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Project Report










MARCH, 2006
SESSION – 2004 – 06

Recruitment and Selection are significant aspects of the work life of every
organization. Every organization requires the personnel of different type for
different jobs. So that every organization can adopt different and best procedure for
recruiting and selecting the employees. Unless the right people are hired, even the
best plans, organizations, charts and controls system would not do much good and
through the selection, company determine whether an applicant meets the
qualifications for a specific job and to choose the applicant who is most likely to
perform well in that job.

Hero Honda Motors is a joint venture between the Hero Group, India and the
Honda Motor Company of Japan. Hero is the largest bicycle manufacturing
company and Honda is a major player in the motorcycle manufacturing. On
January 19th 1984 Hero Honda Motor Limited (HHML) was incorporated. Today
it is the leader in the Indian market with maximum sales. HHML has grown at a
very fast pace. In the short period of 11 years it has moved from being at rank 87
(in 1991) to rank 4 (in 2002) in the list of top 100 Indian Companies. The mantra
behind the success of HHMI is that it keeps on reinventing itself as per the need
and specifications of the consumers. This is the reason that it is the leader amongst
the two-wheeler manufacturers in India. The manufacturing units are located at
Dharuhera and Gurgaon. Both are in Haryana

Hero Honda has a reputation of being the most fuel-efficient and the largest selling
Indian motorcycle. Its commitment of providing the customer with excellence is
self-evident. A rich background of producing high value products at a reasonable
price led the world's largest manufacturer of motorcycles to collaborate with the
world's largest bicycle manufacturer.

Tactical promotions and excellent marketing helped Hero Honda establish itself as
an intelligent purchase. Its unique features like fuel conservation, safety riding
courses and mobile workshops helped the group reach in the interiors of the
Finance services helped facilitate purchase, as did an efficient dealer network
across the country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its
attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the
National Productivity Council's Award ( 1990-91), and the Economic Times -
Harvard Business School Association of India Award, against 200 contenders.

Maintaining an international perspective, the company is dedicated to provide
highest quality products at reasonable price for worldwide customer base.


 To provide all concerned persons with happiness in association with


 To offer to joy to vendors of supplying components.

 To offer joy to employees of manufacturing.
 To offer joy to dealers.
 To supply products of highest quality at reasonable price for customer

 To offer joy to customers.

 To offer joy to investors of receiving returns.
History & Growth
Under motorcycle segment HHML is the market leader with 35.98% share in the
market Its nearest competitor Bajaj Auto has 27.80% market share. It is true that
lot of Hero Honda’s success is due to the fact that for along time it operated near
monopoly situation, it was the only 4 stroke motorbike & offered customer an
incredible 85 km/ltr for every time. But even with the competition in the past few
years HERO HONDA has effortlessly maintained its lead.

In the year 1988-89 the production & sales mounted to 744,014 & 74,027 nos
respectively & turnover was Rs. 104.54 crore. In 1989-90 the company produced
& sold 96,325 & 960208 bikes respectively. The total turnover was Rs. 152.62
crores reflected an increase of 9.5% over the previous year when compared on an
annualized basis. The company introduced a new model Sleek during 1989. The
market response for the new model reported to be satisfactory. During 1990-91
production rose to 120091 nos & 120055 motorcycles were sold for a total;
consideration of Rs. 195.75 crores. In the domestic market company was planning
to launch a new model CD-100 SS suitable to semi rural conditions. In the
incarnation front plans were to enter African market. Possibility were being
exposed to export motorcycles in completely knocked down conditions to Iran &
Mauritius. In the domestic market the company was reported to have a market
share of 44.65% during 1990-91. During 1991-92 turnover & production increased
to Rs. 275 crores & 135260 nos. during 1992-93 turnover increased to 307 crores
& production 128649 motorcycles respectively. During 1993-94 turnovers
increased to rs. 369 crores & production was 148000 motorcycles. In 1995-96
turnover increased to 640 crores. During 1997-98 companies produced 407546
motorcycles and turnover grew by 43% to Rs. 1160 crores during the year.
Achieving the excellence company produced 207472 motorcycles in 2003. During
2005 company sold 229680 motorcycles in India as well as abroad. Recently
company launched 2 new products Achiever and Pleasure that are gaining
popularity in the market Day by day.

2003 Winner of the Review 200 - Asia's Leading Companies
Award (3rd Rank amongst the top 10 Indian Companies)

Most Respected Company in Automobile Sector by

Business World

Bike Maker of the Year by Overdrive Magazine

2002 Bike Maker of the Year by Overdrive Magazine

Winner of the Review 200 - Asia's Leading Companies

Award (4th Rank amongst top 10 Indian Companies)

Sponsored 'India-England Women's Cricket Series'

Sponsored 'Hero Honda Masters Golf Championship'

Dawn model introduced

Entrepreneur of the Year Award conferred upon the

Chairman, Mr. Brijmohan Lall by Business Standard

Company of the Year for Corporate Excellence by the

Economic Times

Ambition model introduced

Giants International Award to the Chairman, Mr.
Brijmohan Lall in the field of Business & Industry

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj

Singh, Harbhajan Singh and Zaheer Khan as Brand

Business Leadership Award conferred upon the Chairman,

Mr. Brijmohan Lall by Madras Management Association

Mr. Pawan Munjal, Managing Director of Hero Honda

Motors Ltd. Appointed as the Chairman of Asian PGA
Tour Board of Directors

Sponsored 'Second Indian Television Academy Award'

2001 Bike Maker of the Year by Overdrive Magazine

Winner of the Review 200 - Asia's Leading Companies

Award (9th Rank amongst top 10 Inidan Companies)

Passion model introduced

Achieved OM - One million production in one single year

Joy Model launched

Entrepreneur of the Year Award conferred upon the

Chairman, Mr Brijmohan Lall by Ernst & Young

50,00,000th Bike produced

'Three Leaves Award for Environment' to Hero Honda by

Centre for Social & Environment Green Rating Project.

Sponsored '21st Cinema Express Award'

Sponsored 'India-England Test Series'

Sponsored 'First Indian Television Academy Award'

2000 Sponsored 'Hero Honda NKP Salve Challenger Trophy'

Sponsored 'Stardust Hero Honda Millennium Honours


Sponsored 'Hero Honda Masters Golf Championship'

Appointed Sourav Ganguly & Hrithik Roshan as Brand


Environment Performance Award to Hero Honda

Dharuhera Plant by Haryana State Pollution Control

Environment Management System of Gurgaon Plant

certified ISO-14001 by DNV Holland

4,000,000th motorcycle produced

Sponsored '20th Cinema Express Award'

Splendor declared World No. 1 - largest selling single

two-wheeler model

Passport Programme - Customer Relation Programme


Sir Jehangir Ghandy Medal for Industrial Peace conferred

upon the Chairman, Mr. Brijmohan Lall by XLRI,
1999 25,00,000th motorcycle produced

CBZ model launched

Sponsored '7th World Cup Cricket tournament' at England

Environment Management System of Dharuhera plant

certified with ISO 14001 by DNV Holland
Raman Munjal Memorial Hospital inaugurated

Sponsored 'Hero Honda Masters Golf Championship'

Suhana Safar - Customer Relation Programme launched

30,00,000th Motorcycle produced in December

Best Productivity Award for the best performance in

Automobile & Tractor Sector by National Productivity
Council presented by Vice President of India
1998 20,00,000th motorcycle produced

Hero Honda Masters Golf Championship started

Business Leader of the Year conferred upon the

Chairman, Mr. Brijmohal Lall by Business Baron
1997 15,00,000th motorcycle produced

Street model introduced

Foundation stone of Raman Munjal Vikas Kendra

foundation stone laid by Chief Minister of Haryana

Gurgaon plant inaugurated by Honda President

Sponsored 6th Women World Cup Tournament

Distinguished Entrepreneurship Award conferred upon

the Chairman Mr Brijmohan Lall By PHD Chamber of
Commerce & industry

1200 motorcycles per day production started

1996 Hero Honda becomes first company to serve Army, Navy
& Air Force with its 100cc motorcycles

1000 motorcycles per day production started

1995 800 motorcycles per day production started

National Award for Outstanding contribution to the

Development of Indian Small Scale Industry (NSIC
Award - Presented by President of India)

The Analyst Award 1995 presented to Hero Honda

Motors Limited on being ranked 9th amongst the most
investor rewarding Companies in India
1994 Splendor model introduced

10,00,000th motorcycle produced

The Businessman of the Year award is conferred upon

the Chairman Mr Brijmohan Lall - by Business India
Group of Publications
1993 750,000th Motorcycle produced

Sponsored Hero Group - Five Nations Cricket

1992 A school named Raman Kant Vidya Mandir inaugurated
in memory of the first Managing Director of Hero Honda
Motors Limited
1991 500,000th motorcycle produced

CD 100SS model introduced

Mobile Service Workshop launched

Economic Times-Harvard Business School Award for

Excellent Governance to Hero Honda Motors Ltd.

Hero Honda moved into India's Top 100 Companies -

Ranked 87
1990 400,000th Motorcycle produced

Pegasus Award from Readers Digest for campaigning

'One Litre Road'
1989 Sleek model introduced

300,000th Motorcycle produced

1988 Hero Honda Family Club formed at Gurgaon
200,000th motorcycle produced
1987 Engine plant started

1,00,000th Motorcycle produced

1986 Quality circles launched
1985 First motorcycle (Model CD 100) produced

200 motorcycles per day production

1984 Company incorporated

Technical collaboration signed

Foundation stone laid

1983 Joint Collaboration Agreement with Honda Motor Co.
Ltd. Japan, signed

Shareholders Agreements signed

• CD-100
• CD-100SS


Recruitment is the process of searching the candidates for employment and
simulating them to apply for job in an organization. It is linking activity that brings
together those offering job and those seeking job. Recruitment is the adequate
manpower resources it involves the certain of pool of available labour upon whom.
Recruitment refers to the attempt of getting interested applicant and providing a
pool of prospective employee so that the management can select the right person
for right job from this pool. Recruitment precedes the selection process i.e.
selection of right candidate for various positions in the organization.
Responsibility for Recruitment
In small organization, the owner or manager usually does recruitment rather
informally. In large organization, the human resource department is usually
responsible for developing source of applicant. Within the human resource
department there is likely to be an employment office to do the recruiting and even
initial selection of candidate for a job.

Big organizations employing large number of professional and managerial

employees, may have a separate department engaged entirely in recruiting. At the
same time, individual manager and employee through out the organization may be
referring promising applicant to the personal department. Similarly, the human
resource department may be requesting recruitment assistance from individual
managers, as may be the case when recruitment will take place at the aim of a
matter of one of the line manager. Still other firms prefer to put together recruiting
teams consisting of human resource, specialist and operating personal When
recruiting for engineering personal from technical institution.

Regardless of who does the recruiting, it is important for one department to

coordinate the recruitment function in order to develop adequate, avoid
duplication, and ensure that human resource needs for the whole organization are


The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically, the purposes are to;
1 Determine the present and future requirement of the organization in
conjunction with its personnel planning and job analysis activity.

2 Increase the pool of job seeking candidate at minimum cost.

3 Helps in increase success rate of selection process by reducing the number

of visibly under qualified and over qualified job applicants.

4 Meet the organization’s legal and social obligations regarding the

composition of its workforce.

5 Begin identifying and preparing potential job applicants who will be

appropriate candidates.

6 Increase organization and individual effectiveness in short term and long



The various sources of recruitment are used in the organization. But the two type
of sources are mainly used:

1 Internal sources (Recruitment with in enterprises)

2 External Sources (Recruitment from outside)

Internal Sources:
Two important internal sources of recruitment are Transfer and promotion.
Transfer involves the shifting of an employee from one job to another. At the time
of transfer it is ensured that the employee to be transferred to the new job is
capable of performing it. In fact, transfer does not involve any drastic change in
responsibility and status of the employee. On the other hand, Permotion lead to
shifting an employee from a higher position carrying higher responsibilities,
facilities, status and pay.

Many companies follow the practice of filling higher job by promoting employees
who are considered fit for such positions. Filling vacancies in higher job by
promoting employees who are considered fit for such positions. Filling vacancies
in higher jobs from with in the organization has the following merits;

1 Employees are motivated to improve their performance

2 Moral of the employee is increased.
3 Industrial peace prevails in the enterprise.
4 Filling of job internally is cheaper as compared to getting candidates from
external sources.
External Sources:
Every enterprise has to tap external sources for various positions. The following
external sources of recruitment are commonly used by enterprises:

1 Direct Recruitment
2 Unsolicited Application
3 Media Advertisement
4 Employment Agencies
5 Recommendations
6 Labour Contractor

Direct Requirement:
An important source of recruitment is direct recruitment by placing a notice on
notice board of the enterprises specifying the detail of jobs available. It is known as
recruitment at factory gate. The practice of direct recruitment is generally followed
for filling casual vacancies requiring unskilled worker. Such worker are known as
casual or badly worker and they are paid remuneration on daily wage bases.

Unsolicited Application:
Some organizations which are regarded as good employers draw a steady stream of
unsolicited applications in their office. This service is valuable source of
manpower. If adequate attention is paid to maintain pending application folder for
various jobs, the Personal Department may find the unsolicited application useful
in filling the vacancies whenever they arise. The merit of the sources of
recruitment is that it avoids the course of recruiting workforce from other sources.
Media Advertisement:
Advertisement in newspapers or trade and professional journals is generally used
when qualified and experienced personnel are not available from other sources.
Most of the senior positions in the industry are filled by this method. The
advantage of advertising is that more information about organization, job
description and job specifications can be given in advertisement to allow self
screening by the prospective candidates. Advertisement gives the management a
wider range of candidates, from which management can choose best candidate. Its
advantage is that it bring in a flood of response, and many times from quite
unsuitable candidates.

Employment Agencies:
Employment run by the government are regarded as good source of recruitment for
unskilled, semi skilled and skilled operative jobs. In some cases, compulsory
notification of vacancies to the employment exchange brings the job givers in
contact with the job seekers. However, in technical and professional areas, private
agencies and professional bodies appear to be doing most of the work..
Employment Exchanges and selected private agencies provide a nation wide
service in attempting to match the demand and supply.

Application introduced by friends and relatives may prove to be good source of
recruitment and indeed, many employers prefer to take such persons because
something about their back ground is known. When a present employee or a
business friend recommends a person, a type of preliminary screening take place
some organizations have agreement with the union of employees to give preference
to relatives of existing or retired employees if their qualification and experience
suite the recruitment of vacant jobs.

Labour Contractor:
Labour contractors are an important sources of recruitment in many industries in
India. Workers are recruited through labour contractors who are themselves
employees of the organization. The disadvantage of this system is that if the
contractor himself decides to leave the organization, the entire worker employed
through him will follow suit. However, this system of recruitment is gaining
popularity these days. Scientific selection and placement of personnel will be a
long way towards building up a suitable work force. It will lower the rate of
absenteeism and labour turnover and will increase the moral of employees. The
organization will be able to achieve its objective effectively.

The process of selection leads to employment of person having the ability and
qualification to perform the job, Which have fallen vacant in the organization. It
divides the candidates for employment into two categories, namely, those who
offered employment and those will not be. This process could be called rejection
since more candidates may be turned away that are hired. That is why, Selection is
frequently described as a negative process in contrast with the positive process of
recruitment. The basic purpose of selection is choosing right type of candidates to
various positions in the organization. In order to achieve this purpose, a well
organized selection procedure involves many steps and at each step more
information is obtained about the candidates.


Selection is the process of choosing or picking up the most suitable candidates out
of many available or interested. It is the process of selecting few and rejection the
unwanted applicants. Recruitment is a positive function which aim at increasing
the selection ratio that is the number of applicants available per job. The selection
process is a negative function as it attempts to eliminate unsuitable applicant,
leaving only the best to be taken in the organization. Both recruitment and
selection are the two phases of the same process. Recruitment being the first
phases envisages taking decision on the choice of tapping the source of labour
supply. Selection is the second phase which involves giving various type of test to
candidates and interviewing them in order to select the suitable candidates.

Selection is critical process because it requires a heavy investment of money to get
right type of people. Induction and training cost are also high. If the right type of
persons is not chosen, it will lead to hug loss of the employers in term of time,
money and efforts. Therefore it is essential to devise a suitable selection procedure,
each step in the selection procedure should help in getting more and more
information about the applicants to facilitate decision making in the area of

Absenteeism and employee turnover are the problems, which are being faced by
the organization in which the selection procedure is not well defined. This occurs
whenever unsuitable employee are appointed, the efficiency of the organization
will go down. Such employees are appointed; the efficiency of the organization
will go down. Such employees will shirk work and absent themselves from the
work more often, They may also be compelled to leave their jobs. If this happens
all the expenses incurred on the selection and training will go waste.

Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for the pertinent fact on a
specific topic. Infect, research is an art of scientific investigation. The advanced
learner’s Dictionary of current English lays down the meaning of Research as” a
careful investigation or inquiry specially through search for new facts in any
branch of knowledge” Redman and Mory define research as a “systematized effort
to gain new knowledge” some people consider research as a movement, a
movement from the known to unknown.

It is the way to systematically solve the problem. It may be understood as a

scientific study. The purpose of research is to discover answers to questions
through the application of scientific procedures. The main aim of research is to
find out the truth which is hidden and which has not been discovered yet.
The present study on the topic of recruitment and selection has been conducted to
examine the recruitment and selection procedure of workers in Hero Honda Motors
Ltd. The study is based on the primary data and secondary data, primary data are
collected with the help of the questionnaire.

Research design:-
This study is conclusive in nature. Conclusive research is a type of research that
helps the executive in making the rational decisions. This study is of descriptive
type. Simple percentage method will be used to analyze the various factors
affecting employee’s attitude.

Data collection:-
The data have been collected from primary as well as secondary sources.

Data through the primary source:-

The researcher inquired the respondent through questionnaire. A structured
questionnaire has been presented to every respondent. The advantage is that the
questionnaires are simple, easy to understand and administer and can be easily
tabulated and analyzed. Data also collected through Interviews and observation.
Data through secondary sources:-
The information and data relating to the project were being be taken form certain
selected magazines, relevant websites, reference book and other details provided
by the company.

Total numbers of employees working at Hero Honda Motors Ltd. Dharuhera

Survey is fact finding study of analysis in scientific and orderly form for defined
purpose of a given simulation on problem steps in sampling design.

Different private sector companies like Bajaj, TVS, Kinetic & Other automobile
industries tried to touch sky. This success could be achieved by Recruiting &
selecting the best talent amongst the slot and their proper training so the
objective of the study arose. Thus the objectives of this study are:

 To study the nature objective and importance of recruitment and selection

for acquiring suitable personnel in the organization.

 To find out the repercussion of faulty recruitment and selection, if any.

 How recruitment and selection is being done at Hero Honda in particular.

 To gain maximum knowledge about practical work..


 Time available for search work is limited.

 Employees unwillingness to respond .

 Data collection process is very exhaustive.

 Primary data was collected through questionnaire for which the

organizational personnel did not have enough time to fill the questionnaire.

 Area of coverage is also limited, for collection of data the coverage area is
Dharuhera only and this project is done only on manufacturing unit i.e.

Recruitment and selection process in Hero Honda Motors Ltd.

To induct quality manpower into the organization for continued success in

The process of recruitment and selection will vary from organization to
organization and even from department to department. with in the same
organization according to the kind of the jobs to be filled. The number of steps in
the procedure and sequence of the step also varies. Thus, every organization will
design a recruitment and selection procedure that suits its recruitment.
However the main step which is incorporated by Hero Honda Motors Ltd. In the
recruitment and selection procedure are discussed below:

Process Requisition:
On the basis of manpower requirement indicated by the individual department in
the annual plan prepared for company and the time frame when they would be
required. The concerned department would initiate a requisition from. The form
duly signed by the head of department would be sent to the HR department for
further action.

Position Description:
Each requisition form is to be accompanied by position description defining rule,
responsibilities. The position description form would not justify the need of
vacancy to be filled out also provide in/ out fill selection of right persons.

Selection Mode of Recruitment:

HR Department would select the mode for candidate search:

1 Vacancy advertisement in national/ local prints media

2 Choosing the internet to advertise the position
3 Reliable placement agencies/ Consultancies.
4 Head hunting, etc.

The selection of mode of search would be necessarily influenced by the

importantance of position in the terms of level of hierarchy target industries from
which to recruit, estimated cost analysis for process, etc.
Process of Application:
On the receipt of application of candidates for intended position. HR department:

1 Does a preliminary screening of the resumes with the respect to

minimum requirement for the position- Age, qualification, year of
experience etc.

2 Rated on above, the shortlist for interview is made and process of calling
short- listed candidates for interviews either though calling letter.

Final Interview:
The candidates for interview would be intimated by HR department of the Date,
Time, Place and other important information well in advance to ensure maximum
number of confirmation. On the interview day, HR manager would make record of
all relevant particulars of candidate attending the interview in the personal date
form. In the end of complete round of interview, the HR department would collect
all the interview assessment sheets from each panelist dually signed for its records.
In the case of senior in nature i.e. manager and above, the final shortlisted
candidate may be called for multiple rounds of interview to be met by concerned
senior official of the company.

Medical Checkup:
In Hero Honda Motors Ltd, no person is appointed, unless he/she has been
medically examined and found fit by physician holding at least MBBS
qualification. There are number of test conducted by Hero Honda Motors Ltd;
1 Physical Measurement: In this test they check height, weight, chest
2 General Examination: In this test they check skin, musculature, joints
3 Clinical Examination: This test includes eyes, Nose. Voice, Throat
and Teeth checkup.
4 X-RAY Examination of chest and other body parts.

Final Selection:
When all the interview and physical examination are passed by the candidate
he/she becomes eligible for appointment. If the candidate accepts the offer he/she
is formally appointed by issuing an appointment letter contain the term and
condition of employment.

HR department would also respond to enquiries form and get application screened
for their functional relevance and suitability by the concerned function head.
Final selection

Medical Checkup

Final interview

Process of application

Selection or Mode of Recruitment

Position Description
Process of Requisition



Joining Formalities:

Post Selection Formalities:

HR department on the bases of information about the joining date of selected
candidate would make all necessary administrative arrangement to ensure all
possible support to the new joinee on the induction to the company. A check list
for the joining formalities is enclosed for easy reference. After joining the
candidates would fill in joining report and other necessary documents pertaining to
statutory benefit like provident fund, etc.

An appointment letter indicating the detailed terms and condition of appointment

would be prepared by HR department and given to new joinee within a time frame
of three days from his date of joining.


The objective of induction is to integrate the new employee with in the
organization and its culture. Placement of right job is not only important , but also

The HR department would formally welcome the new joinee and spend few hours
assisting him in completing the joining formalities and briefing him on standard
office rule and regulation. An induction kit would also be handed over to anew
employee on the day he joins, consisting of the employee manual of the company.
The company /Hero Honda brochure and any other relevant reading material on the
company’s activities, etc. Some of the stages to make new induction process
effective are as under:

A) Pre- Induction Activities:

1 As the date of joining of candidate is known, HR department & The

HOD will ensure seating and other arrangements accordingly.

2 If the firm date / time of the candidate’s joining is known, the security
and receptionist informed by HRD accordingly so that the candidate is
received well at the reception.

3 The candidate will then be taken to the concerned department after

completing joining formalities.

B) Induction Activities:
1 A responsible officer from HRD will induct the new joinee, and acquaint
him with the organizational structure, philosophy etc and will also
explain to the new joinee the joining formalities. He will also
check/ensure that documents as mentioned in checklist are available in
the file of the candidate.

2 The new joinee will be assigned his employee number by HRD as per the
scheme regarding allotment of employee number and given a set of
forms to be filled in by him including his joining report. The list/ number
of forms required to be filled in/ completed by the new joinee is as per
checklist. After these forms have been properly filled in and get them
distributed to all concerned immediately but in any case within two
working days

C) Post- Induction Activities

For Officers and above:

1 A circular regarding an employee’s joining will be issued by the unit

head/ functional head on the same day or latest by the next working
day. The circular will mention the details about the employee’s
experience, educational qualification, family details, hobbies, intrest
and anything unique abut him/ her.

2 Orientation program shall be prepared for which the new employee

will be helped to spend a few days in fully acquainting himself with
the context and discover by himself, the organization based on issues
relating to various department/ units.

For supervisor and below:

After completion of all joining formalities, HR persons will take the new joinee to
meet with concerned section incharge and HOD along with all his/ her document.
After that HOD and Section incharge will explain him about the duties, role,
responsibility as per existing system of company.

Recruitment has been defined as a process to discover the source of manpower and
to employ effective measure for attracting that manpower. The determinate of
recruitment policy have been classified as internal and external. Recruitment policy
asserts the objective and provides procedure for implementation of the recruitment
program. Recruitment sources indicate from where human resources may be
procured. There are two types of these source – Internal and External. Internal
sources include review of the present employees and information of candidates by
the employees. The external sources include public and private employment
agencies, educational and technical institution, casual labour and mail applicant,
trade union, applicant file, etc. There are three types of recruitment method or
technique including, direct, indirect and third party. The method of recruitment and
sources of manpower supply must be constantly reviewed and improved. Several
ethical considerations in recruitment have been outlined.

In the Hero Honda Motors Ltd. The recruitment procedure is well defined and
fulfills the requirements of the company effectively.

Selection is a negative process and relates to the rejection of candidates for a

position while the placement forms a positive process and relate to filling position
with the most suitable candidate. The purpose of the selection process is to make
effective use of individual. Selection policy involves to “what” and “why” aspects
of the objective. The selection process involves number steps. Effectiveness of
selection program should be constantly reviewed through intensive research.
In Hero Honda Motors Ltd. The selection procedure is well defined and fulfill the
requirement of the company effectively.

The process of recruitment and selection is very big and time consuming and
limited to certain area but we have to choose the recruitment and selection
procedure that would save the organization financially.
1 The company must conduct the psychological test at the time of

2 The shortage of manpower in the organization must be managed

through division of work, recruiting casual workers, recruiting
permanent workers and through engaging over time from workers.

3 The company must recruit the employee at the appraisal programme.

4 The company must recruit the employee at the appraisal programme.

5 The company must define the criteria for the selection of employees
that should be based upon the company policy which categories
different method of recruitment.

6 The company must recruit the employee at the time of promotion or

Recruitment for acquiring new blood into the organization.





1 How often do you recruit your employees?

A At the time of promotion

B At the time of resign
C At the time of retirement
D Any other (specify).

2 What are the sources of recruitment?

A Through employment exchange

B Through campus interview
C Through manpower consultancy
D walk in interviews
E Any other (specify)

3 What is the percentage of recruiting the person from campus (fresher ) and
industry (experienced )?


4 What is the percentage of recruiting the person from the following?

A Management trainee
B Staff (clerical, worker)
C Technical position (Engg., MBA)
D Others
5 While the selection procedure is going on

A Do you conduct written or oral test or both at the time of interview?


B Do you invite external professional at thetime of interview?


6 Which different types of psychological test are used by the orgnization?

A Intelligence test
B aptitude test
C Proficiency test
D Interest test
E Personality test
F All of the above
G Any other (specify)

7 Which type of interview is used by the organization?

A Structured
B Un structured
C In depth interview
D Telephone interview
E Any other (specify)
8 How do you manage the shortage of manpower in your organization?

A Recruiting casual workers.

B Recruiting permanent workers.
C Engaging overtime.
D Divisor of work
E Any other (specify)
9 Do you review recruitments during appraisals?

A Yes
B No



 Barry Cushway, “Human Resource Management”, New Delhi, Crest

Publishing House, 2001.

 Chabbra T.N., “Human Resource Management”, Dhanpat Rai & Sons.,

Fourth revised Edition, 2004.

 Dessler Gary, “Human Resource management”, New Jersey, Prentice Hall

International, 2000.

 Gupta C. B., “Human Resource Management”, Sulatan Chand & Sons, Fifth

Revised Edition, 2001.

 Kothari C.R., “Research Methodology Methods & Techniques”, New Age

International Publisher, Second Edition, 2004.


 www.humanlink.com

 www.herohonda.com


Rationale of study

 Significance of study
 Objective of study
 Conceptualization
 Limitation of the study

Industry profile

Company profile

Research methodology

Finding and Analysis







I am sincerely thankful to Prof. (Dr) R. C. Sharma, (Director, Amity Business

School) for his kind co-operation.

I am very much thankful to my project guide Mr R. K. Yadav ( Lecturer, Amity

Business School) for his motivation, guidance, cooperation, and valuable
suggestions, without him it would have been a difficult job

Special thanks to Mr R. S. Sharma (HR Officer, HHML) for his extremely

valuable support without which the project would have never been completed.

I am also thankful to the whole HHML family for helping me to complete the
project and directly or indirectly helping me to make a great career.

At the end I express my gratitude to my parents who have always been a source of
inspiration and encouragement.

Jitender Singh Yadav


India is the second largest manufacturer and producer of two-wheelers in the

world. It stands next only to Japan and China in terms of the number of two-
wheelers produced and domestic sales respectively. This distinction was achieved
due to variety of reasons like restrictive policy followed by the Government of
India towards the passenger car industry, rising demand for personal transport,
inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country.
Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers.
Finally, in 1960, it set up a shop to manufacture them in technical collaboration
with Piaggio of Italy. The agreement expired in 1971.

In the initial stages, the scooter segment was dominated by API, it was later
overtaken by Bajaj Auto. Although various government and private enterprises
entered the fray for scooters, the only new player that has lasted till today is LML.
Under the regulated regime, foreign companies were not allowed to operate in
India. It was a complete seller market with the waiting period for getting a scooter
from Bajaj Auto being as high as 12 years.
The motorcycles segment was no different, with only three manufacturers viz
Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa
and the Rajdoot were two-stroke bikes. The motorcycle segment was initially
dominated by Enfield 350cc bikes and Escorts 175cc bike.

The two-wheeler market was opened to foreign competition in the mid-80s. And
the then market leaders - Escorts and Enfield - were caught unaware by the
onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the
availability of fuel efficient low power bikes, demand swelled, resulting in Hero
Honda - then the only producer of four stroke bikes (100cc category), gaining a top

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki
and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles
respectively. These two players initially started with assembly of CKD kits, and
later on progressed to indigenous manufacturing. In the 90s the major growth for
motorcycle segment was brought in by Japanese motorcycles, which grew at a rate
of nearly 25% CAGR in the last five years.

The industry had a smooth ride in the 50s, 60s and 70s when the Government
prohibited new entries and strictly controlled capacity expansion. The industry saw
a sudden growth in the 80s. The industry witnessed a steady growth of 14%
leading to a peak volume of 1.9mn vehicles in 1990.

The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in

providing ease of use to the scooter owners. This helped in inducing youngsters
and working women, towards buying scooters, who were earlier inclined towards
moped purchases. In the 90s, this trend was reversed with the introduction of
scooterettes. In line with this, the scooter segment has consistently lost its part of
the market share in the two-wheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted
in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of
0.4mn vehicles. Barring Hero Honda, all the major producers suffered from
recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel prices, high
input costs and reduced purchasing power due to significant rise in general price
level and credit crunch in consumer financing. Factors like increased production in
1992, due to new entrants coupled with the recession in the industry resulted in
companies either reporting losses or a fall in profits.

India is one of the very few countries manufacturing three-wheelers in the world. It
is the world's largest manufacturer and seller of three-wheelers. Bajaj Auto
commands a monopoly in the domestic market with a market share of above 80%,
the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India.

The total number of registered two-wheelers and three-wheelers on road in India,

as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler
population has almost doubled in 1996 from a base of 12.6mn in 1990.

I, Jitender Singh Yadav, Roll No.2420, MBA (4th Sem) of the Amity Business
School, Manesar, hereby declare that the project entitled, “OVERVIEW OF
MOTORS LTD.”, is an original work and the same has not been submitted to any
other Institute for the award of any other degree.

The interim report was presented to the supervisor on ___________and the pre
submission presentation was made on___________.The feasible suggestions have
been duly incorporated in consultation with the supervisor.

Presentation In-charge Signature of the candidate

Signature: -_________________

Name of the Faculty: - Mr. R.K.Yadav


Director of the Institute