A PROJECT REPORT ON

Shree Cement Limited

Selection & Recurtiment policy of shree Cement

Submitted for the partial fulfillment of two years full time course

aster !n "usiness Administration

Su#mitted To $% Su#mitted "y $%

FACULTY OF MANAGEMENT STUDIES MAHARISHI ARVIND INSTITUTE OF ENGINEERING & TECHNOLOGY, JAIPUR

(Affilated t !a"a#t$a% te&$%i&al '%i(e!#it)*

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AC+NO,LEDEMENT
project study is successful not only by the single efforts of trainee alone but there are several people who are helpful in making training a completed job done for a specific purpose. It is a matter of great privilege and immense pleasure to be associated with an esteemed organization like Shree Cement Ltd. lso acknowledging the work and help of all those who have guided us for the completion of the project on time is indeed a duty of ours knowledge the fact that no words can measure their guidance to any e!tent. Like wise in completion of my summer training I would like to thanks many authorities and personalities upon whose guidance and sincere cooperation. I made myself to finish and complete the summer training schedule with grace and confidence. "irst of all# I would like to pay my sincere and honest regard to # $raining Incharge# under whom I have done my training and who aspired me through the training with his skills and knowledge and inculcated in me to face the challenges of the market with confidence. Secondly# I also dedicated my warm thanks to all the staff members and my colleagues during the summer training who didn%t let me down rather inspired me all the time performing the best.

PREFACE

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The summer training project of management course plays an important role for a management student to develop him into a well groomed professional. It provides him the theoretical concepts and practical exposure in the field of application. Summer training project also provides him an idea of dynamic and versatile professional world as well as an exposure to the intricacies and complexities of the corporate world.

My summer training in S&REE CE ENT L! !TE' Jaipur was an eye opening experience to see the level of customer satisfaction among people of the jaipur city & local area

During M ! program I was taught a"out two do#en su"jects which if not applied properly are a simple waste of time. !t S&REE CE ENT L !TE' I got a chance to

apply management theories to the latest competitive and mar$eting oriented environment.

In two months of mar$et exposure% I learned a lot of various aspects of organi#ational structure% departments% sales% communication and their impact. &ow I can say one thing that the "est way to learn is at wor$. It was a real interesting experience and I enjoyed every part of it and hope that it would "e helpful in my future.

%$ CONTENTS :1 1.1 1.2 Industry overview Cement industry in India Major P ayers in Indian Cement Industry 9 9 1!

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1." 1.".1 1.( 1.(.1 1.) 1.+ 1.+.1 1., 1.. 1.9 1.1! 1.11 2 2.1 2.2 2." 2.( 2.) 2.+ 2., 2.. 2.9 2.1! 2.11 2.12 2.1" 2.1( 2.1) 2.1+ " ".1 ".1.1 ".2 ".2.1 ".2.2 ".2." ".2.( (

).1 ).2

Pro#ess Te#$no o%y &aw Materia s 'or Cement Produ#tion Pro#ess Sta%es o' Cement Produ#tion Ty*es o' Cement S#a e o' O*erations Industria *rodu#tion E-*orts Po i#y Initiatives /uture Out oo0 Si%ni'i#ant Conso idations Com*etitor 1 Environment 2na ysis P2&T-2 Com*any Overview 3 S$ree Cement 4imited Introdu#tion 5ision o' SC4 P$i oso*$y o' SC4 Mission o' SC4 SC4 manu'a#turin% units 6usiness 1 Mana%eria C$a en%es 'or SC4 Mar0et o' SC4 SC47s 6rands 1 Produ#ts Stren%t$s o' SC4 SC47s Man*ower *ro'i e 8ey O*erationa 9i%$ i%$ts &e#o%nition and 2wards SC4 vis-:-vis Com*etitors In'ormation Te#$no o%y at SC4 6an%ur Cement 3 SC47s Premium 6rand Com*arison ;etween various #ement ;rands P2&T-" Mar0etin% resear#$ C assi'i#ation mar0etin% resear#$ Pro#ess o' mar0etin% resear#$ &esear#$ met$odo o%y <ata #o e#tion 2rea #overed <ata ana ysis /indin%s P2&T-( =uestionnaire Per'orma o' =uestionnaire <ea er >su; dea er re*ort P2&T-) Con# usion &e#ommendation

11 11 11 12 1) 1, 1, 2! 22 22 22 2( 2) 2) 2+ 2+ 2, 2, "! "1 "2 "2 ") "+ (2 (2 (+ (. )! )" )( )) )+ ), )9 +! +9 ,! ,1 ,2 ,. ,9

)."

6i; io%ra*$y 1 we; io%ra*$y 4ist o' ta; es

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E(EC)T!*E S)
'ement is a $ey infrastructure industry.

AR+

It has "een decontrolled from price and

distri"ution on (st March% ()*) and delicensed on +,thJuly% ())( Moreover it is the material which plays an important role in "uilding not only the colossal structures "ut also our dreams in the form of our houses% $eeping us protected against the changing climate. -ur country ta$es the pride of "eing the second largest manufacturer of cement in the world preceded "y only 'hina. .e have constantly "een exercising one of the "est practices of cement production% giving rise to productivity% /uality and efficiency. The cement industry in India is experiencing a "oom on account of the overall growth of the Indian economy. The demand for cement% "eing a derived demand% depends primarily on the industrial activity% real estate "usiness% construction activity% and investment in the infrastructure sector. India is experiencing growth on all these fronts and hence the cement mar$et is flourishing li$e never "efore. Indian cement industry is glo"ally competitive "ecause the industry has witnessed healthy trends such as cost control and continuous technology up gradation. It is "elieved that cement demand in India is expected to grow at (01 annually in the medium term "uoyed "y housing% infrastructure and corporate capital expenditures. !s mentioned a"ove% the Indian cement industry is the second largest producer of /uality cement% which meets glo"al standards. The cement industry comprises more than ,0 cement companies with (20 large cement plants with an installed capacity of (,3.+3 million tonnes and more than 200 mini cement plants with an estimated capacity of ((.(0 million tonnes ma$ing a total installed capacity of (34.23 million tonnes. 'ontinuous technological upgradation and assimilation of latest technology has "een going on in the cement industry. Indian cement industry is modern and uses the latest technology. India is also producing different varieties of cement li$e -rdinary 5ortland cement 6-5'7% 5ortland 5o##olana cement 655'7% 5ortland last furnace Slag 'ement 65 8S7% -il .ell 'ement% Sulphate 9esisting 5ortland 'ement% .hite 'ement% etc. *

8uture growth of the industry is "elief to "e driven "y expected :D5 growth of more than * percent% growth of the housing sector and the development of roads% ports% airports and other infrastructure. This project is pertaining to explore the mar$et perception of Shree cement;s "rand vis< =<vis competitors "y ta$ing care of all the components of mar$eting mix. >eeping main o"jective of the study in mind the survey has "een done in jaipur city & local area The methodology of the study contains interacting with distri"utors and dealers% /uestioning them around the various attri"utes of the mar$et to collect the facts a"out the mar$et scenario of the region and eventually exploring their role in mar$eting of company;s "rand 8or past two months% I have "een wor$ing as a summer trainee on this project assigned to me . The idea was to study the importance and role of various factors of the mar$eting mix in the cement industry in terms of ?uality 65roduct7% 5rice% 5romotional activities% Services to the dealer and Dealers profita"ility. The report also throws light on dealer;s opinions and preferences when it comes to discounts and "enefits offered to them and promotional support provided "y company to help dealers. This information is vital to the company in forming its strategy and schemes to increase its mar$et share. To start with an attempt was made to understand and diagnose the prevailing situation of Shree;s cement. 'arrying out the industry analysis% competitor;s analysis% channel analysis and S.-T analysis did it. To get the real mar$et scenario% a survey of dealers was conducted to get their perception a"out the prevailing situation and to find their expectations.

!ccording to dealer;s feed"ac$ ?uality% !vaila"ility and 5rofit margin are the factors on which angur is rated high. ! positive relationship was seen "etween sales. Survey results confirm that SCL has "een a"le to ma$e a mar$ in mar$et and perceived to have good /uality and also there is a great demand of cement in mar$et. ut survey results also shows that despite of a"ove mentioned positive factors it has not "een a"le to ma$e a "rea$through in "uilding its "rand name the reason come out to "e its low "rand awareness 6lac$ of dealer motivation@ meetings@ advertising7 and cut<throat in< house "rand competition. To increase the "rand awareness aggressive promotion need to "e carried out ensuring its effectiveness in ma$ing a mar$% also as survey results confirm that it;s the dealer@mason@contractor who is the ultimate decision ma$er in choosing a "rand so efforts need to "e made to "uild long term relationship with all these people. Meetings% gifts% and $it distri"ution are the "est tool to ensure masons understanding and satisfaction. !s dealer play a prominent role in sale of a "rand every possi"le effort 6li$e training@ plant visit@ additional margin@ sufficient 5-5 material distri"ution@ grace period of three days for payment7 need to "e made a strong dealer networ$. rand image and ?uality of the cement.

!long with this there was no significant relationship "etween the 5rofit margin and the

PART , !N')STR+ O*ER*!E-

,., CE ENT !N')STR+ !N !N'!A ,

'ement industry is a capital intensive and cyclical industry. The demand for cement is lin$ed to economic activity% can "e categori#ed into two segments% household construction and infrastructure creation. The Indian 'ement Industry today is the second largest in capacity and production with an installed capacity of around (,4 mtpa after 'hina. The Indian Industry charted a fast trac$ growth of around (01 per year on an average during the last decade. Demand has shown an upward surge in recent times "uoyed "y housing sector% infrastructure development% and increase in capital expenditure "y corporate and growing retail sector. The cement demand in the country is expected to grow at an annual rate of *1 for the next five years. The Indian cement industry is a mixture of mini and large capacity cement plants% ranging in unit capacity per $iln as low as (0 tonnes per day 6tpd7 to as high as 4,00 tpd. Majority of the production of cement in the country 6)A17 is "y large plants% which are defined as plants having capacity of more than 300 tpd. The Industry faces several "ottlenec$s in high cost of inputs li$e fuel and power% high taxes and duties and transportation cost. More than 401 of the input cost in cement manufacture is "eyond the control of the industry and is administered "y regulatory authorities. These include royalties and cess on limestone% tariff for coal% rail transport and power% duties on finished goods% namely% central excise% local sales tax% octroi% etc. The only areas where industry can induce cost controls and economy are reduction in consumption of inputs li$e fuel and power through energy efficiency% improved productivity through planned maintenance and reduction of stoppages% etc. The continuous efforts "y the industry in these areas have "rought in good results. It is noteworthy that the energy consumption "y the most efficient cement plants in India at the level of 33, >cal per $g of clin$er and 3) $.h per tonne of cement are compara"le with the "est achieved in the world. -

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'omestic players$ (.7 !'' Bimited

a0or Players in !ndian Cement !ndustry$

+.7 !m"uja 'ements Bimited 2.7 ,.7 irla 'orporation Bimited inani 'ement A.7 CltraTech 'ement 3.7 Shree 'ements Bimited 4.7 India 'ements *.7 J > 'ement ).7 :rasim (0.7 Jaypee :roup ((.7 Madras 'ements (+.7 'entury Textiles a0or forei1n players$ (.7 Dolcim +.7 Bafarge 2.7 Italcementi

,.2 PROCESS TEC&NOLO3+ ,.2., Ra4 aterials for Cement Production

'ement is usually used in mortar or concrete. Dere it is mixed with inert material 6called aggregate7% li$e sand and coarse roc$. 5ortland cement consists of compounds of lime mixed with oxides li$e silica% alumina and iron oxide.

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There are three major raw materials for cementE ,.5 Limestone Bimestone is the main raw material and is the source of calcium car"onate. 'alcium car"onate is "urnt to o"tain calcium oxide 6'a-7. The other sources of calcium car"onate are marl% chal$% seashell and coral reef. Bimestone is the most a"undant source of 'a-. The other user industries for limestone are iron & steel% fertili#er and chemicals. 'ement is the "iggest limestone user in India accounting for over 4,<*01 of limestone produced in India. The composition of limestone used "y the various sectors varies. 8or cement% the 'a- content of limestone should "e a minimum of AA1. Typically% (.A<(., tonnes of limestone are re/uired per tonne of clin$er. Thus% for a ( million tonne cement plant% assured availa"ility of cement grade limestone reserves of the order of ,0<30 mt in the close vicinity is important. /.5 3ypsum :ypsum is used as a retarding agent. :round clin$er% on contact with water% tends to set instantaneously "ecause of the very fast reaction "etween tri<calcium aluminates and water. In the presence of gypsum% the desired setting time can "e achieved. :ypsum is added to the extent of ,1 during the clin$er grinding stage. :ypsum is naturally availa"le in a"undance in 9ajasthan% :ujarat and Tamilnadu. 2.5 3ranulated "last 6urnace Sla1 73"6S5 and 6ly Ash The other raw materials that are also used in the manufacture of cement are "last furnace slag 6a waste product o"tained from iron<smelting furnaces7 and fly ash 6leftover ash from a thermal power station7. Bimestone contains a"out ,+1 of lime and a"out *01 of this lime is lost during ignition of the raw materials. Similarly% 'lay contri"utes a"out ,41 silica of which a"out +,1 is lost during ignition. : 8S is o"tained "y granulation of slag o"tained as a "y<product during the manufacture of steel. It is a complex calcium aluminium silicate and has latent hydraulic properties. That is why it is used in the manufacture of 5ortland "last furnace slag cement.

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,.8 PROCESS ,.8., Sta1 es of Cement Production

There are seven stages of cement production at a cement plantE (. 5rocurement of raw materials +. 9aw Milling < preparation of raw materials for the pyroprocessing system 2. 5yroprocessing < pyroprocessing raw materials to form cement clin$er A. 'ooling of cement clin$er ,. Storage of cement clin$er 3. 8inish Milling 4. 5ac$ing and loading

8igure (.(E 'ement manufacturing from the /uarrying of limestone to the "agging of cement

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.hile adding fresh capacities% the cement manufacturers are very conscious of the technology used. In cement production% raw materials preparation involves primary and secondary crushing of the /uarried material% drying the material 6for use in the dry process7 or underta$ing a further raw grinding through either wet or dry processes% and "lending the materials. 'lin$er production is the most energy<intensive step% accounting for a"out *01 of the energy used in cement production. 5roduced "y "urning a mixture of materials% mainly limestone% silicon oxides% aluminium% and iron oxides% clin$er is made "y one of two production processesE wet or dryF these terms refer to the grinding processes although other configurations and mixed forms 6semi<wet% semi<dry7 exist for "oth types. In the dry process% the raw materials are ground% mixed% and fed into the $iln in their dry state. In the wet process% the crushed and proportioned materials are ground with water% mixed% and fed into the $iln in the form of slurry. The choice among different processes is dictated "y the characteristics and availa"ility of raw materials. 8or example% a wet process may "e necessary for raw materials with 1'

high moisture content 6greater than (,17 or for certain chal$s and alloys that can "est "e processed as a slurry. The dry process is the more modern and energy<efficient configuration. In general% the dry process is much more energy efficient than the wet process% and the semi<wet somewhat more energy efficient than the semi<dry process. The semi<dry process has never played an important role in Indian cement production and accounts for less than 0.+1 of total production. In ()30% around )A1 of the cement plants in India used wet process $ilns. These $ilns have "een phased out over the past A3 years and at present% )3.21 of the $ilns are dry process% 21 are wet% and only (1 are semidry process. Dry process $ilns are typically larger% with capacities in India ranging from 200< *%000 tonnes per day or tpd 6average of +%**0 tpd7. .hile capacities in semi<dry $ilns do range from 300<(%+00 tpd 6average ,+( tpd7% capacities in wet process $ilns range from +00<4,0 tpd 6average A+, tpd7. -ver the last decade% increased preference is "eing given to the energy efficient dry process technology so as to o"tain a cost advantage in a competitive mar$et. Moreover% since the initiation of the decontrol process% many manufactures have swSD9GG 'GMG&Thed over from the wet technology to the dry technology "y ma$ing suita"le modifications in their plants. Due to new% even more efficient technologies% the wet process is expected to "e completely phased out in the near future. Due to the dominant use of car"on intensive fuels such as coal in clin$er ma$ing% the cement industry has "een a major source of car"on dioxide 6'-+7 emissions. esides energy consumption% the clin$er ma$ing process also emits '-+ due to the calcining process.

,.9 T+PES O6 CE ENT

There are different varieties of cement "ased on different compositions according to specific end uses% namely% -rdinary 5ortland 'ement% 5ortland 5o##olana 'ement% .hite 'ement% 5ortland last 8urnace Slag 'ement and Specialised 'ement.

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The "asic difference lies in the percentage of clin$er used. ,.5 Ordinary Portland Cement 7OPC5$ -5'% popularly $nown as grey cement% has ), per cent clin$er and , per cent gypsum and other materials. It accounts for 40 per cent of the total consumption. /.5 Portland Po::olana Cement 7PPC5$ 55' has *0 per cent clin$er% (, per cent 5o##olana and , per cent gypsum and accounts for (* per cent of the total cement consumption. It is manufactured "ecause it uses fly ash@"urnt clay@coal waste as the main ingredient. 2.5 -hite Cement$ .hite cement is "asically -5' < clin$er using fuel oil 6instead of coal7 with iron oxide content "elow 0.A per cent to ensure whiteness. ! special cooling techni/ue is used in its production. It is used to enhance aesthetic value in tiles and flooring. .hite cement is much more expensive than grey cement. 8.5 Portland "last 6urnace Sla1 Cement 7P"6SC5$ 5 8S' consists of A, per cent clin$er% ,0 per cent "last furnace slag and , per cent gypsum and accounts for (0 per cent of the total cement consumed. It has a heat of hydration even lower than 55' and is generally used in the construction of dams and similar massive constructions.

9.5 Specialised Cement$ -il .ell 'ement is made from clin$er with special additives to prevent any porosity. ;.5 Rapid &ardenin1 Portland cement$ 9apid Dardening 5ortland 'ement is similar to -5'% except that it is ground much finer% so that on casting% the compressi"le strength increases rapidly.

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<.5 -ater Proof Cement$ .ater 5roof 'ement is similar to -5'% with a small portion of calcium stearate or non< saponifia"le oil to impart waterproofing properties. In India% the different types of cement are manufactured using dry% semi<dry% and wet processes. In the production of 'lin$er 'ement% a lot of energy is re/uired. It is produced "y using materials such as limestone% iron oxides% aluminium% and silicon oxides. !mong the different $inds of cement produced in India% 5ortland 5o##olana 'ement% -rdinary 5ortland 'ement% and 5ortland India. The 5ortland variety of cement is the most common one among the types of cement in India and is produced from gypsum and clin$er. The -rdinary 5ortland cement and 5ortland last 8urnace Slag 'ement are used mostly in the construction of airports and "ridges. The production of white cement in the country is very less for it is very expensive in comparison to grey cement. In India% while cement is usually utili#ed for decorative purposes% mar"le foundation wor$% and to fill up the gaps "etween tiles of ceramic and mar"le. The different types of cement in India have registered an increase in production in the last few years. Gfforts must "e made "y the cement industry in India and the government of India to ensure that the cement industry continues innovation and research to come up with more and more varieties in the near future. last 8urnace Slag 'ement are the most important "ecause they account for around ))1 of the total cement production in

,.; SCALE O6 OPERAT!ONS

The cement industry has witnessed a significant change in the scale of operations. In ()3(% the largest $iln in operation had a capacity of 4,0 tpd. In ()40% of the total (() $ilns% ( had over (%000 tpd capacity% with ,, having less than A00 tpd capacity. In ()*0% (( of the total (A( $ilns were over the (000 tpd mar$% with ( $iln having a capacity larger than 2%000 tpd 6roughly ( mtpa7. The ())0s saw still higher capacity A,00<,000 1*

tpd 6or (., mtpa7 $ilns. The recent practice for a large si#e plant is to have 3%,00<4%000 tpd 6or +., mtpa7 capacity.

,.;., !ndustrial production$

The cement industry is enhancing its production levels as new homes and offices are "eing "uilt% and in $eeping with the economy;s annual growth rate. !ccording to the 'ement Manufacturers !ssociation% the overall cement production rose "y *.(( per cent during +0(0<(( to (3*.+) million tonnes 6mt7 as against (,,.33 mt in +00)<(0.

Ta#le ,., $ Statistics

Cement /==>%,= 7Apr% ar5 6a7 6"7 6c7 6d7 5roduction Dispatches 6Including Gxport7 Gxport 'ap. Cti. 617 (,,.33 (,,.+3 2.3, )3 (3*.2( (34.34 ,.*) )A 7million tonnes5 /=,=%/=,,

SourceE 'ement Manufacturers; !ssociation

PRO')CT!ON S!TES O6 *AR!O)S "RAN'S O6 CE ENT

"RAN' NA E
Shree angur

PRO')CT!ON S!TE
eawer Distt. !jmer 9ass Distt. 5ali. Jetaran
1+

'emento !m"uja inani Cltra Tac$ irla 'heta$ irla Cttam J.>. Baxmi J.>. Super !''

9ass Distt. 5ali. Jetaran 9a"riyawas Distt. 5ali. Jeteran 5indwada Distt. Sirohi Sham"hupura Distt. 'hittorgarh 'hittorgarh Moda$ Distt. >ota anas Distt.Sirohi &im"aheda Distt. 'hittorgarh Ba$heri% Distt. undi

Ta"le (.+E 5roduction and growth rates

onth April ay June

CE ENT PRO')CT!ON Production 7Thousand Tonnes5 2008-09 (++A0 (+320 (+0(0 2009-10 (2420 (2A)0 (2A(0 1,

.eightE (.))1 3ro4th Rates 7?5 08-09 to 09-10to 2010-11 09-10 12-13 (A,+0 (+.+ ,.* (A*+0 3.* ).) (A++0 ((.4 3.0

July Au1ust Septem#er Octo#er No@em#er 'ecem#er January 6e#ruary arch Cumulati@e Total 7Apr% ar5

(((30 (((30 (0*A, (++(* ((,)) (+)3* (2,4( (+4,4 (A3,0 (A4*0*

(+4+0 ((A*0 (+320 (2240 (+)40 (A0(0 (A,,0 (2,00 (,A,0 (3(2(0

(2)(0 (2A00 (22(0 (A240 (23,0 (A320 (,230 (,+20 (3*)0 (4A2(0

(A.0 +.) (3., ).A ((.* *.0 4.+ ,.* ,., ).(

).A (3.4 ,.A 4., ,.+ A.A ,.3 (+.* ).2 *.(

Source $ 'epartment of !ndustrial Policy & Promotion

,.< E(PORTS

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The export of Indian cement has increased over the years% giving a "oost to the Indian cement industry. The demand for cement in the foreign countries is a derived demand% for it depends on industrial activity% real estate% and construction activity. The cement industry in India has around 200 mini cement plants and (20 large cement plants. The total production capacity of these plants is around (34.23 million tons. The India cement industry is technologically very advanced% as a result of which the /uality of Indian cement is now considered the second "est in the world. This has given a major "oost to the Indian export of cement. The production of cement in India is not only a"le to meet the domestic demand% "ut large amounts are also exported. ! fair amount of clin$er and cement "y<products are also exported "y India. !s the /uality of Indian cement is very good% its demand in the international mar$et is always high. In +00(<+00+% 2.2* million tons of cement was exported from India. That figure stood at 2.A4 million tons in +00+<02% and 2.23 million tons in +002<0A. In +00(<+00+% (.43 million tons of clin$er was exported from India. In +00)< +0(0 clin$er exports amounted to 3.A, million tons% and in +0(0< +0(( the figure stood at ).3A million tons. This shows that the export of Indian cement has "een increasing at a steady pace over the years. Gxport of India cement has "een mostly to the .est !sian countries. The major companies exporting Indian cement areE H H H :ujarat !m"uja Cltra Tech 'ement !ditya 'ement

Gxport of Indian cement has registered growth a fair amount of growth% giving a "oost to the Indian economy. That it continues to rise% more efforts must "e made "y the cement industry in India and the government of India. The types of cement in India have increased over the years with the advancement in research% development% and technology. The Indian cement industry is witnessing a

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"oom as a result of which the production of different $inds of cement in India has also increased. y a fair estimate% there are around (( different types of cement that are "eing produced in India. The production of all these cement varieties is according to the specifications of the IS.

,.A POL!C+ !N!T!AT!*ES

6'! Policy$ the cement sector has "een gradually li"erali#ed. (00 per cent 8DI is now permitted in the cement industry.

,.> 6)T)RE O)TLOOB

'onsidering an expected production and consumption growth of ) to (0 per cent% the demand<supply position of the cement industry is expected to improve from +00)<(0 onwards% resulting in an expected price sta"ili#ation. The cement industry is poised to add ((( million tones of annual capacity "y the end of +0(0<(( 68I (07% riding on the "ac$ of an estimated (A( outstanding cement projects.

,.,= S!3N!6!CANT CONSOL!'AT!ONS

!s discussed earlier in this report% the cement industry is witnessing a num"er of Mergers & !c/uisitions 6M&!s7. The extent of concentration in the industry has increased over the years.

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This concentration is mainly "ecause of the focus of the larger and the more efficient units to consolidate their operations "y restructuring their "usiness and ta$ing over relatively wea$er units. The relatively smaller and wea$er units are finding it difficult to withstand the cyclical pressure of the cement industry. Some of the $ey "enefits accruing to the ac/uiring companies from these ac/uisition deals includeE Gconomies of scale resulting from the larger si#e of operations Savings in the time and cost re/uired to set up a new unit !ccess to new mar$ets !ccess to special facilities @ features of the ac/uired company enefits of tax shelter.

The relative mar$et share of large players in the cement industry has changed significantly over the years. 'onsolidation of capacities has seen CltraTech% :rasim% India 'ement and :ujarat !m"uja emerging as the leading players in India apart from !''% which has "een the mar$et leader during all the years excepting 8I+00(. !ll the players have resorted to a com"ination of :reenfield capacities as well as ta$eover of existing capacities for growth. Some examples of the consolidation witnessed among domestic players in the recent past includeE :ujarat !m"uja ta$ing a sta$e of (A per cent in !'' :ujarat !m"uja ta$ing over DB8 'ements and Modi 'ement. !'' ta$ing over ID'-B India 'ement ta$ing over 9aasi 'ement and Sri Jishnu 'ement :rasimKs ac/uisition of the cement "usiness of B&T :rasim ta$ing over Indian 9ayonKs cement division. :rasim ta$ing over Sri Digvijay 'ements.

&&

B&T ta$ing over &armada 'ements

,.,, Competitor & En@ironment Analysis PORTERCS O'EL

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8igure (.2E 5orter;s model

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PART / CO PAN+ O*ER*!EShree Cement Limited

/., !NTRO')CT!ON
eing among the top ten cement producers in the country Shree 'ement Bimited 6S'B7 enjoys a mar$et share of a"out (3 per cent in &orthern region of India. -ver the years% Shree 'ement has "uilt an identity as one of the world;s most efficient cement manufacturers. 8irst of all% its production has "een consistently in excess of its rated capacity. Secondly company;s per tonne energy consumption is one of the lowest in the world. !nd also it has a uni/ue distinction of operating "oth its cement as well as captive power plant on alternative fuel.

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Ta#le /.,$ Shree%

arDet Share

The

angur family is the principal promoter of Shree 'ement. Mr. D. M.

angur is

the Managing Director while Mr. M. >. Singhi is the current executive director of Shree 'ement. It is located at !hmeda"ad highway. eawar% in !jmer district (*, >ms. from Jaipur off the Delhi<

/./ *ision of SCL

To register a strong consumer surplus through a superior cement /uality at afforda"le prices.

/.2 Philosophy of SCL

Shree 'ement is guided "y the philosophy that productivity will lead to profita"ility which ultimately will lead to the prosperity of the region and all concerned with S'B.

/.8

ission of SCL
To sustain its reputation as the most efficient cement manufacture in the world. &*

The mission of the organi#ation is highlighted "y the following.

To strengthen reali#ations through intelligent "rand "uilding. To drive down cost through innovative plant practices. To increase the awareness of superior product /uality through a realistic and convincing communications process with consumers.

/.9 SCL manufacturin1 units

5resently Shree 'ements has three units. Two units are at eawer 6incorporated in ()4) and())47 and third unit is at 9as 6Started in +00,7. 8ourth unit at 9as has "een started in March +0(0 and another two units at 9as and >hush$hera near !lwar are also started to enhance the capacity of the company to (0 mtpa from the present figure of 3 mtpa "y the year +0((. The proximity to Delhi% Jaipur and Daryana% which are the most lucrative mar$ets in the region% ma$es it a strategic location.

)N!T%, Incorporated in ()4). 5ut up in ()*,. 'ement 5roduction 6Gxpected 5roduction7 L (.+0 million tonnes

)N!T%/ 5ut up in ())4. 'ement 5roduction 6Gxpected 5roduction7 L +.(0 million tonnes )N!T E 2 &+

Incorporated in +0(0 'ement 5roduction 6Gxpected 5roduction7 L (.,0 million tonnes )N!T E 8 Incorporated in March +0(( 'ement 5roduction 6Gxpected 5roduction7 L (.,0 million tonnes )N!T % 9 Started in 9as% )nit E ; :rinding unit at >us$hera in 9ajasthan. 8igure +.(E S'B 5roduction vis<=<vis Mar$et Share in &orthern 9egion The growth of company;s mar$et share is going hand in and with its production% supporting its cyclical "usiness model of produce more<sell more<reinvestment more. 'apacity enhancement at S'B has also "een considera"le from its 0.3 mtpa in ()*, growing (0 times to 3 mtpa presently and is projected to touch a figure of (0 mtpa "y +0(0.

/.; "usiness &

ana1erial Challen1es for SCL

&,

'ement mar$et for S'B is highly competitive with major competitors having advantage of "rand e/uity% capacity and early movers. The major competitors are inani% irla 6with products li$e irla Super and irla 'heta$7% :rasim 6with products li$e Ji$ram and irla 5lus7% :ujarat !m"uja% J> 6with products li$e J> &im"ahera7% Baxmi% Mangalam 6with products li$e Mangalam and irla Cttam7% !''% D'M Shriram% B & T and >amdhenu. Gach of these players has their dominance across whole 9ajasthan in addition to their respective regional dominance. !nother issue is that the product 6cement7 cannot "e differentiated clearly on the "asis of /uality and hence% cost plays one of the most important roles in this industry. If the company can control cost of manufacturing & distri"ution% then only would profita"ility of the company increase. Bogistics is the most important cost associated with cement industry. This is the single most important reason for strong dominance of all cement companies in the regions around their factory. ut if this system can "e improved upon% and costs can "e managed% then Shree 'ements Btd. can strengthen their hold in present states of distri"ution as well as loo$ forward to gaining foothold in newer and farther regions.

/.<

arDet of SCL

Gach cement manufacturer has a primary and secondary mar$et. The former is one% which is the closest to the production centre where it fetches the "est reali#ations while the latter is usually at a distance where reali#ations are lower. Ta"le +.+E Mar$et 'lassification for Shree 'ements Btd.

&-

S'B with a mar$et share of (31 has the second largest mar$et presence in the northern region% next only to the :ujarat !m"uja 'ement and !'' com"ined. S'B positioning within 9ajasthan 6in the north of the state7 ma$es it the closest among all 9ajasthan manufacturers to the lucrative mar$ets of Delhi% Daryana and some parts of 5unja"% giving it a significant edge in transport costs. The other cement units are located further down% at distances ranging from (,0< +00 $ilometres. Shree 'ements is one of the largest cement companies in &orth region having existing capacity of ,.,mn tonnes of cement per annum located in central 9ajasthan. The company primarily caters to 9ajasthan% 5unja"% Daryana% Delhi and Cttranchal in the &orthern region and Cttar 5radesh in 'entral region. 9ajasthan accounts for approximately 201 of the companyKs sales while Delhi and Daryana together account for approximately A01 of sales.

/.A SCLCs "rands & Products

Shree manufacturesE H -rdinary 5ortland 'ement 6-5'7 H 9ed -xide 'ement 69-'7 Its output is mar$eted under the MShree Cltra -rdinary 5ortland 'ement; and MShree Cltra 9ed

'.

OFide CementC "rand names. The product today constitutes almost 241 of S'B;s sales. Cnder its premium products category% S'B has launched M "an1ur CementC Dec. +00, and a new "rand GTuff Cemento 299;C has "een introduced in the mar$et in !pril +0((. The company positioned its "rands around longer life 6dura"ility7% emphasi#ing product longevity.

/.> Stren1ths of SCL

,.5 Lo4 Cost Producer$ S'B is one of the lowest cost producers of cement in India. The prime reasons "ehind this are captive power plants% use of pet co$e in "oth captive power plant and $iln and proximity to the mar$ets. /.5 Limestone Reser@e$ S'B has a total of 400 mn tones of limestone reserve which would "e sufficient to meet its re/uirements for the next A0 years. Shree 'ementKs third unit is located at the pithead of limestone reserve unli$e the other two units in eawar% 9ajasthan. Cnit IJ% which is expected to "e commissioned in 8I0*% would also "e located at the pithead of companyKs limestone reserve. !s the new plants are located at the pithead of limestone reserve% the raw material cost per ton of cement is expected to go down as the company would "e saving in cost of transportation. 2.5 Capti@e Po4er Plants$ During 8I0,% the company sourced ))1 of power re/uirement from its captive power plant. The company has existing power plant capacity of A+ M.. The company is installing additional power plant of (* M. capacities% which would supply power to its new cement units% there"y ensuring continuation of self sufficiency in terms of power re/uirement. Shree 'ementKs power usages per ton of cement at 4, >wh is amongst the lowest in the industry. The company uses low cost pet co$e in "oth its power plants and $iln. 5et co$e is not only cheaper compared to the imported co$e "ut also has high calorific values there"y reducing the overall cost. 8.5 Stron1 sales net4orD of /A sales officesH ,/== dealers and 8=== retailers.

'1

9.5 Pro1ressi@e

ana1ement$ Shree 'ement supplemented its attractively low capital

investment per tonne with one of the lowest manufacturing costs in the Indian cement industry. The path of sustaina"le growth has "een made possi"le "ecause of management strategy of ta$ing triple "ottom<line approach of Gconomic% Gnvironmental and Social performance listed "elowE

'&

;.5

inin1$ Bimestone "eing the predominant raw material% Shree 'ement plants are

situated near limestone /uarry fields. To minimi#e the transportation cost% Shree 'ements has leased two mines one at eawer and other at 9as with reserves that will last for a long time. The 9as mines give a limestone of very good /uality which is easier to process.

/.,= SCLCs

anpo4er profile

.ell experienced and s$illed manpower resources capa"le of handling "oth project implementation and operations. The s$ill enhancement is a regular exercise under a well defined training manual. 'ompany imparts more than +0%000 hours of in<house training to its employees every year

8igure +.,E Manpower profile at S'B

''

/.,, Bey Operational &i1hli1hts

The cost of production of the 'ompany is one of the lowest in India -perating profit margin is highest in .orld 'ement Industry (001 self sufficiency in meeting power re/uirement (001 self dependent on limestone sourcing 'onsistent dividend paying company 9ecogni#ed as one of the most Gnergy Gfficient units in India

Strong "rand image L

angur 'ement% Shree Cltra 9ed -xide 'ement and

Shree Cltra -rdinary 5ortland 'ement have high consumer recall. &ew super premium "rand Tuff 'emento produced with :erman technology has a lot of expectations.

'(

 !nitiati@es for 1lo#al 4armin1 reduction 5ioneered in the application of innovative Glectro static precipitator technology in Dg power generation to save fuel and com"at pollution% and replaced DSD "y BD-. Achie@ed unity po4er factor N In electrical distri"ution system to reduce maximum demand% and transmission @ distri"ution losses Partial utili:ation of 4aste heat N 8or 2 M. power generation. !nitiator in the use of pet coDe for po4er 1eneration in !ndia 23 M. captive thermal power plant under commissioning to generate /uality power for the plant% avoid transmission and distri"ution losses% and provide surplus power to 9ajas than. S!JI&:SE 9s A)3.A3 Million pa 'e@elopment of '' cones In house development of deduiling cones cyclones resulting in reduction in pressure drop% higher outputs and lower energy consumption.

Sin1le roller press for to4 "all

ills

'apacity enhancement & utili#ation of 'M L+ 9oller press for capacity increase and energy saving increase 'M L(% Gnergy saving L+.0+ >.D @ The O#0ecti@eH CS! 7Cement sustaina#ility initiati@e5 (. The purpose of the 'ement Sustaina"ility Initiative is toE +. Gxplore what sustaina"le development means for the participating companies and the cement industry.

')

2. Identify and facilitate actions that companies can ta$e as a group and individually to accelerate the move towards sustaina"le development. A. 5rovide a framewor$ through which other cement companies can participate% and ,. 5rovide a framewor$ for engaging external sta$eholders. A1endaH CS! The (0 companies involved in the 'SI have chosen to develop an agenda for three reasonsE To prepare for a sustaina"le future "y ma$ing a more efficient use of natural resources and energy% and engaging with loc$ issues increase emerging mar$et To meet the expectations of sta$eholders and maintain their Mlicense to operate; increase communities across the world through a greater transparency of operations effective engagement with society and initiating action% which lead to sustained positive changes% and To individually understand and "uild new mar$et opportunities through process innovation% which achieve greater resource@ energy efficiency and long L term coos savingsF product and service innovation to reduce environment impacts and wor$ with other industries on novel uses of L product and waste material in cement production. The companies have identified six $ey areas where they "elieve that the 'SI can ma$e a significant contri"ution towards a more sustaina"le societyE 'limate protection.

8uels and raw materials. Gmployee health and safety. Gmissions reduction. Bocal impacts. Internal "usiness processes.

Producti@ity
'*

Shree Cement supplemented its attracti@ely lo4 capital in@estment per tonne 4ith one of the lo4est manufacturin1 costs in the !ndian cement industry. Timely execution of Cnit<III along with "etter price reali#ation and cost optimi#ation measures made the year a hallmar$ for the 'ompanyE<

The turnover of the 'ompany has more than dou"led during the year. The operating profit margin of the 'ompany at AA.*A1 is highest in the Indian cement industry. The proportion of "lended cement in the total production has increased to 431 in the current year against ,A1 in the previous year. 'ompany started use of wet fly ash for producing "lended cement which is economical and environment friendly. The capacity utili#ation level of the 'ompany further improved during the year from ((A1 to ((31 with Cnit<III recording ))1 in its very first full year of operation. This compares well with the all India average of )A1. 'ontinued thrust on improving energy consumption levels has "rought down power and fuel consumption as underE

!lthough 5ower consumption for the year indicates marginal increase during the year% the unit<wise consumption has gone down from last year. The

9eduction in energy consumption with increasing production "ase has significantly contri"uted to cost efficiency of the 'ompany.

Dynamic and efficient logistic management practices have ena"led 'ompany to contain increase in freight cost in spite of rising diesel prices and loading restrictions on truc$s. 'ompany has made optimal use of its in<house railway sidings facility with appropriate route plan to limit freight cost.

The 'ompanyKs mar$eting strategy of maintaining multiple "rands competing with each other with a view to garner increased mar$et share has yield good returns. !s a result%

'ompany has retained mar$et leadership status in 9ajasthan and Delhi.

'+

Jun1 RodhaDO "rand has further strengthened its presence in its segment in the &orth India mar$et.

"an1ur CementO launched last year in the premium /uality segment% has "een well received in the mar$et and has "een improving its mar$et share. Its mar$eting strategy of appointment of usiness associates and usiness partners has ena"led the 'ompany to $eep its de"tors levels at #ero and minimi#ing the .or$ing 'apital re/uirement.

'ompany has introduced another premium /uality "rand P Tuff Cemento 299;O. The new "rand has started attracting customer;s attention and is getting good response.

The proportion of trade sale to total sale increased during the year from 331 to 4A1 showing higher customer recall and satisfaction. The 'ompany continued with its highest credit rating of PR,I for its short%term de#t and AA for its lon1%term de#t ena"ling containment of its cost of funds despite large "orrowing re/uirements for its capital expenditure programme The interest cost has "een $ept at a low level in the rising interest rate environment through optimal utili#ation of funds and judicious mix of rupee and fully hedged foreign currency "orrowings.

Timely execution of projects is a hallmar$ of the 'ompany. The (., MT5! capacity expansion with captive power plant of (* x 2 M. completed in 8e" 0* has "een achieved well within the targets "oth time and "udget.

During the year 'ompany has underta$en implementation of an PGnterprise 9esource 5lanningO 6G957 5roject with -racle G< usiness Suite to manage its expanding "usiness operations. G95 5roject shall help it in improving its "usiness matrices "y process optimi#ation% improving logistics and integration across disciplines. The project is expected to "e operational in 8I +0(0<((

',

/.,/ Reco1nition and A4ards

H .hitehopleman C> < International 'ement 'onsultants have consistently maintained A star rating for Shree since +000 6&o one in the world has "een assigned a , star ratingQQ7 H Gxcellence in Gnergy Management !ward +003 from 'onfederation of Indian Industry for the second time H &ational !wards for Gnergy 'onservation and from Ministry of 5ower% :ovt of India H &ational Safety !wards "y Ministry of Ba"our% :ovt. of India H I'.!I &ational award +00* for excellence in cost management H :olden 5eacoc$ !ward<+00) &+0(0 in recognition of its excellent Gnvironment Management practices est Thermal and Glectrical Gnergy

/.,2 SCL @is%J%@is Competitors

S'B has "een omnipresent in the performance with various achievements within a short period of time. 8ollowing figures suggests that it has "een doing the "est jo" among its peers in terms of high capacity utili#ation% low power consumption% low power generation cost% and low fuel consumption ratio.

Ta"le +.AE S'B figures vis<=<vis competitors

'-

It has also "een encountering the lowest Jaria"le 'ost in its peer group "ecause of its constant efforts in saving cost of power and fuel consumption which is not only the lowest "ut is approx. 4,1 of the average of other players. 8reight and selling expenses of for S'B is also the lowest amongst all.

Ta"le +.,E S'B;s Jaria"le 'ost 'omparison with others

(.

S'B;s a"ility to produce cement with lowest power consumption and other low costs of production and raw material procurement has resulted into the top G ITD! Margin figures for S'B amongst all its competitors.

8igure +.3E 5ower 'ost 'omparison

(1

8igure +.4E G ITD! Margin 'omparison

(&

/.,8 !nformation Technolo1y at SCL S'B has em"raced Information Technology in a "ig manner and made investments to esta"lish strong IT infrastructureE K !T Policy & Luality Standards$ S'B has clearly defined IT policy. Disaster 9ecovery 5olicy% S'B Internet@&etwor$ !ccess 5olicy and have "een endorsed and religiously implemented. K GS) riddhiC % Shree Gnterprise 9esource 5lanningE The Shree G95 programme% christened MSCMriddhi;% was developed deploying -racle )i 9D MS and Developer +000 platform. ! comprehensive G95 program was designed to integrate all functional modules% namely 8inancial !ccounting & 'osting 68!7% Material Management 6MM7% 5ersonnel and 5ayroll 6557% Ba"oratory and ?uality 'ontrol% Integrated Management System 6IMS7 and 9aw Material 5rocurement 69M57 with the o"jective to ma$e usiness 'ontinuity 5lans ac$up and

('

operations online. The company expects to implement G95 Mlive; across the organisation in +0(0<((. K Online operations of Sales and 'istri#ution$ 'ompany successfully implemented the computeri#ation of its sales and distri"ution functions "y integrating all "ranches@dealers through a secured connectivity with the plant for online order processing. In the second phase% necessary enhancements will ma$e the system wor$ in a centrali#ed manner using dedicated and secure Jirtual 5rivate &etwor$ 6J5&7 across its "ranch@dealer networ$. K SCLCs !T !nfrastructureE The 'ompany has a scala"le% state<of<the<art IT networ$ infrastructure% with optic fi"re ca"le<"ased giga"it "ac$"one% high<end layer 2 swSD9GG 'GMG&Thes% 'isco routers and I M corporate<computing servers. Shree has a secure networ$ across its corporate and site locations with e<trust firewall supplemented with intrusion detection system and !ctive Jirus Defense Solution from &etwor$ !ssociates. The organisation is provided with the latest computing tools in hardware and software. K SCLCs corporate 4e#site$ The 'ompany launched its content<exhaustive corporate we"site shreecement.com on ( !ugust +002. The portal is dynamic% informative and user<friendly with a menu<driven interface. The we"site contains the latest information a"out the company with news flashes and a photo gallery. The we"site is e<commerce ena"led% which provides access to customers on their latest account statement and vendors@ suppliers on order positions for the e<procurement program. K E%Procurement$ Shree implemented an e<procurement programme to facilitate purchases through the reverse auction process to maximi#e price "enefits and transparency. K Paperless office$ Shree is moving towards the ultimate goal of achieving a paperless office environment through a widespread use of e<mails and instant messaging for daily communication across all its offices. ! program was underta$en for storing and ((

cataloguing the huge archive of "lueprints of technical drawings in a digitised form for instant accessi"ility. K Ra4 material procurement$ The entire raw material procurement operation was integrated with MSCMriddhi; < Shree G95% to increase efficiency and control. K Trainin1$ Shree is committed to enhance the IT s$ills of not only employees across all functions "ut their family mem"ers as well. !s a result% training is an ongoing process and more than +00 personnel were imparted training across departments. K Online Bno4led1e mana1ement$ Shree has launched a platform for sharing $nowledge across the enterprise. ! $nowledge management tool was developed and implemented through which people across all levels can contri"ute and share achievements% domain expertise% social and cultural ideas. This also provides a Mpu"lic folder; for up<to<date information on the cement industry and the company. K Net4orD Security$ S'B networ$ is protected "y the high end e<Trust 8irewall from 'omputer !ssociates and &etwor$ !ssociates Intrusion Detection System 6IDS7. S'B has implemented &etwor$ !ssociates !ctive Jirus Defence for virus protection and S5!M control. !ll networ$ resources are protected "y adopting strong password policies. S'B has enforced three<layer security for all data and information systems.

/.,9 "an1ur Cement E SCLCs Premium "rand

()

angur cement started with a vision to "e the most effective and efficient cement "rand of the country. !s in angur cement% S'B aimed at providing the "est /uality cement angur cement is advertised with a tagline that ensures customer satisfaction. The saying PThe #estH not ineFpensi@eM. To serve the fast growing &ational 'apital 9egion 6&'97 with immediate and prompt services% angur cement is esta"lishing a grinding capacity at >hus$hera in !lwar District of 9ajasthan% which is just *0 $ms away from the capital. Gxcelling in the /uality% price% availa"ility and pac$aging of the product% S'B aspires to "e the first choice of the consumers. The angur cement plant is one of the most modern and sophisticated plants in the India e/uipped with state<of<the<art :erman Technology.

8ollowing factors ma$es angur cement% the S'B;s premium "randE "est Luality of Lime StoneE The 9as "elt is among the finest /uality limestone deposits in India. Importantly% it is a single source of limestone "elt where all necessary ingredients of cement are availa"le in limestone and there is no dependency on outside sources% thus ena"ling consistency in /uality. "etter Luality ControlH 'lin$erisation and superior cement grinding ma$es the /uality of the "rand one of the "est in the industry . State%of%the%art technolo1yE The plant has "een set up in the technical colla"oration with internationally acclaimed :erman cement manufacturer. In line with its mar$eting strategy% angur cement reali#ed sales predominantly in the

trade segment. The "rand contri"ution to more then A01 of the trade sale of the company% registering (A.+0 Bac MT sales out of the total of 2,.)+ Bac MT .In fact % trade sales accounted for ),1 of total sales of "AN3)R CE ENT while non trade sales was just ,1. "AN3)R CE ENT registered its ,,1 sales of its total sales in its

(*

home mar$et% 9ajasthan.

y selling within a smaller radius% the company was a"le to

notch higher net reali#ation "ecause of lower logistics.

ARBET S&ARES$ % 9ajasthan<)1% Daryana<31% Delhi<A1.

/.,; CO PAR!SON O6 POTENT!AL!T+

O6 *AR!O)S CE ENT "RAN'S

CO PAR!SON RAJAST&AN O6 POTENT!AL!T+ O6 *AR!O)S CE ENT "RAN'S !N

"RAN' NA E !M CJ! CBT9!<T!'D I&!&I !&:C9 SD9GG CBT9! TC88 'GMG&TJ.>.B!RMI !'' M!&:B!M I9B! 'DGT!> J.>.SC5G9 SD9GG 9!M

SALES 7!N (+(000 (A,000 (02000 ,,000 (00000 A0000 *2000 (4000 A0000 *(000 3,000 3000

ATR!C TONES5

CO PAR!SON O6 POTENT!AL!T+ O6 *AR!O)S CE ENT "RAN'S !N RAJAST&AN 7!N TRA'E5

(+

"RAN' NA E SALES 7!N

ATR!C TONES5 JA!P)R LOCAL (4000 (A000 (0000 A000 4,00 2000 ,,00 2000 2000 2000 ,000

JA!P)R '!STR!CT !M CJ! CBT9!<T!'D I&!&I !&:C9 SD9GG CBT9! TC88 'GMG&TJ.>.B!RMI !'' I9B! CTT!M I9B! 'DGT!> J.>.SC5G9 +,000 +3000 (+000 3,00 *,00 A,00 4,00 A,00 A000 ,000 3,00

8igure +.* '-M5!9IS-& -8 5-TG&TI!BITI -8 J!9I-CS 'GMG&T 9!&DS I& 9!J!STD!& 6I& T9!DG7

(,

20000 +,000 +0000 (,000 (0000 ,000 0

J!I5C9 DIST9I'T

(J!I5C9 B-'!B

! CB M T9 CJ !< ! T! ' D I& !& SD ! & I : 9 TC GG C9 88 CB T ' GM 9! G& TJ. >. B! RM I I9 !' B! ' CT I9 B! T! M ' DG T J. >. ! > SC 5G 9

6actors Affectin1 Recruitment process $%

8actors which affect the recruitment process can "e classified into two headsE<

EFternal 6actors %
Supply and demand Cnemployment rate Ba"or mar$et 5olitical < social Image

!nternal 6actors <

9ecruitment policy Duman resource planning Si#e of the firm 'ost :rowth and expansion

These are the main recruiting stages

Sourcin1

,. advertising% a common part of the recruiting multiple media% such as the Internet%

process% often

encompassing

general newspapers% jo" ad newspapers% ).

professional pu"lications% window graduate recruitment programs.

advertisements%

jo"

centers% and

campus

/. recruiting research% which is the proactive identification of relevant talent who may not respond to jo" postings and other recruitment advertising methods done in. This initial research for so<called passive and "e screened . prospects% also called name<generation% results in a list of prospects who can then "e contacted to solicit interest% o"tain a resume@'J%

Screenin1 & selection Suita"ility for a jo" is typically assessed "y loo$ing for s$ills% e.g. communication% typing% and computer s$ills. ?ualifications may "e shown through rSsumSs% jo" experience% the estimony of typing s$ills % applications% interviews% educational or professional numeracy%

references% or in<house testing% such as for software $nowledge%

and literacy% through psychological tests or employment testing. In

some countries% employers are legally mandated to provide e/ual opportunity in hiring. !gencies are particularly suita"le for recruitment of executives and specialists. It is also $nown as 95- 69ecruitment 5rocess -utsourcing7

'efinition of selection
Select mean to choose. Selection is the process of pic$ing individuals who have relevant /ualifications to fill jo"s in an organisation. The "asic purpose is to choose the individual who can most successfully perform the jo" from the pool of /ualified candidates. The purpose of selection is to pic$ up the most suita"le candidate who would meet the re/uirements of the jo" in an organisation "est% to find out which jo" applicant will "e successful% if hired. To meet this goal% the company o"tains and )1

assesses information a"out the applicants in terms of age% /ualifications% s$ills% experience% etc. the needs of the jo" are matched with the profile of candidates. The most suita"le person is then pic$ed up after eliminating the unsuita"le applicants through successive stages of selection process. Dow well an employee is matched to a jo" is very important "ecause it is directly affects the amount and /uality of employee;s wor$. !ny mismatched in this regard can cost an organisation a great deal of money% time and trou"le% especially% in terms of training and operating costs. In course of time% the employee may find the jo" distasteful and leave in frustration.

The Process
Selection is usually a series of hurdles or steps. Gach one must "e successfully

cleared "efore the applicant proceeds to the next one. The time and emphasis place on each step will definitely vary from one organi#ation to another and indeed% from jo" to jo" within the same organi#ation. The se/uence of steps may also vary from jo" to jo" and organi#ation to organi#ation. 8or example E< some organi#ations may give more importance to testing while others give more emphasis to interviews and reference chec$s. Similarly a single "rief selection interview might "e enough for applicants for lower level positions% while applicants for managerial jo"s might "e interviewed "y a num"er of people. ! company is $nown "y the people it employs. In order to attract people with talents% s$ills and experience a company has to create a favoura"les impression on the applicants; right from the stage of reception. .hoever meets the applicant initially should "e tactful and a"le to extend help in a friendly and courteous way. Gmployment possi"ilities must "e presented honestly and availa"le at that point personnel department after some time. clearly. If no jo"s are "ac$ the of time% the applicant may "e as$ed to call

)&

The

selection

process can

#e successful

if

the

follo4in1 reNuirements are satisfied

(. Someone should have the authority to select. This authority comes from the

employment re/uisition% as developed "y an analysis to the wor$load and wor$ force. +. There must "e some standard of personnel with which a 5rospective employee may "e compared% i.e. a comprehensive jo" description and jo" specification should "e availa"le "efore hand. 2. There must "e a sufficient num"er of applicants from whom the re/uired

num"er of employees may "e selected. The a"ility of an organi#ation to attain its goal effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programme. If the right person is selected% he is valua"le asset to the organi#ation

)'

"ARR!ERS TO E66ECT!*E SELECT!ON

The main o"jective of selection process is to hire people having competence and commitment towards the given jo" profile. ut due to some reason the main purpose of effectively selecting candidates is defeated. These reasons areE

(E Perception or the &alo effectE< Many a times the interviewer selects a

candidate according to the perception he has or he made up while tal$ing or loo$ing at the individual. This way he does not see through the cali"er or the efficiency of the individual and many times it leads to the selection of the wrong candidates. /E 6airnessE< not selected. 2E PressureE< The people from the D9 department and also have a lot of During the selection process the interviewer does not select the

individual on the "asis of his $nowledge and hence the right type of the candidates is

pressure from the top management and from other top class people for selecting the candidates they want. This ways the purpose of effective selection process of effective selection process is defeated as they have to select that individual whether or not he is capa"le of the jo". that is "eing offered.

SELECT!ON PROCE')RE
Selection procedure employs several methods of collecting information a"out

the candidates

/ualifications % experience% physical and mental a"ility% nature and

"ehavior% $nowledge and aptitude for judging whether a given applicant is suita"le or not for the jo". Therefore the selection procedure is not a single act "ut is essentially a series of methods or stages "y which different types of information can "e secured through various selection techni/ues. !t each step facts may come to light% which are useful specifications )( for comparison with the jo" re/uirement and employee

!N 'ETA!L E(PLANAT!ON 7A5 JO" ANAL+S!S Jo" analysis is the "asis for selecting the right candidates. Gvery organi#ation should finali#e the jo" analysis% jo" description% jo" specification and employee specifications "efore proceeding to the next step of selection essentially a series of methods or stages "y which different types of information can "e secured through various selection techni/ues. !t each step facts may 'ome to light% which are useful for comparison with the jo" re/uirement and employee specifications. 7"5 &) AN RESO)RCE PLAN Gvery company plans for the re/uired num"er of and $ind of employees for a future date. This is the "asis for recruitment function. 7c5 RECR)!T ENT 9ecruitment stimulating remaining . 7'5 'E*ELOP ENT O6 "ASES 6OR SELECT!ON The company has to select the appropriate candidates from the pool of applicants. The company develops or "orrows the appropriate "ases@techni/ues for screening the candidates in order to select the appropriate candidates for the jo"s. 7E5 APPL!CAT!ON 6OR $ !pplication form is also $nown as application "lan$. The techni/ues of application "lan$ are traditional and widely accepted for securing information from the prospective candidates. It can also "e used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms )) refers to the process of searching for prospective employees and the "asis for the them to apply for jo"s in an organi#ation. It is

technologies of the screening the candidates in order to select the

appropriate candidates for the jo"s

depending

upon

the

re/uirement

of

information "ased on

the si#e of the

company% nature of "usiness activities% type and level of the jo" etc. Information is generally re/uired on the following items in the application formsE (. 5ersonal "ac$ground +. Gducational /ualifications 2. .or$ experience A. Salary 6drawing and expecting7 ,. 5ersonal attainments including li$es and disli$es 3. 9eferences 765 -R!TTEN E(A !NAT!ON$ -rgani#ations have to conduct written examination for the /ualified candidates after they are screened on the "asis of the application "lan$s so as to measure the candidate a"ility in arithmetical calculations% to $now the candidate attitude towards the jo"% to measure the candidate s aptitude% reasoning% $nowledge in various disciplines% general $nowledge and Gnglish language. 735 PREL! !NAR+ !NTER*!E-E The preliminary interview is to solicit necessary information from the prospective applications and to assess the applicant suita"ility to the jo". !n assistant in the personnel department may conduct this preliminary interview. The information thus provided "y the candidate may "e related to the jo" or personal specifications regarding education% experience% salary expectations% attitude towards jo"% age% physical appearance and other re/uirements etc. Thus preliminary interview is useful as a process of eliminating the undesira"le and unsuita"le candidates. If a candidate satisfies the jo" re/uirements regarding most of the areas% he may "e selected for further process. 5reliminary interviews are short and $nown as stand up interviews or si#ing up of the applicants or re/uired screening interviews. Dowever% certain amount of care is to "e ta$en to ensure that the desira"le wor$ers are

not eliminated. This interview is also useful to provide the "asic information a"out the company to the candidate. )*

7&5 ")S!NESS 3A ES$ usiness games are widely used as a selection techni/ue for selecting management trainees% executive trainees and managerial personnel at junior% middle and top management positions. usiness games help to evaluate the applicants in the areas of decision<ma$ing% identifying the potentialities% handling the situations% pro"lem< solving s$ills% human relations s$ills etc. participants are placed in a hypothetical wor$ situation and are re/uired to play the role situations in the game. The hypothesis is that the most successful candidate in the game will "e most successful one on the jo" . 7!5 3RO)P '!SC)SS!ON is used in order to secure further information regarding the suita"ility of the candidate for the jo". :roup discussion is a method where groups of the successful applicants are "rought around a conference ta"le and are as$ed to discuss either a case study or su"ject matter. The candidates in the group are re/uired to analy#e% discuss% find alternative solutions and select the sound solution. ! selection panel theno"serves the candidates in the areas of initiating the discussion% explaining the pro"lem% soliciting unrevealing information "ased on the given information and using common sense% $eenly o"serving the discussion of others% clarifying controversial issues% influencing others% spea$ing effectively% concealing and mediating arguments among the participants and summari#ing or concluding aptly. The selection panel% "ased on its o"servation% judges the candidate s$ill and a"ility and ran$s them according to their merit. In some cases% the selection panel may also as$ the candidates to write the summary of the group discussion in order to $now the candidate writing a"ility as well.

Types of test$
Tests are classified into six classes% each class is again divided into different types of tests. They areE

)+

APT!T)'E TESTS$ These tests measure whether an individual has the capacity or latent a"ility to learn a given jo" if given ade/uate training. !ptitudes can "e divided into general and mental a"ility or intelligence and specific aptitudes such as mechanical% clerical% manipulative capacity etc. :eneral aptitude test is of two types namely intelligence /uotient 6I?7 and emotional /uotient 6G?7. 7,5 S$ill testsE These tests measure the candidate a"ility to do a jo" perfectly and intelligently. These tests are useful to select the candidates to perform artistic jo"s% product design% design of tools% machinery etc. The candidates can "e selected for assem"ly wor$% testing and inspection also. 7/5 Mechanical aptitude testsE These tests measure the capa"ilities of spatial visuali#ation% perceptual speed and $nowledge of mechanical matter. These tests are useful for selecting apprentices% s$illed% mechanical employees% technicians etc. 725 5sychomotor testsE These tests measure a"ilities li$e manual dexterity% motor a"ility and wor$ers for repetitive operations li$e pac$ing and watch assem"ly. 785 'lerical aptitude testsE These types of tests measure specific capacities involved in office wor$. Items of this tests include spelling% computation% comprehension% copying% word measuring etc. eye hand coordination of candidates. These tests are useful to select semi<s$illed wor$ers and

),

AC&!E*E ENT TESTS$ These tests are conducted when applicants claim to $now something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organi#ation wishes to employ experienced candidates. These tests are classified into 6a7 jo" $nowledge test and 6"7 wor$ sample test. Thus% the candidate achievement in his career is tested regarding his $nowledge a"out the jo" and actual wor$ experience. S!T)AT!ONAL TESTSE This test evaluates a candidate jo". 7,5 3roup discussion$ This test is administered through the group discussion approach to solve a pro"lem under which candidates are o"served in the areas of initiating% lead ing% proposing valua"le ideas% conciliating s$ills% oral communicating s$ills% coordinating and concluding s$ills. 7+5 !n #asDet$ Situational test is administered through in "as$et method. The candidate in this test is supplied with actual letters% telephone and telegraphic message% reports and re/uirements "y various officers of the organi#ation% ade/uate information a"out the jo" and organi#ation. The candidate is as$ed to ta$e decisions on various items "ased on the in "as$et information regarding re/uirements in the memoranda. in a similar real life situation. In this test the

candidate is as$ed either to cope with the situation or solve critical situations of the

)-

!NTEREST TESTS$ These tests are inventories of the li$es and disli$es of candidates in relation to wor$% jo"% occupations% ho""ies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the jo" for which he is a candidate and to find out in which area of the jo" the candidate is interested. The assumption of this test is that there is a high correlation "etween the interest of a candidate in a jo" and jo" success. Interest inventories are less fa$ed and they may not fluctuate after the age of 20 . PERSONAL!T+ TESTS$ These tests prove deeply to discover clues to an individual value system% his emotional reactions and maturity and characteristic mood. They are expressed in such traits li$e selfconfidence% tact% distrust% initiative% emotional control% optimism% decisiveness% socia"ility%conformity% o"jectivity% patience% fear% judgment dominance or su"mission% impulsiveness% sympathy% integrity% sta"ility and self<confidence. 6(7 O#0ecti@e testsE Most personality tests are o"jective tests as they are suita"le for group testing and can "e scored o"jectively. 6+7 Pro0ecti@e testsE tests. 'andidates are as$ed to project their own interpretation of

certain standard stimulus "asing on am"iguous pictures% figures etc. under these 5ersonality tests have disadvantages in the sense that sophisticated candidates can fa$e them and most candidates give socially accepta"le answers. 8urther% personality inventories may not successfully predict jo" success. ! num"er of corrective measures tried as personality inventories are widely su"ject to fa$ing. They areE ,. 8orced choice of Gdward personnel preference schedule. / .:ordon personal profile. 2. The Minnesota Multi<phase Inventory offers different methods

*.

)LT!%'! ENS!ONAL TEST!N3$ Dowever% the need for multi<s$ills is "eing felt "e most of the companies conse/uent upon glo"ali#ation% competitiveness and the conse/uent customer centered strategies. -rgani#ation have to develop multidimensional testing in order to find out whether the candidates possess a variety of s$ills or not% candidate a"ility to integrate the multi<s$ills and potentiality to apply them functional re/uirement. "ased on situational and

!NTER*!E8inal interview follows after tests. This is the most essential step in the process of selection. In this step the interviewer matches the information o"tained a"out the candidate through various means to the jo" re/uirements and to the information o"tained through his own o"servation during the interview. The different types of interviews areE PREL! !NAR+ !NTER*!E-$

6(7

Informal interview:

This is the interview% which can "e conducted at any place

"y the person to secure the "asic and non<jo" related information. The interaction "etween the candidate and the personnel manager when the former meets the latter to en/uire a"out the vacancies or additional particulars in connection with the employment advertisement is an example of the informal interview.

6+7 )nstructured inter@ie4$

In this interview% the candidate is given the freedom to tell a"out himself "y revealing his $nowledge on various items@areas% his "ac$ground% expectations% interest etc. Similarly% the interviewer also provides information on various items re/uired "y the candidate. *1

'EC!S!ON% AB!N3 !NTER*!E-$ !fter the experts including the line managers of the organi#ation in the core areas of the jo" examine the candidates% the head of the department@section interviews the candidates once again% mostly through informal concerned discussion. The

interviewer examines the interest of the candidate in the jo"% organi#ation 9eaction adapta"ility to the wor$ing complaining% promotional opportunities% wor$ adjustment and allotment etc. The personnel manger also interviews the candidates with a view to find out his reaction@acceptance regarding salary% allowances% "enefits% promotions% opportunities etc. The head of the department and the personnel manager exchange the view and then they jointly inform their decision to the chairman of the interview "oard% which finally ma$es the decision a"out the candidate s performance and their ran$s in the interview. Most of the organi#ations have reali#ed that employee s positive attitude matters much rather than employee s s$ill and $nowledge. Gmployees with positive attitude contri"ute much to the organi#ation.Dence% interviewers loo$ for the candidates with the right attitude while ma$ing final decision. 6J7 E'!CAL E(A !NAT!ON$ 'ertain jo"s re/uire certain physical /ualities li$e clear vision% perfect hearing unusual stamina% tolerance of hardwor$ing conditions% clear tone etc. Medical examination reveals whether or not a candidate possesses these /ualities. Medical examination can give the following informationE (. .hether the applicant is medically suited for the specific jo" +. .hether the applicant has health pro"lems or psychologica attitudes li$e ly to interfere with wor$ efficiency or future attendance 2. The offer. .hether the applicant suffers from "ad health corrected "efore he can wor$ satisfactorily A.It reveals the applicant physical measurements ,. It is used to chec$ the special senses of the candidates. 6>5 RE6ERENCE C&ECBSE *& which should "e

!fter completion of the final interview and medical examination% the

personnel

department will engage in chec$ing references. 'andidates are re/uired to give the names of references in their application forms. These references may "e from the individuals who are familiar with the candidates academic achievement or form the applicant s previous employer% who is well versed with the applicant jo" performance% and sometimes from cowor$ers. Incase the reference chec$ is from the previous employerF information for the following areas may "e o"tained. They are jo" title% jo" description% and period of employment% pay and allowances% gross emoluments% "enefits provided% rate of a"sence% willingness of the previous employer to employ the candidate again and soon 8urther% information regarding candidate s regularity at wor$% character% progress etc. can "e o"tained. -ften a telephone call is much /uic$er. The method of mail provides detailed candidate performance% character and "ehavior. Dowever% a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed% actual information% which can also "e secured "y o"servation. 9eference chec$s are ta$en as a matter of routine and treated casually or omitted entirely in many organi#ations. ut a good reference chec$ used sincerely will fetch useful and relia"le information to the organi#ation. information a"out the

7L5 6!NAL 'EC!S!ON "+ T&E L!NE

ANA3ER$

The line manager concerned has to ma$e the final decision whether to select or reject a candidate after soliciting the re/uired information through techni/ues discussed earlier. The line manager has to ta$e much care in ta$ing the final decision not only "ecause of economic implications "ut also "ecause of "ehavioral and social implications. ! careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the "asis of selection of this organi#ation. ! true understanding "etween line managers and personnel managers should "e esta"lished to ta$e proper decisions. *'

6M7 JO" O66ER$ Thus% after ta$ing the final decision% the organi#ation has to intimate this decision to the successful as well as unsuccessful candidates. The organi#ation offers the jo" to the successful candidates either immediately or after some time depending upon its time schedule. The candidate after receiving jo" offer communicates his acceptance to the offer or re/uests the company to modify the terms and employment or rejects the offer. conditions of

*(

'ATA ANAL+S!S AN' !NTERPRETAT!ON

,. &o4 do you recruit the employeesO S.NO ,. /. Total Particulars !nternal EFternal No.of Respondents ,8 ; /= Percenta1e <= 2= ,==

!nterpretation$ 8rom the a"ove ta"le 401 of the employees are recruiting internally and 201 of the employees are recruiting externally.

*)

/. !f eFternal ho4 do you recruit the employeeO S.NO ,. /. 2. 8 Total Particulars Throu1h a1encies Throu1h reference Casual application 'ata #anDs No.of Respondents ,/ 8 / / /= Percenta1e ;= /= ,= ,= ,==

!nterpretation$ 8rom the a"ove ta"le 301 of the employees are through agencies and +01 of the employees through reference% (01 of the employees from casual applications and (01 of the employees are recruiting data "an$s. 2. &o4 4ill you inform the @acancy position of the 0o# to internal ** conditionsO

S.NO ,. /. 2. Total

Particulars Throu1h 4ord of mouth Notice #oard 'epartment heads

No.of Respondents / ,/ ; /=

Percenta1e ,= ;= 2= ,==

Interpretation: from the above table *./ of the respondents responded about the information of vacancy position is through notice board# './ said through department head and 1./ said through word of mouth. *+

*,

8. -hat are the ma0or sources for identification of candidates for recruitmentO S.NO ,. /. 2. Total Particulars Throu1h adds !nternet Consultants No.of Respondents ,/ ; / /= Percenta1e ;= 2= ,= ,==

!nterpretation$ 8rom the a"ove ta"le we concluded that 301 fo the respondents recruited through ads and 201 fo the candidates recruited internet and (01 of the candidates recruited consultants. 9. -ho are in@ol@ed in the manpo4er plannin1O *-

S.NO ,. /. 2. Total

Particulars 'epartment heads &R department A#o@e t4o

No.of Respondents 8 ,= ; /=

Percenta1e /= 9= 2= ,==

!nterpretation$ 8rom the a"ove ta"le ,01 of the employee said D9 department will participate in the manpower planning% 201 of the employee said "oth the department heads and D9 department and +01 of the employees said department heads .

+.

;. &o4 freNuently do the companies recruit the employeeO S.NO ,. /. 2. 8. Total Particulars Luaterly &alf yearly Annually -hene@er reNuired No.of Respondents / / 8 ,/ /= Percenta1e ,= ,= /= ;= ,==

!nterpretation$ 8rom the a"ove ta"le we concluded the employees (01 /uarterly% (01 half yearly% +01 annually and 301 of employee recruiting whenever re/uired .

<. -hat is your le@el of satisfaction re1ardin1 the present recruitment +1

policyO S.NO ,. /. Total Particulars Satisfied Need impro@ement No.of Respondents ,8 ; /= Percenta1e <= 2= ,==

+&

!nterpretationE 8rom the a"ove ta"le we concluded that the present recruitment policies are 401 satisfied% and the 201 are needs improvement of the recruitment policy A.'o you feel any impro@ements in the present recruitment processO S.NO ,. /. Total +ES NO Particulars No.of Respondents ,A / /= Percenta1e >= ,= ,==

+'

!nterpretation$ 8rom the a"ove ta"le we concluded the improvement in the present recruitment policy to recruit )01 of yes and (01 of no a"ove all for the improvement in the present recruitment policy

+(

>. 'oes the company deser@e the campus selectionO S.NO ,. /. Total +ES NO Particulars No.of Respondents ,< 2 /= Percenta1e A9 ,9 ,==

+)

!nterpretationE 8rom the a"ove ta"le *,1 of the employees said MIes; a"out the campus selection in the organi#ation and the remaining (,1 said M&o;

,=.-hich type of inter@ie4 do you follo4 for selectin1 the employeesO S.NO ,. /. 2. Total Particulars Structured )nstructured Stress No.of Respondents ,A = / /= Percenta1e >= = ,= ,==

+*

!nterpretation$ 8rom the a"ove ta"le 401 of the employee said structured interviews while selecting employee and (01 of the employee said stress in the organisation.

++

,,.'o you face any hurdles in selection processO sS.NO ,. /. Total +ES NO Particulars No.of Respondents = /= /= Percenta1e = ,== ,==

!nterpretationE 8rom the a"ove ta"le (001 of the employees said M&o; a"out the recruiting employee in the organisation.

+,

,/. -hat do you thinD a#out the recruitment process in S&REE CE ENT LimitedO S.NO ,. /. 2 Total Particulars EFcellent 3ood 6air No.of Respondents 8 ,8 / /= Percenta1e /= <= ,= ,==

+-

!nterpretation$ 8rom the a"ove ta"le 401 of the employees said :ood a"out the recruitment process% +01 of the employee MGxcellent; and the (01 of the employees M8air; in the organisation. ,2.-hat factors do you most consider 4hile selectin1 the employeesO

S.NO ,. /. 2. Total

Particulars Su#0ect -illin1ness Suita#lity

No.of Respondents 9 8 ,, /=

Percenta1e /9 /= 99 ,==

,.

!nterpretation$ 8rom the a"ove ta"le we conclude considered the selecting +,1 su"ject% +01 of selecting willingness and ,,1 of selecting in suita"ility.

RECR)!T ENT AN' SELECT!ON PRACT!CES AT

S&REE CE ENT &uman Resource ana1ement at S&REE CE ENT$
D9M practice of SD9GG 'GMG&T is the one among the practices followed "y the large firms of India. The present chapter deals with the topic of D9M philosophy% ,1

D9M policy and the functions of D9M department% Duman resource planning process after covering these aspects the chapter will "e followed "y the recruitment and selection practices of the organisation.

D9M 5hilosophyE Gmployees are the valua"le resources of the organisation 9elationship "etween different groups so that wor$ is performed effectively. Gliminating waste and improper use of human resource. Duman 9esource Management 5olicy. Gmployees are provided with welfare activities to increase their /uality and wor$ life. Gmployees are provided with necessary training facility% so as to improve their s$ills. Then ultimately resulting in improved productivity and personnel development.

6unctions of &uman Resource

ana1ement 'epartment

The D9 Department loo$s after the following functions administration of the welfare facilities% reports% loans% advances% transfer% assignment etc. Deals with matter relating to recruitment and selection administration of D9D activities% matter relating to discipline. The 5rocess of Duman 9esource 5lanning D95 consists of the following stepsF !naly#ing the organisational plans Demand 8orecastingE 8orecast the overall human resource re/uirements in accordance with the organi#ations plans. Supply forecasting o"taining the data and information a"out the present inventory of Duman 9esource and 8orecast the future changes in present Duman 9esource inventory Gstimating the human resource re/uirements

Recruitment and Selection Practices at S&REE CE ENT

SD9GG 'GMG&T company recruitment and selection practice is similar to that of the large organisations. Through these practices the D9M department is a"le to meet the re/uirements of the organisation. 9ecruitment and selection process in SD9GG 'GMG&T. 5osition or jo" vacancy !pproval for filling the vacancy@manpower planning &otification of vacancy through advertisements@consultants or agencies Sources of 9ecruitment

,&

S&REE CE ENT Recruitment Sources are

!dvertisements

Deputation or contract 9ecruitment consultants. 5romotions Transfer. 8rom these sources as organisation receives the applications for the specified re/uirements to fill the vacancy. ased upon the departments; specification a jo" analysis process will "e done "y the D9D department accordingly. -n receiving the approval from MD and 'G- the D9D initiates the process "y advertising the local news paper and national papers depending upon the manpower recruitment or it may "e referred to the recruitment consultants% for receiving the suita"le applications.

Selection Process in S&REE CE ENT !nter@ie4s$

SD9GG 'GMG&T used to recruit through interviews to security the suita"le candidate since its inception "y selecting the "est re/uired from those who are selected in the interviews. .ritten test was the first step in the selection process and follows with the personal interview. The selected candidates from the written test and the personal interview have to go through group discussion and the "est in the group discussion will "e selected to meet the re/uirement. In case the technical recruitment% practical test and selection test are conducted. The candidates who are /ualified in the tests will "e called for the final interview will "e done "y the selection committee as constituted "y the D9D. D9D will ta$e the initiative of "ased on the selection committee;s report. !ll selected candidates will "e sent on offer of employment letter% with the date of joining% pay and allowances% designation and the other terms and conditions of employment in SD9GG 'GMG&T. !t the time of joining the candidate should produce the following documents of the D9D Gducational /ualification 5roof of data of irth Gxperience certificate ,'

 9elieving letter from the precious organisation !ttestation forms for police verification 9eference 5olicy en/uiry a"out the selected person is made after his interview. Medical examination is also carried out. Selection of local candidate was made particular under certain situations to meet the re/uirements. The selected employees will "e appointed on training for a period of one year. ased on the appraisal reports% candidates will "e a"sor"ed into the suita"le grade and will "e on pro"ation period of six months. !fter successful completion of pro"ation period the candidate will "e confirmed su"ject to the appraisal report. Manpower 5lanning in SD9GG 'GMG&TE !ctivity "ased manning adly 'oncept &ominee System 5ool 'oncept Multi<s$illing and 8lexi"ility Manpower 5lanning in SD9GG 'GMG&TE Separations< 9ecruitments Deaths 9esignations Transfers 9ecruitment 5romotions Transfers.

,(

,)

,*

,+

S-OT ANAL+S!S
S.-T !nalaysis Is a planning tool used to understand the Strengths% .ea$nesses% -pportunities% and Threats involved in a project or in a "usiness. It involves specifying the o"jective of the "usiness or project and identifying the internal and external factors that are supportive or unfavoura"le to achieving that o"jective. S.-T is often used as part of a strategic planning process. S.-T is an for Strengths% .ea$nesses% -pportunities% Threats. O@er@ie4 MatrixE

POSITIVEHELPFUL t a&$ie(i%. t$e . al

NEGATIVEHARMFUL t a&$ie(i%. t$e . al

Stren1ths

INTERNAL O!i.i% facts/ factors of the $hings that are good now# maintain them# organization build on them and use as leverage

-eaDnesses

Things that are "ad now% remedy% change or stop them.

Opportunities

E/TERNAL O!i.i% facts/ factors of the environment in which the organization operates

Things that are good for the future% prioriti#e them% capture them% "uild on them and optimi#e

Threats
Things that are "ad for the future% put in plans to manage them or counter them

,,

What Strengths and Weakness are analyzed?

$he strengths and weaknesses analysis is an internal e!amination that focuses on your past performance# present strategy# resources and capabilities. It is based on an analysis of facts and assumptions about the company# including0 5eople 6Duman 9esources7 o 5eople experience7 o Staff development 5roperties 6 uildings% G/uipments and other facilities7 5rocesses 6Such as /uality% finance% M.I.S. etc.7 o 8inancial resources 6de"t to asset ratio and personal e/uity7 o :overnance o Management@ leadership o Staff development o 'ommunication
1roducts 21ublications etc.3

and

s$ills

6in

particular

mar$eting%

export

o Sales o 5roducts o Mar$ets

,$at O00 !t'%itie# A%d T$!eat E1a2i%ed

$he opportunity and threat analysis is carried out by e!amining e!ternal factors in your domestic and e!port markets. $his is usually broken down into environmental factors and competitors# including0

En@ironmental 6actors

Demographics Gconomic 5olitical@legal ,-

Sociological Gnvironmental Technology

Competitor 6actors

'apa"ility 9esources -wnership &ew entrants Mar$et segments 5roducts 5rices 5romotion Distri"ution Su"stitute products Suppliers customers 5roduct life cycle

-.

CONCL)S!ON
-n the "asis of a"ove study it can "e concluded that a system of psychological appraisal can "e introduced where psychologists are used to specifically assess an individualKs future potential. The appraisal normally consists of in depth interviews% psychological tests% discussions with supervisors and a review of other evaluations. The psychologist then writes and evaluation of the employeeKs intellectual% emotional% motivational and other wor$ related characteristics that suggest individual potential. This will ma$e the potential appraisal more specific and a relia"le date source for ma$ing employeeKs promotion decisions and future development.

-1

Recommendation & Su11estion

Systematic and a common methodology should "e opted for recruiting and selecting the employees. The steps in the process of selection should not very from employee to employee The system opted for remuneration should "e changed Gxperience and /ualification should also "e considered at the time of selection 9ecruitment should "e made in the manner% which helps in the development of the organisations. 'hec$ if the right person is "eing placed at the right place Induction programme should "e made in time% "ut not too late. The process of selection should "e the same for the employees of same designation and very according to the designations. Jo" rotation should "e made according to the individual;s s$ill and /ualification.

-&

L)EST!ONNA!RE
NamePPPPPPPPPPPPPPPPPPPPPPPPP Employee No. PPPPPPP.H EFperiencePPPPPPPPPP.. 'esi1nationPPPPPPPPP 'epartmentPPPPPPPPPP
(. Dow do you recruit the employeesT a7 Internal "7 Gxternal

+. If external how do you recruit the employeeT a7 Through agencies c7 'asual applications "7 Through reference d7 Data "an$s

2. Dow will you inform the vacancy position of the jo" to internal conditionsT a7 Through word of mouth c7 Department heads A. .hat are the major sources for identification of candidates for recruitmentT a7 Through ads c7 'onsultants ,. .ho are involved in the manpower planningT a7 Department heads c7 !"ove two 3. Dow fre/uently do the companies recruit the employeeT a7 ?uarterly c7 !nnually "7 Dalf yearly d7 whenever re/uired -' "7 D9 Department "7 Internet "7 &otice "oards

4. .hat is your level of satisfaction regarding the present recruitment policyT a7 Satisfied "7 &eeds Training

*.Do you feel any improvements in the present recruitment processT a7 Ies "7 &o

).Does the company deserve the campus selectionT a7 Ies "7 &o

(0..hich type of interview do you follow for selecting the employeesT a7 Structured "7 Cnstructured

((.Do you face any hurdles in selection processT a7 Ies "7 &o

(+..hat do you thin$ a"out the recruitment process in SD9GG 'GMG&T BimitedT a7 Gxcellent c7 8air (2..hat factors do you most consider while selecting the employeesT a7 Su"ject c7 Suita"ility (A. !ny Suggestions<<<<<<<<< "7 .illingness "7 :ood

-(

"!"L!O3RAP&+
>. !swathappa% Duman 9esource and 5ersonnel Management % +004%Tata Mc :raw Dill 5u"lication %Second Gdition. :upata '. % Duman 9esource Management %+003%Sultan 'hand and Sons %Sixth Gdition.

A3Q!NES$ I&DI! T-D!I CSI&GSS .-9BD

RE6ERENCES

-E"L!O3RAP&+
ThanD you www.shreecementltd.com www.i"ef.org www.mar$etresearch.com www.indianinfoline.com www."usineessconnect.com www.indiancementindustry.com

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