ACKNOWLEDGEMENT

Life of human beings is full of interaction. No one is self sufficient by

himself or herself without the help of others. When a person is doing some
serious and important work, where a lot of people’s help and concern is
needed and one feels specially obliged to them. This project report came into
existence with great labour and help from the organization’s staffs and
respective faculties.
It is with profound gratitude that I express my sincere thanks to Prof. P.C.
panda, The Principal of Global Institute of Management and all other faculty
members of our college for their constant encouragement during the course
of my project.
I sincerely express my deep sense of gratitude to Prof. P.C PANDA,
Principal of Global Institute of Management for guiding me in completing
the project.
I am immensely grateful to Mr. Subhasis Panda Jr. Manager of HRD
NALCO,CPP at ANGUL for allowing me to do the project and for full
support, help and guidance. At last I would like to convey my heartiest
thanks to all respondents for their cooperation.

MADHUSMITA MAHALIK
 CONTENTS

CHAPTER-1
1.1 Introduction to the study
1.2 Objective of study
1.3 Methodology
1.4 Limitations

CHAPTER-2
BRIEF OF NALCO
2.1 Company Profile
2.2 Landmark event
2.3 Nalco in Brief
2.4 Organisation Chart
2.5 Nalco at a Glance
2.6 Mission & Vision
2.7 Future Business Plans Of The Organization
2.8 Manpower Statistics
2.9 Nalco Products
2.10 Objectives Of NALCO
2.11 Special Features
2.12 Human Resource
2.13 HR Policies of Nalco
2.14 HRM Philosophy Of NALCO
CHAPTER-3
3.1 RECRUITMENT AND SELECTION PRACTICES AT NALCO
CHAPTER-4
Questionnaire

CHAPTER-5
Suggestion & conclusion
Bibliography
CHAPTER-1
INTRODUCTION
1.1 Introduction

The development of any nation is largely dependent upon the availability

of natural resources and skilled manpower to utilize these resources in the
developmental process. Procession of qualitative manpower is the
precondition for any nation to progress. Human beings can be resource only
when they have productive use. Hence, in its comprehensive sense, human
resource refers to energy, skill, talent and attitude in human beings that can
be put into productive use and nation building. The importance of
development of human resources is clearly vindicated by Japan, which with
limited natural resources has been able of energies as a leading industrial
nation in the world.
The survival and growth of any organization require five M5. Man,
Money, Material, Machinery and management. Among these, Man is the
principal asset of every organization. If human resources is given proper
attention, organization can achieve its objective easily. So a developed
human resources (Knowledgeable and skilled manpower) is the basic
requirement of all organizations.
Need for the study
Personnel are the main ingredient in any organization. The right person at
the right job contributes tremendously to the growth of an organization.
Therefore, the job of placing the right man at the right job itself is a very
important activity
1.2 Objectives of the study
Objective of the study was precisely concentrated upon the following
points:
1. To know the recruitment policy, procedure and different type of
recruitment method have been formulated and carried out in
NALCO.
2. To collect information and measure the effectiveness of
recruitment procedures in NALCO.
3. To know the recruitment needs of the organization is identified.
i. Evaluating the recruitment and selection procedure of one.
ii. Examining the effectiveness of recruitment and selection
procedures at one.
iii. To provide suggestion for improving the effectiveness of the
selection & selection procedure at one.

1.3 Methodology:
This study was conducted keeping an eye to the above stated objectives.
The survey has based on the following.
Survey of secondary data:
Information and data were collected from various reports, Annual report,
policy papers, booklets and the upto data records maintained in the
organization.

1.4 Limitations:
i. Lack of sufficient published materials.
ii. Confidential nature of information pertaining to certain aspects of
the study.
iii. The study incorporates all limitation that are inherent in the
published in information.
 CHAPTER-2
BRIEFS OF NALCO

2.1. COMPANY PROFILE

Name : National Aluminium Company (NALCO)
Location : Orissa
Registered Office : Bhubaneswar
Regional Office : Bangalore, Chennai, Visakhapatnam,
Mumbai, Kolkata, New Delhi
Ownership Pattern : A wholly GOVT of India company
Main Promoter : Ministry of mines, GOVT of India
Top management : Mr C R Pradhan
Foreign Collaboration : M/s Aluminium Pachinery, France, Paris
Production Center : Damanjodi, Angul
Port Facilities : Paradeep, Chennai, Vishakapatnam
ISO_9002 : Alumina Refinery (Nov 94)
Smelter Plant (Feb 95)
Bauxite Mines (Jan 95)
ISO-14001 : Bauxite Mines (Jan 96)
Alumina Refinery (Feb 97)
CPP (Dec 97)
Smelter Plant (May 98)
Nature of Business : Mining & manufacturing in the Aluminium
Sector
Other Areas of Business : Captive Power Plant, Rail Transport
System

2.2. LANDMARK EVENT

1. Discovery of Bauxite in the East Coast 1975
2. Preparation of NALCO’s Feasibility Report July 1979
 3. Investment Decision by the GOVT Jan 1980
4. Formation of the company Jan 1981
5. Foundation Stone laid by Late Smt. Indira Gandhi Mar. 1981
6. Indo-French Collaboration Agreement Jan 1982
7. Signing of major Euro-Dollar loan agreement Feb 1982
8. Civil work started Feb 1982
9. Commissioning Dates
Port Facilities Sept. 1985
Bauxite Mines Nov. 1985
Alumina Refinery Sept. 1986
Captive Power Plant Sept. 1986
Smelter Plant Mar 1987
10. Commencement of Sale of Aluminium May 1987
11. Commencement of Alumina Export Jan 1988
12. Commencement of Aluminium Export Sept 1988
13. First Mines Safety Award 1988
14. First CAPEXILE Export Award 1988
15. London Metal Exchange Registration May 1989
16. Dedicated to the Nation by late Shri Rajiv Gandhi June 1989
17. Star Trading House Status Jan 1992
18. Indira Gandhi Rajbhasa Award 1993,1995

19. ISO 9002 Certification

Alumina Refinery Nov 1994
Smelter Plant Feb 1995
 Captive Power Plant Dec 1995
Bauxite Mines Jan 1996
20. Indira Priyadarshini Vriksamitra Award 1994
21. Top Export Award of EEPC For 3 yrs
22. FIEO’s Niryat Shree Award For 2 yrs
23. Achieved Zero debt status 1998
24. Indira Gandhi Paryavaran Puraskar 2000
25. Environment Promotion & Pollution Control Award
From FIMI, FICCI, Orissa state Pollution Control Board

2.3. NALCO IN BRIEF

National Aluminium Company Ltd. (NALCO) is considered to be a
turning point in the History of Indian Aluminium industry. In a major leap
forward, NALCO has not only address the mood for the self-sufficiency in
the Aluminium, but also given the country a technology edge, in producing
this strategic metals on the best of world standards.
NALCO was incorporates in 1981 in the public sector, to exploit a part of
the large deposits of Bauxites, discovered in the East Coast, in technological
Collaboration with Aluminium Pechinery of France.
NALCO’s original project cost of Rs. 2408 Crore was partly financed by
980 million US Dollars, extended by a consortium of international banks. By
1998, the company has paid back overseas loans and going steady with an
internally funded major Expansion plan involving an investment of over Rs
3900 Crores.
With its consistent record in capacity utilization , technology absorption,
quality assurance, Experts performance and posting of profits. NALCO is a
bright example of India’s industrial capability.
Today, as an ISO 9002 and 14001 company, NALCO has emerged as the
largest integrated Bauxite- Alumina-Aluminium Complex in Asia.
The complex has five multi-locational, well-integreted, segments Viz
Bauxite Mines, Alumina Refinery, Aluminium Smelter, Captive Power Plant,
Port Facilities and Rolling Plant.

NALCO has taken over international Aluminium products Ltd (IAPAL),

a wholly owned subsidiary of NALCO w.e.f. March 2000 with the project
cost of Rs 356 crores having capacity of 50000 TPY of Aluminium alloy
coil sheets
2.5. NALCO AT A GLANCE
National Alumuinium Company Ltd. (NALCO) is considered to be a
turning point in the History of Indian Aluminium industry. In a major leap
forward, NALCO has not only address the mood for the self-sufficiency in
the Aluminium, but also given the country a technology edge, in producing
this strategic metals on the best of world standards. NALCO was
incorporates in 1981 in the public sector, to exploit a part of the large
deposits of Bauxites, discovered in the East Coast.

2.6. MISSION & VISION

NATIONAL ALUMINIUM COMPANY LIMITED

MISSION:
“To achieve growth in business with global competitive edge providing
satisfaction to the customers, employees, shareholders, and community at
large.”

VISION:
“To be a reputed global company in the Metals & Energy sector.”

2.7. FUTURE BUSINESS PLANS OF THE ORGANISATION

I. Second Phase Expansion:
 Unit 2nd phase expansion
  Mines 63 lakh MT
 Alumina Refinery 21 Lakh MT
 Smelter Plant 4.6 Lakh MT
 Captive Power Plant 1200 MW
II. Specially Unique Products.
III. Market tie-up for special product with primary producers.
IV. Tecno marketing
V. Creation of separate R & D center

Values:
 Continuous Innovation
 Work along with others
 High degree of discipline
 Excellent results in every operation.

PHILOSOPHY
NALCO believes in good corporate governance, attaining maximum
level of transparency, accountability and equity in all facets of its operations
and in all its interactions with its stakeholders Vig. Shareholders, the GOVT
bankers society at large and about customers.

2.8. MANPOWER STATISTICS

Executive - 1817
 Supervisory - 842
Unskilled - 1127
Skilled - 3627

14% 0% 22%
Excutive
Supervisory
Non-Supervisory
11%
Skilled
53%

2.9. NALCO PRODUCTS

Alumina
 1. Calcined Alumina
2. Alumina Hydrate
3. Speciality Aluminas & Hydrates
4. Detergent Grade Zeolite

Aluminium Metal

1. Standard Ingots (each approx. 20 kgs.)

2. Sow Ingots (each maximum 750 kgs)
3. Wire Rods ( in coil form 9.5 mm dia weight approx. 2mt)
4. Alloy Ingots (each approx. 10 kgs)
5. Billets (in four sizes 127 mm, 152 mm, 78 m, 203 mm dia)
6. Cast Stripes (in 1600 mm width max. nominal gauge 6.35 mm)
7. Cold Rolled Sheets

2.10 OBJECTIVES OF NALCO

 To maximize capacity utilization.

  To optimize operational efficiency and productivity.
 To maintain highest international standard of excellence in product
quality, cost efficiency and customer service.
 To provide a steady growth in business by technology up-gradation
expansion and diversification.
 To have global presence and to earn foreign exchange.
 To maintain leadership in domestic market.
 To instill financial discipline at all levels for achieving cost and
budgetary controls, optimizing utilization of working capital and
effective cash flow management.
 To maximize return on investment.
 To develop a strong Research & Development base and increase
business development activities.
 To promote a result oriented organizational ethos and work culture
that empowers employees and helps realization of individuals and
organizational goals.
 To maximize internal customer satisfaction.
 To participate in peripheral development of the area.

2.11 SPECIAL FEATURES

 o First largest power station having ISO 9002 and 14001 certification in
INDIA.
o Consistent track record in reliable operation and optimal level of
production achieving highest PLF of 78.85 and availability factor of
86.70%.
o Maintained high plant load factor even with more number of smaller
size units(8*120MW)
o Maintained very low unit cost of generation of Rs.1.05 (2003-04) per
unit.
o Available infrastructure for further expansion of the plant.
o Process monitoring through DAS
o Automatic turbine runs up system.
o Islanding scheme to isolate form grid during disturbances
o ESP with microprocessor controllers
o Ash pond overflow recycling System.

TECHNICAL FEATURES:
STEAM TURBINE: Three cylinder, Extracting Reheat , Condensing Type.
GENERATOR:141.5MVA,120MW,10.5KV,3000 RPM, Hydrogen Cooled
(#7 and #8 Air Cooled) and brush less Excitation System.

BOILER: Water Tube, Vertical Natural circulation, Single drum, Tilting and
Tangential Corner Fired, Balanced Draught ,Reheat Type ,Dry bottom
,Direct pulverized Coal Fired. Capacity, (MCR-U#1 to #6 :430/Hr)

2.12 HUMAN RESOURCE

Our last century witness the occurrence of liberalization, globalization,

deregulation, decentralization and empowerment which transform the
workplace to such an extent that it has led to the emergence of a knowledge
culture, where the reigning forces will be equipped with powerful ideas,
egalitarism, sharing, and net working giving birth to an era of competition
and collaboration resulting to an easy life, we also witnessed the rise in IT
economy.
But now the century will witness the emergence of knowledge or ideas.
Economy where it is the power and rules if doing business are being
rewritten with the rapid change in work environment and culture.

Besides stressing upon knowledge organization globally are striking to

develop and retain their human capital through knowledge management
practices which encourages collective learning, where knowledge is shared
to achieve goal.
HR is the combination of human knowledge and human capital or
management development or training therefore we need HR that is
competent in term of knowledge, skills and attitudes that can meet the
challenges faced by the organizational taking place rapidly.

2.13 HR POLICIES OF NALCO

CONDUCT & DISCIPLINE
1. The details of conduct as per the terms employment are regulated as per
the conduct, Discipline Appeal Rules for executives and certify standard
orders (as per industrial employment standing orders Act) in respect of non-
executives. These rules specify the misconduct and the procedure including
the authorities for imposing penalties.
2. The Grievance of the employees is dealt in a three tier Grievance handling
system for executives & non- executives. In case of non-executives a
Grievances committee at each unit is constituted comprising equal
representatives from employee’s union and management besides, the
informal scheme of Grievance handling was also introduced in the name of
employees Assistance scheme for early and effective redressal of the
complaints.

PERFORMANCE APPRAISAL & CAREER GROWTH

1. The key performance areas of executives are fixed at the beginning of the
year with mutual discussion between the employee concerned and his
reporting officers. The key performance areas are developed in relation to
the organizational KPA target. The periodic assessment of the performance
are done before the final annual assessment is made on the individual
Executive. In respect of Non-executives the performance Appraisal are done
based on various skill and personality traits by the reporting officer.
Different factors of personality traits are fixed for unskilled. Skilled and
supervisory personnel.

2. WAGES & SALARY AND OTHER PERKS & BENEFITS

1. The pay scales and other benefits for Executives are fixed as per the
Government guidelines on the subject and comparison of the same with
other
 House Building Advances
 Motor Vehicle Advances
 Furniture Advances
 Special Advances
Bicycle Advancesleading PSUs. In respect of Non-Executives it is done in
the process of collective bargaining with unions.

2. Linked with AICP as applicable for central industrial workers, the

following benefits are provided to the employees:
  House Rent Allowance
 City Compensatory Allowance
 Leased Accommodation
 Company Quarters
 Reimbursement of Water & Electricity charges
 Conveyance Allowance
 Night shift Allowance
 Split shift Allowance
 Cash handling Allowance
 Kit allowance
 3. The following advances re extended by the company to its
employees
 Medical Advances
 Natural Calamity Advances
4. The other benefits facilities extended to the employees areas under:
1. Holidays: 10 cleared holidays and 02 Restricted Holidays at the plant
locations 16 closed holidays, 02 Restricted Holidays for corporate and
other offices.
 2. Leave Facility: The eligibility for both executives and Non-
Executives for different kinds of leave are as under
 Casual leave
 Earned Leave
 Sick Leave half pay Leave
 Special Disability leave
 Extra ordinary Leave
 Quarantine Leave
 Maternity Leave as per act
 Paternity Leave
 Special casual Leave
3. Leave Travel Concession: All employees both Executives and Non-
Executives are entitled for 06 family members.
4. Travelling Entitlement and Expences
5. Welfare Schemes
1. Medical Benefit
2. Liveries
3. Canteen subsidy reimbursement
4. Scholarship
6. Motivational Schemes
1. Productivity Linked Incentive Scheme: Based on the Production
performance and the factor productivity index and Absenteeism index.
2. Incentive for acquiring Professional Qualification: A lump sum
amount ranging from Rs 3000 to Rs 5000 is allowed once in the
service tenure for acquiring professional qualification as prescribed in
the scheme. Further reimbursement of membership fees up tone
professional body of national repeats is also allowed.
3. Promotion of small Family Norms: Employees are granted cash lump
sum and other benefits like increment special casual leave, concession
rate of intrest in HRA etc as per the scheme for promoting small
family norms.
4. Scheme for award for valuble suggestions: Employees are encouraged
for more number of suggestions either individually or in group and
rewarded suitably as per the scheme. The maximum award amount
varies from Rs. 5000 in case of Individual and Rs. 25000 in case of
groups.
RETIREMENT BENEFITS/SOCIAL SECURITY
1. The Contributory Provident Fund: The company has a trust which
has got due relaxation from the GOVT scheme.
2. Pension Scheme: A pension scheme with the contribution of the
employees is created as per the 3rd LTWS and is effective from
01.04.1995.
3. Group Gratuity Life Assurance Scheme: An Insurance policy with
Life Insurance Corporation of India with annual premium been made
to take care up of the Gratuity liability of employees.
4. Scheme For Post Retirement Medical Facility: A scheme provides
medical benefit to the employees and their spouses subsequent to their
retirement.
5. Voluntary Retirement Scheme: Employees completing 10 years of
services on attaining 40 years of age can seek voluntary retirement.
TRAINING AND DEVELOPMENT
Training Facilities:
With the objective of making training a decentralized activity NALCO has
set up training institutes at all its units ie.
1. Training institutes at smelter and power complex ,Angul
2. Training institutes at mines and Refinery complex, Damanjodi
3. The nodal training institute, HRD center of excellence at corporate
office, Bhubaneswar.
4. The training institute at plant sites are well equipped with the latest
audio visual training aids lecture halls, workshops, libraries etc. They
basically teach to technical functional training of the workforce. The
nodal training institute which focus on organizing development
training programmes has apart from all training aids a conference
rooms, Syndicate rooms, Library and all modern equipment for
conducting Management Development programmes. It is also
equipped with an attached Hostel for accommodating participants.

2.14 HRM PHILOSOPHY OF NALCO

 To attract competent personnel with growth potential and develop
their skills and capabilities in a congenial work and social
environment through opportunities for training, recognition career
advancement and other incentives.
 To develop and nature favorable attitudes among employees and to
obtain their best contributions to the organizations by providing stable
employment , safe working condition , job satisfaction , quick
redressal with the company’s capacity to spend and the government ‘s
guidelines.
 To foster Fellowship and sense of belongingness among all sections of
employees through closer association of employees with the
management and by encouraging healthy trade union practices.
 CHAPTER-3
CONCEPTUAL CLARIFICATION OF
RECRUITMENT & SELECTION

3.1 INTRODUCTION
 In establishing and maintaining a dynamic organizational structure suited
to meet present and future company needs, NALCO is committed to have a
system for manning executive posts in the company with persons having
appropriate level of academic\ professional qualification, skill, competence,
experience and motivation and for developing its own human resources in
such a manner as to integrate the aspirations (or growth) and development of
the individual employees with the fulfillment of the Company’s objectives.
The company seeks to sustain high levels of performance from its executives
by maintaining a working environment conducive to the efficient and
effective functioning of each Executive.
MEANING AND DEFINITION OF RECRUITMENT
Recruitment is the generating of applications or applicants for specific
positions to be filled up in the organization. In other words, it is a process of
searching for and obtaining applicants for jobs so that the right people in
right number can be selected.
Go through the following definitions of recruitment. These will help you
understand the meaning recruitment in a better manner.
According to Dale Yoder. “Recruitment is a process to discover the
sources of manpower to meet the recruitments of the staffing schedule and to
employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient working force”.
 In the words of Werther and Davis, “Recruitment is the process of finding
and attracting capable applicants for employment. The process begins when
new recruits are sought and ends when their applications are submitted. The
result is a pool of applicants from which new employees are selected”.
Flippo, has defined recruitment as “a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organization”.
According to Bergmann and Taylor, “Recruitment is the process of
locating, identifying, and tracting capable applicants”.
Recruitment can now easily be defined as the process of searching for
and securing applicants are the various job positions which arise from time
to time in the organization.

3.2 OBJECTIVES
 To meet executive manpower recruitments of the Company in terms
of the approved Human Resources Plan.
 To fulfill recruitments of competent executives in terms of requisite
capabilities, skills, qualification, aptitude, merit and suitability with a
view to fulfill Company’s objectives.
 To attract, select and retain the best talent available, keeping in view
the changing needs of the organization.

 To ensure an objective and reliable system of selection.

  To integrate growth opportunities of the executives with fulfillment of
company’s objective.
 To man executives posts in the company with competent personnel
having growth potential and to utilize their capabilities in the working
environment the maximum through opportunities available for
advancement.
 To provide for a system which is conducive to equality, fairness and
objectivity in matters concerning promotion of executives.
 To ensure uniformity and consistency to the extent possible in
promotion of executives of the company.
 To motivate executives of the organization for better performance by
rewarding their contribution to the growth of the organization in
deciding promotion on the basis of over all merit.
 To ensure the continuity of the management and systematic
succession planning for senior\ key posts in the executive cadre.
 To provide input for the development of executives linked to their
levels of performance and their specific strengths and requirements.
 To integrate executives into a cohesive team.
 To ensure compliance with relevant Government policies and
directives on recruitment and promotion of executives as a public
sector Enterprise.

3.3 SCOPE & LIMITATIONS

  These rules, which supersede the NALCO Recruitment &
promotion. Rules for Executive-1984,shall be known as the Nalco
Recruitment & promotion Rules for Executive-1997 and shall come
into force with effect from the date of approval by the Board of
Directors. All action taken under and in pursuance of the earlier rules
shall be saved and be deemed to have been taken under and in
pursuance of these rules.

Steps in Recruitment process

1. Locating and developing the sources of required number and
type of employees.
2. Identifying the prospective employee’s with required
characteristics.
3. Communicating the information about organization, the
job and terms and conditions of service.

3.4 Recruitment policy:

 Recruitment policy specifies the objectives of recruitment and provides a
framework of the implementation of the recruitment program.It my involve
commitment to principles such as enriching the organization human
resources by filling vacancies with the best qualified people .Attitudes
towards recruiting handicaps, minority groups, women, friends and relatives
of present employees,promotion from within. It may also involve the
organizational system to be developed for implementing the recruitment
program and procedures to be employed. Recruitment policy should be
based on the recognition that it is hard to find qualified executives. A
recruitment policy involves the employer’s commitment to such general
principles as;
a. To find any employ the vest qualified persons for each job.
b. To retain the most promising of those hired.
c. To offer promising opportunities for life time working careers.
d. To provide facilities and opportunities for personal growth on the job.
Recruitment Organization
Recruitment practices differ from one organization to another, Some
organizations like public sector banks adopt centralized recruitment whereas
other organization resort to decentralized recruitment. Under centralized
recruitment personnel department at the head office perform all the function
of recruitment. Every operating department sends requisitions or indents for
recruitment to their central office. On the other hand, each department/unit
carries out its own recruitment in case of decentralized recruitment.
Induction point
E-0 level shall be the major induction point in executive manning system
of the Company.
Not less than 50% of manpower requirement at E-0 stage shall be filled
up through direct recruitment including trainees. The Company may take
recourse to direct recruitment at any or all levels to the extent necessary.
3.5 CENTRALISED RECRUITMENT
All recruitment to posts covered by these rules shall be centrally organized
by the Corporate HRD Department.
Centralized recruitment offers the following advantages:
a. It reduces the administrative cost by consolidating all recruitment
activities at one place.
b. It helps in better utilization of specialists.
c. It ensures uniformity in recruitment and selection of all types of
employees.
d. It facilitates interchangeability of staff between different units/zones.
e. It relieves the line executives of the recruitment problem thereby
enabling them to concentrate on their operational activities.
f. It tends to reduce favoritism in recruitment and make the recruitment
process more scientific.
 Centralized recruitment suffers from the following disadvantages:
a. There is delay in recruitment as operating units cannot recruit
staff as and when required.
b. The central office may not be fully familiar with job
requirement of different units and the mist suitable sources for the required
staff.
c. Recruitment is not flexible because operating units lose control
over the recruitment process.
3.6 SOURCES OF RECRUITMENT
The sources of employees can be classified into two types, internal and
external.
Internal Sources External Sources
i. Transfers i. Press Advertisement
ii. Promotions ii. Educational Institutions
iii. Placement Agencies
iv. Employment Exchange
v. Labour contractors
vi. Unsolicited Applicants
vii. Recommendations
viii. Recruitment at factory
gate
Internal sources have the following merits:
i. Morale and motivation of employees improve when they are
assured that they would be preferred in filling up vacancies at higher
levels.
ii. Suitability of existing employees can be judged better as record
of their qualifications and performance is already available in the
organization. Chances of proper selection are higher.
iii. It promotes loyalty and commitment among employees due to
sense of job security and opportunities for advancement ability of
employment is improved.
External sources:
External sources of recruitment lie outside the organization. These are as
follows
a. Educational and Training Institution: Various institutes like IIMS, IITS,
Engineering college, Medical colleges, ITIs and Universities are a good
source for recruitments well qualified executives, Engineers, Medical staff,
Pharmacists, Chemists etc. They provide facilities for campus interviews and
placement. Good institution have placement cells/officers to serve as liaison
between the employers and the students. This source is known as campus
recruitment.
 a. Employee reactions towards different sources of recruitment.
b. Correlation between source of recruitment and job success of
the persons selected.
c. Data on labour turnover, grievances and disciplinary actions,
for each source of recruitment.

3.7 METHOD OF RECRUITMENT

1. Direct method:
Under direct recruitment scouting, employee contact, manned exhibits and
waiting lists are used. In scouting representatives of the organization are sent
to educational and training institutions. These traveling recruitment
exchange information with the students clarify their doubts, stimulate them
to apply for jobs, conduct campus interviews and short list candidates for
further screening.
2. Indirect method
Advertisement in newspapers, journals, on the radio and television are
used to publicize vacancies. A will thought out and clear advertisement
enables candidates to assess their suitability so that only those possessing the
requisite qualification will apply. This method is appropriate when the
organization wants to reach out to a large target group scattered
geographically. Whenever necessary a blind advertisement can be given in
which only bond is given without identifying the firm.
Considerable details about jobs to be filled and qualifications required can
be given in the advertisements. But a large number of applicants may be
unsuitable.
3. Third party method:
Various agencies can be used to recruit personnel. Public employment
exchanges management consulting firms, professional societies, temporary
help societies, trade unions, labour contractors are the main agencies. In
addition, friends and relations of existing staff and deputation method can
also be used.
3.8 NON-EXECUTIVE EMPLOYEES RECRUITMENT &
PROMOTION RULES
Objectives:
i. To provide for a system for manning different Non-Executive post
in the Company with persons having appropriate level of
academic/professional qualification, skill, competence, experience
and motivation either through recruitment from outside sources or
by promotion from within the Company.
ii. To provide the Non-Executive Employees with reasonable
opportunities for advancement consistent with their performance,
qualifications, skills and availability of vacancies.
 iii. To provide for a system of equity, fairness and objectivity in
matters concerning Recruitment and Promotion of Non-Executive
Employees.
iv. To ensure compliance with relevant Government policies and
directives on Recruitment and Promotion of Non-Executive
Employees.
Scope and Limitation:
i. the rules shall be known as NALCO Recruitment & Promotion
Rules for Non-Executive Employees,1990.
ii. These rules shall apply to all Non-Executive posts in the Company,
but will not apply to cases of promotion from Non-Executive posts
to Executive posts.
iii. The levels, grade codes and pay scales of the Non-Executives of
the Company for the purpose of recruitment, promotion, vacancies
and career planning would be as per the provisions of the Long
Term Wage Settlement or as decided specifically from time to
time.
iv. These rules shall not be applicable to the following category of
Non-Executive Employees.
a. Who are appointed on tenure basis, or who are appointed/given
extension, after having attained the age of superannuation.
b. Who are on deputation to the Company or who retain lien on
the service in any other organization.
Following figure shows the recruitment & selection process in general,

Recruitment adv. Organizational Goals Job Analysis

Job Description
Applicants
Man Power Requisition Job Specification

Selection Process
Application forms
Test
Interview
Reference Checks
Medical Examination

Selected Candidates

Framework- Recruitment & Selection

Recruitment Procedure in NALCO
3.9 SELECTION:
Selection is the process of choosing the most suitable persons out of all the
applicants. In this process relevant information about applicants is collected
through a series of steps so as to evaluate their suitability for the job to be
filled. Selection is a process of matching the qualification of applicants
while the job requirement. It is a process of weeding out unsuitable
candidates and finally identify the most suitable candidate. Selection divides
all the applicants into two categories (a) suitable and (b) unsuitable.
Selection may be described as a process of rejection because generally more
candidates are turned away then hired.
Objective:
i. The purpose of selection is to pick the right person for every job.
ii. Selection is an important function as no organization can achieve
its totals without selecting the right people. Faculty section leads to
wage of time and money and spoils the environment of an
organization. Scientific selection and placement of personnel can
go a long way in building up a stable work force. It helps to reduce
absenteeism and labour turnover. Proper selection is helpful in
increasing the efficiency and productivity of the enterprise The
selection process can be successful if the following condition are
satisfied.
a. Some one should have the authority to select. This authority comes from
the employment request on as developed through an analysis of the
work load and work force.
b. There must be some standard of personnel with which applicant can be
compared in other words a comprehensive job description and job
specification should be available before hand.
c. There must be a sufficient number of applicants from whom the required
number of employees may be select.
Selection procedure
The selection procedure consists of a series of steps. At each stage facts may
come to light which may lead to the rejection of the applicant. It is a series
of successive hurdles of barriers which an applicant must cross. These
hurdles or screens are designed to element and unqualified candidate at any
point in the selection process. This technique is called “successive hurdles
technique”.
According to Dale Yoder, the hiring process consists of go no go gauges.
Candidates who qualify a hurdle go to the next stage while those who do not
qualify are dropped out.
The complexity of selection procedure increases with the level and
responsibility of the position to be filled. The strategy and method used for
selecting employees varies from firm to firm and from one job to another.
Steps in selection procedure:
1. Initial or preliminary interview
2. Application blank or blanks
3. Check or reference
4. Psychological tests
5. Employment interview
6. Approval by the supervisor
7. Physical examination
8. Induction or orientation
 DECLARATION
I do hereby declare that this project entitled, “A study on
RECRUITMENT AND SELECTION PRACTICES IN NALCO’’. being
submitted by me in partial fulfillment of the requirement for the award of
Master of Business Administration from Global Institute of Management for
approved by AICTE & affiliated to BPUT is based on the study under taken
by me. It is to the best of my knowledge and has never been published
anywhere.

Date: MADHUSMITA MAHALIK

Place:
 CHAPTER-5
SUGGESTION & CONCLUSION
 SUGGESTION
After our finding we have following suggestion for the organization so
as to improve the recruitment practices within the organization
They are as follows:
 Mention the job description with some more information for
forthcoming applicants.
 Define gap analysis before conducting recruitment practices.
 Integrated human resources process by not only looking at the skill
and knowledge but also the behaviour required by employee to be
successful in the job.
 At the time span changes, recruitment practices should be
conducted technically.
 Giving a chronological consent of recruitment procedures to the
applicants.
 Using psychometric tests to access the competencies.
 Open up of an assessment and development centre which may
consist of:
o In basket exercise: Application, methods of developing and
using the tool.
o Interpersonal skill exercise: Demonstrated role plays,
examination of their potential for assessment.
o Leaderless group discussion.
o Simulation games, discussion and exercise.
 CONCLUSION
The study that has been conducted has resulted in providing a wide
scope for further research and analysis in the field within the organization.
Nalco have a strong human resource and fund rich company can do
impressively well if it continuous to work over its strong points and build
upon its strategies. If the company implements the suggestion given in the
project work then it creates a difference.
It has been seen that there has been a sincere effort on the part of Nalco to
provide the best possible solutions to the human resource for their
development and growth, personally and professionally.
The research has provided a glimpse of the NALCO work perception in
the study and through a few humble suggestion, hope to provide a few
possible solutions in order to enhance the recruitment practices in Nalco.
And keeping the present scenario in the view it can be concluded that
Nalco is the torch bearer among all section in the never ending path of
success.
 BIBLIOGRAPHY

K.Ashawathapa - Human Resource Management

V.S.P. Rao - Human Resource Mnagement
C.R.Kothari - Research Methodology
Nalco library

WWW. Google.com
WWW.nalcoIndia. com
Human Resource Magazine
Journals