A

PROJECT REPORT

ON

“REDUCTION OF RECRUITMENT CYCLE TIME”

A detailed study done in

LARSEN & TOUBRO LIMITED

Submitted in partial fulfillment of the requirement for the award of degree of

Masters of Management Studies (MMS) under Mumbai University.

Submitted by

PRIYANKA KADAM
ROLL NO: 83
BATCH: 2008-2010

Under the guidance of

Professor Mona Sinha Roy

Bharati Vidyapeeth’s Institute of Management Studies & Research

Sector 8, CBD-Belapur, Navi Mumbai –400614
 ACKNOWLEDGEMENT

Many people contributed in making this project a success. My Project is primarily the vision of
Mr. Harshad Assoldekar (Assistant Manager HR & Personnel, Larsen & Toubro Limited)
who initially defined the project, articulated its implementation as a resource, and determined its
scale and scope.

I am also thankful to my Company Guide Mr. Kamal Sen (BU-HR –Partner, Larsen &
Toubro Limited) for their wonderful co-operation and support to make this project a great
success.

A project of this enormity and complexity requires the dedication of a number of individuals. My
Faculty Guide Prof. Mona Sinha (Professor, BVIMSR Mumbai) has always been present as a
guiding light whenever dead ends were encountered.

Finally, appreciation is expressed to all the Colleagues of Larsen & Toubro Limited for their
continued support throughout.

Signature of the student

(PRIYANKA KADAM)
 EXECUTIVE SUMMARY

People are a company’s most important assets. They can make or break the fortunes of a
business. In today’s highly competitive business environment placing the right people in the right
position is very critical for the success of any organization.

The recruitment and selection decision is of a prime importance as it is the vehicle for obtaining
the best possible person-to-fit that will, contribute significantly towards the company’s
effectiveness. It is also becoming increasingly important, as the company evolves changes, the
new recruits show a willingness to learn, adaptability and ability to work as a part of a team. The
Recruitment and Selection procedure ensures that these criteria are addressed.

Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing
company. It is one of the largest and most respected companies in India's private sector. In this
project researcher studied the Recruitment and Selection process of L & T Automation and
attempted to provide some ways so as to make Recruitment more effective and to reduce the cost
of hiring and employee. The project contains the primary data is the data which is collected by
the researcher directly from her own observation and under the guidance of project guide. To
pursue these, researcher would be going through the recruitment policy of the company. By
active participation in the recruitment process, the areas where improvement can be bought about
can be identified. The main idea is to generate ways of dealing with high attrition and making
hiring process manageable and efficient.
 CERTIFICATE

This is to certify that the project titled ‘REDUCTION OF

RECRUITMENT CYCLE TIME’ is successfully done by Miss.

PRIYANKA B. KADAM during the two months summer internship

of his course (3rd May 2010 – 30th June 2010) in partial fulfillment of
the Masters in Management Studies under the University of Mumbai
through Bharati Vidyapeeth’s Institute of Management Studies and
Research, Navi Mumbai.

Date:

Dr. D. Y. Patil Prof. Mona Sinha Roy

Director Project Guide
PLEASE PASTE HERE THE CERTIFICATE FROM THE COMPANY
 TABLE OF CONTENTS

PARTICULARS PAGE NO:

Acknowledgement (i)
Executive summary (ii)
Certificates (iii)

Chapter 1: Introduction of the Project

1.1: Concept & Significance of the Study

1.2: Scope
1.3: Objective of the Study
1.4: Literature Review

Chapter-2 Introduction to the Industry

2.1: Engineering Industry

2.2: Growth potential
2.3: Future prospects

Chapter-3 Introduction to the Company/Organization

3.1: Introduction
3.2: overview
3.3: Operating division
3.4: SWOT Analysis

Chapter 4: Research Methodology

4.1: Data collection

4.2: Methodology
4.3: Limitation

Chapter 5: Data Analysis and Interpretation

5.1: Sources of Recruitment in L & T

5.2: Recruitment Process at L&T –EAOC Division
5.3: Factors Affecting the Recruitment Process of L & T
5.4: Factors causing lag in cycle time of L & T EAOC recruitment process
5.5: Types of Interviews Which Mostly Followed by L & T
5.6: Interviews at L&T EAOC division
5.7: SWOT Analysis of L & T EAOC division
Chapter 6: Suggestions, Conclusions

6.1: Suggestions
6.2: Conclusion

Bibliography
 CHAPTER 1 : INTRODUCTION OF THE PROJECT

1.1: Concept & Significance of the study

“The art of choosing men is not nearly so difficult as the art of enabling those one has chosen to
attain their full worth”.

Recruitment is the process of searching the candidates for employment and stimulating them
to apply for jobs in the organization. Recruitment is the activity that links the employers and the
job seekers.
Recruitment is the main essence of the human resource management. Correctly matching the job
and the employee is very important for the continuity of the firms. Recruitment is not only an
employment process. Finding right person to the right job is one of the major issues for the
productivity of firms.
Organizations rely on their workforce to be competitive and successful. The difference to
acquiring and executing business in a competitive environment lies in the ability to hire right
resources on time every time. Recruitment concerns finding the employees who have the needed
qualifications for the position to be filled and trying to hire them for that position in the firm.

1.2: Scope:
Recruitment cycle time is a very vital aspect which contributes to the right candidate getting
hired at the right time. The factors which contribute to the longer cycle time need to be studied
and suitable methodology should be used to reduce the duration. The scope of this project is a
long term solution to this recruitment concern.

1.3: Objective:
Every task is undertaken with an objective. Without any objective a task is rendered
meaningless. The main objective for undertaking the projects are:
 To study the recruitment process of the EAOC division of L&T, Mahape.
 To find out the cycle time of the recruitment process.
 To reduce the cycle time in the recruitment process.
  To identify areas where there can be scope for improvement.

1.4: Literature review

According to Edwin B. Flippo, recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization”. Recruitment is the
activity that links the employers and the job seekers. A few definitions of recruitment are:

 A 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 applications from which new employees are selected.

 It is the process to discover sources of manpower to meet the requirement of staffing

schedule and to employ effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.

Recruitment Needs Are Of Three Types

 PLANNED
i.e. the needs arising from changes in organization and retirement policy.

 ANTICIPATED
anticipated needs are those movements in personnel, which an organization can predict by
studying trends in internal and external environment.

 UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.

Purpose & Importance of Recruitment

 Attract and encourage more and more candidates to apply in the organization.

 Create a talent pool of candidates to enable the selection of best candidates for the
organization.

 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.

 Recruitment is the process which links the employers with the employees.

 Increase the pool of job candidates at minimum cost

 Help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.

 Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.

 Meet the organizations legal and social obligations regarding the composition of its
workforce.

 Begin identifying and preparing potential job applicants who will be appropriate candidates.

 Increase organization and individual effectiveness of various recruiting techniques and

sources for all types of job applicants

Chapter-2: Introduction to the Industry

2.1Engineering Industry

Engineering is defined as the discipline of acquiring and applying technical, scientific, and
mathematical knowledge to design and implement structures, machines, systems, and processes
that safely realize a desired objective. It is a broad discipline which is often broken down into
several sub-disciplines namely chemical, civil, electrical and mechanical engineering. With the
rapid advancement of technology many new fields are fast gaining prominence and new
branches are developing such as aerospace engineering, biomedical engineering, genetic
engineering, nuclear engineering and robotics etc.

The major end-user industries for heavy engineering goods are power, infrastructure, steel,
petrochemicals, mining, railways, automobiles and textiles, etc. Meanwhile, light engineering
goods are essentially used as inputs by the heavy engineering industry. Capacity creation in these
end-user industries is driving growth of the engineering industry. Given the vastness of the field,
the engineering industry has an enormous potential of creating new jobs.

The Engineering sector is the largest of all industrial sectors in India. The sector is relatively
unfragmented at the top, where technological and capital requirements are high, but it is highly
fragmented at the lower end.

The industry can be broadly divided into 2 segments; heavy engineering and light engineering.
Heavy engineering goods such as capital good and equipment account for the bulk of domestic
production and leading large players are mostly focused on this segment, producing high-value
products using high-end technology. The light engineering goods segment in comparison is
highly competitive and dominated by small players who typically manufacture lower-value
added products such as castings and bearing etc. The largest players include Larsen & Toubro,
ABB and BHEL.

Heavy Engineering Industry is one of the largest segments of Industrial production. It occupies a
whole range of industries such as Heavy Electricity Machinery. Turbines, Generators,
Transformers, Switchgears, Textile Machinery etc. The Index of Industrial Production figures
of 8 of the 16 major industry groups show substantial growth with the rates ranging from 6% to
28%.

Thought there was some signs of recovery in the third quarter of 2002-2003 the stimuli seems to
have dissipated quickly.  The problem with the cotton textile sector has also continued to
perform badly in the last two years. The only positive development is the measures announced
for the textile industry in the recent budget.

Trends across major sectors show that growth in the two lead sectors-capital goods and
consumer non-durable goods-have decelerated but still remain at the double-digit levels. This
has, however, been compensated by the strong recovery in the intermediate goods segment. A
major concern is the lackluster performance of the consumer durable goods segment over the
last year with production declining for the first time since themed-nineties.
Electrical Industry 

In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to
SF6 are manufacture to standard specification for the benefit of customers.  The range of
products produced cover the entire voltage range for 240 V to 420 V.  Switchgear and control
gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with their respective
fuse bases, holders and starters are being produced to customer specifications as well s to
standard specifications. Motor control systems based on microprocessor and computer control
are also available for power stations, load dispatch centers, major receiving centers and
industrial complexes. 

Heavy Electrical Industry

Among the Third World countries, India is major exporter of heavy and light engineering goods,
producing a wide range of items. The country also makes construction machinery, equipment for
irrigation projects, diesel engines, tractors, and transport vechicles, cotton textile and sugar mill
machinery. The heavy electrical industry meets the entire domestic demand. Electrical
equipment such as motors, transformers, switchgears etc, are issued by all sectors of the Indian
Economy. Some major areas where these are used are the multi-crore projections for power
generation including nuclear power stations, petrochemical complexes, and chemical plants
integrated steel plants, non-ferrous metal units etc.

The existing installed capacity in the industry is of the order of 4500 MW of thermal, 1345 MW
of Hydro and about 100 MW of gas based power generation equipment per annum.

The Heavy Electrical Industry is capable of manufacturing transmission and distribution

equipment upto400 KV AC and high voltage DC.  The domestic Heavy Electrical equipment
manufacturers are making with respect to product designs and upgrading of manufacturing &
testing facilities.

The Capacity established for manufacture of various kinds of turbines such as steam & hydro
turbines including industrial turbines is more than 7000 MW per annum. The range of BHEL
includes steam turbines up to 500 MW units ratin, which they are planning to enhance up to 600
MW. They have capability to manufacture Gas Turbines up to 255 MW (ISO) rating

2.2Growth potential

India is increasingly being preferred by global companies as an outsourcing destination as it

enjoys lower labour cost and better designing capabilities and as they recover from the crisis,
international demand will push forward once more. Domestic demand growth in this sector is
being fuelled by increasing expenditure in core sectors such as railways, private sector
investments and the rapid speed at which the projects are implemented. In addition, the
government’s focus on investment and development in the power and infrastructure sectors is
also having a strong impact.
For example, leading players ABB and BHEL derive 60%-75% of their revenues from supplying
equipments to the power sector. And with the government planning to add large-scale generation
capacities in the eleventh (2007-12) five-year plan, the potential seems huge for the engineering
majors. Market leader L&T on the other hand has over 40% of its order book in 2009 accruing
from the infrastructure sector. And with the focus on building roads, highways, airports etc, this
opportunity seems massive as well.

Finally, if India’s nuclear deal with the US is executed, it will mean big business for companies
planning to enter nuclear power generation and consequently power equipment manufacturing.

2.3Future prospects

Trained professionals with some relevant experience will have the option of working with any
number of world-class companies in a range of functional and industrial silos. The job categories
are primarily based on designing, manufacturing, packaging or selling engineering products
while ancillary jobs include construction, building and mining, amongst others. Talented
candidates can look for varied and long innings in this sector and expect to reap handsome
rewards in both the medium and long-term.

 
 CHAPTER 3: Introduction To The Company

“IT’S ALL ABOUT IMAGINNERING”

3.1 Introduction
Larsen & Toubro (L&T) , is a multinational conglomerate company headquartered in Mumbai,
India. L&T has an international presence, with a global spread of offices and factories, further
supplemented by a comprehensive marketing and distribution network. The company was
founded in Mumbai in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian
Toubro. L&T became a private limited company in 1946. It then became a public limited
company in 1950.
Larsen & Toubro (L&T) is a technology-driven USD 8.5 billion company that infuses
engineering with imagination. It offers a wide range of advanced solutions, services and
products.
L&T's in-house capabilities in technology development are complemented by tie-ups with world
leaders. It provides state-of-the-art products & solutions to a large and diverse customer base.
L&T is its people. We offer a professional value system, and extensive opportunities for growth
and personal development. Our challenging work environment brings out the best in our people.

3.2 Overview
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing
company. It is one of the largest and most respected companies in India's private sector. Seven
decades of a strong, customer-focused approach and the continuous quest for world-class quality
have enabled it to attain and sustain leadership in all its major lines of business.  L&T has an
international presence, with a global spread of offices. A thrust on international business has seen
overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint,
with facilities in China and the Gulf region. The company's businesses are supported by a wide
marketing and distribution network, and have established a reputation for strong customer
support. L&T believes that progress must be achieved in harmony with the environment. A
commitment to community welfare and environmental protection are an integral part of the
corporate vision.
3.3 Operating division  
 Engineering & Construction Projects (E&C)
 Heavy Engineering (HED)
 Construction
 Electrical & Electronics (EBG)
 Machinery & Industrial Products (MIPD)
 IT & Technology Services

EBG Division

EBG offers integrated solutions in electrical and automation space. Its businesses comprise
switchgear, low and medium voltage switchboards for different applications, energy meters,
automation systems, medical equipment and tooling solutions.

Electrical & Electronics Division (EBG) is one of the core businesses of Larsen & Toubro –
India’s largest technology, engineering and construction conglomerate. The business portfolio of
EBG includes low voltage and medium voltage switchgear products, electrical systems, energy
meters, automation solutions under its Electrical & Automation vertical and a stand-alone
medical equipment business unit.  

A major strength of L&T is its in-house design and development centre for switchgear as well as
tooling facility that designs and manufactures a wide range of high precision tools, a pre-
requisite for high quality products. 

The manufacturing operations of these businesses are located at Mumbai (Powai), Navi Mumbai,
Ahmednagar, Coimbatore and Mysore in India and China (Wuxi), Saudi Arabia, UAE (Jabel Ali,
Dubai), Malaysia, Indonesia and Australia. L&T has recently acquired Malaysia-based Tamco
for expanding its basket of switchboards business.

EBG has a comprehensive quality, environment and safety management system. The quality
management system for design & development, production, sales, marketing and servicing has
received ISO 9001:2000 certification from BVQI. In addition, its manufacturing facilities have
been certified for conformity to ISO 14001 (Environmental Management System) and OHSAS
18001 (Occupational Health and Safety Management System) by BVQI.

The division has implemented Enterprise Resource Planning (ERP) solution of SAP AG,
Germany and it went live at 35 locations across the country simultaneously in the ‘Big Bang’
mode in 1999.

3.4 SWOT ANALYSIS

Strengths

• Larsen and Toubro (L&T) is India's largest engineering and construction company
• It has created international presence by operating supply network offices in 10 locations
worldwide, including Houston, London, Milan, Shanghai and Seoul
• L&T has created a strong brand name by building worlds largest Tubular Reactor for a
petrochemical plant and has also built world's longest Product Splitter and longest LPG pipeline
• Larsen and Toubro's order book has reported continuous growth. The company has a strong
pipeline of projects in domestic as well as international markets, which is likely to ensure a
steady revenue growth

Weaknesses

• In spite of having a diversified expertise, the revenues of the company are highly concentrated

Opportunities

• The company has acquired the switchgear business of TAMCO Corporate Holdings of
Malaysia in April 2008
• With TAMCO the company will be able to offer a comprehensive range of MV switchgear and
become a significant player in the MV segment in India
• L&T has also entered into various joint ventures in the recent past. L&T has joint venture
agreement with Tamil Nadu Industrial Development Corporation Limited, Mitsubishi Heavy
Industries and A.A. Turki Contracting & Trading Corporation (ATCO) of the Kingdom of Saudi
Arabia
• These joint ventures boost and strengthen the operational efficiency of the company, as well as
provide it with avenues to generate additional revenues and also leverage its strong presence in
order to exploit the growing capital goods and infrastructure industry
• Growing Indian capital goods and infrastructure industry as the government has planned a
series of measures to encourage private sector participation and increase spending on
infrastructure. Capacities are being ramped up in Railways, Roads, Ports, Airports and Urban
infrastructure to sustain the momentum of double digit growth in the industrial sector.

Threats

• Larsen & Toubro faces stiff competition in the international market with construction majors in
the Middle East including ABB of Sweden and Bechtel of the US. Stiff competition could erode
the company's market share and reduce its profitability
• Engineering and construction companies such as Larsen & Toubro (L&T) are facing pressure
on their earnings due to the high interest rates on working capital. L&T's interest costs increased
more than three-fold in the first six months of FY2009, which would impact its profit before tax
(PBT). Rising interest rates would put pressure on the margins of the company

CHAPTER 4:Reasearch Methodology

L & T rely on their workforce to be competitive and successful. The difference to acquiring and
executing business in a competitive environment lies in the ability to hire right resources on time
every time. Given the maze of constraints in acquiring talent, it can be a very exacting exercise.

4.1Data Collection:

The methods that were used for data collection in this research process can be broadly
divided into two groups:

1) Primary Data Collection Methods

2) Sources/Methods of Secondary Data

 Primary Sources

Primary data is the data which is collected by the researcher directly from his/her own
observations and experiences.
Here the data is collected from the live working in the recruitment process.

 Secondary Sources

The researcher had collected external secondary data from various sources like internet
sites, research papers, periodicals, encyclopedias, published researches, database
companies etc

4.2 METHODOLOGY

The L & T Automation is marked with the high attrition and therefore the recruitment process
becomes a crucial function of the organization. Since my summer training was in the months of
May-June, it gave me the opportunity of involving myself directly with the recruitment process
and analyzing the process so that suitable recommendations can be given. This project is
centered on identifying best hiring practices in automation industry. It therefore requires great
amount of research work. The methodology adopted was planned in advance so as to collect data
in the most organized way.
My area of focus was the recruitment and selection particularly for control and
automation division. I was directly involved with the recruitment process of the candidates for
the project leader, project manager, software engineer and sales profile. I was particularly
involved with the sourcing the candidates from the Mumbai region first and then outside the
Mumbai.
Before any task was undertaken, I was asked to go through the HR policies of control and
automation division so that I can get a better understanding of the recruitment processes followed
by them.

 The first task was to understand the various job profiles for which recruitment
was to be done.
 The next step was to explore the various job portals to search for suitable
candidates for the job profile.
 Once the search criteria were put, candidates went through a telephonic
interview to validate the information mentioned in there resume.
 A candidate matching the desired profile was then lined for the first round of
Face to Face interview in control and automation campus otherwise if they are
not available in Mumbai company arranged the video conference interview in
their respective cities.
 Firstly the candidate had filled up the personal data form which is
EMPLOYMENT APPLICATION FORM.
 Then the candidates INTERVIEW EVALUATION SHEET which is provided
by interviewer was crosschecked by the HR team If they think that the
candidate was good to hire or not.
 When a candidate cleared his first round of interview then again he is called
up for the second round of interview.
 I had the responsibility to make sure that candidates complete all formalities
and had to regularly follow up with them.
 Since we received many resumes, it was essential that a database be
maintained to keep a track. It was convenient method than to stock up piles of
papers. L & T has their own database named as “HIRE CRAFT”, It contains
all the information of a candidate such as name, contact number, location,
 qualification etc.
 Understanding what kinds of database are maintained and how they help in
keeping a record.

4.3 Limitation of study

Every task is undertaken with an objective and accomplishment of this objective determines the
success.

Task:
The recruitment at L & T control and automation involved a lot search from the database and
calling up candidates to check whether they fit the job specification.

Difficulties:
Candidates were reluctant to talk at times
Candidates who were scheduled for interview would not turn up
Candidates who were contacted were not interested in position on many occasions

Task:
Candidates were to be searched from the job portals and called up to be scheduled for an
interview.

Difficulties:
Managing multiple line ups on the same day
Candidates asked lot of counter question so convincing them was a major task
Inadequate interview details to the candidate

Chapter 5: Data Analysis and Interpretation

RECRUITMENT AND SELECTION

 Recruitment is the process by which organizations locate and attract individuals to fill job
vacancies. Most organizations have a continuing need to recruit new employees to replace those
who leave or are promoted in order to acquire new skills and promote organizational growth.
Recruitment follows HR planning and goes hand in hand with selection process by which
organizations evaluate the suitability of candidates. With successful recruiting to create a
sizeable pool of candidates, even the most accurate selection system is of little use
Recruiting begins when a vacancy occurs and the recruiter receives authorization to fill it. The
next step is careful examination of the job and enumeration of skills, abilities and experience
needed to perform the job successfully. Other steps follow:

 Creating an applicant pool using internal or external methods

 Evaluate candidates via selection
 Convince the candidate
 And finally make an offer

5.1 SOURCES OF RECRUITMENT IN L & T

Internal source of recruitment
Transfers
The employees are transferred from one department to another according to their efficiency and
experience.

Promotions
The employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience. Others are Upgrading and Demotion of
present employees according to their performance. Retired and Retrenched employees may also
be recruited once again in case of shortage of qualified personnel or increase in load of work.
The dependents and relatives of Deceased employees and Disabled employees are also done by
many companies so that the members of the family do not become dependent on the mercy of
others.

External source of recruitment

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 are a good source of recruiting well
qualified executives, engineers. They provide facilities for campus interview 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 qualified engineers.

Employee Referrals

Organizations have structured system where the current employees of the organization can refer
their friends and relatives for some position in their organization.

Walk IN
Walk in interviews are the most common form of conducting interviews. Generally this is done
when a large scale of people is required. This can be generally done through the release of
advertisements in the leading news papers.

5.2 RECRUITMENT PROCESS at L&T –EAOC Division

The HR department would set the recruitment norms for the organization. However, the burden
of effective implementation and compliance with the process rests with the heads of the
respective functions and departments who are involved in the recruitment and selection process.
The process is aimed at defining the series of activities that needs to be performed by different
persons involved in the process of recruitment, the checks and control measures to be adopted
and information that has to be captured.
The recruitment process of L&Ts EAOC division follows a specific structure. There are various
stages which the division goes through to hire a candidate. Each stage takes its own course of
time to complete and contributes to the cycle time of the process.

Manpower budget fixation

The manpower planning process for the year would commence with the company’s budgeting
activity. The respective Functional heads would submit the manpower requirements of their
respective functions/ departments to the board of Directors as part of the annual business plan
after detailed discussion  with the head of human Resource Function along with detailed notes in
support of the projected numbers assumptions regarding the direct and indirect salary costs for
each position.
A copy of the duly approved manpower plan would be forwarded by the HR department for their
further actions during the course of the year. The annual budget would specify the manpower
requirement of the entire organization, at different levels, in various functions/departments, at
different geographical locations and the timing of the individual requirements. It would also
specify the requirement budget, which is the cost allotted towards the recruitment of the
budgeted staff and the replacement of the existing employees. The company’s growth rate and its
market share also play a vital role in deciding the number of vacancies to be filled.

Job description and Job specification

Job description is a written statement that defines the duties, relationships and results expected of
anyone in the job. It is an overall view of what is to be done in the job. Typically it includes is
written statement that defines the duties, relationships and results expected of anyone in the job.
Typically it includes
 Job Title
 Date
 Title of immediate supervisor
 Statement of the Purpose of the Job
 Primary Responsibilities
 List of Typical Duties and Responsibilities
 General Information related to the job
  Training requirements
 Tool use
 Transportation
 Signature of the person who has prepared the job description

Job specification summarizes the human characteristics needed for satisfactory job completion. It
tries to describe the key qualifications someone needs to perform the job successfully. It spells
out the important attributes of a person in terms of education, experience, knowledge and
abilities to perform a particular job.
Typically this would include

 Degree of education
 Desirable amount of previous experience in similar work
 Specific skills required
 Health Considerations

Channel Identification:
After the job description and the specifications are set up the next step is to identify the various
channels through which the required man power can be traced out. The various channels are

 Employee Referrals
 Consultancies
 Internal Job Postings
 Advertisements in newspapers
 Walk-In Interviews

SOURCING OF SUITABLE CANDIDATES

Selection of Sources
HR would tap various sources/channels for getting the right candidate. Depending on the nature
of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR
would use any one multiple sources such as:

 Existing database (Hire craft software)

 Employee referral as per company scheme that may be approved from time to time
 Advertisement in the internet/newspapers/magazines/company’s sites/job sites
 Placement Agencies
 Direct recruitment from campuses/academic institutes
 Walking interview

Number of positions, criticality of positions and the urgency of the positions,

confidentiality requirements, relative efficacy and cost considerations would play a role in the
choice of the appropriate sourcing mechanism.

Screening the candidates

The CVs which are shortlisted after vigorous checks are called for the interview. In L & T
Educational background and years of experience plays a vital role in the process. Based on the
level of experience and the post applied for, either two or three rounds of interviews are
conducted. Before coming for the interview candidate have to fill the employment application
form which is seven pages form including the proof of the claims made by the candidate
regarding qualifications, experience, reference, existing salary structure and other achievements.
Scheduling and the venue of the interviews would be handled by the recruitment team in
consultation with the short listed candidate and the selection panel members, after taking mutual
convenience into account.
Interview stage:
In L & T there are two grades lower level S & E CADRE and higher level COV CADRE.
For S & E CADRE there are two rounds of interview, first round of interview is taken by two
panel members who are immediate superior boss and second round of interview is taken by head
of the department. For COV CADRE there are three rounds of interview, first round is handled
by the two panel members who are immediate boss, second round is taken by SBU head or CEO
depending upon the position and third round has been taken by HR expertise.
Ratings on various attributes of the candidates shall be recorded in the interview evaluation sheet
and CP rating form soon after the interview is over. Along with these numerical ratings,
qualitative observations about the candidate and overall decision regarding selection or otherwise
(including a decision to defer the induction, referral to another panel, considering for another
position) shall be forwarded to the associated Recruitment Manager/ Head of Regional HR.
Individual panel members have the option of appending their additional remarks/observations.
Any discrepancies noticed by the panel members regarding the authenticity of the data provided
by the candidate should be specifically and formally recorded on the interview evaluation sheet
form and suitably high lightened. Specific points to be probed during the reference check
process, if any, must also be clearly recorded and high lightened on the IES forms.

Offer discussion
After the final round, if the candidate is selected, the complete set of papers Employment
application Form, CV, Interview evaluation form, CP rating form , All the educational
documents of candidate, along with the interviewer’s recommendations and Reference check
form should be forwarded by the recruitment managers to recruitment head. Fitment of the
candidate into a grade and compensation fitment shall be on the assumption of authenticity of the
information provided in the CV/application form. An appropriate formal communication shall be
sent to the candidate who is not selected.
When the candidate is found suitable his/her last earning salary is kept the benchmark and based
upon that salary is structured out. In the case salary break up the assistant managers will be
allowed to fix the salary, provided the compensation does not exceed 20% of the candidate’s
current cash salary. Any fitment beyond this norm will need the approval of Head-HR. On
matching the organization expectation and candidate aspiration the offer is given to the
candidate.
Responsibility for negotiations and finalization of the terms shall rest with Head HR Manager.
They may seek the assistance of the Assistant managers, whenever required. Reference checks
process should not normally be initiated unless the candidate has indicated his firm acceptance of
the offer being made by assistant manager.

Reference checks
Normal, reference checks should be undertaken with at least one reference. A second reference
check will be done if considered necessary. Wherever feasible and considered appropriate, a
reference should be made with a senior official of the candidate’s current employer. Where there
is a mixed response from different sources, the matter may be to the Head-HR for a final
decision. Depending on the seniority and any other considerations about the positions, Head-HR
would normally consult the functional head concerned, before coming to conclusions. Any
candidate whose credentials are doubtful shall not be recruited.

Employment offer letter

When a recruitment Manager is fully satisfied about the selection of the right candidate and
about completion of all the formalities connected with the appointment of candidate including
requisite documentation, satisfactory reference check reports and medical fitness, he would
forward the relevant papers listed below to the Head HR manager.
 Employment application form
 Interview evaluation sheet filled by the Departmental head with his/her comments
 Latest and updated resume of the candidate
 Photocopy of the appointment letter of the last employer
 Highest Education certificate
 1 Month Salary Slip of Current Employer
Assistant HR manager will forward the papers to the HR Manager for signature and issuance of
the offer letter. It would be the responsibility of the HR Manager to ensure that the accepted copy
of the offer letter is forwarded to the General Manager within a week of receipt of the offer
letter. Till this letter is issued, the ‘offer’ has not taken place in formal sense. A copy of the offer
letter shall be duly signed and returned to the candidate. Candidate would be expected to fulfill
various joining formalities, which are also formally communicated to him/her in the form of a
checklist that is attached to the letter of offer. The Assistant HR Manager shall have the overall
responsibility and accountability to maintain the templates of the offer letters and send it to the
candidate for accept the offer.

Medical Tests
Once the candidate accepts the offer, the candidate has to undergo a formal medical test
conducted by the organization itself
Joining
If the candidate passes the medical test, the date of joining is decided and the candidate joins the
company on the specific date.
All these steps take certain amount of time to get completed. Each stage adds up to the cycle
time of the hiring process.

5.3 FACTORS AFFECTING THE RECRUITMENT PROCESS OF L & T:

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be controlled
by the organization. And the external factors are those factors which cannot be controlled by the
organization. The internal and external forces affecting recruitment function of an organization
are:
Internal Factors Affecting Recruitment
The internal forces i.e. the factors which can be controlled by the L & T are:
Recruitment Policy
The recruitment policy specifies the objectives of recruitment and provides a framework for
implementation of recruitment programme. It may involve organizational system to be developed
for implementing recruitment programmes and procedures by filling up vacancies with best
qualified people. The recruitment policies depend upon the following factors;
 Organizational objectives
 Policies of the organization and its competitors.
 Government policies on reservations.
 Preferred sources of recruitment.
 Need of the organization.
 Recruitment costs and financial implications.

Human Resource Planning

Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.

Size Of The Firm

The size of the firm is an important factor in recruitment process. If the organization is planning
to increase its operations and expand its business, it will think of hiring more personnel, which
will handle its operations.

Cost
Recruitment incur cost to the employer, therefore, organizations try to employ that source of
recruitment which will bear a lower cost of recruitment to the organization for each candidate.
Growth And Expansion:
Organization will employ or think of employing more personnel if it is expanding its operations

External Factors Affecting Recruitment

The external forces are the forces which cannot be controlled by the organization. The major
external forces are:
Supply And Demand
The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more professionals and
there is limited supply in the market for the professional demanded by the company, then the
company will have to depend upon internal sources by providing them special training and
development programs.

Political-Social- Legal Environment

Various government regulations prohibiting discrimination in hiring and employment have direct
impact on recruitment practices. For example, Government of India has introduced legislation for
reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc.
Also, trade unions play important role in recruitment. This restricts management freedom to
select those individuals who it believes would be the best performers. If the candidate can’t meet
criteria stipulated by the union but union regulations can restrict recruitment sources.
Unemployment Rate
One of the factors that influence the availability of applicants is the growth of the economy
(whether economy is growing or not and its rate). When the company is not creating new jobs,
there is often oversupply of qualified labor which in turn leads to unemployment.

Competitors
The recruitment policies of the competitors also affect the recruitment function of the
organizations. To face the competition, many a times the organizations have to change their
recruitment policies according to the policies being followed by the competitors.

5.4 Factors causing lag in cycle time of L & T EAOC recruitment process

Requirement gathering from various sources

The initial requirement gathering can come from different types of sources. Here the source
refers to the line managers who find out the needs in his/her area of expertise or function. There
may be minute differences between each requirement which needs to be studied properly while
gathering the requirements.

Source Finalization
As the requirement comes up it is now the time to make or take the right decision to get the
positions filled up quickly.

Short listing of CVs

Short listing the best CVs from the huge bunch of application is quite an uphill task. If short
listing of CVs is not done properly then there may be a lot of rework to be done and which
ultimately may cause the cycle time to move in the upward direction.

Scheduling of Interviews
Scheduling of interviews is one the most important tasks which needs to be performed
accurately. If the time gap between two interviews is not calculated and managed properly it may
cause a huge delay in the hiring process. If there is a walk-in interview then managing them
becomes all the more important since huge candidates turn up for the interview and if each one
of them is not attending respectfully and rightly then it may lead to increase in cycle time.

Interview Feedback
The feedback after the interview should be collected as quickly as possible. Whether the
candidate is selected or rejected generally should be informed quickly so that manager can plan
the future course of action immediately. Sometimes this collection of feedback takes a
considerable amount of time.

Document Collection
The collection of documents like the candidates educational documents, work exp letters for the
purpose of verification is very important. If all the documents are not verified properly then a
considerable amount of time is wasted in following up with the candidate.

Offer Making
An Offer making is a very important process which needs to be carried out properly. Since this is
a manual work there may be lot of mistakes which turn up during the process causing rework.
And as the level of approvals increases as the rise in the percentage of salary crosses 30% it
creates a huge time lag.

Joining Time
Some candidates have notice period to be served in their present organization before quitting. So
this should be analyzed and studied properly. Sometimes the notice period is too long up to
which the organization cannot afford to wait. This may lead to increase the cycle time of
recruitment.

5.5 TYPES OF INTERVIEWS WHICH MOSTLY FOLLOWED BY L & T

WALK IN
Walk in interviews are the most common form of conducting interviews. Generally this is done
when a large scale of people is required. This can be generally done through the release of
advertisements in the leading news papers. Organizations generally conduct walk-in interviews
to source personnel to meet their immediate need. In today’s business world where growth and
achievement of target is the mantra, companies need staff on short notice for fulfillment of their
projects. It may not be suitable to wait for completion of long procedure involved in usual
recruitment process. In order to tackle a projected shortfall in target, to upgrade the target with a
view to tap improving opportunities in the market, meet the unexpected demand in products and
services, to fill the gap in human resource availability in-house due to increasing attrition, etc.
companies resort to walk in interviews. Generally candidates in marketing and sales, fresher’s,
production and technical staff, operational staff and many other categories find opportunities in
walk in interview venues. Company advertise the interview schedule and positions to be filled,
along with venue details and offers. Usually successful walk in candidates get an offer instantly,
and are required to join the company immediately.

MEETING OF CONSULTANTS WITH BUSINESS

The requirements can be outsourced to the consultants. After having a meeting with the business
heads from time to time the exact requirement can be studied and based upon that the CVs can be
shortlisted and interviews to be conducted.

BATCH INTERVIEWS
Batch interviews are generally conducted when the requirements are of medium scale and the
time is very less. Here normally mailers are sent to the candidates rearing the interviews and they
are called for the interview. Normally a week’s time is given to the candidate and they need to
confirm their participation.

EMPLOYEE REFERRALS
Employee referral is one the most widely used interview techniques. Here generally a target
mailer is sent to the employees of the organization describing the job profile. The employees
send the CV of their referral and based upon certain other criteria they are called upon for the
interviews. Generally within one week before the target mailer is released so that the employees
can source their referrals

5.6 Interviews at L&T EAOC division

Quality Control Interviews at Navi Mumbai:

There was a requirement for the post of quality engineers which specialization the field of PLC
For this purpose the employee referral concept was used. The referrals sent in their referees CVs
and they had to book an appointment for the interviews. Nearly 40 entries had come and after the
initial HR eligibility screening 30were moved to the first round.10 were shortlisted for the
second round and finally 4 were selected. Here we made sure that to reduce the overall cycle
time the 2nd round was also conducted in the same day and the offers were also released the same
day. So within one week the entire hiring process was successfully completed.

Software Engineer-Interviews at Navi Mumbai:

Oracle, Java, J2EE , DB2, DOT Net and VB have become an important part of this vastly
developing IT world. As a result people specialized in these areas have a lot of opportunity to
grow higher.
At L&T’s Navi Mumbai, for Control & Automation Department, there were plenty of openings
for the post of software engineers. Here also the employee referral was used for the short listing
of the CVS. Here also to reduce the cycle time on the same day 2 rounds of interviews were
conducted and the offers given.

Sales Interviews at Navi Mumbai:

For the position of Sales engineers an urgent requirements had come up suddenly. With time
frame too short it was decided to conduct telephonic interviews. For this purpose through
consultancy ten CVs was shortlisted. First telephonic round was conducted, than four CVs were
shortlisted. Next day candidate called for the second round of personal interview. After two
rounds of interview two candidates were selected and offer made to them on the same day. This
entire process take one week.
5.7 SWOT Analysis of L & T EAOC division

STRENGHT
 Brand equity of L&T
 Proper reference checks to ensure that only good candidates are appointed.
 Adequate number of channel partners to generate footfalls for each location.

WEAKNESS
 Lengthy pre-offer formalities
 Pre assessment tests are costly

OPPORTUNITY
 Campus recruitments have huge potential for fulfilling manpower requirements cost
effectively
 Tie up with recruitment agencies on supplying fixed number of footfalls week on week.
 Develop exclusive contract with channel partners to meet the manpower requirements.
 Reduce turnaround time of making an offer

THREATS
 Increasing number of private players in automation sector creates ample choices, frequent
and easy mobility for employees
 Increasing spill over as a candidate has more than one offer at the time of making a job
shift.
 Same channel partners are handling all automation companies. This leads to same pool of
candidates being circulated to all partners.
 CHAPTER 6:SUGGESTIONS & CONCLUSION

6.1 SUGGESTIONS

Compress the "white space" in hiring process

White Spaces are delays in hiring process that are unproductive, waste time, and virtually assure
you'll lose talented candidates. Often the longest delays occur between critical selection events.
For example, a recruiter may need several weeks to screen a few hundred resumes from the Web
job boards, or candidates who make it through screening may wait weeks to interview with a
hiring manager.
Here at L & T Automation, the delays occur when the outstation candidates are called for
interviews at Regional branches like Mumbai. Sometimes, because of busy schedule of senior
managers and sometimes because of tight schedule of candidate, the interview has to be
postponed. This delay could be minimized by scheduling interviews in the regional locations. It
is recommended to reduce the turnaround time for the recruitment and selection process. It must
be made mandatory for the candidates to take the test, filling up forms etc within the stipulated
time, this will make sure that the candidates do not hold casual attitude and take the recruitment
process more seriously. Additionally it can send across a positive image about the company. 
White space in recruitment can be compressed by the use of IT also. Technology (such as
automated or Web-based tracking) is ideal for eliminating unnecessary steps and reducing
delays.

Tie up with more & more consultants from multiple segments

Since the limited placement agencies are sourcing candidates to all automation companies, there
often comes the problem of duplication of data. Therefore it is recommended that more and more
consultants should be tied up from multiple segments to attract large pool of new and fresh
talent.

Know what you're looking for in candidates

It is observed that the candidates sourced by placement agencies and send for further rounds of
interviews are rarely found suitable by the hiring managers. Therefore, in case there is need to
utilize the service of a placement agency, then it is recommended that these placement agencies
be given a well drafted job description and job specification. This can also be circulated to
internal employees under the employee referral scheme. This will help people to get a clearer
picture and provide for most suitable candidates.

Reduce the pre offer formalities

Pre-offer documentation includes filling of a lengthy Employment application form which
includes all personal, educational and professional details of candidate. This is very time
consuming and even after taking these details from candidate it’s not sure that offer will be made
or not. This also becomes frustrating for the candidate sometimes. So, it is recommended that
unnecessary details should not be asked before we make the final offer to the candidate. Form
should be made concise.

Create winning impression even on those who are not selected

It’s very important to create a favorable impression of your organization on all those who come
for interview. Those who are not selected in the first round of personal interview should also
carry this impression that they have missed the opportunity to work in a great company.  For this,
there must a proper coordination of the interview of the candidate and greater degree of
professionalism. A candidate when invited for an interview must be attended as soon as possible.
Interviews conducted on a scheduled time leave a good impression on the candidate. Even if he
is not selected, a good impression about the will make him recommend the name to his people.
It is recommended that apart from the person-job fit, method must be devised to check for
person-organization fit. A person-organization helps to assess how well a candidate is suited the
organization. Whether the attitude he/she carries will promote both organizational as well
personal goals. This takes a great importance especially when attrition is high. It will help the
organization to retain its employees for a longer period of time and less burden on recruitment
staff.

6.2 CONCLUSION

Recruitment is critical function in the organization. In order to grow and sustain in the
competitive environment it is important for an organization to continuously develop and bring
out innovations in all it activities. It is only when organization is recognized for its quality that it
can build a stability with its customers. Thus an organization must be able to stand out in the
crowd.

The first step in this direction is to ensure competitive people come in the organization.
Therefore recruitment in this regard becomes an important function. The organization must
constantly improvise in its recruitment process so that it is able to attract best in the industry in
order to serve the best. Thus the organization must look out for methods that can enable it to
adopt best recruitment practices.

Typical reasons for offer rejections include better opportunities in other organizations, career
growth within the recruiting organization, compensation and benefit structures, designations etc.
The recruitment organization can realistically manage expectations and negotiate on behalf of
both the client and the candidate by capturing requirement and candidate information in graphic
detail. The recruitment organization should also be able to whistle blow and commence rework
immediately in the likelihood of the candidate declining the offer or dropping out to minimize
the time lag to get an alternate candidate on board.
It is becoming quite obvious that most of the pains in the recruitment business points not to the
capability or the absence of it in a recruiter but to the absence of robust process framework.
Establishing and installing a strong process framework spanning across the lifecycle stages of
recruitment yields phenomenal business benefits in terms of scalability of operation, operational
efficiency, productivity and profitability.

Bibliography

www.larsentoubro.com
www.citehr.com
www.google.com
www.wikipedia.com
http://recruitment.naukrihub.com/importance-of-recruitment.html
Documents provided by L&T