Major
Content
CHAPTER-1
OBJECTIVE OF STUDY
For every problem there is a research. As the researches are based on some objective my main objective of the research is to study the recruitment process of Sti Sanoh India Ltd.
The other objectives are as follows: • To critically analyze the recruitment process of company. • To gain familiarity about the work culture and environment in this company. • To know whether the present recruitment policy is helping the organization to improve the quality and efficiency of their employees and their work. • To understand the factors affecting recruitment policy of company. • To identify the short comings in the recruitment and selection process. • To know the existing method of recruitment in company.
RESEARCH METHODOLOGY
Research methodology is understood as a science of studying how research is done scientifically. In it various steps are studied that are generally adopted by a research in studying his research problem along with the logic behind them. The research undertaken by me in this project is EXPLORATORY RESEARCH. The total sample size taken is 25. In this survey I have used non random sampling or merely specifically convenience sampling as per their ease and availability.
The research methodology adopted for this can be stated as below:• An extensive study of the topic through various sources and data available in books, journals and internet, and handbook of Sti Sanoh India Ltd. • A questionnaire was formulated so that to know the views and responses of the employees and analyze them.
Data was collected from people working at Sti Sanoh India Ltd. The questionnaire was distributed to 25 employees of the company, who are holding responsible positions in the company.
Methods of Data Collection: - The data for this research has been collected both from primary as well as secondary sources.
Primary sources were:• Direct Observation: I collected the data for this research by direct observation method. I made visits to the office, which provided me clear understanding and view about the attitude and behavior of employees at workplace. • Questionnaire Method: - the questionnaire in printed form was sent to the employees with a request to fill it. There was a systematic and particular question sequence. The data I got from this questionnaire proved to be very valuable for me in this research. The aforesaid questionnaire is attached in the annexure.
Secondary sources were:• Annual reports and other publications of the organization. • Magazines • Reference books. Procedure:The procedure for the research conducted was as follows:
• Study the present system of recruitment of the organization • Designing a questionnaire • Analysis of the questionnaire filled by people • Arriving at conclusions.
CHAPTER-2
About the Topic
Recruitment Process Introduction
Recruitment is an important part of a business' human resource planning. In all businesses, people are a vital resource - and they need to be managed as such. The overall aim of the recruitment process is to obtain the number and quality of employees that are required in order for the business to achieve its objectives. Recruitment is becoming more and more important in business. In particular, this reflects the increasing need for a well-motivated and flexible workforce that requires less management supervision. Recruitment is defined as, “a process to discover sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.” Edwin B. Flippo defined recruitment as “The process of searching for prospective employees and stimulating them to apply for the job in the organization.”
Objectives of Recruitment
• To attract people with multi- dimensional skills and experiences that suit the present and future organizational strategies, • To induct outsiders with a new perspective to lead the company, • To infuse fresh blood at all levels of the organization, • To develop an organizational culture that attracts competent people to the company, • To search or head hunt/ head pouch people whose skills fit the company‟s values, • To devise methodologies for assessing psychological traits, • To seek out non- conventional development grounds of talent, • To search for talent globally and not just within the company, • To design entry pay that competes on quality but not on quantum, • To anticipate and find people for positions that does not exist yet.
Stages of Recruitment
It involves following stages:Stage 1: Authorization This ensures the recruitment process is agreed by senior management as compatible with the organizational/ departmental business objectives, i.e. necessary, timely and cost- effective. It provides as ideal opportunity for management to: • Debate the potential for restructuring workloads and departments and the redeployment of surplus staff; and • Delay or eliminate expenditure on staffing and recruitment budgets. Stage 2: Job analysis JOB DESCRIPTION Within this stage are the processes of writing a description of the job to be filled and drawing up a list of requirements for the successful candidates. The writing of a job description enables the recruiter to know exactly what the purpose, duties and responsibilities of the vacant position will be and its position within the organization structure.
PERSONNEL SPECIFICATION The personnel specification is a document specifically introduced to assist the recruitment process and its drawn up to identifies the required characteristics of the new recruit.
The personnel specification attempts to list the requirements of any applicant usually under „essential‟ and „desirable‟ headings. This forms the basis of the advertisement and the selection process. Stage 3: Agree terms and conditions Decisions on terms and conditions of employment are made at various points in the recruitment and selection process. Some of these are often not negotiated (e.g. hours, reward) until the final selection stages. Within this prescription approach, however, there is a case for deciding the salary band (if not the specific amount) and other elements of the rewards package prior to attracting candidates. An indication of salary and wage gives the potential applicants a realistic picture as to whether the job is suitable. Stage 4: In-house v external recruitment One view is that a vacancy provides an opportunity to promote from within, particularly in times of flattening hierarchies and fewer opportunities to move up the organizational ladder. This may have beneficial effects on morale and also highlight employees who express a desire to further their careers within the organization. In times of recession and falling numbers the opportunities to redeploy those who would otherwise be made redundant must also be considered, with the satisfaction of going some way towards meeting an individual‟s need for security. The failure to examine the talent available outside the organization may well mean that the „best candidates‟ are being overlooked and that the organization is too introspective. A balance must be found between
recruiting those most suitable to hold the position, satisfying the letter (and spirit) of the legislation, and avoiding the perception of wasted time and expenditure that an external recruitment campaign can bring to managers, existing employees and applicants when an internal candidates is eventually selected. Stage 5: Decide target groups Deciding target groups depends to a large extent on the requirements of the personnel specification. For positions where the possible source of suitable applicants is much wider (e.g. trainee positions requiring no previous experience, or those where there is no requirement for qualifications), opportunities exist to target potentially disadvantaged groups, for example long-term unemployed, the homeless, disabled people and ethnic minorities. This would project a caring and socially responsible image, with the possible benefit of high retention rates in the organization.
Stage 6: Decide appropriate recruitment methods Traditionally the message is communicated through the use of newspaper and journal advertisement. Possible options available to a particular organization are listed below:• Internal existing employees- Internal advertising may be requirement for some organizations under union negotiated agreements. It includes self applicants, supervisor/manager recommendations and succession planning.
• Using existing contacts- It includes unsolicited enquiries, previous applicants, previous employees, existing employee contacts. • External contacts- It includes union referrals, professional referrals, job centers, outplacement consultants, head hunting, colleges, universities. • Advertising/ media- An overlap between advertising and previous methods discussed frequently exists. Recruitment agencies can provide external expertise. It includes press, television, radio, cinema, posters, careers exhibitions, conferences.
Stage 7: Design of communication Advertisements are compiled bearing in mind the following criteria: • Person specification must be the basis for outlining the appropriate information concerning the job requirements; • The description of the employing organization should be realistic, factual and clear; • Job location, pay and additional allowances should be specified; • Clear instructions should be given as to the application procedure, i.e. whether a CV should be sent or whether to telephone or write for an application form; • Advertisement must not discriminate on the grounds of sex or race except in specific circumstances as detailed under the relevant sections of the Race Relations Act or Sex Discrimination Act.
Stage8: Responding to the applicants The response to the original communication must be thought through and, it is argued, be indicative of the image the organization wishes to project throughout the whole recruitment and selection process. As the vast majority of applicants will be unsuccessful in obtaining the position it follows that care is needed in handling this negative experience in a way that enhances the organization image. Where application forms are being used they should be sent out quickly, checks having been made that they are appropriate for the type and level of position on offer. All correspondence should be acknowledged quickly and at all times the applicant should know the stage his or her application has reached.
Stage 9: Evaluation Throughout the recruitment process cost are being incurred which include: • Recruiter‟s salary; • Management and professional time spent on preparing job description, personnel specifications, advertisements, agency liaison, etc; • The cost of advertisement and other recruitment methods, e.g. agency fees; • Cost of producing supporting literature; • Recruitment overheads and administrative expenses; • Cost of overtime or subcontracting whilst the position remains unfilled; • Cost of recruiting unsuitable candidates for the selection process.
Questions should always be asked as to whether the recruitment methods used were valid and the recruitment process itself effective. Statistical information on the cost of advertisements, time taken for the process, the position regarding the applications from under- represented groups and, above all, the suitability of the candidates for the consideration in the selection process should be gathered and evaluated.
Evaluate Your Recruitment Process Success
A recruitment process is successful not when a position has been filled by a worthy candidate. This is just a part of the success. Real success arrives when the position does not ask for another repetition of the recruitment process – that is, when the candidate hired does not quit the company for compatibility reasons. Employee compatibility can be determined by, well, the employee himself. Currently how many companies try to see the candidate point-of-view while recruiting him/her? How many of them run “will fit in the organization” tests? Worst, how many people give candidate opportunities to decide for himself whether he‟ll fit in or not? Sadly speaking, not many. A candidate knows by instinct and experience whether he/she will be happy working in a particular company. Taking a scenario as an example, a candidate is evaluated as being fit for both sales and marketing departments. Her choice is marketing but because she is good at sales also, the firm puts her into direct sales department. The result: employee jumps ships when confronted with a marketing department job offer in some other company. This is a classic case of recruiting process made simple but unsuccessful in the long run.
Sources of recruitment The sources of recruitment are broadly divided into internal sources and external sources. Internal sources are the sources within an organizational pursuit. External sources are sources outside the organizational pursuits. Internal sources: - internal sources include the following: • Present Permanent Employees: Organizations consider the candidates from this source for higher level jobs due to: availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands, to the policy of the organization to motivate the present employees. • Present temporary or casual employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade and pressures or in order to motivate them on the present job. • Retrenched or retired employees: Generally a particular organization retrenches the employees due to lay- off. The organization takes the candidate for employment from the retrenched employees due to obligation, trade union pressure and the like. Sometimes the organization prefer to reemploy their retired employees as a token of their loyalty to the organization or to postpone some inter- personal conflicts for promotion etc. • Dependent of deceased, disabled, retired and present employees: Some organization with a view to developing the commitment and loyalty of not only the employee but also his family members and to build up image provide employment to the dependent(s) of deceased, disabled and present
employees. Such organizations find this source as an effective source of recruitment. External Sources: - external sources include the following: • Campus recruitment: Jobs in commerce and industry have become technical and complex to the point where college degrees or diplomas are widely required. Consequently, big organizations maintain close liaison with the universities, vocational institutes and management institutes for recruitment to various jobs. Recruitment from educational institutes is a well established practice of thousands of business and other organizations. Reputed industrial houses which require management trainees send their officials to campuses of various management institutes for picking up talented candidates doing MBA. • Private employment agencies/ consultants: Consultants in India perform the recruitment functions on behalf of a client company by charging fee. Line managers are relieved from recruitment functions so that they can concentrate on their operational activities and recruitment function is entrusted to a private agency or consultants. Most of the organizations depend on this source for highly specialized positions and executive positions. • Public employment exchanges: The government set up public employment exchanges in the country to provide information about vacancies to the candidates and to help the organizations in finding out suitable candidates. The Employment Exchange Act, 1959 makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. These industries have to depend on public employment exchanges for the specified vacancies. • Casual Applicants: Depending upon the image of the organization, its prompt response, participation of the organization in the local activities, level of
unemployment, candidates apply casually for jobs through mail or hand over the applications in Personnel Department. This would be a suitable source for temporary and lower level jobs. • Similar organizations: Generally, the experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get most suitable candidates from this source. This would be the most effective source for executive positions and for newly established organization or diversified or expanded organizations. • Trade unions: Generally, unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter‟s intimacy with the management. As such the trade union leaders are aware of the availability of the candidates. In view of this fact and in order to satisfy the trade union leaders, management enquires trade unions for suitable candidates. Management decides about the sources depending upon the type of candidates needed. Modern sources of recruitment A number of modern recruitment sources are being used by the corporate sector in addition to traditional sources. These are: • Walk- In: The busy organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. The suitable candidates from among the interviewees will be selected for appointment after screening the candidates through tests and interview.
• Head hunting: The companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants. • E- Recruitment: It covers a range of Web-based application tools used for the provisioning (typically) of human resources. These applications assist in the recruitment of suitable candidates for vacant positions. Some applications do this by semi-automating the entire recruitment and hiring process. E-recruitment applications (or software packages that are webenabled) typically enable recruitment teams to create job postings, manage job application responses, schedule interviews and manage other recruitment tasks. This dramatically reduces the labor and money spent on physical recruitment. E-Recruiting or electronic recruiting is the process of using internet based software to attract, screen and recruit suitable job candidates. E-Recruiting reduces the cost of the recruitment process, reduces the time taken to identify appropriate candidates and helps organizations improve the quality and quantity of the applicant pool. • Business alliances: Business alliances like acquisitions, mergers, and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis.
Factors affecting recruitment Both internal and external factors affect recruitment Factors affecting recruitment
Internal factors • Company‟s pay package • Quality of work life • Organizational culture • Company‟s size • Company‟s products/services SC/ST • Geographical spread of the company • Company‟s growth rate • Role of trade unions • Cost of recruitment • Company‟s name and fame
External factors Socio- economic factors. Supply and demand factors. Labor market conditions. Political, legal and governmental factors like reservations for
and sons of soil. Information system like employment exchanges/tele-recruitment like internet.
Centralized Vs. Decentralized Recruitment Recruitment practices vary from one organization to another. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian railways resort to decentralized recruitment practices. Personnel
department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel departments at unit level/ zonal level perform all the functions of recruitment concerning to the jobs of the respective unit/ zone. Merits of centralized recruitment • Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. • It would have more expertise available to it. • It can ensure broad uniformity among human resources of various units/zones in respect of education, skill, knowledge, talent etc. • It would generally be above malpractices, abuse of power, favoritism, bias etc. • It would facilitate interchangeability of staff among various units/ zones. • It enables line managers of various units and zones to concentrate on their operational activities by relieving them from the recruitment functions. • It enables the organization to have centralized selection procedure, promotional and transfer procedure etc. • It ensures the most effective and suitable placement to candidates. • It enables centralized training programmer which further brings uniformity and minimizes average cost of staff. Despite these advantages of centralized recruitment some organizations resort to decentralized recruitment for the following reasons:
Merits of decentralized recruitment • The unit concerned concentrates only on those sources/ places where it normally gets the suitable candidates. As such the cost of recruitment would be relatively less. • The unit gets most suitable candidates as it is well aware of the requirements of the jobs regarding cultural, traditional, family background aspects, local factors, social factors etc. • Units can recruit candidates as and when they are required without any delay. • The units would enjoy freedom in finding out, developing the source, in selecting and employing the techniques to stimulate the candidates. • The unit would relatively enjoy advantage about the availability of information, control and feedback and various functions/ processes of recruitment. • The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. Both the systems of recruitment would suffer from their own demerits. Hence, the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment.
Hiring Alternatives Even though an organization‟s human resource plan may suggest that additional or replacement employees are needed, the organization may use an alternative to recruitment. This safeguards the organization from the cost and permanency of recruiting individuals. Some of these alternatives are: • Overtime: On a limited and short term basis, having employees work overtime may be an alternative to recruitment. Employees may be assigned overtime when a firm faces pressures to meet a production goal. Overtime is an attractive alternative because it is a temporary increase in staff and helps the organization avoid the cost of recruiting and having additional employees. This provides employees with additional income. For the organization it means using experiences, knowledgeable employees who do not require any additional training or orientation. However, there are potential problems with fatigue, increased accidents, and increased absenteeism. • Temporary help: One of the outcomes of the downsizing epidemic and skill shortages has been a dramatic rise in the use of temporary employees. Historically, temporary employment agencies were seen only as sources of semiskilled clerical help during peak work periods. Today, the temporary employees can be found staffing all types of jobs in the organizations, including professional, technical, and higher executive positions. Temporary help agencies provide trained and experienced personnel who can be put to work quickly and also removed. Temporary help is less costly than hiring new permanent employees. The cost advantage stems from the fact that organization does not have to provide fringe benefits, training or compensation and a career plan. The temporary can move in and out of the
firm when the workload requires such movement. Thus, the organization enjoys flexibility in responding to changes in demands for workers. A disadvantage of hiring temporary help is that these individuals are not familiar with the culture/ workflow of the firm and thus may not have as much commitment. • Employee leasing: Also called “staff sourcing” involves paying a fee to a leasing company that handles payroll, employee benefits, and routine HRM functions for the client company. The leasing company is the legal employer of the leased employees. The temporary employee, on the other hand, receives his pay and benefits from the hiring company and not from the temporary help agencies. Leasing is especially attractive to small and midsized firms that might not otherwise be able to afford a full service HR department.
About the Company
S. No.
1 2 3 4 5
Company Name CEO Founded: Stock Listing: Main Products:
Sanoh Industrial Co., Ltd Yozo takeda March 24, 1939 Tokyo Stock Exchange, First Section Brazed Steel Tubing, Welded Steel Tubing, Stainless Steel Tubing, Fuel Injection Rails, Mono-layer Tubing, Multi-layer Tubing, Various Fluid Handling Systems
(water, oil, air, counter-exhaust gas, fuel, gas, etc.), Quick Connectors, Aluminum Pipe Intake Manifolds, Automotive Seat Belt Buckles, Shoulder Adjusters, Wire Condensers, Ni-MH Batteries, etc. 6 7 Employees Headquarters 1,964 (As of March 31, 2011) Location sgsss building 2-3-6 shibuya-ku, Tokyo 1500002, Japan 8 Founded: March 24, 1939
BUSINESS PERFORMANCE
The domestic economy during the first quarter of this year has remained in a growth trend due to improvements in corporate earnings, increases in capital investment, etc.; however, export activities to China, Europe and elsewhere are in a declining trend, and the situation remains uncertain due to factors such as the increasing prices of the crude oil. Under these circumstances, the Sanoh Group made strong efforts to increase sales of our main products: tubular products for automotive and transportation equipment and plastic automotive parts, and
furthermore, we coordinated sales promotions utilizing our corporate network of subsidiaries and affiliated companies both within Japan and abroad .
PRODUCTS
1. METAL TUBING
Brazed Steel Tubing
Welded Steel Tubing
PA-Coated Tubing
PC-Coated Tubing
Stainless Steel Tubing
2. PLASTIC TUBING
Mono-Layer Tubing
Multi-Layer Tubing
Convoluted Tubing
3. CHASSIS PRODUCTS
Cluster Tubes for Brake and Fuel Lines
Brake Tubes
Plastic Tubular Products
Quick Connectors
Pretensioner Tubes
Automotive Seat Belt Buckles & Shoulder Adjusters
4. BRAZED PRODUCT
Brazing is the process of firmly welding together individual metal parts using a welding base metal with a lower melting point than the materials being welded. The Brazing Division manufactures various brazed automotive components made from iron, stainless steel, and aluminium.
Fuel Injection Rails (FIRs)
High-Pressure Fuel Injection Rails (FIRs)
Exhaust Gas Re-Circulation Pipes
Water Tubes
Fuel Senders
Aluminium Pipe Intake Manifolds
Oil Cooler Tubes
Compact Radiators for Motorcycles
5. CONDENSERS
Wire Condensers
Escargot Type Wire Condenser
6. Ni-MH BATTERY
ALL EQUIPTMENT IS MADE IN-HOUSE
All of Sanoh's production process equipment is made in-house, with design, development, and assembly performed in the Engineering Centre.
Sanoh's policy of maintaining open communication between all departments (production, development, quality control, and marketing) promotes increased productivity, and results in innovative products of superior quality at lower costs. We use our process equipment in daily production, and practical improvements to the specifications and usage are readily possible. This is an invaluable strength, and greatly differentiates Sanoh from specialized equipment makers.
Sanoh has already commenced global sales of this process equipment, and the results have been successfully expanding.
EQUIPMENT EXAMPLES
CNC-T Bender The bender most suitable for processing the bending of tubing such as brake and fuel lines for automobiles. Function-oriented with high cost performance and the know-how of a tubing and fabrication company.
CNC-LR Bender The bender most suitable for processing the bending of long lengths and fuel tubing for automobiles. It can be controlled by the three-shaft serbomotor with a free choice of bending with right and left turns, so it can have the precise and complicated results.
RECRUITMENT PROCESS IN STI SANOH INDIA LTD
Sti Sanoh India Ltd is an organization which tries to give ample opportunity to young and talented engineers and other non- technical candidates for different departments from every part of the country and even tries to recruit candidates from B/C class cities. Sti Sanoh India Ltd allows a scientific HR process with well defined job descriptions, technical, aptitude and psychometric tests, followed by a rigorous induction program with continuation of on the job training. Before the recruitment process starts Human Resource Planning is done to know the requirements and to create vacancies for new employees for every department in the organization. A budget is prepared to spend on recruitment process.
RECRUITMENT PROCESS
HRP
Advertisements (In leading newspapers i.e. TOI, HT, EN and Sti Sanoh India Ltd website)
Hiring Agencies (For screening of applications and conducting written examinations)
Written Test
Personal Interview
Psychometric Tests (if required) (These are done for the persons operating trains to check that they should not suffer from colour blindness and they should be quick in response. This is done by special teams)
Medical examination (Sti Sanoh India ltd has contacts with prescribed government hospitals and candidates are sent there)
Final Placement
Orientation/ Induction classes
Training sessions
Both internal as well as external sources are used to recruit people. Internal sources are:• Departmental examination- LDCE (Limited departmental competitive examination) • Promotions External sources are:• Vacancies/ recruitment from open market. • Campus recruitment • Employment exchange
Recruitment
and
Selection
Process
of
Sti
Sanoh
India
Ltd
involves following stages:-
•
Human Resource Planning: - Organizations undertake human resource planning to enable them to meet their future "people" needs in the same way in which they plan for their nonhuman resources. Human resource planning as an information decision making process designed to ensure that enough
competent people with appropriate skills are available to perform jobs where and when they will be needed As such, "it entails defining the organization's human needs for particular positions and assessing the available pool of people to determine the best fit." This results in reduces labor costs as it helps the management to anticipate shortages and/ or surplus of manpower and correct these imbalances before they become unmanageable and expensive. It also serves as a tool to evaluate the effect of alternative manpower actions and policies. • Advertisements: - The aim of advertising is to make people aware that a vacancy exists and to persuade them to apply for the position. Good advertising highlights the assets of the position and appeals to the career needs and concerns of the desired applicants. It is worth making the advertisement effective and attractive, as there is a high correlation between advertisements with accurate and complete information and recruitment success. Sti Sanoh India Ltd decides to place an advertisement in the leading newspapers like Times of India, Hindustan Times and Employment News and also make use of e- recruitment by advertising for vacancies on its website. • Hiring Agencies: - These agencies provide a nation- wide service in attempting to match personnel demand and supply. These agencies help in
Sti Sanoh India ltd screening of applications received as a result of advertisements and also conducts written examination for the organization to ensure whether r they possess requisite skills or not. • Written Test:- Two types of written tests are conducted by the company theses are as follows• Technical test for engineers • Mechanical test for engineers The above tests are done to see whether the candidates fulfill the requirements or not. On the basis of these tests various traits of the candidate is analyzed. These traits include- Positive thinking, creative and lateral thinking, action oriented, courage in taking up a cause, saves labor, material and time, in- depth knowledge, application of knowledge, decisiveness under uncertain conditions and flexible in working. On the basis of above some of the areas looked for are- ability to work, technical skills, technical ability, ability to grasp new things, ability to reason, judgment, integrity, communication skills, leadership, values, interpersonal relations and conflict resolution. Once the candidate passes these written tests he is called for the interview which is structured as well as unstructured.
•
Personal Interview: - Once the candidate passes these written tests he is called for the interview which is structured as well as unstructured. All these interviews are conducted by HR persons of Sti Sanoh India Ltd. The main purpose of the interview are: a) to find out suitability of the candidate, b) to seek more information about the candidate, c) to give him accurate picture of the job with details of terms and conditions and some idea of organization‟s policies.
•
Psychometric Tests: - Tests of this sort are devised by occupational psychologists and their aim is to provide employers with a reliable method of selecting the most suitable job applicants or candidates. Psychometric tests aim to measure attributes like intelligence, aptitude and personality. They provide a potential employer with an insight into how well you work with other people, how well you handle stress, and whether you will be able to cope with the intellectual demands of the job. Psychometric tests fall into two main categories. Personality Questionnaires, which try to measure aspects of your personality, and Aptitude and Ability tests which try to measure your intellectual and reasoning abilities.
•
Medical examination: - A proper medical examination ensures higher standard of health and physical fitness of the employees and will reduce the rates of accident, labor turnover, and absenteeism. The advantages of
physical examination are- a) it serves to ascertain the applicant‟s physical capability to meet the job requirements, b) it serves to protect the organization against the unwarranted claims under workers compensation laws or against law suit for damages, and c) it helps to prevent communicable diseases entering the organization. • Final Placement: - After a candidate clears all the hurdles in the procedure, he is formally appointed by issuing him an appointment letter or by concluding with him a service agreement in which the candidate has to sign three year bond. • Induction classes: - Induction function is generally considered to be a part of hiring procedure. Induction is considered with introducing or orienting a new employee to the organization and its procedures, rules and regulations. This provides opportunity to employee to know about the organization and its people. A well managed orientation forms a good impression on the mind of the new employee which lasts long. It helps employee understand the social, technical and cultural aspects of the workplace. • Training Sessions: - Training increases the knowledge, skills and ability to do specific job. Training is given due importance in. Lot o Sti Sanoh India Ltd of time and money is spent on training the employees so that
they can give their best to the company. Training improves overall performance of the organization. it makes the workers handle machines, m Sti Sanoh India Ltd materials and equipment efficiently and thus to check wastage of time and resources. Also gives safety training to workers to reduce the numbers of accidents
DATA ANALYSIS
Q1. Do you think the prevalent recruitment process is cost effective? Reply respondents Yes No of No. of Percentage respondents 96% 4% of total
respondents 24 1
Comments: It is being concluded that recruitment process is cost effective because 24 employees out of 25 to whom questionnaire were distributed believed that it is cost effective and only one employee responded negatively may be because of lack of information.
Q2. Does recruitment process help organization to improve quality of the applicant pool?
Reply respondents Yes
of No.
of Percentage respondents 84%
of
total
respondents 21
No
4
16%
Comments: 21 out of 25 employees believed that recruitment process improve quality of applicant pool in Sti Sanoh India Ltd. The other 4 employees who responded negatively believed that people recruited lack in appropriate skills.
Q3. Do you think the recruitment process in identifies Sti Sanoh India Ltd the appropriate candidate as per the job requirement?
Reply respondents Yes No
of No.
of Percentage respondents 96% 4%
of
total
respondents 24 1
Comments: Everyone believed that recruitment process identifies the appropriate candidate as per the job requirement and only one employee responded negatively.
Q4. What is the existing method of recruitment in does Sti Sanoh India Ltd?
Reply respondents Advertisement
of No. respondents 23 0 13 3
of
Placement agencies campus recruitment e- recruitment
Comment: Sti Sanoh India Ltd use advertisement in leading newspapers like Times of India, Hindustan Times and employment news and campus recruitment methods to recruit people. Employees marked the multiple options like some employees marked that advertisements as well as campus recruitment is done.
Q5. What is the lead time involved in recruitment process (from manpower planning till final placement of the candidate)?
Percentage Reply of respondents 0 to 15 days 15 days to 1 month 1 month to 2 months more than 2 months No. of respondents 0 4 1 20 respondents 0% 16% 4% 80%
of
total
Comments: It takes approximately more than two months from manpower planning till final placement of the new candidate.
Q6. Total number of new recruitments made during Jan- Dec 2006.
Percentage Reply respondents 1 to 50 51 to 100 of No. of total respondents 4% 0%
of
respondents 1 0
101 to 500 501 to 1000 1001 above Can‟t say and
19 1
76% 4%
1 3
4% 12%
Comments: New recruitments made during 2006 were between 100 and 500. Three employees who were not sure of it marked the other options and three employees dint have any knowledge regarding this.
Q7. In which department do you expect highest rate of recruitment during the year 2008? Percentage of total Reply of respondents No. of respondents respondents Finance Marketing HR Operations Maintenance RS S&T 0 0 0 5 20 0 0 0% 0% 0% 20% 80% 0% 0%
Comments: Operation and maintenance department in Sti Sanoh India Ltd requires most number of employees during the year 2008.
Q8. In which department do you expect lowest rate of recruitment during the year 2008? Percentage of total Reply of respondents No. of respondents respondents Finance Marketing HR Operations 19 2 4 0 76% 8% 16% 0%
Maintenance RS S&T
0 0 0
0% 0% 0%
Comments: Finance department followed by HR and marketing department requires least number of employees during the year 2008.
Q9. What are the factors that govern recruitment in Sti Sanoh India Ltd?
Reply of respondents HRP system Social and political environment Cost
No. of respondents 3 0 0
Growth and Expansion
23
Comments: Growth and expansion is the major factor that affects recruitment in Sti Sanoh India Ltd and other factor is HRP system. One employee believed both HRP system and growth and expansion are the reasons that affect recruitment.
Q10. Does recruitment process provide enough job related information (both positive and negative) to the applicant?
Reply respondents Yes No
of No. respondents 21 4
of Percentage respondents 84% 16%
of
total
Comments: Method of recruitment provides enough job related information to the applicant.
Q11. Do existing employees are well informed about the vacancies by internal advertisement?
No. Reply of respondents Yes No
of Percentage respondents 84% 16%
of
total
respondents 21 4
Comments: Existing employees are well informed about the vacancies in organization.
Q12. Do existing employees are given adequate training to become eligible for promotion to higher positions in organization?
No. Reply of respondents Yes No
of Percentage respondents 80% 20%
of
total
respondents 20 5
Comments: Existing employees are given adequate training to become eligible for promotion to higher positions in organization
On being asked to give suggestions for to improve Sti Sanoh India Ltd their recruitment policy following were the remarks given by the respondents:-
• The salary must be equivalent to other PSU so that more talented people join. Sti Sanoh India Ltd
• The recruitment process is very good and effective. Need not improved • Recruitment process can be improved by way of promoting internal staff on higher post, this way they will be motivated and efficiency will increase and positive morale as well. • To avoid campus recruitment and promote employees from within the organization will motivate employees and therefore reducing the attrition rate in the organization. • Removing or reducing the three year bond. • Policies regarding the growth of an employee in the organization, training etc. should be known to the candidate before applying for vacancy. • Hiring employees on contractual basis should be avoided.
Remaining employees dint give any suggestions.
CONCLUSION
It may be concluded that:-
• The company has an effective and time tested system of recruitment which is working satisfactorily. • The employees are satisfied with the current recruitment procedure. The present method of recruitment is providing the company with effective and efficient manpower, which is getting reflected in the performance of the company and its market image and reputation which has improved significantly over the years. • Existing employees are well informed about the vacancies in organization. • Growth and expansion of Sti Sanoh India Ltd is the major factor that affects the recruitment in organization as they need more and more people to achieve their mission
RECOMMENDATIONS
As Sti Sanoh India Ltd is a growing organization and is expanding in rest of the states of India as well, therefore it will go for large manpower forecasting and will be recruiting large number of employees for the organization expansion. However, company needs to focus on some aspects to achieve its organizational commitments. • The present system of decentralized manpower is working efficiently and does not warrant any change right now but keeping in mind the future needs of organization, company have to recruit employees for the diversified activities with different qualifications and experience. • As various tests are used in recruitment and selection process in the organization, hence sometimes the process becomes lengthy. So appropriate steps should be taken to reduce this time frame as short as possible. • Knowledge and awareness about various tests used in recruitment and selection should be provided to candidates as to reduce the resistance towards those tests. • Company should try to conduct workshops for its employees keep it mandatory to increase motivational level. • Employees should be more focused on their work and should contribute as much as they can to the organization. • Pay packages should be compatible with other PSU‟s/ companies.
• Management should try to utilize their resources more in a proper manner and especially from those workers sitting idle. • Organization should try to increase the growth rate of an employee.
•
Employees counseling should be practiced by the management in order to help employees overcome their personal as well as work related problems, if any so that they can contribute their best efforts to their work.
LIMITATIONS
Every effort has been made to collect relevant information through the sources available. But still there were some obstacles which did not allow gathering more relevant information from the organization:-
• Due to limited time duration which was for two months could not provide ample opportunity to study each and every detail of management in the company.
• There are some departments and specific areas prohibited to visit in Sti Sanoh India Ltd.
• As the process of recruitment is confidential to the company so some facts were not disclosed by the management.
• Some of the answers of the respondents were vague enough to be ignored.
• Due to lack of data, results may not be accurate.
BIBLIOGRAPHY
Websites:• www.stisanoh.com • www.google.com • www.winkipedia.com
Books:• Chadha, K. Narender, “Human Resource Management” • Rao, P. Subba, “Essentials of Human Resource Management and Industrial Relations” • Ian Beardwell and Len Holden “Human Resource Management- A contemporary Perspective”
QUESTIONNAIRE
On Recruitment Policy in Sti Sanoh India Ltd
Name of the Researcher
:
Lalita Singh
Course/ Institute
:
BBA (G), FIMT (affiliated to GGSIPU)
Name of Respondent
:
Designation/ Department :
Length of service
:
Q1. On scale of 1 to 5 with 1 being least familiar and 5 being the most familiar, how familiar are you with the recruitment process at Sti Sanoh India Ltd?
1
2
3
4
5
Q2. How much satisfied are you with the recruitment process at Sti Sanoh India Ltd?
1
2
3
4
5
Q3. Do you think the prevalent recruitment process is cost effective?
Yes
No
Q4. Does recruitment process help organization to improve quality of the applicant pool?
Yes
No
Q5. Do you think the recruitment process in identifies Sti Sanoh India Ltd the appropriate candidate as per the job requirement?
Yes
No
Q6. What sources does Sti Sanoh India Ltd use to recruit people?
Internal
External
Both
Q7. What is the existing method of recruitment in Sti Sanoh India Ltd? Advertisement Placement agency Campus recruitment e- Recruitment Any other, please specify
Q8. What is the lead time involved in recruitment process (from manpower planning till final placement of the candidate)? 0 to 15 days 15 days to 1 month 1 month to 2 months More than 2 months
Q9. Total number of new recruitments made during Jan- Dec 2006.
1 to 50
51 to 100
101 to 500
501 to 1000
1001 and above
Q10. In which department do you expect highest rate of recruitment during the year 2008? Finance Operations S&T Marketing Maintenance HR RS
Q11. In which department do you expect lowest rate of recruitment during the year 2008? Finance Operations S&T Marketing Maintenance HR RS
Q12. What are the factors that govern recruitment in Sti Sanoh India Ltd?
HRP system
Social and political environment
Cost
Growth and Expansion
Any other, please specify
Q13. Does recruitment process provide enough job related information (both positive and negative) to the applicant?
Yes
No
Q14. Do existing employees are well informed about the vacancies by internal advertisement?
Yes
No
Q15. Do existing employees are given adequate training to become eligible for promotion to higher positions in organization?
Yes
No
Q16. Do external recruitment in Sti Sanoh India Ltd leads to dissatisfaction and frustration among existing employees (because chances of promotion are reduced)?
Yes
No
Q17. Do Sti Sanoh India Ltd make use of any other hiring alternative?
Yes
No
If yes, then which of the following alternative:Overtime Temporary employment Employee leasing any other, please specify
Q18. Do you have any suggestions on how the management of Sti Sanoh India Ltd can improve the present recruitment process?
OBJECTIVE OF STUDY
For every problem there is a research. As the researches are based on some objective my main objective of the research is to study the recruitment process of Sti Sanoh India Ltd.
The other objectives are as follows: • To critically analyze the recruitment process of company. • To gain familiarity about the work culture and environment in this company. • To know whether the present recruitment policy is helping the organization to improve the quality and efficiency of their employees and their work. • To understand the factors affecting recruitment policy of company. • To identify the short comings in the recruitment and selection process. • To know the existing method of recruitment in company.
RESEARCH METHODOLOGY
Research methodology is understood as a science of studying how research is done scientifically. In it various steps are studied that are generally adopted by a research in studying his research problem along with the logic behind them. The research undertaken by me in this project is EXPLORATORY RESEARCH. The total sample size taken is 25. In this survey I have used non random sampling or merely specifically convenience sampling as per their ease and availability.
The research methodology adopted for this can be stated as below:• An extensive study of the topic through various sources and data available in books, journals and internet, and handbook of Sti Sanoh India Ltd. • A questionnaire was formulated so that to know the views and responses of the employees and analyze them.
Data was collected from people working at Sti Sanoh India Ltd. The questionnaire was distributed to 25 employees of the company, who are holding responsible positions in the company.
Methods of Data Collection: - The data for this research has been collected both from primary as well as secondary sources.
Primary sources were:• Direct Observation: I collected the data for this research by direct observation method. I made visits to the office, which provided me clear understanding and view about the attitude and behavior of employees at workplace. • Questionnaire Method: - the questionnaire in printed form was sent to the employees with a request to fill it. There was a systematic and particular question sequence. The data I got from this questionnaire proved to be very valuable for me in this research. The aforesaid questionnaire is attached in the annexure.
Secondary sources were:• Annual reports and other publications of the organization. • Magazines • Reference books. Procedure:The procedure for the research conducted was as follows:
• Study the present system of recruitment of the organization • Designing a questionnaire • Analysis of the questionnaire filled by people • Arriving at conclusions.
CHAPTER-2
About the Topic
Recruitment Process Introduction
Recruitment is an important part of a business' human resource planning. In all businesses, people are a vital resource - and they need to be managed as such. The overall aim of the recruitment process is to obtain the number and quality of employees that are required in order for the business to achieve its objectives. Recruitment is becoming more and more important in business. In particular, this reflects the increasing need for a well-motivated and flexible workforce that requires less management supervision. Recruitment is defined as, “a process to discover sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.” Edwin B. Flippo defined recruitment as “The process of searching for prospective employees and stimulating them to apply for the job in the organization.”
Objectives of Recruitment
• To attract people with multi- dimensional skills and experiences that suit the present and future organizational strategies, • To induct outsiders with a new perspective to lead the company, • To infuse fresh blood at all levels of the organization, • To develop an organizational culture that attracts competent people to the company, • To search or head hunt/ head pouch people whose skills fit the company‟s values, • To devise methodologies for assessing psychological traits, • To seek out non- conventional development grounds of talent, • To search for talent globally and not just within the company, • To design entry pay that competes on quality but not on quantum, • To anticipate and find people for positions that does not exist yet.
Stages of Recruitment
It involves following stages:Stage 1: Authorization This ensures the recruitment process is agreed by senior management as compatible with the organizational/ departmental business objectives, i.e. necessary, timely and cost- effective. It provides as ideal opportunity for management to: • Debate the potential for restructuring workloads and departments and the redeployment of surplus staff; and • Delay or eliminate expenditure on staffing and recruitment budgets. Stage 2: Job analysis JOB DESCRIPTION Within this stage are the processes of writing a description of the job to be filled and drawing up a list of requirements for the successful candidates. The writing of a job description enables the recruiter to know exactly what the purpose, duties and responsibilities of the vacant position will be and its position within the organization structure.
PERSONNEL SPECIFICATION The personnel specification is a document specifically introduced to assist the recruitment process and its drawn up to identifies the required characteristics of the new recruit.
The personnel specification attempts to list the requirements of any applicant usually under „essential‟ and „desirable‟ headings. This forms the basis of the advertisement and the selection process. Stage 3: Agree terms and conditions Decisions on terms and conditions of employment are made at various points in the recruitment and selection process. Some of these are often not negotiated (e.g. hours, reward) until the final selection stages. Within this prescription approach, however, there is a case for deciding the salary band (if not the specific amount) and other elements of the rewards package prior to attracting candidates. An indication of salary and wage gives the potential applicants a realistic picture as to whether the job is suitable. Stage 4: In-house v external recruitment One view is that a vacancy provides an opportunity to promote from within, particularly in times of flattening hierarchies and fewer opportunities to move up the organizational ladder. This may have beneficial effects on morale and also highlight employees who express a desire to further their careers within the organization. In times of recession and falling numbers the opportunities to redeploy those who would otherwise be made redundant must also be considered, with the satisfaction of going some way towards meeting an individual‟s need for security. The failure to examine the talent available outside the organization may well mean that the „best candidates‟ are being overlooked and that the organization is too introspective. A balance must be found between
recruiting those most suitable to hold the position, satisfying the letter (and spirit) of the legislation, and avoiding the perception of wasted time and expenditure that an external recruitment campaign can bring to managers, existing employees and applicants when an internal candidates is eventually selected. Stage 5: Decide target groups Deciding target groups depends to a large extent on the requirements of the personnel specification. For positions where the possible source of suitable applicants is much wider (e.g. trainee positions requiring no previous experience, or those where there is no requirement for qualifications), opportunities exist to target potentially disadvantaged groups, for example long-term unemployed, the homeless, disabled people and ethnic minorities. This would project a caring and socially responsible image, with the possible benefit of high retention rates in the organization.
Stage 6: Decide appropriate recruitment methods Traditionally the message is communicated through the use of newspaper and journal advertisement. Possible options available to a particular organization are listed below:• Internal existing employees- Internal advertising may be requirement for some organizations under union negotiated agreements. It includes self applicants, supervisor/manager recommendations and succession planning.
• Using existing contacts- It includes unsolicited enquiries, previous applicants, previous employees, existing employee contacts. • External contacts- It includes union referrals, professional referrals, job centers, outplacement consultants, head hunting, colleges, universities. • Advertising/ media- An overlap between advertising and previous methods discussed frequently exists. Recruitment agencies can provide external expertise. It includes press, television, radio, cinema, posters, careers exhibitions, conferences.
Stage 7: Design of communication Advertisements are compiled bearing in mind the following criteria: • Person specification must be the basis for outlining the appropriate information concerning the job requirements; • The description of the employing organization should be realistic, factual and clear; • Job location, pay and additional allowances should be specified; • Clear instructions should be given as to the application procedure, i.e. whether a CV should be sent or whether to telephone or write for an application form; • Advertisement must not discriminate on the grounds of sex or race except in specific circumstances as detailed under the relevant sections of the Race Relations Act or Sex Discrimination Act.
Stage8: Responding to the applicants The response to the original communication must be thought through and, it is argued, be indicative of the image the organization wishes to project throughout the whole recruitment and selection process. As the vast majority of applicants will be unsuccessful in obtaining the position it follows that care is needed in handling this negative experience in a way that enhances the organization image. Where application forms are being used they should be sent out quickly, checks having been made that they are appropriate for the type and level of position on offer. All correspondence should be acknowledged quickly and at all times the applicant should know the stage his or her application has reached.
Stage 9: Evaluation Throughout the recruitment process cost are being incurred which include: • Recruiter‟s salary; • Management and professional time spent on preparing job description, personnel specifications, advertisements, agency liaison, etc; • The cost of advertisement and other recruitment methods, e.g. agency fees; • Cost of producing supporting literature; • Recruitment overheads and administrative expenses; • Cost of overtime or subcontracting whilst the position remains unfilled; • Cost of recruiting unsuitable candidates for the selection process.
Questions should always be asked as to whether the recruitment methods used were valid and the recruitment process itself effective. Statistical information on the cost of advertisements, time taken for the process, the position regarding the applications from under- represented groups and, above all, the suitability of the candidates for the consideration in the selection process should be gathered and evaluated.
Evaluate Your Recruitment Process Success
A recruitment process is successful not when a position has been filled by a worthy candidate. This is just a part of the success. Real success arrives when the position does not ask for another repetition of the recruitment process – that is, when the candidate hired does not quit the company for compatibility reasons. Employee compatibility can be determined by, well, the employee himself. Currently how many companies try to see the candidate point-of-view while recruiting him/her? How many of them run “will fit in the organization” tests? Worst, how many people give candidate opportunities to decide for himself whether he‟ll fit in or not? Sadly speaking, not many. A candidate knows by instinct and experience whether he/she will be happy working in a particular company. Taking a scenario as an example, a candidate is evaluated as being fit for both sales and marketing departments. Her choice is marketing but because she is good at sales also, the firm puts her into direct sales department. The result: employee jumps ships when confronted with a marketing department job offer in some other company. This is a classic case of recruiting process made simple but unsuccessful in the long run.
Sources of recruitment The sources of recruitment are broadly divided into internal sources and external sources. Internal sources are the sources within an organizational pursuit. External sources are sources outside the organizational pursuits. Internal sources: - internal sources include the following: • Present Permanent Employees: Organizations consider the candidates from this source for higher level jobs due to: availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands, to the policy of the organization to motivate the present employees. • Present temporary or casual employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade and pressures or in order to motivate them on the present job. • Retrenched or retired employees: Generally a particular organization retrenches the employees due to lay- off. The organization takes the candidate for employment from the retrenched employees due to obligation, trade union pressure and the like. Sometimes the organization prefer to reemploy their retired employees as a token of their loyalty to the organization or to postpone some inter- personal conflicts for promotion etc. • Dependent of deceased, disabled, retired and present employees: Some organization with a view to developing the commitment and loyalty of not only the employee but also his family members and to build up image provide employment to the dependent(s) of deceased, disabled and present
employees. Such organizations find this source as an effective source of recruitment. External Sources: - external sources include the following: • Campus recruitment: Jobs in commerce and industry have become technical and complex to the point where college degrees or diplomas are widely required. Consequently, big organizations maintain close liaison with the universities, vocational institutes and management institutes for recruitment to various jobs. Recruitment from educational institutes is a well established practice of thousands of business and other organizations. Reputed industrial houses which require management trainees send their officials to campuses of various management institutes for picking up talented candidates doing MBA. • Private employment agencies/ consultants: Consultants in India perform the recruitment functions on behalf of a client company by charging fee. Line managers are relieved from recruitment functions so that they can concentrate on their operational activities and recruitment function is entrusted to a private agency or consultants. Most of the organizations depend on this source for highly specialized positions and executive positions. • Public employment exchanges: The government set up public employment exchanges in the country to provide information about vacancies to the candidates and to help the organizations in finding out suitable candidates. The Employment Exchange Act, 1959 makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. These industries have to depend on public employment exchanges for the specified vacancies. • Casual Applicants: Depending upon the image of the organization, its prompt response, participation of the organization in the local activities, level of
unemployment, candidates apply casually for jobs through mail or hand over the applications in Personnel Department. This would be a suitable source for temporary and lower level jobs. • Similar organizations: Generally, the experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get most suitable candidates from this source. This would be the most effective source for executive positions and for newly established organization or diversified or expanded organizations. • Trade unions: Generally, unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter‟s intimacy with the management. As such the trade union leaders are aware of the availability of the candidates. In view of this fact and in order to satisfy the trade union leaders, management enquires trade unions for suitable candidates. Management decides about the sources depending upon the type of candidates needed. Modern sources of recruitment A number of modern recruitment sources are being used by the corporate sector in addition to traditional sources. These are: • Walk- In: The busy organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. The suitable candidates from among the interviewees will be selected for appointment after screening the candidates through tests and interview.
• Head hunting: The companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants. • E- Recruitment: It covers a range of Web-based application tools used for the provisioning (typically) of human resources. These applications assist in the recruitment of suitable candidates for vacant positions. Some applications do this by semi-automating the entire recruitment and hiring process. E-recruitment applications (or software packages that are webenabled) typically enable recruitment teams to create job postings, manage job application responses, schedule interviews and manage other recruitment tasks. This dramatically reduces the labor and money spent on physical recruitment. E-Recruiting or electronic recruiting is the process of using internet based software to attract, screen and recruit suitable job candidates. E-Recruiting reduces the cost of the recruitment process, reduces the time taken to identify appropriate candidates and helps organizations improve the quality and quantity of the applicant pool. • Business alliances: Business alliances like acquisitions, mergers, and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis.
Factors affecting recruitment Both internal and external factors affect recruitment Factors affecting recruitment
Internal factors • Company‟s pay package • Quality of work life • Organizational culture • Company‟s size • Company‟s products/services SC/ST • Geographical spread of the company • Company‟s growth rate • Role of trade unions • Cost of recruitment • Company‟s name and fame
External factors Socio- economic factors. Supply and demand factors. Labor market conditions. Political, legal and governmental factors like reservations for
and sons of soil. Information system like employment exchanges/tele-recruitment like internet.
Centralized Vs. Decentralized Recruitment Recruitment practices vary from one organization to another. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian railways resort to decentralized recruitment practices. Personnel
department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel departments at unit level/ zonal level perform all the functions of recruitment concerning to the jobs of the respective unit/ zone. Merits of centralized recruitment • Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. • It would have more expertise available to it. • It can ensure broad uniformity among human resources of various units/zones in respect of education, skill, knowledge, talent etc. • It would generally be above malpractices, abuse of power, favoritism, bias etc. • It would facilitate interchangeability of staff among various units/ zones. • It enables line managers of various units and zones to concentrate on their operational activities by relieving them from the recruitment functions. • It enables the organization to have centralized selection procedure, promotional and transfer procedure etc. • It ensures the most effective and suitable placement to candidates. • It enables centralized training programmer which further brings uniformity and minimizes average cost of staff. Despite these advantages of centralized recruitment some organizations resort to decentralized recruitment for the following reasons:
Merits of decentralized recruitment • The unit concerned concentrates only on those sources/ places where it normally gets the suitable candidates. As such the cost of recruitment would be relatively less. • The unit gets most suitable candidates as it is well aware of the requirements of the jobs regarding cultural, traditional, family background aspects, local factors, social factors etc. • Units can recruit candidates as and when they are required without any delay. • The units would enjoy freedom in finding out, developing the source, in selecting and employing the techniques to stimulate the candidates. • The unit would relatively enjoy advantage about the availability of information, control and feedback and various functions/ processes of recruitment. • The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. Both the systems of recruitment would suffer from their own demerits. Hence, the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment.
Hiring Alternatives Even though an organization‟s human resource plan may suggest that additional or replacement employees are needed, the organization may use an alternative to recruitment. This safeguards the organization from the cost and permanency of recruiting individuals. Some of these alternatives are: • Overtime: On a limited and short term basis, having employees work overtime may be an alternative to recruitment. Employees may be assigned overtime when a firm faces pressures to meet a production goal. Overtime is an attractive alternative because it is a temporary increase in staff and helps the organization avoid the cost of recruiting and having additional employees. This provides employees with additional income. For the organization it means using experiences, knowledgeable employees who do not require any additional training or orientation. However, there are potential problems with fatigue, increased accidents, and increased absenteeism. • Temporary help: One of the outcomes of the downsizing epidemic and skill shortages has been a dramatic rise in the use of temporary employees. Historically, temporary employment agencies were seen only as sources of semiskilled clerical help during peak work periods. Today, the temporary employees can be found staffing all types of jobs in the organizations, including professional, technical, and higher executive positions. Temporary help agencies provide trained and experienced personnel who can be put to work quickly and also removed. Temporary help is less costly than hiring new permanent employees. The cost advantage stems from the fact that organization does not have to provide fringe benefits, training or compensation and a career plan. The temporary can move in and out of the
firm when the workload requires such movement. Thus, the organization enjoys flexibility in responding to changes in demands for workers. A disadvantage of hiring temporary help is that these individuals are not familiar with the culture/ workflow of the firm and thus may not have as much commitment. • Employee leasing: Also called “staff sourcing” involves paying a fee to a leasing company that handles payroll, employee benefits, and routine HRM functions for the client company. The leasing company is the legal employer of the leased employees. The temporary employee, on the other hand, receives his pay and benefits from the hiring company and not from the temporary help agencies. Leasing is especially attractive to small and midsized firms that might not otherwise be able to afford a full service HR department.
About the Company
S. No.
1 2 3 4 5
Company Name CEO Founded: Stock Listing: Main Products:
Sanoh Industrial Co., Ltd Yozo takeda March 24, 1939 Tokyo Stock Exchange, First Section Brazed Steel Tubing, Welded Steel Tubing, Stainless Steel Tubing, Fuel Injection Rails, Mono-layer Tubing, Multi-layer Tubing, Various Fluid Handling Systems
(water, oil, air, counter-exhaust gas, fuel, gas, etc.), Quick Connectors, Aluminum Pipe Intake Manifolds, Automotive Seat Belt Buckles, Shoulder Adjusters, Wire Condensers, Ni-MH Batteries, etc. 6 7 Employees Headquarters 1,964 (As of March 31, 2011) Location sgsss building 2-3-6 shibuya-ku, Tokyo 1500002, Japan 8 Founded: March 24, 1939
BUSINESS PERFORMANCE
The domestic economy during the first quarter of this year has remained in a growth trend due to improvements in corporate earnings, increases in capital investment, etc.; however, export activities to China, Europe and elsewhere are in a declining trend, and the situation remains uncertain due to factors such as the increasing prices of the crude oil. Under these circumstances, the Sanoh Group made strong efforts to increase sales of our main products: tubular products for automotive and transportation equipment and plastic automotive parts, and
furthermore, we coordinated sales promotions utilizing our corporate network of subsidiaries and affiliated companies both within Japan and abroad .
PRODUCTS
1. METAL TUBING
Brazed Steel Tubing
Welded Steel Tubing
PA-Coated Tubing
PC-Coated Tubing
Stainless Steel Tubing
2. PLASTIC TUBING
Mono-Layer Tubing
Multi-Layer Tubing
Convoluted Tubing
3. CHASSIS PRODUCTS
Cluster Tubes for Brake and Fuel Lines
Brake Tubes
Plastic Tubular Products
Quick Connectors
Pretensioner Tubes
Automotive Seat Belt Buckles & Shoulder Adjusters
4. BRAZED PRODUCT
Brazing is the process of firmly welding together individual metal parts using a welding base metal with a lower melting point than the materials being welded. The Brazing Division manufactures various brazed automotive components made from iron, stainless steel, and aluminium.
Fuel Injection Rails (FIRs)
High-Pressure Fuel Injection Rails (FIRs)
Exhaust Gas Re-Circulation Pipes
Water Tubes
Fuel Senders
Aluminium Pipe Intake Manifolds
Oil Cooler Tubes
Compact Radiators for Motorcycles
5. CONDENSERS
Wire Condensers
Escargot Type Wire Condenser
6. Ni-MH BATTERY
ALL EQUIPTMENT IS MADE IN-HOUSE
All of Sanoh's production process equipment is made in-house, with design, development, and assembly performed in the Engineering Centre.
Sanoh's policy of maintaining open communication between all departments (production, development, quality control, and marketing) promotes increased productivity, and results in innovative products of superior quality at lower costs. We use our process equipment in daily production, and practical improvements to the specifications and usage are readily possible. This is an invaluable strength, and greatly differentiates Sanoh from specialized equipment makers.
Sanoh has already commenced global sales of this process equipment, and the results have been successfully expanding.
EQUIPMENT EXAMPLES
CNC-T Bender The bender most suitable for processing the bending of tubing such as brake and fuel lines for automobiles. Function-oriented with high cost performance and the know-how of a tubing and fabrication company.
CNC-LR Bender The bender most suitable for processing the bending of long lengths and fuel tubing for automobiles. It can be controlled by the three-shaft serbomotor with a free choice of bending with right and left turns, so it can have the precise and complicated results.
RECRUITMENT PROCESS IN STI SANOH INDIA LTD
Sti Sanoh India Ltd is an organization which tries to give ample opportunity to young and talented engineers and other non- technical candidates for different departments from every part of the country and even tries to recruit candidates from B/C class cities. Sti Sanoh India Ltd allows a scientific HR process with well defined job descriptions, technical, aptitude and psychometric tests, followed by a rigorous induction program with continuation of on the job training. Before the recruitment process starts Human Resource Planning is done to know the requirements and to create vacancies for new employees for every department in the organization. A budget is prepared to spend on recruitment process.
RECRUITMENT PROCESS
HRP
Advertisements (In leading newspapers i.e. TOI, HT, EN and Sti Sanoh India Ltd website)
Hiring Agencies (For screening of applications and conducting written examinations)
Written Test
Personal Interview
Psychometric Tests (if required) (These are done for the persons operating trains to check that they should not suffer from colour blindness and they should be quick in response. This is done by special teams)
Medical examination (Sti Sanoh India ltd has contacts with prescribed government hospitals and candidates are sent there)
Final Placement
Orientation/ Induction classes
Training sessions
Both internal as well as external sources are used to recruit people. Internal sources are:• Departmental examination- LDCE (Limited departmental competitive examination) • Promotions External sources are:• Vacancies/ recruitment from open market. • Campus recruitment • Employment exchange
Recruitment
and
Selection
Process
of
Sti
Sanoh
India
Ltd
involves following stages:-
•
Human Resource Planning: - Organizations undertake human resource planning to enable them to meet their future "people" needs in the same way in which they plan for their nonhuman resources. Human resource planning as an information decision making process designed to ensure that enough
competent people with appropriate skills are available to perform jobs where and when they will be needed As such, "it entails defining the organization's human needs for particular positions and assessing the available pool of people to determine the best fit." This results in reduces labor costs as it helps the management to anticipate shortages and/ or surplus of manpower and correct these imbalances before they become unmanageable and expensive. It also serves as a tool to evaluate the effect of alternative manpower actions and policies. • Advertisements: - The aim of advertising is to make people aware that a vacancy exists and to persuade them to apply for the position. Good advertising highlights the assets of the position and appeals to the career needs and concerns of the desired applicants. It is worth making the advertisement effective and attractive, as there is a high correlation between advertisements with accurate and complete information and recruitment success. Sti Sanoh India Ltd decides to place an advertisement in the leading newspapers like Times of India, Hindustan Times and Employment News and also make use of e- recruitment by advertising for vacancies on its website. • Hiring Agencies: - These agencies provide a nation- wide service in attempting to match personnel demand and supply. These agencies help in
Sti Sanoh India ltd screening of applications received as a result of advertisements and also conducts written examination for the organization to ensure whether r they possess requisite skills or not. • Written Test:- Two types of written tests are conducted by the company theses are as follows• Technical test for engineers • Mechanical test for engineers The above tests are done to see whether the candidates fulfill the requirements or not. On the basis of these tests various traits of the candidate is analyzed. These traits include- Positive thinking, creative and lateral thinking, action oriented, courage in taking up a cause, saves labor, material and time, in- depth knowledge, application of knowledge, decisiveness under uncertain conditions and flexible in working. On the basis of above some of the areas looked for are- ability to work, technical skills, technical ability, ability to grasp new things, ability to reason, judgment, integrity, communication skills, leadership, values, interpersonal relations and conflict resolution. Once the candidate passes these written tests he is called for the interview which is structured as well as unstructured.
•
Personal Interview: - Once the candidate passes these written tests he is called for the interview which is structured as well as unstructured. All these interviews are conducted by HR persons of Sti Sanoh India Ltd. The main purpose of the interview are: a) to find out suitability of the candidate, b) to seek more information about the candidate, c) to give him accurate picture of the job with details of terms and conditions and some idea of organization‟s policies.
•
Psychometric Tests: - Tests of this sort are devised by occupational psychologists and their aim is to provide employers with a reliable method of selecting the most suitable job applicants or candidates. Psychometric tests aim to measure attributes like intelligence, aptitude and personality. They provide a potential employer with an insight into how well you work with other people, how well you handle stress, and whether you will be able to cope with the intellectual demands of the job. Psychometric tests fall into two main categories. Personality Questionnaires, which try to measure aspects of your personality, and Aptitude and Ability tests which try to measure your intellectual and reasoning abilities.
•
Medical examination: - A proper medical examination ensures higher standard of health and physical fitness of the employees and will reduce the rates of accident, labor turnover, and absenteeism. The advantages of
physical examination are- a) it serves to ascertain the applicant‟s physical capability to meet the job requirements, b) it serves to protect the organization against the unwarranted claims under workers compensation laws or against law suit for damages, and c) it helps to prevent communicable diseases entering the organization. • Final Placement: - After a candidate clears all the hurdles in the procedure, he is formally appointed by issuing him an appointment letter or by concluding with him a service agreement in which the candidate has to sign three year bond. • Induction classes: - Induction function is generally considered to be a part of hiring procedure. Induction is considered with introducing or orienting a new employee to the organization and its procedures, rules and regulations. This provides opportunity to employee to know about the organization and its people. A well managed orientation forms a good impression on the mind of the new employee which lasts long. It helps employee understand the social, technical and cultural aspects of the workplace. • Training Sessions: - Training increases the knowledge, skills and ability to do specific job. Training is given due importance in. Lot o Sti Sanoh India Ltd of time and money is spent on training the employees so that
they can give their best to the company. Training improves overall performance of the organization. it makes the workers handle machines, m Sti Sanoh India Ltd materials and equipment efficiently and thus to check wastage of time and resources. Also gives safety training to workers to reduce the numbers of accidents
DATA ANALYSIS
Q1. Do you think the prevalent recruitment process is cost effective? Reply respondents Yes No of No. of Percentage respondents 96% 4% of total
respondents 24 1
Comments: It is being concluded that recruitment process is cost effective because 24 employees out of 25 to whom questionnaire were distributed believed that it is cost effective and only one employee responded negatively may be because of lack of information.
Q2. Does recruitment process help organization to improve quality of the applicant pool?
Reply respondents Yes
of No.
of Percentage respondents 84%
of
total
respondents 21
No
4
16%
Comments: 21 out of 25 employees believed that recruitment process improve quality of applicant pool in Sti Sanoh India Ltd. The other 4 employees who responded negatively believed that people recruited lack in appropriate skills.
Q3. Do you think the recruitment process in identifies Sti Sanoh India Ltd the appropriate candidate as per the job requirement?
Reply respondents Yes No
of No.
of Percentage respondents 96% 4%
of
total
respondents 24 1
Comments: Everyone believed that recruitment process identifies the appropriate candidate as per the job requirement and only one employee responded negatively.
Q4. What is the existing method of recruitment in does Sti Sanoh India Ltd?
Reply respondents Advertisement
of No. respondents 23 0 13 3
of
Placement agencies campus recruitment e- recruitment
Comment: Sti Sanoh India Ltd use advertisement in leading newspapers like Times of India, Hindustan Times and employment news and campus recruitment methods to recruit people. Employees marked the multiple options like some employees marked that advertisements as well as campus recruitment is done.
Q5. What is the lead time involved in recruitment process (from manpower planning till final placement of the candidate)?
Percentage Reply of respondents 0 to 15 days 15 days to 1 month 1 month to 2 months more than 2 months No. of respondents 0 4 1 20 respondents 0% 16% 4% 80%
of
total
Comments: It takes approximately more than two months from manpower planning till final placement of the new candidate.
Q6. Total number of new recruitments made during Jan- Dec 2006.
Percentage Reply respondents 1 to 50 51 to 100 of No. of total respondents 4% 0%
of
respondents 1 0
101 to 500 501 to 1000 1001 above Can‟t say and
19 1
76% 4%
1 3
4% 12%
Comments: New recruitments made during 2006 were between 100 and 500. Three employees who were not sure of it marked the other options and three employees dint have any knowledge regarding this.
Q7. In which department do you expect highest rate of recruitment during the year 2008? Percentage of total Reply of respondents No. of respondents respondents Finance Marketing HR Operations Maintenance RS S&T 0 0 0 5 20 0 0 0% 0% 0% 20% 80% 0% 0%
Comments: Operation and maintenance department in Sti Sanoh India Ltd requires most number of employees during the year 2008.
Q8. In which department do you expect lowest rate of recruitment during the year 2008? Percentage of total Reply of respondents No. of respondents respondents Finance Marketing HR Operations 19 2 4 0 76% 8% 16% 0%
Maintenance RS S&T
0 0 0
0% 0% 0%
Comments: Finance department followed by HR and marketing department requires least number of employees during the year 2008.
Q9. What are the factors that govern recruitment in Sti Sanoh India Ltd?
Reply of respondents HRP system Social and political environment Cost
No. of respondents 3 0 0
Growth and Expansion
23
Comments: Growth and expansion is the major factor that affects recruitment in Sti Sanoh India Ltd and other factor is HRP system. One employee believed both HRP system and growth and expansion are the reasons that affect recruitment.
Q10. Does recruitment process provide enough job related information (both positive and negative) to the applicant?
Reply respondents Yes No
of No. respondents 21 4
of Percentage respondents 84% 16%
of
total
Comments: Method of recruitment provides enough job related information to the applicant.
Q11. Do existing employees are well informed about the vacancies by internal advertisement?
No. Reply of respondents Yes No
of Percentage respondents 84% 16%
of
total
respondents 21 4
Comments: Existing employees are well informed about the vacancies in organization.
Q12. Do existing employees are given adequate training to become eligible for promotion to higher positions in organization?
No. Reply of respondents Yes No
of Percentage respondents 80% 20%
of
total
respondents 20 5
Comments: Existing employees are given adequate training to become eligible for promotion to higher positions in organization
On being asked to give suggestions for to improve Sti Sanoh India Ltd their recruitment policy following were the remarks given by the respondents:-
• The salary must be equivalent to other PSU so that more talented people join. Sti Sanoh India Ltd
• The recruitment process is very good and effective. Need not improved • Recruitment process can be improved by way of promoting internal staff on higher post, this way they will be motivated and efficiency will increase and positive morale as well. • To avoid campus recruitment and promote employees from within the organization will motivate employees and therefore reducing the attrition rate in the organization. • Removing or reducing the three year bond. • Policies regarding the growth of an employee in the organization, training etc. should be known to the candidate before applying for vacancy. • Hiring employees on contractual basis should be avoided.
Remaining employees dint give any suggestions.
CONCLUSION
It may be concluded that:-
• The company has an effective and time tested system of recruitment which is working satisfactorily. • The employees are satisfied with the current recruitment procedure. The present method of recruitment is providing the company with effective and efficient manpower, which is getting reflected in the performance of the company and its market image and reputation which has improved significantly over the years. • Existing employees are well informed about the vacancies in organization. • Growth and expansion of Sti Sanoh India Ltd is the major factor that affects the recruitment in organization as they need more and more people to achieve their mission
RECOMMENDATIONS
As Sti Sanoh India Ltd is a growing organization and is expanding in rest of the states of India as well, therefore it will go for large manpower forecasting and will be recruiting large number of employees for the organization expansion. However, company needs to focus on some aspects to achieve its organizational commitments. • The present system of decentralized manpower is working efficiently and does not warrant any change right now but keeping in mind the future needs of organization, company have to recruit employees for the diversified activities with different qualifications and experience. • As various tests are used in recruitment and selection process in the organization, hence sometimes the process becomes lengthy. So appropriate steps should be taken to reduce this time frame as short as possible. • Knowledge and awareness about various tests used in recruitment and selection should be provided to candidates as to reduce the resistance towards those tests. • Company should try to conduct workshops for its employees keep it mandatory to increase motivational level. • Employees should be more focused on their work and should contribute as much as they can to the organization. • Pay packages should be compatible with other PSU‟s/ companies.
• Management should try to utilize their resources more in a proper manner and especially from those workers sitting idle. • Organization should try to increase the growth rate of an employee.
•
Employees counseling should be practiced by the management in order to help employees overcome their personal as well as work related problems, if any so that they can contribute their best efforts to their work.
LIMITATIONS
Every effort has been made to collect relevant information through the sources available. But still there were some obstacles which did not allow gathering more relevant information from the organization:-
• Due to limited time duration which was for two months could not provide ample opportunity to study each and every detail of management in the company.
• There are some departments and specific areas prohibited to visit in Sti Sanoh India Ltd.
• As the process of recruitment is confidential to the company so some facts were not disclosed by the management.
• Some of the answers of the respondents were vague enough to be ignored.
• Due to lack of data, results may not be accurate.
BIBLIOGRAPHY
Websites:• www.stisanoh.com • www.google.com • www.winkipedia.com
Books:• Chadha, K. Narender, “Human Resource Management” • Rao, P. Subba, “Essentials of Human Resource Management and Industrial Relations” • Ian Beardwell and Len Holden “Human Resource Management- A contemporary Perspective”
QUESTIONNAIRE
On Recruitment Policy in Sti Sanoh India Ltd
Name of the Researcher
:
Lalita Singh
Course/ Institute
:
BBA (G), FIMT (affiliated to GGSIPU)
Name of Respondent
:
Designation/ Department :
Length of service
:
Q1. On scale of 1 to 5 with 1 being least familiar and 5 being the most familiar, how familiar are you with the recruitment process at Sti Sanoh India Ltd?
1
2
3
4
5
Q2. How much satisfied are you with the recruitment process at Sti Sanoh India Ltd?
1
2
3
4
5
Q3. Do you think the prevalent recruitment process is cost effective?
Yes
No
Q4. Does recruitment process help organization to improve quality of the applicant pool?
Yes
No
Q5. Do you think the recruitment process in identifies Sti Sanoh India Ltd the appropriate candidate as per the job requirement?
Yes
No
Q6. What sources does Sti Sanoh India Ltd use to recruit people?
Internal
External
Both
Q7. What is the existing method of recruitment in Sti Sanoh India Ltd? Advertisement Placement agency Campus recruitment e- Recruitment Any other, please specify
Q8. What is the lead time involved in recruitment process (from manpower planning till final placement of the candidate)? 0 to 15 days 15 days to 1 month 1 month to 2 months More than 2 months
Q9. Total number of new recruitments made during Jan- Dec 2006.
1 to 50
51 to 100
101 to 500
501 to 1000
1001 and above
Q10. In which department do you expect highest rate of recruitment during the year 2008? Finance Operations S&T Marketing Maintenance HR RS
Q11. In which department do you expect lowest rate of recruitment during the year 2008? Finance Operations S&T Marketing Maintenance HR RS
Q12. What are the factors that govern recruitment in Sti Sanoh India Ltd?
HRP system
Social and political environment
Cost
Growth and Expansion
Any other, please specify
Q13. Does recruitment process provide enough job related information (both positive and negative) to the applicant?
Yes
No
Q14. Do existing employees are well informed about the vacancies by internal advertisement?
Yes
No
Q15. Do existing employees are given adequate training to become eligible for promotion to higher positions in organization?
Yes
No
Q16. Do external recruitment in Sti Sanoh India Ltd leads to dissatisfaction and frustration among existing employees (because chances of promotion are reduced)?
Yes
No
Q17. Do Sti Sanoh India Ltd make use of any other hiring alternative?
Yes
No
If yes, then which of the following alternative:Overtime Temporary employment Employee leasing any other, please specify
Q18. Do you have any suggestions on how the management of Sti Sanoh India Ltd can improve the present recruitment process?
