesh and
Karnataka.
These retail outlets provide the farming community with technical advice on how to
improve land productivity through the right use of farm inputs. Regular meetings and training sessions are
organised for farmers on combating pests/diseases and improving soil health through balanced nutrition.
Touch screen kiosks and toll free numbers (Hello Gromor) help farmers to find solutions in their regional
language for crop related problems.
The retail outlets also provide farmers with high quality seeds, plant nutrients, plant protection
chemicals and farm mechanisation services.
Through these initiatives, Coromandel aims to be a partner and a friend to farmers, earning
their trust and helping them play an important role in the growth of the Nation. Today, Coromandels Retail
business is one of the largest agri-input retail networks in the world.
33

STRATEGIC BUSINESS UNIT:
FERTILISERS:
Coromandel, with a production capacity of 36.25 lakh tons of dap and
complex fertilisers, is the leading private sector player in Phosphatic fertilisers in India. The company
produces and sells nitrogen (n), Phosphatic (p) and Potassic (k) fertilisers of various grades ranging from Di
ammonium phosphate (dap), complex fertilisers with different composition of nutrients to single super
phosphate (SSP).
The company also distributes imported dap, potash, urea and NPKS. With the
acquisition of the liberty group of companies, the company has accelerated its planned entry into the north/
western SSP sector and currently has the capacity to manufacture over 10 lakh tons of ssp. In addition, this
also allows the company to offer low p fertiliser products to the farming community in the core ssp markets Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh.
The company has a complete range of products to offer including urea as it has bagged
government contracts for handling urea at Kakinada and Karaikal ports. This allows the company to compete
in all fertiliser segments - nitrogenous, Phosphatic and Potassic fertilisers. The company's fertiliser
manufacturing facilities are located at Visakhapatnam and Kakinada in Andhra Pradesh and Ennore and
Ranipet in Tamilnadu.the company's fertilisers are sold under the well established 'Gromor' and 'Godavari'
brand names.
CROP PROTECTION:
Having acquired m/s Sabero organics Gujarat ltd (Sabero) in the previous year, SBU could
expand its manufacturing base of active ingredients for exports in time to capture the growth in global
markets.
During the year 2012-13 SBU could achieve a turnover of `491 Crores, a growth of 11% over
previous year despite adverse conditions in critical states in India. SBU could leverage on its network to
scale-up technicals being manufactured by Sabero.
34
During the year, formulations business of Sabero was integrated with Coromandel resulting
in more foot-print in markets which had limited access earlier. SBU could strengthen its presence in new
markets and serve new crop segments like potato and apple leveraged with the expanded basket of products
in its fungicides range.
SBU could leverage its presence in Brazil, which is the biggest and fast growing market for global
agrochemicals industry, to export more of products from combined range of Coromandel and Sabero
portfolios. Domestic formulations business could overcome the impact of variable monsoon in critical states
and achieved a growth of nearly 10% over previous year. Sales through company's retail outlets in AP and
Karnataka continue to grow well with increased range of products. SBU could introduce new specialty
fungicides through its strategic tie-ups with few MNCs.
With its increased range of captive technicals, strategic partnerships to source new
products, strong pipeline of off-patent products and presence in growing geographies and segments and
anticipated normal monsoon conditions in 2013-14, SBU is set to grow at a faster pace in realising its vision
to become a significant global player in agrochemicals industry.
SPECIALITY NUTRIENTS:
Speciality nutrients division (SND) comprises of three segments - Water Soluble Fertilisers
(WSF) - Foliar and Fertigation, Bentonite Sulphur products and micro nutrients. Inspite of adverse condition
in primary markets of SND, namely Karnataka, Maharashtra, Andhra Pradesh and Gujarat, the business has
grown in WSF and micro nutrient segments by 14% and 16%, respectively. Though subdued demand and
higher pipeline stocks reduced the demand for fresh sales of Sulphur products, Coromandel continued its
market leadership in Sulphur and WSF segments.
Recognizing high growth and emerging opportunities in the specialty nutrients industry,
the team is restructured to bring focus in the field. This team will have crop based approach and form into
crop based units for high potential selective crops. It is expected to capture the growing market of WSF,
which is attributed to increased acreage under drip irrigation on select crops.
The joint venture with SQM, Coromandel SQM (CSQM), has become fully
operational during the year. CSQM provides technical and product support for Coromandel's SND team to
attain market leadership in WSF.
35
RETAIL:
The retail business is an exclusive Agri-focused rural retail concept unique to
Coromandel in the Indian agricultural-inputs sector. Subsequent to the restructuring from previous year and
exit from the lifestyle products, the retail business has grown last year and the non-fertiliser segment has
grown by 26%. The retail business has commenced "GROMOR Webinar" sessions which are farmer
education programs designed to promote scientific and technical information sharing over a Webcast.subject
matter specialists in agriculture are connected through webinars to farmers present at various Coromandel
retail outlets.
The business has also been pioneering the commercialisation of farm mechanization
services (FMS) to improve the overall farm productivity and address the rural labor shortage issue. In 201213 the FMS segment successfully transplanted 3,650 acres of paddy. The retail business has received many
prestigious awards in 2012-13 in recognition of its contribution to agriculture and business performance in
rural retail.
1Received "retail marketing campaign of the year" award under "awards for retail excellence
presented by ET now" organized by Asia retail congress 2013.
2 Received 3 CSR awards during the "global sustainability conference" organized by world CSR.
1- Green business award - for promoting organic manures.
2- Sustainable business practices - for promoting INM, IPM and other sustainable agricultural practices.
3- Best rural outreach - for the overall farmer services rendered by the retail outlets of Coromandel.
36

STRATEGIC BUSINESS UNIT:
FERTILISERS:
Started in the year 1961, the fertiliser business over the past half a century has come a
long way from a mere 1.8 lac MT production capacity then to close to 47 lac MT production capacity now.
The company has moved to this stage as a result of organic as well as inorganic growth. In its journey
through the years, it has acquired many companies that have added great value, strategically. With most of
its raw material being imported to ensure uninterrupted supplies, the company has formed many
associations globally.
KEY HIGHLIGHTS FOR THE YEAR:

Strengthened its position as a key player in its key addressable markets of Andhra Pradesh,
Karnataka and Maharashtra.
1The total production of dap and complexes in 2013-14 from Coromandels production facilities was
22.55 Lakh tons.
2The new production stream, c-train at Kakinada, stabilized .
3Introduction of fortified fertilisers was a key area of focus in 2013-14 and
1- A new np grade 24-24-0 fortified with 8% Sulphur was produced commercially at Vizag plant using
shell technology.
2- Dap fortified with zinc was produced commercially in Kakinada plant
3- Single super phosphate fortified with boron was produced in Ranipet plant.
37
CROP PROTECTION:
Coromandel manufactures and markets crop protection products insecticides, fungicides and
Herbcidies . The crop protection portfolio includes several popular brands that enjoy leadership status in
India and abroad. Coromandel constantly engages in reviewing its product mix to give the best fit.
Coromandel exports its crop protection products to various countries and also has tie-ups with multinationals
for marketing their products in India.
Coromandel produces its crop protection products at its plants in Ankleshwar (technicals);
Ranipet & Jammu (formulations). Companys subsidiary Sabero organics has manufacturing facility
(technical) at Sarigam, Gujarat.
Key operational highlights:

1During fy13-14, SBU recorded strong growth over previous years by leveraging its domestic
distribution network, scaling up technicals and its direct presence in key Latin America, Africa and
Asia pacific markets.
2To create a new identity and engage farmers in a responsible manner, SBU launched a new umbrella
brand Gromor Suraksha, offering strong value proposition to farmers.
3Consistency in product quality and volumes established.
4Increased volumes and presence in central America through subsidiary in Mexico.
SPECIALITY NUTRIENT:
The specialty nutrient division of the company consists of Sulphur based nutrients as well
as water soluble nutrients. This business compliments the company's efforts in improving the Indian farm
productivity by supplementing / correcting secondary and micro nutrient deficiency prevailing in Indian soils
and focuses on the marketing of concept products for Indian agriculture.
38
In its efforts to promote balanced Fertilisation, Coromandel intends to be a complete

plant nutrition solution company by adding specialty nutrients/ fertilisers to its portfolio and now offers
various customized products to its customers.
KEY OPERATIONAL HIGHLIGHTS

1Coromandel SQM, the 50:50 joint venture with SQM, to produce WSF at a new plant in Kakinada,
has been helping Coromandel through knowledge sharing and new product introduction has grown
in its operations significantly during the year.
2 The business has grown by 18%- registering healthy growth in all three product categories- water
solution fertilizers (WSF), Sulphur products and micro nutrients (boron, zinc, chlorine etc).
3Coromandel emerged as market leader in water soluble fertilizers and Sulphur product segments.
4During the year, six new products were introduced to offer need based crop solutions.
RETAIL:
The retail arm of Coromandel was started in the year 2007 with 2 centers. Currently, the
company operates around 660 retail centers under brand name of Mana Gromor and Namma Gromor in
Andhra Pradesh and Karnataka, respectively, through which it markets its products and services directly to
the farmers.
The products range offered includes entire range of Agri inputs like fertilisers, crop protection
products, secondary and micronutrients, seeds, sprayers, mechanized farm services and veterinary feed. The
retail centers also support farming community with services like soil testing, field visits for crop diagnosis,
technical advice by in-house team and agri-scientists, support with toll-free helpline hello
Gromor.
Each retail center has an average area of 2500 square feet with a catchment area of 30-40
villages and about 5,000 farmer families. Currently, it serves close to 2 million farmers.
39
KEY HIGHLIGHTS:
1Improved brand equity index of MGC's from 4.3 to 5.6 and reached the segment of 'very
strong' brand.
2Market research initiatives like setup of farmer panels and continuous feedback systems are used to
understand latest trends and developments in farming and tapping lateral needs of farmers.
3The farm implements business has been scaled up with the introduction of drip irrigation equipment
and auto-indenting systems have been introduced to improve supply chain. Visual merchandizing
was introduced in MGC to improve store presentation to focus on providing the customer a
consistent and highquality presentation of the product offerings.
4Received the award from Asia retail congress as retailer of the year rural impact & CSR in Feb
2014
5Received the FAI award effective use of ICT in agriculture in Dec 2013
6Received 3 awards from CMO Asia, Singapore in Aug 2013 under retail marketing campaign, rural
impact & CSR and best technology initiatives & implementation.
ORGANIZATIONAL STRUCTURE:
The supervisory board of Murugappa group supervises the organization of Coromandel International
Limited. The top most authority of the whole Coromandel International Limited is administered and
controlled by the president and managing director. The main registered office of Coromandel International
Limited is located at Hyderabad. The Present Managing Director of Coromandel International Limited is
Mr.V.Ravichandran. The Visakhapatnam Plant is headed by the vice president who at present is Mr. N.
Seetharam who undertakes the in charge of all the levels of departments in the organization.
40
FIGURE NO: 2
41
Functions:
The vice president manufacturing and projects is overall in charge of manufacturing Fertilizers at
plant and in implementation of all the projects in time with a workforce of around 175 officers and 425
technicians.
The vice president finance is in charge of overall fund management, internal audit secretarial
functions. A work force of around 30 Executives and 35 officers are under his control.
The Sr. Vice President marketing is in charge of overall marketing of Coromandel International Limited
finished products as well as the by-products like gypsum, fluorine etc.
The functions of other executives are:

Vice president Manufacturing :
Vice president Manufacturing is responsible for smooth running of all process plants including
operations. One AGM & other process plant Heads will directly report to him.
G.M Maintenance :
General Manager of maintenance is responsible for efficient running of Bagging & Product Handling Plants
in addition to Management Information System of all maintenance Department about 8 Executives and 100
workmen report to him.
A.G.M Accounts:Sr. Manager of accounts is responsible for maintaining statutory accounts and other fund records, 10 officers
and 36 office assistants assist him.
Dy.Manager Systems:
Dy.general Manager of systems is responsible in building skill gap of all the human resources of the
organization by requisite training and development. 3 officers assist him and 2 workmen who execute all HR
philosophies and administer officers wage administration.
42
Sr.Manager Purchase and Stores:

Asst. General Manager Purchase & Stores is responsible for all purchase activities, raw material purchases
and maintenance of stores at an optimum level. 5 officers and 10 assistants who look after the effective
distribution of finished products and by-products assist him.
Sr.Manager Maintenance:
Asst. General Manager Maintenance is responsible for preventive maintenance of plant and machinery and
buildings. He looks after the timely executives of all the capital projects at the plant. 30 officers and 165
technicians assist him.
AGM & RH HR
AGM & RH HR is responsible for recruitment of technicians and office assistants. He is also responsible
for execution of all welfare measures and for security arrangement of plant and machinery. 8 officers and 40
workmen assist him.
Asst. General Manager Safety, health and environment:

AGM safety, health and environment is responsible for identification of hazardous areas and in suggesting
remedial safety measures and its effective compliance. He also arranges medical check ups etc. 4 officers
and 3 assistants assist him.
The employees of the organization are divided into three grades. They are:
Technicalthe technical employees are again sub divided into highly skilled, semi skilled and unskilled
people. The labour comes under unskilled workmen. Technical staff is graded into S1 to S7 ranks.
Non- technical - The clerical staff is graded into C1 to C3 ranks where C1 grade is for assistant, C2 for
junior assistant and C3 for senior assistant. The clerical staff mainly looks after the office work.
Managerial The management staff is graded into CI1 to CI 3 and from MG3 to MG 10 grades.
Thus according to the ranks the employees of Coromandel Fertilizers limited are graded and the
company runs round the clock. The employees work in shift timings. The timings of the three shifts are.
43
0700 hrs to 1500 hrs

The general shift is from 0800 hrs to 1630 hrs. Thus the employees working under all the shift
timings receive all the welfare facilities like canteen, transport, drinking water etc.
Location:
The plant is situated in 500 acres of site about 5 km from the harbour. The site is located on the east
coast of Visakhapatnam and has been leased from Visakhapatnam port trust for a period of 50 years with
renewal options, at the port; Coromandel International Limited operates its own bulk freight raw material
unloading berth, which is an added advantage as they import many for Coromandel International Limited
Company.
The plant uses a lot of seawater in the process for cooling purpose Vizag being a seacoast provides
the facility. Coromandel International Limited is serving the farmer community of India for the past 3
decades by producing around 1 million tonnes of complex Fertilizers per annum and catering to the needs of
agricultural society.
Plants:
Coromandel International limited has mainly three plants. They are:
Sulphuric acid plant-This plant is designed and constructed by M/s. Simon Carves India Limited. It has
a rated capacity of 1200 million tonnes per day. Sulphur is the raw material, which is imported from abroad
from countries like USA, Japan and Gulf.
Phosphoric acid plant-This plant is designed and constructed by M/s. Darr Oliver of USA is used in
manufacturing of cement. It has a rated capacity of 400 million tonnes per day. Rock phosphate a mineral
from foreign countries such as USA, Africa and Australia and is still looking for other sources. Rock
44
phosphate and sulphuric acid are reacted to give phosphoric acid and gypsum. Filtering separates gypsum
and it is a by-product, which is a good source of income by sales.
Complex Fertilizer plant-Complex Fertilizer plant has rated capacity of 1400 million tonnes per day.
Ammonia and phosphoric acid are reacted in a reactor to form ammonium phosphate and urea is added to
this mixture. The urea prill is coated with ammonia phosphate to form the urea ammonia phosphate, which is
a Fertilizer.
Achievements:
1Coromandel International limited a reputed Fertilizer company in India stood first in achieving the
following:
2First in India achieved to commercially manufacture high analysis complex fertilizer, which is urea
ammonium phosphate 28:28:0 with high nitrogen and phosphate content in 1:1 ratio.
3First in India achieved to install a large sulphuric acid plant based on DCDA technology to control
sulphur dioxide emission.
4First in India achieved successfully to implement total recycling of seawater for its effluent
recirculation system attached to phosphoric acid plant.
5First in India achieved to install a terminal for import and handling of molten sulphur in environment
friendly project.
Functional Areas
Coromandel International limited comprises of four functional areas. They are:
1. Manufacturing and production
2. Marketing
3. Finance
4. Human Resources
45
1. Manufacturing and Production:

The main objectives of manufacturing unit of Coromandel International Limited are
1 To be a low cost Fertilizer manufacturer
2 Emphasis on safety and environment improvement
3 T rust on energy conservation
The plant has planned to undertake manufacturing of single super phosphate with estimated production
volume of 0.7 lakh tones per annum. The basic raw materials used for manufacturing are phosphoric acid,
urea and ammonia. They buy naphtha to make ammonia from HPCL. Rock phosphate is imported from USA
and Sulphur is imported from USA and gulf countries.
Products:
1.
Coromandel International Limited sells its product under the brand name GROMOR. 1. Gromor
(28:28:0) urea ammonium phosphate is one of the best products of Coromandel International Limited
. It has a unique granule configuration Urea Prill Coated with ammonium Phosphate, which ensures
nitrogen availability to the crop over a longer duration of time.
2. Gromor (14:35:14) ammonium phosphate potash, Npk is a scientific Fertilizer with the highest
nutrient content of 63% among NPK complex available in India.
3. Gromor (20:20:0) and parampos (16:20:0) ammonium phosphate sulphate gives 15% sulphur for the
soil apart from their ammonia and phosphate content.
4. The products of Coromandel International limited are sold in Andhra Pradesh, Orissa, west Bengal and
Madhya Pradesh.
46
RANGE OF PRODUCTS & CUSTOMERS:
Product/
Segment
Top Key Customers
Service
28-28-0
14-35-14
High Analysis
Farmers by Government
Institution
Complex Fertilizers
in AP, Orissa, and West Bengal use

these products for soil application.
20-20-0
10-26-26
Gypsum
By-products
Cement Industries As a Retarder in

Cement manufacture. Farmers
in
AP,Orissa,West
Bengal,MadyaPradesh
use
this
product as a neutralizer for Acidic

Soils
Hydrofluosilistic
Acid
By-products
M/s Alufluoride Ltd-use this product

for the manufacture of
Aluminium
Fluoride which in turn is used for the

manufacture of Aluminum.
Gromor Bentonite
Sulphur
Farmers in AP, Orissa, West Bengal,

and MadyaPradesh use this product
as a soil conditioner in lowering PH
of soils and to bring down alkalinity
in Saline/calcareous soils.
47
Gromor Spray
Specialty
19:19:19
Nutrients

for foliar application, for better
absorption of nutrient from leaves
and to counteract adverse soil
conditions.
Gromor Power

19:19:19
for Drip irrigation.

FIGURE NO: 3
Power:
Since the plant functions continuously the company consumes 24 mg watts of
electric power each day. It has its own source of generating power through its two
thermal power stations and one diesel power, which altogether produces 7.5 mg watts;
rest is taken from APSEB, the state electricity board
Marketing:
Relating to the field of marketing the objectives are:
1. Explore new markets and crop areas
2. Minimum distribution cost and lead time
3. Provide meaningful information to management in time.
4. Ensure quality and timely positioning of products as per market needs.
The
major
products
of
COROMANDEL
IINTERNATIONAL
LIMITED are complex Fertilizers marketed in the trade in brand name of "GROMOR"
where most of the trade is done through railways. Its marketing centers are mainly
Andhra Pradesh, Orissa and West Bengal. In Andhra Pradesh the Secunderabad branch
concentrates on marketing. The raw materials like rock phosphate and sulphur, which are
useful for the production, are imported from US and Gulf. The best product of
Coromandel International
48
Limited GROMOR 28:28:0 which is urea ammonium phosphate is marked in 50kg bags and stored in a tank
area known as tank bund area. They have a canal from sea to salt water, which is used for cooling purposes.
Quality Policy:
Coromandel International Limited is committed in supplying phosphoric Fertilizers and related products,
which satisfy the requirements of customers and comply with applicable specifications.
Further it is committed to continual improvement of quality management systems and processes with the
objectives of improving the product quality.
They strive to achieve the quality objectives and customer satisfaction by
1. Developing, implementing and maintaining quality management systems to
international standards.
2. Imparting requisite knowledge, skills and competency to employees and

3. Ensuring employees participation in continuous improvement measures.
Non-Fertilizer Activities:
1. Sale of intermediate such as sulphuric acid, phosphoric acid.
2. Sale of Fertilizer raw material such as sulphur, rock phosphate, potash etc.
3. Sale of by-products like gypsum and fluorine.
3. Finance:
Coromandel International limited laid its foundation stone in 1964 with an investment of 50 crore and
leading presently with a turnover of about 613 cores and yields 10% growth rate on turnover and 27-30% of
returns per year and spends around 20 to 30 lakh per month as salaries to the employees.
The main objectives of finance department are:

1. Effective funds and foreign exchange management
2. Controls cost including reduction in interest cost
49
3. Tax planning
st
As per the balance sheet stated on 31 March 2001 the fixed assets of the company cost around 250 cores
and, has gained a net profit of around 46.87 cores for the year 1998-99. Except for a couple of years
Coromandel International Limited is being continuously a profit based company.
The company is of vital importance to the economy as it supplies Fertilizers to agriculture,

which is the backbone of the Indian economy. Thus the company's emphasis has been on extension and
development involving constant updating of improved agricultural practices. These activities have helped
Gromor to establish itself as a leader and pioneer beard. It is titled as the farness friend.
Plants of CIL:
Ammonia Plant:
Ammonia plant of 357 tonnes per day capacity was designed and constructed by M/S Kellogg of USA. The
basic raw material is Naphtha which is obtained from Hindustan Petroleum refinery, Visakhapatnam.
Urea plant:
Urea plant which has an operating capacity of 400 tonnes per day, based on the CPJ - Allied, the process, the
design and construction were done by M/s Nucamin, Nunmate of USA.
The urea pills then send to complex plant for manufacture of urea. Ammonia phosphate 28:28:0.
The Urea plant has been shut down due to the shutdown of Ammonia plant.
Sulphuric Acid Plant:

Sulphuric Acid plant of CFL has an operating capacity of 1300 tonnes per day. This was designed and
constructed by M/s Simon Carves (India).
Phosphoric Acid Plant:

The plant was designed and constructed by M/s Dorroliver, USA. The original designed capacity of the plant
was 255 tonnes per day, which was increased to 325 tonnes per day during revamp in 1975. The plant is now
producing on an average above 350 tonnes of phosphate.
50
Complex plant:
The complex plant utilizes ammonia, phosphoric acid, urea to make Ammonia phosphate 28:28:0. Where as
for manufacturing complex NPK 14:35: 14, ammonia and phosphoric acid are used along with Potash, which
is a bought out raw material, mixed with the outer feed stocks in the complex plant. In case of manufacture
of 16:10:0, 20:20:0 Ammonia phosphoric acid and sulphuric acid are used as feeds.
FIGURE NO:4 (PLANT)
CAPACITIES:
Ammonia
Urea
: 1, 05,000MT/Yr
: 74, 000 MT/Yr
Sulphuric
: 3, 65,000 MT/Yr
Phosphoric
: 1, 13,050MT/Yr
Complex(28:28:0)
: 4,00,000MT/Yr
Plant capacities are all given in Metric Tons
51
MANUFACTURING PROCESS
Sulphur
Heat & Air
Sulphur Oxides
Water
Sulphur Acid
Rock Phosphate
Phosphoric Acid
Ammonia
52
Ammonium Phosphate
Urea prills
28-28-0
FIGURE NO -5
PERSONNEL
DEPARTMENT OF COROMANDEL INTERNATIONAL
LIMITED
Coromandel International limited gives importance to human resources and it lays emphasis on
human safety and welfare. Presently the company comprises of about 600 employees among whom about
425 employees are non managerial and about 175 employees are managerial.
Objectives:
The main objectives of personnel department in Coromandel International Limited are:
1. Organizational restructure through re-skilling and re-deployment
2. Training in core competency areas
3. Employee cost reduction through manpower rationalization and optimum utilization.
Personnel department at Coromandel International Limited is classified into two departments. They are:
1. Human Resource Department:

This department deals with the matters pertaining to managerial staff and is headed by Asst.
General Manager & Regional Head - HR who looks after the matters like recruitment, career planning,
training and development, performance appraisal and smooth administration of remuneration and policies of
all categories of employees of Visakhapatnam Plant as well as Marketing Branches of in the States Le.,
Andhra Pradesh, Assam, West Bengal, Orissa, Madhya Pradesh, and Chattisgarh.
53
A total of 40 non-managerial staff is working in this Department. Vice president in consultation

with HRD and ERD reviews carefully and finalizes the manpower planning.
HR Policy:
This human resource policy was drafted in the year 2000 in May and it IS considered to be
the corporate commitment.
To create and nurture an organization culture committed to multi disciplined teamwork in
order to meet the customer's needs with high quality products and services.
To facilitate and provide an environment congenial for continual learning aimed at increasing
proactivity, creativity and adaptability.
To devise and sustain an appraisal and reward system based on performance and merit.
Recruitment:
The company has a policy that the new employee should be carefully chosen as he has to
handle the job not only for his ability but also for his suitability of future advancement. The requirements of
the job shall be the determining factor in the selection and placement of the applicants and employees who
satisfy the required qualifications and requirements of the job shall be preferred.
The main manpower sources of the organization are:

1.
Resumes or the applications received in personal or by mail.
2.
Local employment exchange.
3.
Advertisements in local press.
4.
Direct interviews from colleges, universities and poly technical colleges.
Coromandel International Limited also complies with the statutory requirement of informing
employment exchange vide form ER-1 under the Employment Exchange Act 1959.
Selection: The received applications will be reviewed by the ERD and HRD in consultation with the
concerned head of the department and suitable applicants will be invited to meet the preliminary evaluation
panel at employee relations department or the human resource department.
54
The process of selection at Coromandel International Limited is done as follows:
1- Conducting written examination and its critical evaluation

2- Personal interview by the selection panel and its appraisal
Appointment order will be issued to the candidate and it contains the placement, commencement
of service, remuneration, benefits, compensation review, age of retirement, notice of termination etc.
Thus when the person is selected for a particular job he is sent for training to know the work
correctly so that he performs the job effectively.
Training and Development:

Training and Development at COOROMANDEL INTERNATIONAL LIMITED is being given much
importance. It is a systematic approach and its objectives are to:
1- Upgrade and maintain the technical and functional skill levels of employees
2- To match the company's present as well as envisaged requirements.
3- Improve the understanding commitment and general effectiveness of employees through appropriate
workers education, supervisory development and management development programmes.
Normally organization will try to achieve the training man days up to a maximum of
7 days that is considered to be the best. As against the normal standard, CIL already achieved 9.28 and 5.57
man days for their managerial and non-managerial staff. Presently training is being done at the rate of
6.75mandays/employee/year.The training policy of Coromandel International Limited is to facilitate and
provide an environment congenial for continual learning aimed at increasing proactivity, creativity and
adaptability.
THE MAIN FUNCTIONS OF TRAINING DEPARTMENT ARE:

1Effective coordination with various departments aiming at alignment of training needs and training
activity.
55
1Preparation of training calendars and obtaining sufficient budget from the top management.
2Organizing the training effectively in line with the training calendar.
3Collection of feedback from the participant about the effectiveness.
Thus training and development at Coromandel International Limited is playing an important role
on the employees by upgrading their skills and knowledge.
PERFORMANCE APPRAISAL:
When an employee's performance is excellent it is the result of a number of circumstances that work
together to make his excellence possible. The level of performance of an employee is influenced by six
factors. They are:
1- Aptitude
2- Degree of effort
3- Level of skill
4- Motivation
5- Understanding the task
6- Other factors
Performance appraisal systems at Coromandel International Limited are at 180 and 90
in cases of managerial staff and non-managerial staff. Performance appraisal is mainly used as tools to
access the individual's competency, potential and performance and based on these factors increments;
compensation reviews and promotions are affected. It improves the performance of the employee so that he
performs well in future. Coromandel International Limited has a very good performance appraisal system
through which their performance is evaluated and compensation is awarded.
WELFARE FACILITIES:
Management makes the welfare policies at the plant and the welfare programmes are executed to
the workers through their union. The union nominates its members and negotiates about modalities of
56
execution of welfare programmes.

The following are some of the welfare facilities provided to the employees:
1. Drinking Water:
Drinking water facilities is provided to the employees in and around the plant. There are about 20
drinking water points at suitable places for supply of wholesome cool drinking water.
2. Canteen:
Canteen facility is also provided and in each shift at a time 60 to 70 persons can be
accommodated. Mobile and non-mobile canteen services are provided round the clock. Every month
company spends 4.5 lacks approximately on canteen and the food is ordered on subsidized rates.
3. Recreational facilities:
Recreational facilities at Coromandel International Limited are organized through two clubs,
which are Coromandel recreation centre for non-managerial staff, and Coromandel club for managerial staff.
The subscriptions of the clubs are Rs. 5/- for CRC and RS. 40/- for CC per month.
4. Transport:
Coromandel International Limited provides subsidized home transport to the employees.
Rs. 15/- is recovered by the management per month from the employees salary. Company operates almost 6
routes of Vizag in all the shift timings.
5. First aid:
Coromandel International Limited provides first aid and medical facilities to the employees. 30
first aid boxes are located at various locations and around 33 numbers of managerial and non-managerial
employees are trained in first aid in the factory during the year. Ambulance rooms' works around the clock
and a full pledged medical officer is provided by the management.
The company also provides facility for house loan, consumer stores, educational
allowance for employee children, maternity leave, and sick leave and bathroom facilities. These are some
other important welfare facilities provided by the company.
57
SAFETY AND ENVIRONMENTAL FACTORS:

Coromandel International Limited have given safety as the prime importance. Senior
manager takes care of the implementation of safety measures in the plant. He imparts safety education
through posters, slogans, and safety training on continual basis.The company has so far achieved one million
safe working man hours record 28 times, two consecutive safe million man hours 8 times, three consecutive
safe million man hours 4 times. The company maintains an excellent safety records and achieved many
national and international awards. All the employees at Coromandel International Limited are provided with
personal protective equipment like safety shoes, helmet, mask, fire protective clothing etc. The company
spends nearly Rs. 40 lacks per year for providing safety measures. Coromandel International Limited
adopted a policy of "safety to take precedence over expediency of jobs". The following is the safety policy at
Coromandel International Limited .
Safety policy:
It is the policy of the company to achieve high standards for professional safety and create
healthy work environment for its employees, contractors and neighboring communities.
1It is the obligation of every employee to
2KNOW safety rules;
3FOLLOW safety procedure;
4WARN others of unsafe conditions;
5REACT positively to emergency property;
6PERFORM his or her task to
7ENSURE total safety.
Management has the responsibility to conduct its activities in a manner to ensure the
above objectives and maintain a safe and healthy work environment. The company has formed a separate
department for safety, health and environment and is named as SHE department.
58
Coromandel International Limited has also exhibited a keen concern towards the control of
environmental pollution. The total money spent on pollution control related to equipment till recent times
amount to 28 Crores approximately. Nearly 60,000 trees have been planted so far covering an area of 20
hectares at a cost of 20 lacks approximately.
The following is the environment policy of Coromandel International limited.
Environment policy:
It is committed to optimizing the interests of the stakeholders in our business while simultaneously
protecting the environment by prevention of pollution and by.
Establishing and maintaining an environmental management system in compliance with good business
practices and legislative requirements.
1Achieving a high degree of efficiency in consumption of inputs and energy.
2Reducing dust emission into atmosphere.
3Increasing greenery in and around the plan
4Conserving resources through minimized waste generation and through promoting recovery recycle
and reuse.
5Creating employee awareness for making environmental protection an integral part of work culture
and
6Continually improving our environmental performance.
Thus the company provides safety and environmental factors to the employees and it
also maintains good relations with the workers hence there is no union problem in the company. Coromandel
International Limited has only one trade union, which is CITU, and it has no political interference but the
leader of the union is a political party member who is an outsider and others are the employees of the
company. 90% of the non-managerial staff is the members of the union.
CORPORATE SOCIAL RESPONSIBILITY activities:

Coromandel International Limiteds business interest is not limited to commercial
profit alone. Its corporate responsibility does not stop with merely increasing shareholder value. The
59
company has a stakeholder base that goes far beyond its shareholders. Displaying conspicuous social
responsibility, it associates with various community development activities in the villages around its
facilities.
The company constantly seeks out avenues where it can help the community, and has
contributed generously to several social causes, such as providing drinking water to villages, scholarships to
meritorious students, free notebooks, fans and computers to government schools, construction of additional
classrooms for poor schools, veterinary camps for cattle, free health / blood donation camps for villagers,
pulse polio programmes for children, helping in the government's mid-day meal scheme, etc.
RECORDS
Coromandel has constantly taken up modernization and up gradation programs. The
modern programs undertaken by the company during the year '75, '80, and '92 has helped to increase the
volume of production form the original level of 2,50,000 Mt per annum to the current level of 3,38,000 Mt
per annum with a considerable gain in energy and material usage efficiently over the years. The various
projects include primary reformer revamp phosphoric acid plant de bottle - necking molten sulphur for
loading facilities at berth and atmospheric storage tank ammonia handling etc.,
Coromandel has enjoyed excellent track records in production and industrial relations, energy and
environment since inception largely due to progressive policies of the company with regard to Labour
management.
Ever since the production commenced in 1967, Coromandel has been an active partner of the Indian
farmer in the field, helping him in his efforts to produce more from small land holdings and played a crucial
role in assisting India achieve self-sufficiency in food grain production.
RESEARCH & DEVELOPMENT

ROLE OF COROMANDEL INTERNATIONAL LIMITED IN INDIAN AGRICULTURE:
From the very beginning Coromandel proved to be a boon to the Indian farmers. It brought
to India the world-class production facilities with a new generation of fertilizer products. Coromandel vision
had started playing a vital role in the resurgence of Indian Agriculture.
60
Coromandel introduced a branded product Gromor, which is a high analysis NP complex

fertilizer. It is the first in the world to produce high analysis NP complex fertilizers in the highest 1: 1 ratio.
This was implemented when most of the fertilizer products available in India were not balanced in nutrient
contents.
Gromor in a short span of time established itself as a popular brand where and entire generation of
farmers ahs grown up with it in a number of sates using it wide variety of crops.
Gromor 28:28:0 is one of the best of its kind in the world. It has unique granule configuration
where in a urea prill at the centre is coated with ammonia phosphate, which ensure nitrogen availability to
the crop over a longer duration of time.
Coromandel International limited gives importance to human resources and it lays emphasis
on human safety and welfare. Presently the company comprises of about 600 employees among whom about
425 employees are non managerial and about 175 employees are managerial.
COROMANDEL MAJOR COMPETITORS

1- The Fertilizers and Chemicals Travancore Ltd (FACT).
2- Godavari Fertilizers and Chemicals Ltd., (GFCL).
3- Gujarat Narmada Valleys Fertilizers & Chemicals Ltd., (GNFCL)
4- Gujarat State Fertilizers Company Ltd., (GSFCL)
5- Hindustan Lever Ltd., (HLL)
6- Indian Farmers Fertilizers Co-operation Ltd (IFFCO)
7- Madras Fertilizers Ltd., (MFL)
8- Pyrites and Phosphates Ltd., (PPL)
9- Rastriya Chemical and Fertilizers ltd., (RCF)
10- Southern Petrochemical Industries Corp Ltd., (SPIC)
11- Zuari Agrochemicals Ltd., (ZAL)
12- Osklal Chemicals and Fertilizers Ltd., (OCFL)
61
Awards & Accolades:

1- The FAI Best Production Performance Award 2006 for the Phosphoric Acid Plant at Vizag,
2- Award for 2005-06 Best Energy Conservation in the Fertiliser sector received by Vizag Plant on
December 14 2006, National Energy Conservation Day.
3- The FAI Best Video Film Award 2006 for the film on Gromor Sulphur for the 5th time.
4- National Award (1st Prize) for House Journal 2006 from The Public Relations Society of India,
New Delhi, received for The Voice ( house journal ) for the 2nd consecutive year.
5- National Award (2nd Prize) for Video Film 2006 from The Public Relations Society of India, New
Delhi received by Marketing Department (Fertilizers ) for the film Cheetah (Helping Hand)
6- British Council Five Star rating for Safety Management System in 1998.
7- First prize for safety, among the 162 fertilizer companies in the International Fertilizer Industries
Sectional Contest.
8- Andhra Pradesh Pollution Control Boards award for Waste Minimization at Source and Adopting
Cleaner Technologies for 2001-02.
9- FAI award for Environmental Protection in NP/NPK Fertiliser Plant Category for 1995-96.
10- Adjudged one of the Ten Greenest Companies in India by a joint survey of Tata Energy Research
Institute and Business Today magazine.
11- Several other awards from the Central and State Government and other institutions like AP Pollution
Control Board, Jawaharlal Nehru Award for Pollution Control and Energy Conservation.
12- Received a Commendation Certificate for "Strong Commitment to HR Excellence" from the
Confederation of Indian Industries (CII).
62
AWARDS & RECOGNITIONS:

Over the years, Coromandel has received a number of awards and recognitions including
the British Council 'Five Star' rating for Safety Management Systems and being adjudged one of the 'Ten
Greenest Companies in India' by a joint survey of TERI and Business Today magazine.
Some of the recent awards and recognitions received by Coromandel include:
Coromandel was awarded Significant Achievement in HR Excellence

by the Confederation of Indian Industries (CII). This recognition was
conferred at the CII HR Conclave 2010 by Mr. Hari S Bhartia, President
rd
of CII on 23 July, 2010 at New Delhi. The Process involved a rigorous

assessment of Coromandels HR processes and practices including site
visits by a team of CII assessors. Coromandel in past has achieved
Strong Commitment to HR Excellence.
Confederation of Indian Industries Exports and Imports (CII EXIM) BANK

Business Excellence Award for Strong Commitment to Excel for Vizag &
Kakinada plants.
CNBC Award for Most Engaged Work force.
63
DMA Erehwon National Award for Innovation in HR.
Public Relations Society of Indian National Award (1
ST
Prize) for the VOICE,
th
Coromandels in-house Magazine, received for the 4 time.
International Award for the VOICE magazine.
FAI Best Production Performance Award for the Phosphoric Acid plant at vizag received
th
for the 9 time.
FAI Best Production Performance Award for complex (P2O2) Fertilisers for Kakinada plant.
64
FAI Environment Protection Award for Complex(P2O2) plant, vizag.
th
FAII Best Video Film Award received for the 6 time.
National Energy Conservation Award (Commendation Certificate) for efforts in Energy

Conservation from Ministry of P New Delhi, for Kakinada plant.
Ranked among the Top 20 Best Employers to work for by Business Today.
MURUGAPPA GROUP
The Murugappa Group is one of the largest family-promoted, professionally managed conglomerates in
India. The group has, over the decades, maintained its salience with leadership in its chosen lines of
business. The group has always been discharging its responsibilities to the satisfaction of all its stakeholders
as summed up in its guiding philosophy.
"The fundamental principle of economic activity is that no man you transact with will lose; then you
shall not."
- Arthashastra
65
CHAPTER III
1-
THEORETICAL FRAMEWORK
2-
LITERATURE REVIEW
66
THEORETICAL FRAMEWORK
INTRODUCTION:
After having determined the number and kites of personal required the human resource of personal
manager proceeds with identification of sources of recruitment and findings suitable candidates for
employement.Both internal and external sources of man power are used depending up on the types of
personal needed.
The selection procedure starts with the receipt of applications for various jobs from the interested
candidates.Totally unsuitable candidates are rejected at the screening stage.The personal department
administers various kinds of tests to the candidates to determine it they would be able to do their jobs
efficiently.Those passing this stage are called for employement interview.Candidates found suitable for
employement are required togo through medical examination and reference checking.The employement
process is completed when appointment letters are issued to the candidates clearing all the stages in the
selection procedure.
Recruitment is a process of searching out the potential applicants and inspiring
them to apply for the actual or anticipated vacancy. On the other hand, Selection is a process of hiring
employees among the shortlisted candidates.
Due to increase in population, getting a good job is not an easy task. Employers want the right
candidate for the concerned position. The large supply of workforce has given them the opportunity to select
the best talent.
Nowadays, there is a very lengthy procedure for appointment of an employee to a post. There
are two major stages which may be heard by you hundreds and hundreds of times; they are recruitment and
selection. Most of us view them as the same thing. But, they are quite different in meaning and behaviour.
Lets understand the differences between recruitment and selection in details.
MEANING OF RECRUITMENT:
The process of identification of different sources of personnel is known as recruitment.
According to Edwin B. Flippo,Recruitment is the process of searching the candidates for employement and
stimulating them to apply for jobs in the organisation. It is a linking activity that brings together those
offering jobs and those seeking jobs.
67
Dale S. Beach observed, Recruitment is the development and maintenance of adequate man power
resources. It involves the creation of a pool of available labour up on whom the organization can draw when
it needs additional employees. Recruitment refers to the attempt of getting interested applicants and
providing a pool of prospective employees so that the management can select the right person in the
organization.
DEFINITION OF RECRUITMENT:
Recruitment is a process of finding out the prospective applicants and
stimulating them to apply for the vacancy. It is a long process which involves a series of activities that starts
with analyzing the job requirements and ends on the appointment of the employee. The activities involved in
the recruitment of employees are as under:
1Analyzing job requirement
2Advertising the vacancy
3Attracting candidates to apply for the job
4Managing response
5Scrutiny of applications
6Shortlisting candidates
7Conducting examination or interview
8Making decisions regarding selection
SOURCES OF RECRUITMENT:
Every organization has the option of choosing the candidates for its recruitment processes from two kinds of
sources: internal and external sources. The sources within the organization itself (like transfer of employees
from one department to other, promotions) to fill a position are known as the internal sources of recruitment.
Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external
sources of recruitment
68
SOURCES OF RECRUITMENT
INTERNAL
EXTERNAL
Transfers
Promotions
Upgrading
Demotions
Retired employees
Retrenched employees
Dependents and Relatives
of deceased employees
Press advertisements
Educational institutes
Placement agencies/
outsourcing
Employment exchange
Labour contractors
Unsolicited applicants
Employee referrals
Recruitment at factory gate
FIGURE NO:6
INTERNAL SOURCES:
Transfers:
The employees are transferred from one department/project to another according to their efficiency and
experience.
Promotions:
The employees are promoted with more benefits and greater responsibility based on efficiency and
experience.
Present Permanent Employees:

Organizations consider the candidates from this source for higher level jobs due to:
(1) Availability of most suitable candidates for jobs relatively or equally to the external source.
(2) To the trade unions demands.
(3) To the policy of the organization to motivate the present employees.
69
Temporary or Contract Employees:

Organizations find this source to fill the vacancies relatively at lower level owing to the availability of
suitable candidates or trade and pressures or in order to motivate them on the present job.
Retrenched or Retired Employees:

Generally particular organizations retrench employees due to lay-off. The organization takes the candidates
for employment from the retrenched employee due to the obligation, trade union pressure and the like.
Sometimes the organizations prefer to re employ their retired employees as a token of their loyalty to the
organization or to postpone some inter-personal conflicts for promotion etc.
Dependents of Deceased, Disabled, Retired and present employees:

Some organizations with a view to developing the commitment and loyalty of not only the employee but also
his family members and or build up image provide employment to the dependent(s) of deceased, disabled,
retired and present employees.
EXTERNAL SOURCES:
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.
70
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 labour 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 TECHNIQUES:
A recruitment technique is the means or media by which management contracts prospective employees or
provides necessary information or exchange ideas or stimulates them to apply for jobs.
Promotions:
Most of the internal candidates would be stimulated to take up higher responsibilities and express their
willingness to be engaged in the higher-level jobs if management gives them the assurance that they will be
promoted to the next higher lev
Transfers:
Employees will be stimulated to work in the new sections or places if management wishes to transfer them
to the places of their choice.
Recommendations of the present employees:

Management can contact, persuade the outsiders to apply for job in the organization through the
recommendations to the candidates by the present employees, trade union leaders etc.
Scouting: Scouting means sending the representation of the organizations to various sources of recruitment
with a view to persuading or stimulating the candidates to apply jobs.
71
Advertising
Advertising is widely accepted technique of recruitment, though it mostly provides one way
communication. The technique of advertising should aim at.
1Attracting attention of prospective candidates.
2Creating and maintaining interest.
3Stimulating action by the candidates.
MODERN SOURCE OF RECRUITMENT:

Walk-ins, write-ins and talk-ins:
Walk-ins are preferable as they are free from the hassles associated with other methods of
recruitment. Direct applications can also provide a pool of potential employees to meet future needs. Writeins are those who send written enquiries. These jobseekers are asked to complete application forms for
further processing. Talk-ins is becoming popular nowadays. Job aspirants are required to meet the recruiter
for detailed talks. No applications are required to be submitted to the recruiter.
Consultants:
Consultants are useful in as much as they have nation contacts and lead professionalism to the hiring
process. They keep prospective employer and employee anonymous.
.
Contactors:
Contactors are used for recruit casual workers. The name of the workers is not entered in the company
records and to extent difficulties experienced in maintaining permanent workers are avoided.
Merits:
The organization will have the benefit of new skills, new talents and new experiences, if people are hired
from external sources.
Scope of resentment, heartburn and jealousy can be avoided by recruiting from outside.
Demerits:
Better motivation and increased morale associated with promoting own employees are lost to the
organization.
External recruitment is costly.
72
If recruitment and selection process are not properly carried out, chances of right candidates being rejected
and wrong applicants being selected occur.
TYPES OF RECRUITMENT APPEAL:
Effectiveness of an appeal depends upon applicants fundamental and immediate needs and those needs,
which are not met by his present job.
RECRUITMENT PRACTICES :
Finding of the various surveys conducted in foreign countries reveal that various organizations use the
following sources of recruitment in the order of the relative practice:
1Employment exchanges
2Casual applicants
3Advertising
4Local educational institutions
5Public employment exchanges
6Private employment agencies
7Unions
Recruitment sources for Industries in India:

1Internal sources
2Public employment exchanges
3Casual laborers
4Labor contractors
5Campus recruitment
6Consultancies
73
Factors affecting On Recruitment: FACTORS
EXTERNAL FACTORS
INTERNAL FACTORS
Supply and demand
Labour market
Image/Good will
Political-SocialLegal Environment
Unemployment rate
Competitors
Recruitment Policy
Human resource
planning
Size of the firm
Cost of recruitment
Growth and
expansion
FIGURE NO:7
Identifying the vacancy in the organisation:
The recruitment process begins with the human resource department receiving requisitions
for recruitment from any other department of the company. These contain.
1Posts to be filled
2Number of persons
3Duties to be performed
4Qualifications required
5Preparing the job description and person specification.
6Locating and developing the sources of required Number and type of employees (Advertising etc.)
7Short-listing and identifying the prospective employee with required characteristics.
8Arranging the interviews with the selected candidates.
74
SELECTION:
Selection is an activity in which the organization selects a fixed number of candidates from
a large number of applicants. It involves the actual appointment of the employee for filling up the vacancies
of the enterprise. The term selection means the placement of the right man at the right job. We all know that
a lot of people apply for a single job at the time of recruitment, in which the recruiters have to decide which
candidate fits the best for the job.
Selection also involves a set of activities which are given as under:
1Screening
2Eliminating unsuitable candidates
3Conducting the examination like aptitude test, intelligence test, performance test, personality test etc.
4Interview
5Checking references
6Medical test
The process of selection is a time-consuming one because the HR managers have to
identify the eligibility of every candidate for the post. Besides this, the educational qualification,
background, age, etc. are also some of the most important factors in which they have to pay more attention.
After this, the written examination and interview is also a very tough task.
Selection is the process of picking individuals with requisite qualification and competence to fill job
in the organisation. The selection procedure is the system of functions and devices adopted in a given
company to ascertain whether the candidates specifications are matched with the job specifications and
requirements or not.
The selection procedure cannot be effective until and unless:
1. Requirements of the job to be filled have been clearly specified.
2. Employee specification (physical, mental, social, behaviour etc..,).
3. Candidates for screening have been attracted.
75
FACTORS EFFECTING SELECTION DECISION:

The goal of selection is to start out or eliminate those judged unqualified to meet the job
organisational requirements, where as the goal of recruitment is to create a large pool of persons available
and willing to work.
1. Profile matching.
2. Organisational and social environment.
3. Successive handles and
4. Multiple correlation.
PROFILE MATCHING:
Tentative decision regarding the selection of candidates is taken in advance. The sources
secured by these known candidates in various tests and taken as a standard to decide the success or failure of
other candidates at each stage.
ORGANISATIONAL AND SOCIAL ENVIRONMENT:

Some candidates, who are eminenstly suitable for the job, may fail or success
employees due to varying organisational and social environment.
SUCCESSIVE HURDLES:
In this method hurdles are created at every stage of selection process. Applicants must
successfully pass each and every screening device in case of successive hurdles.
MULTIPLE CORRELATION:
Multiple correlation is based on the assumption that a deficiency in one factor counter
balanced by an excess amount of another. A candidate is pouled though all the selection steps before a
decision is made.
SELECTION PROCESS:
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
76
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.
But selection must be differentiated from recruitment, though these are two phases of employment process.
Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It
creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the
inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection
involves choosing the best candidate with best abilities, skills and knowledge for the required job.
Selection is a long process, commencing from the preliminary interview of the
applicants and ending with the contract of employment. The selection process takes place in following way.
PRELIMANRY INTERVIEW:
It was stated that the applications received from seekers would be subject 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 applications. Scrutiny enables the HR specialists to eliminate
unqualified job seekers based on the information supplied in their application form.
Preliminary interview, on the other hand, helps reject misfits for reasons, which did not
appear in the application forms. Besides, preliminary interview, often called courtesy interview, is a
good public relations.
SELECTION TESTS:
Job seekers who pass the screening and preliminary interview are called for tests. Different
types of test may be administered, depending on the job and the company .Generally, tests are used to
determine the applicants ability, aptitude and personality.
ABILITY TEST:
It is also called achievements tests. It is assist in determining how well an individual can
perform tasks related to the job. An excellent illustration of this is the typing test given to a prospective
employee for a secretarial job.
77
APITITUDE TEST:
An aptitude test helps to determine a persons potential to learn in a given a area. An example
of such a test is the General Management Aptitude Test (GMAT).which may business students take prior to
gaining admission to a graduate business school programme.
PERSONALITY TEST:
Personality tests are given to measure a prospective employees motivation to function in a
particular working environment.
INTEREST TEST:
Interest test are used to measure an individuals activity preferences. These tests are particularly
useful for students considering may careers or employees deciding upon career changes.
GRAPHOLOGY TEST:
It is designed to analyse the handwriting of an individual. It has been said that an individuals
handwriting can suggest the degree of energy, inhibitions and spontaneity, as well disclose the
idiosyncracies, and elements of balance and control.
EMPLOYMENT INTERVIEW:
The employment interview is also one the step in the selection process. Interview is a formal,
in-depth conversation conducted to evaluate the applicants acceptability. It is considered to be an excellent
selection device. Interview can be adapted to unskilled, skilled, managerial and professional employees. It
allows a two-way exchange of information, the interviewers learn about the applicant, and the applicants
learn about the employer.
The employee interviews can be
1. ONE-TO-ONE INTERVIEW:
In this there are two participants, the interviewer and the interviewee. This can be
same as the preliminary interview discussed earlier.
78
2. SEQUENTIAL INTERVIEW:
It can be takes the one-to-one a step further involves a series of interviews, usually
utilised the strength and knowledge of each interviewer. So that interviewer can ask questions in relation o
his or her subject area of each candidate, as the candidate moves from room to room.
3. PANEL INTERVIEW:
It consists of two or more interviewers. Any panel interview is less intimate and more
formal than the one-to-one, but if handled and organised well, it can provide a wealth of information. If not
handled carefully, the panel interview can make the candidate feel ill at ease and confused about whose
question to answer and whom to address. Interviewers are themselves likely to experience nightmare, not
knowing who will ask which question and in what order.
SELECTION DECISION:
After obtaining information through the preceding steps, selection decision is the most
critical of all the steps, it must be made. The other stages in the selection process have been used to narrow
the number of candidates. The final decision has to be made from the pool of individuals who pass the tests,
interviews and reference checks.
The views of the line manager will be general considered in the final selection because it is
she or he who is responsible for the performance of the new employee. The HR manager plays a crucial role
in the final selection.
PHYSICAL EXAMINATION:
After the selection decision the physical examination is made, the candidate is required to
undergo physical fitness test. The result 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 diseases.
BARRIERS TO EFFECTIVE SELECTION
The main objective of selection is to hire people having competence and commitment. This
objective is often defeated because of certain barriers.
79
PERCEPTION: Selection demands an individual or a group of people to assess and compare the
respective competencies of others, with aim of choosing the right persons for the job. Our limited perceptual
ability is obviously a stumbling block to the objective and rational selection of people.
FAIRNESS: Fairness in selection requires no individual should be discriminated against on the basis of
religion, region, race, or gender. But the low numbers of women and other less privileged sections of the
society in middle and senior management positions and open discrimination on the basis of age in job
advertisements and in the selection process would suggest that all efforts to minimise inequity have not been
very effective.
VALIDITY: Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A
test that has been validated that differentiate between the employees who can perform well and those who
will not. However, a validated test does not predict job success accurately. It can only increase possibility of
success.
RELIABILITY: A reliable method is one which will produce consistent results when repeated in similar
solutions. Like a validated test, a reliable test may fail to predict job performance with precision.
PRESSURE: pressure is brought on the selectors by politicians, bureaucrats, relatives, friends and peers
to select particular candidates. Candidates selected because of compulsions are obviously not the right ones.
Appointments to public sector undertakings generally take place under such pressures.
Difference between Recruitment and Selection :
Basis
Recruitment
Selection
Meaning
It is an activity of establishing contact
Selection is a part of recruitment activity, in
between employers and applicants. It is
which the recruiter chooses the best employee
an activity of searching and hiring the
among the shortlisted candidates for the job. It is
right candidate for a particular post.
a process of picking up more competent and
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suitable employees.
Objective
It inviting more and more candidates to
Picking up the best candidate and rejecting the
apply for the vacant post.
rest.
Process
It is a simple process.
It is a complicated process.
Hurdles
The candidates have not to cross over
Many hurdles have to be crossed.
many hurdles.
Approach
It is a positive approach.
It is a negative approach.
Sequence
It proceeds selection.
It follows recruitment.
Economy
It is an economical method.
It is an expensive method.
Time
Less time is required.
More time is required.
Advertising the job.
Appointment of the candidate.
Consuming
Key Factor
FIGURE NO:8
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LITERATURE REVIEW
The literature review deals with the assessment of literatures which relate to the topic the recruitment and
selection practices of organization. Several literatures would be selected and relevant areas would be
reviewed and evaluated. This literature review provides information about aspect of previous works which
relate to this study. In view of this, a number of presentations culled from various sources are under review
here.
Costello (2006):
According to Costello (2006) recruitment is described as the set of activities and processes
used to legally obtain a sufficient number of qualified people at the right place and time so that the people
and the organization can select each other in their own best short and long term interests. In other words, the
recruitment process provides the organization with a pool of potentially qualified job candidates from which
judicious selection can be made to fill vacancies.
Successful recruitment begins with proper employment planning and forecasting. In this
phase of the staffing process, an organization formulates plans to fill or eliminate future job openings based
on an analysis of future needs, the talent available within and outside of the organization, and the current and
anticipated resources that can be expanded to attract and retain such talent. Also related to the success of a
recruitment process are the strategies an organization is prepared to employ in order to identify and select the
best candidates for its developing pool of human resources. Organizations seeking recruits for base-level
entry positions often require minimum qualifications and experiences.
These applicants are usually recent high school or university/technical college graduates
many of whom have not yet made clear decisions about future careers or are contemplating engaging in
advanced academic activity. At the middle levels, senior administrative, technical and junior executive
positions are often filled internally.
The push for scarce, high-quality talent, often recruited from external sources, has usually
been at the senior executive levels. Most organizations utilize both mechanisms to effect recruitment to all
levels.
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Jovanovic (2004):
Jovanovic (2004) said recruitment is a process of attracting a pool of high quality
applicants so as to select the best among them. For this reason, top performing companies devoted
considerable resources and energy to creating high quality selection systems.
Recruitment and selection process are important practices for human resource management, and
are crucial in affecting organizational success Jovanovic (2004). Due to the fact that organizations are
always fortified by information technology to be more competitive, it is natural to also consider utilizing this
technology to re-organize the traditional recruitment and selection process through proper decision
techniques, with that both the effectiveness and the efficiency of the processes can be increased and the
quality of the recruitment and selection decision improved.
Huselid (1995):
A human resource information system is a system exploited to acquire, store,
manipulate, analyze, retrieve, and distribute relevant information regarding an organization's human
resources (Huselid, 1995). The purpose of the system is to support human resource services from the
strategic level down to the tactical and operational levels. Many decision-making problems, including
recruitment and selection, are here in involved. The system facilitates automated or computerized procedures
to solve the problems, and is of vital importance as an aggressive tool in the information age.
Researchers indicate that effective recruitment practices and policies enable boards to find the best
candidate for their organization. The personnel function becomes especially important when recruiting and
selecting new administrators. A critical role for human resource management is how to elicit positive
reactions from candidates when discussing administrative roles. When opportunities are presented to
employees to move towards careers in administration (i.e., tapping shoulders of potential candidates), often a
negative reaction occurs. People without administrative experiences have negative perceptions and views of
the role of the administrator.
In attempts to attract and support individuals to the administrators position it is necessary to
identify what barriers prevent potential candidates from applying to the pool. Job complexity and workload
are perceived by employees as the two considerations having had the greatest impact on the number of
applicants for administrative positions. Other factors include poor remuneration as it relates to demands and
expectations of the job and lack of resources and support structures in. Many highly qualified, competent,
and talented employees dismiss careers in administration because they do not want to sit in an office all day.
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Until some alternative image is understood, or at least some support and resources put in place, a problem of
pre-screening and identification will not likely improve.
Dessler (2000):
Recruitment and selection forms a core part of the central activities underlying human
resource management: namely, the acquisition, development and reward of workers. It frequently forms an
important part of the work of human resource managers or designated specialists within work
organizations. However, and importantly, recruitment and selection decisions are often for good reason taken
by non-specialists, by the line managers. There is, therefore, an important sense in which it is the
responsibility of all managers, and where human resource departments exist, it may be that HR managers
play more of a supporting advisory role to those people who will supervise or in other ways work with the
new employee.
Recruitment and selection also has an important role to play in ensuring worker performance
and positive organizational outcomes. It is often claimed that selection of workers occurs not just to replace
departing employees or add to a workforce but rather aims to put in place workers who can perform at a high
level and demonstrate commitment (Dessler, 2000).
Recruitment and selection is a topical area. While it has always had the capacity to form a key
part of the process of managing and leading people as a routine part of organizational life, it is suggested
here that recruitment and selection has become ever more important as organizations increasingly regard
their workforce as a source of competitive advantage. Of course, not all employers engage with this
proposition even at the rhetorical level. However, there is evidence of increased interest in the utilization of
employee selection methods which are valid, reliable and fair.
Dessler (2000) lists the essence of these in the following; build a pool of candidates for the
job, have the applicants fill out application forms, utilize various selection techniques to identify viable job
candidates, send one or more viable job candidates to their supervisor, have the candidate(s) go through
selection interviews, and determine to which candidate(s) an offer should be made.
Mullins (1999):
Mullins (1999) indicated that to be a high performing organization, human resource
management must be able to assist the organization to place the right person in the right job. The human resource
management practices include recruitment, selection, placement, evaluation, training and development,
compensation and benefits, and retention of the employees of an organization. Businesses have
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developed human resource information systems that support: (i) recruitment, selection, and hiring, (ii) job
placement, (iii) performance appraisals, (iv) employee benefits analysis, (v) training and development, and
(vi) health, safety, and security. The first few activities of human resource management are recruiting and
selecting which deal with the actions concerned, and the recruiting is also less frequently alerted in human
resource information system recently. Besides, e-recruitment on the web being the current trend for the
recruitment and selection processes can further distinguish many activities of the processes.
Odiorne (1984):
Odiorne (1984) indicated that the quality of new recruits depends upon an organizations
recruitment practices, and that the relative effectiveness of the selection phase is inherently dependent upon
the calibre of candidates attracted. Indeed that the more effectively the recruitment stage is carried out, the
less important the actual selection process becomes. When an organization makes the decision to fill an
existing vacancy through recruitment, the first stage in the process involves conducting a comprehensive job
analysis. This may already have been conducted through the human resource planning process, particularly
where recruitment is a relatively frequent occurrence. Once a job analysis has been conducted, the
organization has a clear indication of the particular requirements of the job, where that job fits into the
overall organization structure, and can then begin the process of recruitment to attract suitable candidates for
the particular vacancy.
According to Odiorne, (1984) one result of effective recruitment and selection is reduced
labour turnover and good employee morale. Recruiting ineffectively is costly, since poor recruits may
perform badly and/or leave their employment, thus requiring further recruitment. In a cross national study of
recruitment practices, suggests that, in reality, recruitment practices involve little or no attempt to validate
practices. Personnel managers tend to rely on feedback from line managers and probationary periods and
disciplinary procedures to weed out mistakes. Firms with high quit rates live with them and tend to build
them into their recruitment practices and they do not analyze the constitution of their labour turnover. A
number of recent studies have suggested that some recruitment methods are more effective than others in
terms of the value of the employees recruited.
Miyake (2002):
Miyake, (2002) indicated that while advertising is usual for job vacancies, applicants were
sometimes recruited by word of mouth, through existing employees. Besides being cheaper, the grapevine
finds employees who stay longer (low voluntary turnover) and who are less likely to be dismissed (low
85
involuntary turnover). People recruited by word of mouth stay longer because they have a clearer idea of
what the job really involves. Miyake, (2002) reviewed five studies in which average labour turnover of those
recruited by advertising was 51 per cent. The labour turnover for spontaneous applicants was 37 per cent and
turnover for applicants recommended by existing employees was 30 per cent. One hypothesis proposed to
account for this was the better information hypothesis. It was argued that people who were suggested by
other employees were better and more realistically informed about the job than those who applied through
newspapers and agencies. Thus, they were in a better position to assess their own suitability. Better informed
candidates are likely to have a more realistic view of the job, culture of the organization and job prospects.
In a comparison of personnel selection practices in seven European countries explored the

utilization of a range of established selection methods. They reported a general trend towards structured
interviews in all countries and, while the general validity and acceptability of methods such as work
samples, group exercises and assessment centers were widely recognized, reported usage of these methods
was infrequent (Miyake, 2002).
Burack (1985):
According to the Burack, (1985) the recruitment sources are significantly linked to differences
in employee performance, turnover, satisfaction and organizational commitment. In a survey of 201 large US
companies, Burack asked respondents to rate the effectiveness of nine recruitment sources in yielding highquality, high-performing employees. The three top ranked sources were employee referrals, college
recruiting and executive search firms. However, Burack, (1985) cautions that, while these general results are
useful, there is a need for greater internal analysis of the relative quality of recruits yielded by different
sources. The mandatory nature of training also makes it likely that such a socialization process persists
despite idiosyncratic events within a profession; for example, recent concerns with corporate governance
within accountancy which may have adversely affected the attractiveness of the profession for students and
hence may impact recruitment into the profession (Burack , 1985).
Kersley et al (1997):
In a study assessing the recruitment of new graduates, Kersley et al (1997) reiterated
the anticipatory socialization stage for students planning to enter professions, and in particular the effects of
recruitment and selection experiences on career expectations and orientation. They agreed that the nature of
students job search activity, the possession of relevant work experience, and exposure to employers through
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recruitment and selection activities may form part of the evolving sequence of a persons work experiences
which contributes to anticipatory socialization. It has been argued that exposure to employers through
recruitment and selection is a social process where employers and potential employees gradually perceive a
match. Through job search activities and awareness of employers recruitment literature and events, students
gather information about organizations goals, values, climate and work practices to guide their ultimate
decision. Exposure to selection procedures provides information about the culture and attributes of an
organization, and candidates form judgments from their perceptions of the fairness of the selection methods
used.
However, more recently, there is growing evidence to suggest that the notion of fit as it relates
to suitability has assumed heightened significance in organizational settings. Kersley et al, (1997),defines
fit as the degree to which the goals and values of the applicant match those of individuals considered
successful in the organization. Kersley et al, (1997) further highlights this notion of fit as the key to job
success: Think back in your career and ask yourself, of all the people you know who failed in a job and were
terminated, how many of them failed because they lacked the right educational degree, the right job
experience, or the right industry background? In all likelihood, most of them failed because of inadequate
interpersonal skills, an inability to communicate, or because they just didn't fit in with the culture; in other
words bad chemistry.
Delery and Doty (1996):

Delery and Doty (1996) argued that providing students with greater awareness of
employment opportunities, and equipping them with the ability to be proactive in approaching potential
employers, will lead to more effective career self-management and selection processes. There is also
evidence that employers prefer graduates with a broader range of skills than just academic knowledge and
greater appreciation of business needs both of which can be gained through work experience and awareness
of employers recruitment and selection procedures. Using a sample of students in two traditional and one
emerging profession (law, accountancy and human resource Management), the study examined the extent of
career-related pre-employment work, recruitment and selection experiences and the relationship between
these experiences and career expectations. The focus on professions reflects the expectation that anticipatory
socialization is likely to be greater amongst these students.
Although most students in their final years of university training will have had some
contact with potential employers, students in dedicated professional courses are likely to be provided with
information earlier in their training about potential employment in the profession. This is partly because of
the prescribed nature of the degree, the mandatory post-degree training required for membership of the
professional institute, unlike the problems identified in general degree courses, because lecturers are likely to
87
have closer ties to the practicing profession. Students in traditional professions, therefore, are exposed earlier
to the values of the profession, such as a commitment to client service and a professional code of conduct.
In an attempt to explain why the rational model has limited application in the current business
environment, Delery and Doty, (1996) find three particular arguments:
(1) In an increasingly competitive environment the content of jobs may change quickly over time, because of
shifts in corporate strategies or technological innovations. Stable person/job match is unlikely in such
unpredictable organizational environments.
(2) The increasing use of self-managed teams makes it difficult to view individual jobs as the key unit of
analysis. Team members may be given the responsibility of allocating tasks between members and engage in
collective problem-solving efforts that can be more meaningfully understood at the group level of analysis.
(3) Research has documented that person/job match may not be sufficient to achieve high job satisfaction,
commitment and job performance among employees. It is necessary also that employee hold values that are
congruent with those of the organization. Delery and Doty, (1996) concluded that this requirement for fit
encapsulates the congruence of the personality traits, beliefs, and values of the employee with the culture,
strategic needs, norms and values of the organization and thus reinforces the necessity for greater empirical
evaluation of the mechanisms employed to measure such characteristics.
Gould(1984):
While the calibre of candidate is determined by the value of the recruitment process, the
selection decision remains a difficult one. Gould, (1984) argues that most mistakes are caused by the fact
that managers generally give little thought to the critical nature of the decisions. Employers are surprised and
disappointed when an appointment fails, and often the person appointed is blamed rather than recognizing
the weaknesses in the process and methodology, even the soundest of techniques and best practice (in
selection) contain scope for error. Some of this is due to the methods themselves, but the main source is the
frailty of the human decision makers.
Selection tools available to organizations can be characterized along a continuum that ranges
from the more traditional methods of interviews, application forms and references, through to the more
sophisticated techniques that encapsulate biographical data, aptitude tests, assessment centers, work samples,
psychological testing, and so forth. Each method of selection has its advantages and disadvantages and
comparing their rival claims involves comparing each method's merit and psychometric properties. The
degree to which a selection technique is perceived as effective and perhaps sophisticated is determined by its
reliability and validity. Clear differences in the frequency of the use of several selection methods did emerge
88
from the study which reported, among others, the very high take-up of references and assessment centers in
both the UK and Germany, the high, almost exclusive, frequency of graphology in France, and the limited
use of testing and biographical inventories amongst all respondents.
Armstrong (1991):
Researchers face many decisions when selecting recruitment methods. Issues to consider
include the type of sample (random or convenience), cost, ease, participant time demands (e.g., total time,
days of week, and time of day), and efficiency (e.g., staff hours per recruited participant). Researchers have a
number of methods from which to choose, including advertising, direct mail, and telephone. Advertising can
be used both to publicize a study and to recruit participants.
Recruitment via advertising has the advantages of low cost and convenience, but the
samples are non-random and often highly motivated, and youth may be especially hard to reach this way.
Recruitment via mail is also low in cost and convenient, but youth are difficult to reach by mail and return
rates tend to be low. An added problem with mail requests or surveys is that one can never be certain who
completed the request/survey (Armstrong, 1991). Institutions or events (such as medical offices, schools,
community sports organizations, health fairs, community events, and churches) often are used as a setting for
recruitment. Schools present a promising avenue for the recruitment and assessment of youth. Their primary
advantage is that they house a large number of children in one place and present a captive audience, although
parental consent usually is still required. However, recruitment of participants from schools may meet
resistance from school administrations for political or practical reasons.
Additionally, recruitment at schools may not achieve the goal of sample representativeness as
student characteristics vary between different types of schools (e.g., private vs. public) and between schools
in different neighborhoods. Recruitment at schools may not be appropriate in studies having a family or
neighborhood context, requiring a greater dispersal of participants from a larger area, or focusing on data
collection in the home. Door-to-door recruitment is another option. For large studies, this recruitment
method can be costly in terms of staff time and travel expenses, and it is difficult to assure that recruiters
randomly sample homes. Despite these concerns, door-to-door recruitment may be a necessary recruitment
strategy for certain potential participants (e.g., those who do not have a residential phone) (French, 1982).
More
specifically,
(Armstrong,
1991) identify
the
organizational chameleon as a corporate creature who embodies the perfect fit in terms of organizational
demands for values, beliefs,attitudes and so forth, while advocating that an organizational analysis be carried
out prior to making staffing decisions to identify the dominant values, social skills, and personality traits
89
required of potential job applicants. Such an approach challenges the rational model of recruitment and
selection and brings into focus the form versus substance issue. According to (Armstrong, 1991), the core
of this problem is associated with the difficulties involved in distinguishing candidates who are truly
qualified (i.e. substance) from those who simply construct images of qualifications and competence (i.e.
form). This problem is compounded in a situation where candidates actively seek to alter and manage images
of competence, with the result that the decision maker is attempting to hit a moving, rather than a stationary,
target
Kaplan & Norton (2004):

Telephone recruitment has an important advantage over these methods in that it can be used,
in a fairly straightforward way, to randomly select respondents from the larger population. The telephone
provides a relatively low-cost, effective means of contacting many households, as is often required for largescale etiological research, and of making a quick determination of eligibility and willingness to participate in
the study. Disadvantages of the telephone method include its limitation to households with telephones, the
problems of missing or changed phone numbers, challenges presented by technology (such as answering
machines or caller ID) that complicate the ability to reach people, and relatively easy refusal or termination
of the conversation by unwilling respondents. Perhaps the largest problem with telephone contact methods
involves rates of non-response. Kaplan and Norton (2004) found that the number of people who refused to
provide screening information tended to be higher by telephone than in person. However, refusals over the
telephone tend to be less likely than with mailed surveys. It should be noted that telephone methods can be
used not only for recruitment, but also for data collection. Recent advances in telephone survey methodology
have made telephone recruitment and surveying an increasingly attractive option in many research fields
(Kaplan & Norton, 2004).
Random digit dialing, which involves calling numbers completely at random (since
the digits are randomized), is used mostly in household survey research. Other systems, such as computerassisted telephone interview programs, are used in marketing research and can be adapted for telephone
recruiting and data collection in studies requiring specific samples. Working from an appropriate database of
phone listings, the system, computer-assisted telephone interview can be used to select and queue numbers
randomly, set specific quotas on key respondent variables (e.g., age, sex), and keep track of interviewer
productivity and call outcomes.
According to Kaplan and Norton, (2004) a common problem in recruitment and selection is poor HR
planning. Rigorous HR planning translates business strategies into specific HRM policies and practices. This
is particularly so with recruitment and selection policies and practices. The key goal of HR planning is to get
the right number of people with the right skills, experience and competencies in the right jobs at the right
time at the right cost. Detailed and robust recruitment and selection policies, such as recruitment and
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selection procedures, assessing criteria, talents auditing and processing the information about the labour
market are important in recruiting and deploying appropriate employees at the right time. Past research
shows that the competency level of HR managers has a major influence on recruitment and selection and
experienced HR experts within the HR department will not only shorten vacancy duration, but also improve
the quality of the applicants. Moreover, effective recruitment and selection is possible only if there is a
dedicated and competent HR team (Kaplan and Norton, 2004)
DRUKER (1999):
Job posting refers to the practice of publicizing an open job to employees (often by literally posting
it on bulletin boards) and listing its attributes, such as criteria of knowledge, qualification, skill and
experience. The purpose of posting vacancies is to bring to the attention of all interested persons (inside or
out of the organization) the jobs that are to be filled.
An organization needs to analyze the benefits and disadvantages of recruiting its personnel
through internal or external sources and, where the latter is selected, whether formal or informal systems
should be used.
There are sound reasons for recruiting from sources within the organization:
The ability of the recruit is known so it is easy to assess potential for the next level. By contrast,
assessments of external recruits are based on less reliable sources, such as references, and relatively brief
encounters, such as interviews.
1
Insiders know the organization, its strengths and weaknesses, its culture and, most of all, its people.
Promotions from within build motivation and a sense of commitment to the organization. Skilled and
ambitious employees are more likely to become involved in developmental activities if they believe that
these activities will lead to promotion. Internal recruitment is cheaper and quicker than advertising in various
media and interviewing outsiders. Time spent in training and socialization is also reduced.
At the same time, several disadvantages exist:
Sometimes it is difficult to find the right candidate within and the organization may settle for an
employee who possesses a less than ideal mix of competencies.
1
If the vacancies are being caused by rapid expansion of the organization there may be an insufficient
supply of qualified individuals above the entry level. This may result in people being promoted before they
are ready, or not being allowed to stay in a position long enough to learn how to do the job well.
2Infighting, inbreeding, and a shortage of varied perspectives and interests may reduce organizational
flexibility and growth, and resistance to change by those who have an interest in maintaining the status quo
may present long term problems.
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In times of rapid growth and during transitions, the organization may promote from within into managerial
positions, regardless of the qualifications of incumbents. Transition activities and rapid organizational
growth often mask managerial deficiencies; it is not until the growth rate slows that the deficiencies become
apparent and, then, the organization finds it difficult, if not impossible, to undo the damage. The resulting
cost of remedial training can prove prohibitive.
Recruitment procedures need not be limited to one method. It is possible and often
desirable to combine methods to enhance the recruitment success of a particular project. For example, use of
focus groups and pilot studies that involve the community and pre-recruitment publicity can lead to higher
rates of consent (Drucker, 1999).
Furthermore, Drucker, (1999) indicates that, as companies downsize, delayer

and try to boost productivity with fewer people, those that remain are being asked to assume more tasks,
roles and responsibilities. He proposes that, as this trend continues, companies will be asking fewer
employees to know more, do more, change more and interact more and thus interest is increasingly focused
on identifying the recruiting sources that are most likely to yield high quality employees and the selection
methods that best predict future job performance. Arguments such as these have led to suggestions that the
critical organizational concern today is the hiring or promoting of the best qualified people while still
meeting all regulatory requirements. A study commissioned by the IPD's Recruitment Forum highlighted a
number of common failings in the recruitment and selection process. Included among these failings were:
1) No obvious link with HR strategy, resourcing strategy and broader business and Organizational goals;
2) Use of referencing for short listing;
3) Unclear use of structured interview design and application;
4) Increasing use of invalid prediction methods;
e) Lack of widespread monitoring and lack of remedial action in those organizations that
did monitor
recruitment;
f) Lack of validation of situation specific selection procedures. These results are suggestive of an inability or
unwillingness to appreciate the strategic imperative of effective recruitment and selection practices.
Whitmell Associates (2004 ):

In the strategy implementation phase, the extent of recruitment and selection strategic
integration can be gauged through four distinctive indicators. These indicators are: the timely supply of an
adequately qualified workforce, effective job analysis and descriptions, effective selection, and the
involvement of line managers in the recruitment and selection practices. A key source of uncertainty in the
business strategy implementation is whether there is a timely supply of adequate qualified people, and to a
92
great extent this uncertainty involves the quality of employees. For instance, a firm might decide to leverage
a different human capital pool in terms of skills and education level than its rival firms as a competitive
strategy even within the same industry to develop specific capabilities or to develop a HR process advantage.
An organization can successfully eliminate this uncertainty if its recruitment and selection policies and
practices are strategically integrated with business (Whitmell Associates, 2004).
Until recently, the focus when hiring has been more on skills, for reference, cataloguing, IT
and so on, rather than on attributes like strategic thinking, flexibility, adaptability and commitment to
lifelong learning. There is a growing trend now to hire for attributes and then train for the skills (Whitmell
Associates, 2004). The need to hire staff with abilities such as flexibility, adaptability, leadership potential
and learning agility is increasingly recognized by human resource managers. The process of bringing in such
changes to our workplaces is not straightforward as it affects the hiring process as well as staff development
and training activities. To keep alive the principles of training and development, all related initiatives need to
be integrated. Hiring, orientation, communication, performance reviews, and rewards and recognition are
interrelated and therefore should be linked to each other and to the training and development programs.
Recruitment of staff that is flexible, strategic thinkers, multi-skilled, open to

change and responsive is not a simple, straightforward process as identification of individuals with these
skills is not as easy as identification of those with cataloguing, reference or IT skills. Retaining these skilled
people and ensuring that once hired, they are motivated and continue to enhance the skills and attributes they
had when they joined the organization may present challenges for human resource managers. It requires
creation of an environment within the organization to ensure these happen, in other words a knowledgebased organization equipped to deal with the constantly changing environment.
Johnston (1999):
Effectively conducting job analysis and targeting right potential candidates ensures a
good match between applicants and the jobs. Argument has been given that under qualified employees may
not able to effectively perform their job positions due to lack of knowledge and competencies, while on the
other hand over qualified employees tend to experience less job satisfaction due to their higher qualification
than a desired level for a given job. For every job in the organization, a thorough job analysis, which
includes job description and job specifications, is necessary and based on this, an appropriate selection
criteria is vital. The job description provides indications of the duties to be undertaken, and the job
specification usually prescribes relevant personal qualities and attitudes as well as skills and knowledge
required for the job (Johnston, 1999).
93
A range of methods, such as application forms, interviews, formal tests,

references, assessment centers and official transcripts are used by firms in the selection process. A firm needs
to choose a method that is most appropriate to the job positions. HR experts generally drive the staffing
process and the purpose of the staffing is to fulfill the requirements of business, and the skill levels presented
by each new recruit is likely to be judged better if the line managers are involved in the recruitment and
selection process. He suggest that in business strategy implementation the involvement of line managers in
the entire staffing process (i.e., drafting of job descriptions, setting selection criteria and being on the panel
of recruitment) is vital for ensuring recruitment and selection to meet business needs. In other words, the line
managers are the owner of the recruitment and selection process along with HR playing a facilitator role.
Blackford and Newcomb (1914):

Managers are advised to assess nose, forehead, chin, habitual facial expression, digestion,
skin texture, and elasticity of muscle as found in Blackford and Newcomb, 1914 early people management
textbook. The underlying philosophy of this process is that everything about man indicates his character and
as much information as possible should be collected to inform a decision - their list also includes religious
belief and marital status. Taking heredity and environment as bases for granting or denying access to an
organization and job is now legally unacceptable. The argument presented by Blackford and Newcomb
(2002), particularly in relation to skin, color and its predictive properties, could be seen as a product of its
time and place. However, it is important to note that the study is based on what was then seen as a sound
scientific set of ideas and tests, which proved the premises underlying the suggested practice.
Recruitment may be conducted internally through the promotion and transfer of
existing personnel or through referrals, by current staff members, of friends and family members. Where
internal recruitment is the chosen method of filling vacancies, job openings can be advertised by job posting,
that is, a strategy of placing notices on manual and electronic bulletin boards, in company newsletters and
through office memoranda. Referrals are usually word-of-mouth advertisements that are a low-cost-per-hire
way of recruiting. Internal recruitment does not always produce the number or quality of personnel needed;
in such an instance, the organization needs to recruit from external sources, either by encouraging walk-in
applicants; advertising vacancies in newspapers, magazines and journals, and the visual and/or audio media;
using employment agencies to head hunt; advertising on-line via the Internet; or through job fairs and the
use of college recruitment.
94
Bingley et al, (2004) :

Much of the recent literature on personnel management has emphasized the necessity
for the recruitment and selection of employees who are committed to the goals of the organization.
Recent waves of organizational restructuring have dramatically changed and, in
many cases, destroyed existing employment relationships. As traditional autocratic structures flatten and
organizations utilize multidisciplinary teams to remain competitive, the need for strategic and transparent
systems becomes paramount (Bingley et al, 2004).
Bingley et al, (2004) suggested that, increasingly, many organizations are being
transformed from structures that are built on functions and jobs, to those where focused, self-directed work
teams, made up of empowered individuals with diverse backgrounds, are replacing traditional specialized
workers. Highlighted that firms need adaptable people who can adjust to rapidly changing customer needs
and operational structures, that employees, and the way they work, comprise the crucial difference between
successful and unsuccessful organizations. He argues that as technology increases and product life cycles
shorten, the major source of competitive advantage will be the individual worker. Further developed this
view of the prevailing business environment and reiterated that: with the sweeping changes in today's
business climate and the rise of re-engineering to meet the needs of organizations in the area of downsizing
or cost diminution, (search) firms must be equipped to recruit individuals who can operate in a nonstructured or virtual organization. Even in today's technically advanced business environment, the human
factor will always be instrumental to the success of an organization.
Smith and Robertson (1993):

Smith and Robertson (1993) argue for greater precision in recruitment and
selection and caution that a company can be dragged to its knees by the weight of ineffective staff which
decades of ineffectual selection methods have allowed to accumulate. Smith and Robertson, (1993) further
noted that the problem of inefficiency may be as a result of a difficulty in distinguishing good practice from
common practice. Should this bathe case then the problem may lie less with the processes utilized and more
with the traditional perception of what constitutes effective, valid recruitment and selection practices. The
traditional perspective on recruitment and selection assumed a rational framework, where the largely
objective qualifications of the individual were matched to the requirements of the job. The assumptions of
the rational model imply that those making the decisions have real knowledge about the job, real knowledge
about the applicants' job relevant qualifications, can objectively compare these qualifications with the job
demands and select the applicant with the best match.
95
Walker (1990):
Companies can only succeed in the long-term if they recruit and motivate people who
are able to respond to and shape the challenges of the future. These are the individuals with the capacity to
create competitive advantage from the opportunities presented by changing markets, with the desire to learn
from customers, consumers, suppliers and colleagues, and who possess the ability to build and influence
long-lasting and effective partnerships (Walker, 1990). The recruitment of new employees helps to
demonstrate a companys aspirations, highlighting the skills and attitudes to which it attaches the highest
priority. The choice also provides a major opportunity to communicate the values and successes of the
organization to explain why the company offers the most attractive place for a person to develop their
career. Yet this competition for top talent is nothing new; and if the challenge for HR managers is to spot the
best people and win their favour (Walker, 1990).
96
CHAPTER-IV
- DATA ANALYSIS AND INTERPRETATION
97
Q 1) How many times were you called for interview?

Type of responses
No. of responses
Percentage
1-2 times
87
87%
1-3 times
9%
3-5 times
0%
More than 5 times
2%
Cant say
2%
Total
100
100%
TABLE NO:1
Chart N0:1
Interpretation:
The above graph gives the opinion about how many times call the interview in the organization. 87%
employees are 1-2 times, 9% employees are 1-3 times, 0% employee are 3-5 times, 2% employees are more
than 5 time and 2% employees are cant say in the coromandel international limited.
98
Q 2) Do you agree that a recruitment policy plays an important role in the organization?
Type of responses
No. of responses
Percentage
Strongly Agree
35
35%
Agree
45
45%
nor 15
15%
Neither Agree
Disagree
Disagree
5%
Strongly Disagree
0%
Total
100
100%
TABLE NO:2
CHART NO:2
INTERPRETATION:
From the above chart gives the opinion of employees about the level of satisfaction With the present
recruitment policies followed in the organization.35% of employees are strongly agree, 45% of employees
are agree, 15% of employees are Neither Agree nor Disagree, 5% of Employees are disagree, 0% of
employees are strongly dis-agree.
99
Q 3) What type of interview did you undergo?

Type of responses
No. of responses
Percentage
Formal & structured
60
60%
Formal &un structured
10
10%
Stress interview
15
15%
Board interview
6%
None of these
9%
100
100%
Total
TABLE NO:3
CHART NO:3
INTERPRETATION:
The employees opinion about the period of recruitment in the organization. 60% of employees
opinion is formal & structured, 10% of employees opinion is formal & unstructured, `15% of employees
opinion is stress interview, 6% of employees opinion is board of interview, 9% of employees opinion is none
of these in the company.
100
4) Analysis about the attributes taken into preference for recruitment &Selection procedure?
Type of responses
No. of responses
Percentage
Experience
35
35%
Qualification
23
23%
Both
38
38%
Other type
4%
None of these
0%
100
100%
Total
TABLE NO:4
CHART NO: 4
INTERPRETATION:
The employees opinion about the attributes into preference for recruitment & selection in the
organization. 38% of employees opinion is both, 23% of employees opinion is qualification, 35% of
employees opinion is experience, 0% of employees opinion is none of these, and 4% of employees
opinion is other type in the company.
101
Q5) Analysis about the period of recruitment of your organization

Type of responses
No. of responses
Percentage
Monthly
18
18%
Quarterly
2%
Half-Yearly
4%
Annually
25
25%
When we required
51
51%
100
100%
Total
TABLE NO:5
CHART NO:5
INTERPRETATION:
The above chart gives the opinion about the attributes taken intopreference for Recruitment &
selection in the organization. 51% employees are when we required, 25%employees are annually, 4%
employees are half-yearly, 2% employees are quarterly and 18% Employees are monthly in the
COROMANDEL INTERNATIONAL LIMITED
102
6Q) How did you come to know about the vacancies in the company?
Type of responses
No. of responses
Percentage
Advertisements
13
13%
Websites
25
25%
7%
Referrals
30
30%
Job portals
25
25%
100
100%
News papers
Total
TABLE NO:6
CHART NO:6
INTERPRETATION:
The above chart gives the opinion of how to you come to know about the vacancies in the
company. 30% of employees are referrals, 25% of employees are websites, 25% of employee are job
portals,13% of Employees are advertisements, 7% of employees are news papers.
103
Q7) Analysis about level of satisfaction with the present recruitment process
followed in your company?
Type of responses
No. of responses
Percentage
Highly satisfied
12
12%
Satisfied
65
65%
Either satisfied or dissatisfied
15
15%
Dissatisfied
5%
Highly dissatisfied
3%
100
100%
Total
TABLE NO:7
CHART NO:7
INTERPRETATION:
From the above chart gives the opinion of employees about the level of satisfaction With the present
recruitment process followed in the organization.65% of employees are satisfied, 15% of employees are
either satisfied or dissatisfied, 12% of employees are highly satisfied, 5% of Employees are dissatisfied, 3%
of employees are highly dissatisfied.
104
Q8) Analysis about the main recruitment sources of selection in coromandel company?
Type of responses
No. of responses
Percentage
Witten test
5%
Group discussions
7%
Interview
75
75%
All the above
10
10%
None of these
3%
Total
100
100%
TABLE NO:8
CHART NO:8
INTERPRETATION:
From the above chart give the opinion of 75% of the total respondents have expressed in the
company is following Interview, 10% of the total respondents have expressed in the company is following
all the above, 7% of the total respondents have expressed in the company is following Group discussions,5%
of the total respondents have expressed in the company is following written test, 3% of the total respondents
have expressed in the company is following no response.
105
Q9) Analysis about the reason for accepting the offer in the organization
Type of responses
No. of responses
Percentage
Job security
15
15%
Opportunities for growth
60
60%
Decent salary
5%
Relation with employer
10
10%
Relocation
10
10%
100
100%
Total
TABLE NO:9
CHART NO:9
INTERPRETATION:
From the above chart I can understand that 60%of total respondents are selected in the
organization for Opportunities, 15%of total respondents are selected in the organization for job security,
10%of total respondents are selected in the organization for relocation, 5%of total respondents are selected
in the organization for decent salary, 10%of total respondents are selected in the organization for relation
with employer.
106
Q10) Since, how many years have you been working with this organization?
Type of responses
No. of responses
Percentage
1-2 years
18
18%
1-3 years
27
27%
2-4 years
20
20%
2-5 years
15
15%
More than 5 years
20
20%
100
100%
Total
TABLE NO:10
CHART NO:10
INTERPRETATION:
The above chart gives the opinion about how many years have been working in the
organization.27% employees are 1-2 years, 27% employees are 1-3 years, 15% employees are 2-5 years,
20% employees are more than 5 years and 20% Employees are 2-4years in the COROMANDEL
INTERNATIONAL LIMITED.
107
Q11). How would you rate HR departments performance in recruitment & selection?
Type of responses
No of responses
Percentage
Excellent
15
15%
Very good
18
18%
Good
51
51%
Average
10
10%
Below average
6%
100
100%
Total
TABLE NO:11
CHART NO:11
INTERPRETATION:
The above chart gives the opinion about HR departments performance in Recruitment &
selection in the organization. 51% employees are good, 18% employees are very good, 15% employees are
excellent, 10 % employees are average and 6%Employees are below average in the COROMANDEL
108
Q12) Rate how well HR finds good candidates from modern (websites) sources when necessary?
Type of responses
No. of responses
Percentage
Excellent
17
17%
Very good
23
23%
Good
42
42%
Average
16
16%
Below average
2%
100
100%
Total
TABLE NO:12
CHART NO:12
INTERPRETATION:
The above chart gives the opinion about the how HR finds good candidates from modern
sources in the organization. 42% employees are good, 23% employees are very good, 17% employees are
excellent, 16 % employees are average and 2% employees are below average in the CORAMANDEL
109
Q13) How do you rate of the overall recruitment and selection in COROMANDEL
INTERNATIONAL Company?
Type of responses
No. of responses
Percentage
Excellent
12
12%
Very good
19
19%
Good
52
52%
Average
13
13%
Below average
4%
100
100%
Total
TABLE NO:13
CHART NO:13
INTERPRETATION:
The above chart gives the opinion about the how HR finds good candidates from modern
sources in the organization. 52% employees are good, 19% employees are very good, 12% employees are
excellent, 13 % employees are average and 4% employees are below average in the COROMANDEL
110
Q14) Rate the effectiveness of the interviewing process & other selection instrument such as testing?
Type of responses
No. of responses
Percentage
Excellent
8%
Very good
24
24%
Good
57
57%
Average
6%
Below average
5%
100
100%
total
TABLE NO:14
CHART NO:14
INTERPRETATION:
The above chart gives the opinion about the how HR finds good
candidates from modern Sources in the organization. 57% employees are good, 24% employees
are very good, 8% employees are Excellent, 6% employees are average and 5% employees are
below average in the COROMANDEL INTERNATIONAL.
111
Q15) How did you satisfied to select in the company?

Type of responses
No. of responses
Percentage
Highly satisfied
6%
Satisfied
70
70%
Either satisfied or dissatisfied
18
18%
Dissatisfied
4%
Highly dissatisfied
2%
100
100%
Total
TABLE NO:15
CHART NO:15
INTERPRETATION:
From the above chart gives the opinion of employees about the level of satisfaction with the
present recruitment Process followed in the organization.70% of employees are satisfied, 18% of employees
are either satisfied or dissatisfied, 6% of employees are highly satisfied, 4% of employees are dissatisfied,
2% of employees are highly dissatisfied.
112
CHAPTER-V
-FINDINGS
-SUGGESTIONS
- CONCLUSION
-SUMMARY
113
5.1FINDINGS OF THE STUDY

The information collected from the sample size of 100 respondents the following findings are
ascertained from the above analysis & interpretation
thegood
respondents
completed 5 years of service in the organisation and are post
graduatesMost
and of
have
educationhave
background.
Majority of the respondents are satisfied with the recruitment programmes conducted.
All the respondents felt that there is an improvement in the work area after completion of
recruitment.
4
All the
respondents
agreedrequirement.
to the fact that improves their skill & knowledge recruitment and
also supports
their
future personal
them. .
All the respondents feel that the environment in the recruitment programme is suitable to
6
Most of the respondents feel that the duration of the training programme is sufficient to serve
their purpose.
114
5.2 SUGGESTIONS
1. Need to improve the selection procedure in the organization.
2. Need to maintain the quality and experience of the employees. So that we will get good results in the
future orientation.
3. Depending upon the job description can take graduates.
4. Coromandel international Limited can motivate internal employees with promotions and good
increments.
5.Coromandel international limited Company can recruit and select fresh candidates depending upon their
skills and knowledge. So that they can get chance to prove them.
6.Some online methods should be adapted to satisfaction of the employees regarding existing Recruitment
and selection process.
7. People reference should be consider, but in the mean time you need to give the priority to the well
qualified peoples & fixed wages according to company standards.
8. Coromandel international Limited can conduct campus interviews to get potential candidates to the
organization.
115
5.3CONCLUSION:
From the above data analysis Ho is accepted and the H1 is rejected .Because in the organization
recruitment and selection practices plays a key role .Through this practices the organization can hire the
capable persons for that job.
The process of study includes a detailed study on the recruitment and selection in Coromandel
international limited. The Study was conducted to find out the recruitment and selection conducted in the
organization, which influents the satisfaction of employees towards the recruitment process.I have used a
well-structured questionnaire comprising 15 questions. The sample size consisted of 100 respondents, simple
random sampling was a technique used for drawing sampling. The employees are satisfied in the recruitment
process.
116
5.4 SUMMARY:
Recruitment is the first stage in the process which continues with selection and ends with the
placement of candidate. Recruitment facilitates in acquiring the number and the types of people necessary
to ensure continued operations of the organisation. Recruitment is finding the potential applicants for actual
or anticipated organisation vacancies thus; it acts as link in bringing together the people with jobs and those
seating jobs. The purpose of recruitment is to identify suitable man power to meet the job requirements and
job specifications. It is the most important function of personnel administration on the other hand selection
is concerned with securing right information about the applicant.The object of selection process is to
determine whether the prospective candidate possesses the qualification for the specific job it is a long
process. Starts from the interview and ends with the contract of employment. Recruitment is the process
searching for prospective employees & stimulating them to apply for jobs in the organisation. Recruitment
refers to the process of receipt of applications from jobseekers.
Recruitment refers to the process of finding possible candidates for a job or function,
undertaken by recruiters. An employment agency or a member of staff at the business or organization
looking for recruits may undertake it. Advertising is commonly part of recruiting process, and can occur
through several means: through newspapers, using newspapers dedicated to job advertisement, through
professional publication, using advertisements placed in windows, through a job center, through campus
interviews, etc... Once the required number and kind of human resources are determined, the management
has to find the places where required human resources are/will be available and also find the means of
attracting them towards the organization before selecting suitable candidates for jobs.
All this process is generally known as recruitment. Some people use the term recruitment for
employment. These two are not one and the same. Recruitment is only one of the steps in the entire
employment process. Some others use the term recruitment for selection. These two terms are not one and
the same either.
Technically speaking the function of recruitment precedes the selection function and it includes
onlyfinding, developing the sources of prospective employees and attracting them to apply for jobs in an
organization, whereas the selection is the process of finding out the most suitable candidate to the job out
of the candidates attracted. Formal definition of recruitment would give a clear cut about the function of
recruitment.
117
ANNEXURE
-QUESTIONNAIRE
-REFERENCES
-BIBLIOGRAPHY
118
Questionnaire on Recruitment and Selection

Primary details
1) Name (optional):-3)*Gender : 5)*Total experience :-
times
(*mark
b) 1-3
ed fields
times
are
mandator
c) 3-5
y)
time
d)
Que More
5
stion than
times
nair e)
e on cant
Say
Recr
2
uitm
ent a)
Strongly
and Agree
Sele b) Agree
ctio
c)
n
Neither
Agree
nor
Disagree
1) How many times

was You Called for d)
interview?
Disagre
e
a) 1-2
2)*
ge :-
Desi
6)*ex
gnati
perie
on:-
nce in
4)*A
CIL:ce b)
Qualification
c) Both
d) Other type
e) none of
these
5) Analysis about the
period of recruitment of
Your Organization?
a) Monthlyb)
Quarterly c)
Half- yearly
d) Annually
e) when we
required
6) How did you come to
know about the vacancies
in the company?
a) Advertisements
b) Website
c) News
papers
d) Referrals e) Job
portals
119
7) Analysis about level of satisfaction with the present recruitment process followed in your company?
a) Highly satisfied
b) Satisfied
c) Either Satisfied or dissatisfied
d) Dissatisfied
e) Highly Dissatisfied
8) Analysis about the main recruitment sources of selection in Coromandel international Company?
a) Witten tests b) Group discussions c) interview
d) All the above
e) None of these
9) Analysis about the reason for accepting the offer in the organization?
a) Job security b) Opportunities for growth c) Decent salary
d) Relation with employere) Relocation
10) Since, How many years
have you been working with this organization?
a) 1-2 years
b) 1-3 years
d) 2-5 years
e)More than 5 years
c)2-4 years
11) How would you rate HR departments performance in recruitment and selection?
a) Excellent
b) Very good
d) Average
e) below average
c) Good
12) Rate how well HR finds good candidates from modern (Web sites) sources when necessary?
a) Excellent
b) Very good
c) Good
d) Average
e) below average
13) How do you rate of the overall recruitment and selection in Coromandel international Company?
a) Excellent
b) Very good
c) Good
d) Average
e) below average
14) Rate the effectiveness of the interviewing process & other selection instrument such as testing?
a) Excellent
b) Very good
c) Good
d) Average
e) below average
15) How did you satisfied to select in the company?

a) Highly satisfied
d) Dissatisfied
b) Satisfied
c) Either Satisfied or dissatisfied
e) Highly Dissatisfied
16) Would you like give any suggestions to improve any recruitment and selection measures in this
organization please suggest:
120
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Gould, Richard (1984), Gaining a Competitive Edge through Human Resource Strategies,
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11
Huselid, Mark A. (1995), The Impact of Human Resource Management Practices on
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Johnston, R. (1999), Supporting Learning in The Third Millennium. Human Resource
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Jovanovic, Boyan (2004), Selection and the Evolution of Industry. Econometrica, 50(3): 649-
14
Kaplan, R. S., Norton, David P. (2004), Measuring the Strategic Readiness of Intangible
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15
Kersley, Barbara and Christopher Martin (1997), Productivity Growth, Participation and
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123

Recruitment and Selection

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Recruitment and Selection

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A Study on

RECRUITMENT AND SELECTION

SCHOOL OF MANAGEMENT STUDIES

M.PRIYANKA, here by declare that the project report entitled

RECRUITMENT AND SELECTION with reference to COROMANDEL INTERNATIONAL

Regd No: 14U41E0013

DADI INSTITUTE OF ENGINEERING & TECHNOLOGY

MASTER OF BUSINESS ADMINISTRATION

HEAD OF THE DEPARTMENT

We would like to express our sincere gratitude to (Dr.A.V.NAGESWAR RAO, Professor,

We also wish to express our deepest gratitude to (Dr.A.V.NAGESWAR RAO, Head,

We also consider it as our privilege to express our gratitude in thanking Dr.Ch.SRINIVASU,

1.2 NEED FOR THE STUDY

1.3 OBJECTIVES OF THE STUDY

1.4 SCOPE OF THE STUDY

1.6 LIMITATIONS OF THE STUDY

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

3.1 THEORETICAL FRAME WORK

3.2 LITERATURE REVIEW

The Spirit of murugappa group

Range of products and customers

Differences between Recruitment and selection

Definition of Recruitment and Selection:

1.2 NEED FOR THE STUDY

1.3 OBJECTIVES OF THE STUDY

To study the various recruitment practices of Coromandel international

To examine the recruitment and selection process in the organisation.

To analyse the impact of recruitment and selection process on organisation

. To assess the challenges associated with the recruitment and selection

1.4 SCOPE OF THE STUDY:

1To structure the recruitment policy of the different categeories of employees.

HYPOTHESIS OF THE STUDY:

1.6 LIMITATIONS OF THE STUDY

3Collection of current data is also limiting factor because it is confidential.

5Little information is made available to make the study.

2.1 INDUSTRY PROFILE

GROWTH IN FOOD GRAIN PRODUCTION

MEANING AND ESSENTIAL ELEMENTS:

FACTORS AFFECTING FERTILIZER CONSUMPTION:

HISTORY OF INDIAN FERTILIZER INDUSTRY:

in the phosphate fertilizers.

ROLE OF FERTILIZERS IN AGRICULTURS WITH REFERENCE TO INDIAN

ESSENTIAL COMMODITIES ACT, 1955(ECA)

FERTILIZER MOVEMENT CONTROL ORDER, 1973

FERTILIZER CONTROL ORDER, 1985(FCO)

STANDARD OF WEIGHTS & MEASURES (PACKED COMMODITIES) RULES,

SUBSIDIES TO FERTILIZERS INDUSTRIES IN INDIA:

2.2 COMPANY PROFILE

VISION,MISSION & PHILOSOPHY

VALUES AND BELIEF: THE FIVE LIGHTS

Provide-Value for money to customers through quality products and services.

Manage-Environment effectively for harnessing opportunities.

THE SPIRIT OF THE MURUGAPPA GROUP:

Minimum Labour problem

Well-trained employees and good work culture.

1Poor availability of product.

1ICICI Bank Limited

HIGHLIGHTS OF THE YEAR 2011-2012

CROP PROTECTION: Improving crop yields through loss reduction

SPECIALITY NUTRIENTS AND ORGANIC FERTILISERS:

RETAIL: Growing in the heart of every farmer

HIGHLIGHTS OF THE YEAR 2012-2013