CHAPTER-I

INTRODUCTION

The project is titled as A study on recruitment and selection process.

Recruitment
Recruitment refers to the process of finding possible candidates for a job or
function, undertaken by recruiters. It may be undertaken by an employment agency
or a member of staff at the business or organization looking for recruits. Either way
it may involve advertising, commonly in the recruitment section of a newspaper or
in a newspaper dedicated to job adverts. Employment agencies will often advertise
jobs in their windows. Posts can also be advertised at a job centre if they are
targeting the unemployed.
Suitability for a job is typically assessed by looking for skills, e.g.
communication skills, typing skills, computer skills. Evidence for skills required
for a job may be provided in the form of qualifications (educational or
professional), experience in a job requiring the relevant skills or the testimony of
references. Employment agencies may also give computerized tests to assess an
individual's off hand knowledge of software packages or typing skills. At a more
basic level written tests may be given to assess numeric and literacy. A candidate
may also be assessed on the basis of an interview. Sometimes candidates will be
requested to provide a rsum (also known as a CV) or to complete an application
form to provide this evidence.

12 Elements of Recruitment Strategy

1. What are your primary goals? (Why hire?)
2. Prioritization of jobs
3. Performance level to target
4. Experience level to target
5. Category of candidate to target
6. When to begin searching for candidates
7. Where to look for candidates
8. Who does the recruiting?
9. Primary sourcing tools
10.What skills should you prioritize when selecting candidates?
11. How to assess candidates
12.Primary sales approach

Selection
The aim of selection is to find a person who accepts the position and who
gives satisfactory service and performance in the long term. The system approach
starts from the position of well defined job and clearly analyzes persons
specifications.
Selection is not just a question of interviewing, although it is most popular
device in use. Selection is very much a process of deselecting, which is gradually
eliminating candidates until finally one is left on the list for a vacancy. Some

methods are more reliable than other but, to large extent. Selection is about trying
to minimize risk and maximizing certainty of making of the right decision.
Starting from the position where the recruitment process as produced a no of
applicants, the important steps as follows:
Short listing the candidates for the next stage.
Setting up tests for the short listed candidate some times in the form of an
assessment.
Interviewing the candidates and allowing the candidates to interview the
selectors.
Choosing the successful candidates.
Obtaining references.
Offering the position, confirming in writing and gaining acceptance.
Organizing the induction process.
Evaluating the results.
The methods of a personnel selection include
Interviews
Personality tests
Biographical data
Cognitive ability tests
Work sample tests
Physical abilities tests
Self assessments
Assessment centers
4

1.1 NEED OF THE STUDY

To get an idea about the Recruitment and Selection Procedure held by Lucas
TVS ltd., Padi.

1.2 OBJECTIVES
To learn what is the process of recruitment and selection that should be
followed.
To study the various sources of Recruitment followed by Lucas TVS.
To know the recruitment policy followed by Lucas TVS.
To search or headhunt people whose skill fits into the companys values?

1.3 LIMITATIONS
The main limitation of the study is the collection of information. Because
most of the information are confidential. So they dont want to disclose
them. And I am not able to show any forms which they use in the time of
joining or we use to upgrade the files.
5

 Taking appointment of the respondents became a little difficult.

1.4 MATERIAL AND METHODOLOGY

SETTING
Lucas TVS limited,
Padi Plant,
Padi.
DURATION OF STUDY
The study takes nearly 45 days from the period of 1-9-2011 to 14-10-2011.
SAMPLING TECHNIQUE
Simple Random Sampling
DATA COLLECTION PROCEDURE
The sources of recruitment are broadly divided into Internal Sources and
Externals Sources. Internal Sources are the sources within organizational pursuits.
The primary data is collected with direct interaction with candidates through
questionnaire and personal interview. The questionnaire consists of closed ended
and open-ended questions. Externals Sources are sources outside organizational
pursuits.
1. Internal Sources
Promotions
Transfer
Response of employees to notified vacancy
2. Externals Sources
Advertisements
Employment Exchange
Campus Recruitment
Unsolicited applicant
6

 Labor Contracts
Employee Referrals
Field Trips

CHAPTER-2
INDUSTRY PROFILE

INTRODUCTION
TVS Group
The TVS Group, with a turnover of over one billion dollars, is the largest
manufacturer of automotive components in India. The group produces auto electrical, diesel
fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal
components, radiator caps, two wheelers and computer peripherals. Backed by five service
and distribution companies with an extensive network across the country, the group has the
largest distribution network for automotive products in India.
Lucas TVS is committed to achieving ever increasing levels of customer satisfaction through
continuous improvements to the quality of the products and services. It will be the company's
Endeavour to increase customer trust and confidence in the label 'Made in Lucas TVS'." TVS
Group originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limited
are the parent and holding company of the TVS Group.
TV Sundram Iyengar and Sons Limited have the following three divisions:
TVS and Sons: TVS and Sons is the largest automobile distribution company
in India. It distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS
8

and Sons represent premier automotive companies like Ashok Leyland,

Mahindra and Mahindra Ltd., and Honda. The company is also one of the
leading logistics solution providers and has set up state-of-the-art warehouses
all over the country. TVS and Sons have also diversified into distributing a
range of Garage equipments.
Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial
Vehicles, Cars, and auto spare parts for several leading manufacturers. The
company is also the dealer for Ashok Leyland, Honda, Fiat, Ford and
Mercedes Benz.
Madras Auto Service: Madras Auto Service distributes automotive spare
parts for all leading manufacture.

OTHER MAJOR COMPANIES OF TVS GROUP:

1. TVS - Motor Company Limited: TVS Motor Company Limited is one of the largest
two-wheeler manufacturers in India. It manufactures Motorcycles, Mopeds,
Scooterettes and Scooters.

2. TVS Electronics Limited: TVS Electronics was incorporated in 1986 in collaboration

with Citizen Watch Co. of Japan. The company manufactures a complete range of
computer peripherals.
3. Axles India Limited: Axles India was promoted by Sundaram Finance, Wheels India
and Eaton Corporation for the manufacture of axles for medium and heavy duty
commercial vehicles in India.
4. Brakes India Limited: Brakes India is a joint venture between TV Sundram Iyengar
and Sons Ltd. and Lucas Industries Plc., UK. The company manufactures braking
equipment for automotive and non-automotive applications.

5. Sundaram

Polymers

Division:

Sundaram

Polymers

Division

manufactures

Engineering Plastic compounds for various applications.

9

6. Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS
Group. It deals in retail finance, hire purchase, leasing and bill discounting.

7. Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS
Group. It deals in retail finance, hire purchase, leasing and bill discounting.

8. India Motor Parts and Accessories Limited: It is engaged in the distribution of

automobile spare parts.

9. India Nippon Electricals Limited: It is a joint venture between Lucas Indian Service
and Kokusan Denki Co Ltd., Japan. The company manufactures Electronic Ignition
Systems for two wheelers and portable gensets.

10. IRIZAR TVS (P) Ltd: IRIZAR TVS (P) Ltd. is a joint venture between Sundaram
Industries Ltd, Ashok Leyland Ltd and IRIZAR S. Coop of Spain. The company
builds bus bodies for export and domestic market.

11. Lakshmi Auto Components Limited: The Company is a subsidiary of TVS-Suzuki. It

manufactures gears, crankshafts and connecting rods for TVS-Suzuki motorbikes and
mopeds.

12. Lucas Indian Service: Lucas Indian Service is a wholly owned subsidiary of LucasTVS Ltd., engaged in the sales and service of auto-electrical and fuel injection
equipment.

13. Lucas - TVS Limited: Lucas-TVS, a joint venture between Lucas Varity group, UK
and TVS Group, are a leading manufacturer of auto electrical products and diesel fuel
injection equipment in India.

10

14. Sundaram Brake Linings Limited: Sundaram Brake Linings is the leading
manufacturer of brake linings in India.

15. Sundaram-Clayton Limited: Sundaram - Clayton Ltd manufactures complete range of

air brake actuation system - compressors, actuators, valves, brake chambers, spring
brakes, slack adjusters, couplings, hoses, switches and vacuum boosters for
light/medium and heavy commercial vehicles and trailers. Foundry Division
manufactures aluminum, gravity and pressure die-castings.
16. Turbo

Energy Limited:

Manufactures

turbo

chargers

for diesel

engines in

collaboration with BorgWarner Turbo Systems, U.S.A. at its manufacturing facilities

located at Pulivalam, around 100 km from Chennai.

Anusha Investments Limited, Chennai

Holding company : Sundaram-Clayton Limited, Chennai

Ultimate Holding Company : T V Sundaram Iyengar & Sons Limited,

Madurai

Fellow subsidiaries : TVS Motor Company Limited, Chennai

Components Limited, Chennai

TVS Motor (Singapore) Pet Limited, Singapore

TVS Motor Company (Europe) B V, Amsterdam

PT.TVS Motor Company Indonesia, Indonesia

TVS Energy Limited, Chennai

TVS Investments Limited, Chennai

TVS Electronics Limited, Chennai

Tumkur Property Holdings Limited, Chennai

11

Prime Property Holdings Limited, Chennai

TVS-E Access (India) Limited, Chennai

TVS-E Service Tec Limited, Chennai

TVS Capital Funds Limited, Chennai

Savanna Properties Limited, Chennai

Southern Roadways Limited, Madurai

Sundaram Industries Limited, Madurai

The Associated Auto Parts Limited, Mumbai

TVS Interconnect Systems Limited, Madurai

TVS Logistics Services Limited, Madurai

Lucas-TVS Limited, Chennai

Sundaram Textiles Limited, Madurai

NSM Holdings Limited, Madurai

TVS Net Technologies Limited, Madurai

TOR Projects & Services Limited, Madurai

NK Telecom Products Limited, Madurai

NK Telesystems Limited, Madurai

TVS Automotive Europe Limited, UK

TVS CJ Components Limited, UK

12

TVS Logistics Iberia S.L., Spain

TVS Logistics Siam Limited, Thailand

TVS Autoserv GmbH, Germany

TVS Logistics Investment UK Limited, UK

YeleStre Holdings Limited, UK

Multipart (Holdings) Limited, UK

Multipart Solutions Limited, UK

IH Crick Property Co Limited, UK

Msys Software Solutions Limited, UK

Globe Dynamics Limited, UK

Globe Transport Products Limited, UK

TVS Dynamic Global Freight Services Limited, Chennai

TVS Commutation Solutions Limited, Madurai

Lucas Indian Service Limited, Chennai

TVS Automotive Systems Limited, Chennai

Iranian Automotive Systems, Iran

Associate company : Sundram Non-Conventional Energy Systems

Limited, Chennai

13

CHAPTER-3
COMPANY PROFILE

14

Company Profile
Basic Information
Company Name

Lucas TVS

Business Type

Manufacturer

Alternator, Starter, Wiper, Relays, Ignition

Area Service Representatives

Address

Padi

Number of Employees

Above 1000 People

Company Website URL

http://lucas-tvs.com

Year Established

1962

Registered Capital

Above US$100 Million

Ownership Type

Individual (Sole proprietorship)

Total Annual Sales Volume

Above US$100 Million

Export Percentage

11% - 20%

Below US$1 Million

Product/Service
(We Sell)
Product/Service
(We Buy)

Ownership & Capital

Trade & Market

Total Annual Purchase

Volume
Business Markets

North America
15

South America
Eastern Europe
South East Asia
West Europe

Factory Information
Factory Size

Above 100,000 square meters

Factory Location

Padi

QA/QC

In House

No. of Production Lines

Above 10

No. of R&D Staff

Above 50 People

No. of QC Staff

Above 50 People

Management Certification

ISO 9001:2000
QS-9000
ISO 14001:2004
ISO/TS 16949
OHSAS 18001

Products Exporting

Starter motor, alternator, headlamp, wiper motor,

blower motor, fan motor, dynamo regulator,
dynamo, ignition coil, auto components,
pantograph wiping...

Services

Service -auto electrical equipments, diesel fuel

equipments

PROFILE OF THE COMPANY

Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc. UK and T
V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems.
16

One of the top ten automotive component suppliers in the world, Lucas Varity was formed by
the merger of the Lucas Industries of the UK and the Varity Corporation of the US in
September 1996. The company designs, manufactures and supplies advanced technology
systems, products and services to the worlds automotive, after market, diesel engine and
aerospace industries.
The combination of these two well-known groups has resulted in the establishment of
a vibrant company, which has had a successful track record of sustained growth over the last
three decades.TVS is one of India's twenty large industrial houses with twenty-five
manufacturing companies and a turnover in excess of US$ 1.3 billion. The turnover of LucasTVS and its divisions is US$ 233 million during 2003-2004.
Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emerged
as one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to all
segments of the automotive industry such as passenger cars, commercial vehicles, tractors,
jeeps, two-wheelers and off-highway vehicles as well as for stationary and marine
applications. With the automobile industry in India currently undergoing phenomenal
changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of
tomorrow.

BRANCHES:
Lucas TVS has various auto electrical plants as following as:

1. Auto Electrical Plants-Chennai

2. Auto Electrical Plants-Rewari
3. Auto Electrical Plants-Pondicherry
4. Auto Electrical Plants-Puduchery ( old branch- Nettapakkam)
5. Auto Electrical Plants-Chakan, Pune
6. Auto Electrical Plants-Uttarkhand
7. Auto Electrical plants-Indrad, Chennai

MISSION:

17

To be a respected supplier in the global auto industry, by developing innovative

products and solutions of value to customers through creative skills and involvement of
employees, suppliers and dealers and use of contemporary technology.

VISION
Dominant supplier to all leading vehicle manufacturers in India. Strong presence in
select NICHE market. Recognized supplier to Vehicle / Engine manufacturers in Europe for
Starters, Alternators and Small Motors. By 2015, reach Sales turnover of Rs.3500 Crores
(USD 770 Million) with a third being export sales. Customer delight and stake-holders pride
will form the basis of all our activities. Recognized supplier to Vehicle / Engine
manufacturers in Europe for Starters, Alternators and Small Motors. By 2015, reach Sales
turnover of Rs.3500 Crs (USD 770 Million) with a third being export sales. Customer delight
and stake-holders pride will form the basis of all our activities.

PRODUCTS
Lucas-TVS manufacture the most comprehensive range of auto electrical components
in the country. A range which continues to set standards in the industry. The products are
designed to meet the demands of vehicle manufacturers both in India and worldwide. With
the emission standards in India becoming increasingly stringent, Lucas-TVS has ensured that
each of its products is manufactured to meet global standards
QUALITY ASSURANCE
Quality is no longer an option but a basic requirement in today's world. At Lucas
TVS, quality in inbuilt in every phase of manufacture. The company's quality assurance
measures stand on the foundation of a solid belief - which quality begins and ends with the
customer. This commitment forms the backbone of its approach to Quality Assurance.
Lucas TVS has adopted a prevention-oriented quality policy though ingrained with the
traditional ideas of quality control. Everyone from the highest levels of the organization to
the lowest practice quality control both as an individual and as a team.

18

An effective Quality Control System has resulted in the recognition of the company's
outstanding achievements in the various fields. Lucas-TVS was awarded the ISO 9001
certified by BVQI in December 1993. The company reached a further milestone when it
recently received a certificate of recognition from BVQI for QS 9000 for Auto Electricals.

LIST OF PRODUCTS MANUFACTURED

Lucas-TVS Product Range for Indian

Lucas-TVS Product Range for

Market

US/European Market

Starter Motor
Alternator
Headlamp

Starter Motor
Alternator
Small Motor
14W Wiper Motor
Windshield Wiper Motor (GM Range)

Small Motor

LRW Products
Dynamo Regulator

Wiper Motor
Blower Motor
Fan Motor
Dynamo Regulator
Dynamo
Ignition Coil
Distributor

Dynamo
Auto Electricals

Diesel fuel injection

19

CLIENTS
CUSTOMER
Maruti Udyog
Hindustan Motors
TATA Engineering and
Locomotive Company
General Motors, India
Ford India
Daewoo Motors Co., India
Ind Auto
Hyundai Motors, India
Mahindra & Mahindra

INTERNATIONAL
COLLABORATOR
Cars
Suzuki, Japan
Isuzu, Japan. Mitsubishi, Japan

General Motors, USA

Ford, UK
Daewoo, Korea
Fiat, Italy
Hyundai Motors, Korea
Tractors
International Harvestor Corporation,
UK

Tractors and Farm Equipments

(TAFE)
Escorts
HMT
Eicher Tractors
Punjab Tractors
Gujarat Tractors
L&T Tractors
Greaves Tractors

Massey Ferguson, UK
Ursus, Poland. Ford, UK
Zetor, Czechoslovakia
Good Earth, Germany
Zetor, Czechoslovakia
Johndeer, USA
Same, Italy

20

DIVISIONS
Lucas TVS has grown hand in hand with the automobile industry in the country. The
company's policies have recognized the need to respond effectively to changing customer
needs, helping to propel it to a position of leadership. The company has raised its standards
on quality, productivity, reliability and flexibility by changeling its interests. At present, there
are five divisions:
1. Auto Electricals L-TVS
2. Fuel Injection Equipment (FIE) - DTVS
3. Electronic Ignition Systems (INEL)
4. Automotive Lighting (IJL)
5. After Market Operations (LIS)
ACHIEVEMENTS
Lucas-TVS, a TVS group company, has bagged the prestigious Deming Application
Award for the year 2004. This was announced by the Deming Prize Committee of Japanese
Union of Scientists and Engineers (JUSE).
Lucas-TVS, believes that quality begins and ends with the customer. This means identifying
customer needs and comprehensively meeting them. For the company, quality is not just
conformance to drawings or specifications but ensuring customer satisfaction.
AWARDS:
1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS 2008
Auto-motive sector, Ministry of Power, Govt. of India.

2. TATA CUMMINS
21

Lucas-TVS is Awarded "OUTSTANDING SUPPLIER & EXCELLENCE

PERFORMANCE during the year 2007 by CUMMINS INDIA LIMITED

3. FROST & SULLIVAN

Platinum Award for Manufacturing Excellence (2005)

4. MMA
Managerial Excellence in Manufacturing (2004-05)

5. AU-TVS (Anna University)

5 Star Award on 5S (2002)

6. QCC Awards
Energy Conservation Award (2000 and 2001)

7. HONDA
Best Supplier Award (2007)

8. BIS
Rajiv Gandhi National Award (2006)
22

9. Deming Application prize

JUSE, Japan

10. INTERNATIONAL RECOGNITION

JIT Innovation Award from JIT Management Lab, Tokyo (2001 & 2004)
JIT Grand Prix Award from JIT Management Lab, Tokyo (2002, 2005 & 2006) 3
Times, Deming Application Prize 2004

11. 100 PPM Award Hyundai motor India

Overall Best Performance (2004)

100 PPM Award (2003)
During 10th Auto Expo "TVS Group" has received awards for following categories:

Award 1 - For continuous support at all ten editions of Auto Expo.

Award 2 - For the largest display area at Auto Expo 2010 (in the vehicle component
category).

Mr.Jyotiraditya Scindia - Union Minister of state for commerce and industry,

distributed the awards.

Maruti Suzuki Limited Tier 2 Vendor up gradation Shield presented to Lucas-TVS

during vendor conference at Singapore on 4h May 2011.The award has been received

23

by Mr T K Balaji / Managing Director and Mr Arvind Balaji - Joint Managing

Director.

Mahindra & Mahindra Limited - Auto & Farm Equipment Sectors presented the
ANNUAL COMMODITY AWARD to Lucas-TVS during the Vendor Conference at
Seoul - Korea in May 2011. Mr Arvind Balaji - Joint Managing Director, received the
Award.

24

CHAPTER-IV
LITERATURE REVIEW ON
RECRUITMENT & SELECTION PROCESS

INTRODUCTION
According to Edwin B. Flippo, Recruitment in the process of searching the
candidates for employment and stimulating them to apply for jobs in the

25

organization. Recruitment is the activity that links the employers and the job seekers.
A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications
are submitted. The result is a pool of applications from which new employees
are selected.
It is the process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient
working force.
Recruitment of candidates in the function preceding the selection, which helps
create a pool of prospective employees for the organization so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous for the future human resources needs even though
specific vacancies do not exist. Usually, the recruitment process starts when a
manager initiates an employee requisition for a specific Vacancy or an
anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES

PLANNED
The needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization can
predict by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected.
26

Recruitment Vs Selection
Both recruitment and selection are the two phases of the employment process.
The differences between the two are:
1. Recruitment is the process of searching the candidates for employment and
stimulating them to apply for jobs in the organization whereas selection involves the
series of steps by which the candidates are screened for choosing the most suitable
persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable
the selection of best candidates for the organization, by attracting more and more
employees to apply in the organization whereas the basic of selection process is to
choose the right candidate to fill various positions in the organization.
3. Recruitment is a positive process i.e. encouraging more employees to apply
whereas selection is a negative process as it involves rejection of the unsuitable
candidates.
4. Recruitment is concerned with tapping the sources of human resources whereas
selection is concerned with selecting the most suitable candidate through various
interview and tests.
5. There is no contract of recruitment established in recruitment whereas selection
results in contract of service between the employer and the selected employee.
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for
the organization.
Determine present and future requirements of the organization in conjunction
with its personnel planning and job analysis activities.
Recruitment in the process which links the employees with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of
visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will
leave the organization only after a short period of time.
Meet the organizations legal and social obligations the composition of its
workforce.
27

 Begin identifying and preparing potential job applicants who be appropriate

candidates.
Increase organization and individual effectiveness of various recruiting
techniques and sources for all types of job applicants.

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically, the purposes are to:
Determine the present and future requirements of the organization in
Conjunction with its personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the number
of visibly, under qualified or overqualified job applicants.
Help reduce the probability that job applicants, once recruited and selected,
will leave the organization only after a short period of time.
Begin identifying and preparing potential job applicants who will be
appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.

28

 Develop an organizational culture that attracts competent people to the

company.
Search or head hunt/head pouch people whose skills fit the companys values.
Devise methodologies for assessing psychological traits.
Search for talent globally and not just within the company.
Design entry pay that competes on quality but not on quantum.
Anticipate and find people for positions that do not exist yet.
Increase organizational and individual effectiveness in the short term and long
term.
Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.
Recruitment represents the first contact that a company makes with potential
employees. It is through recruitment that many individuals will come to know a
company, and eventually decide whether they wish to work for it. A well-planned and
well-managed recruiting effort will result in high quality applicants, whereas, a
haphazard and piecemeal effort will result in mediocre ones. High-quality employees
cannot be selected when better candidates do not know of job openings, are not
interested in working for the company and do not apply. The recruitment process
should inform qualified individuals about employment opportunities, create a positive
image of the company, provide enough information about the jobs so that applicants
can make comparisons with their qualifications and interests, and generate enthusiasm
among the best candidates so that they will apply for the vacant positions.
The negative consequences of a poor recruitment process speak volumes about
its role in an organization. The failure to generate an adequate number of reasonably
qualified applicants can prove costly in several ways. It can greatly complicate the
selection process and may result in lowering of selection standards. The poor quality
of selection means extra cost on training and supervision. Furthermore, when
recruitment fails to meet the organizational needs for talent, a typical response is to
raise entry-level pay scales. This can distort traditional wage and salary relationships
in the organization, resulting in avoidable consequences. Thus, the effectiveness of a
recruitment process can play a major role in determining the resources that must be
expended on other HR activities and their ultimate success.
SUB-SYSTEMS OF RECRUITMENT
The recruitment process consists of the following four sub-functions:-

29

 Finding out and developing the sources where the required number and kind of
employees will be available.
Developing suitable techniques to attract the desirable candidates.
Employing the techniques to attract candidates.
Stimulating as many candidates as possible and asking them to apply for jobs
irrespective of the number of candidates required.
Management has to attract more candidates in order to increase the selection ratio so
that the most suitable candidate can be selected out of the total candidates available.
Recruitment is positive as it aims at increasing the number of applicants and selection
is somewhat negative as it selects the suitable candidates in which process; the
unsuitable candidates are automatically eliminated. Though, the function of
recruitment seems to be easy, a number of factors make performance of recruitment a
complex one.

SOURCES OF RECRUITMENT
The sources of recruitment may be broadly divided into two categories:
internal sources and external sources. Both have their own merits and demerits. Lets
examine these.
Internal Sources:Persons who are already working in an organization constitute the internal sources.
Retrenched employees, retired employees, dependents of deceased employees may
also constitute the internal sources. Whenever any vacancy arises, someone from
within the organization is upgraded, transferred, promoted or even demoted.
External Sources:External sources lie outside an organization. Here the organization can have the
services of : (a) Employees working in other organizations; (b) Jobs aspirants
registered with employment exchanges; (c) Students from reputed educational
institutions; (d) Candidates referred by unions, friends, relatives and existing
employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates
responding to the advertisements, issued by the organization; and (g) Unsolicited
applications/ walk-ins.

30

METHODS OF RECRUITMENT
The following are the most commonly used methods of recruiting people.
INTERNAL METHODS:
1. Promotions and Transfers
This is a method of filling vacancies from within through transfers and
Promotions.
A transfer is a lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working conditions, etc.,
but not necessarily salary. Promotion, on the other hand, involves movement of
employee from a lower level position to a higher level position accompanied by
(usually) changes in duties, responsibilities, status and value. Organizations generally
prepare badli lists or a central pool of persons from which vacancies can be filled for
manual jobs. Such persons are usually passed on to various departments, depending on
internal requirements. If a person remains on such rolls for 240 days or more, he gets
the status of a permanent employee as per the Industrial Disputes Act and is therefore
entitled to all relevant benefits, including provident fund, gratuity, retrenchment
compensation.
2. Job Posting
Job posting is another way of hiring people from within. In this method, the
organization publicizes job opening on bulletin boards, electronic method and similar
outlets. One of the important advantages of this method is that it offers a chance to
highly qualified applicants working within the company to look for growth
opportunities within the company to look for growth opportunities within the
company without looking for greener pastures outside.
3. Employee Referrals
Employee referral means using personal contacts to locate job opportunities. It
is a recommendation from a current employee regarding a job applicant. The logic
behind employee referral is that it takes one to know one. Employees working in the
organization, in this case, are encouraged to recommend the names of their friends,
working in other organizations for a possible vacancy in the near future. In fact, this
has become a popular way of recruiting people in the highly competitive Information
Technology industry nowadays. Companies offer rich rewards also to employees
whose recommendations are accepted after the routine screening and examining
process is over and job offers extended to the suggested candidates. As a goodwill
gestures, companies also consider the names recommended by unions from time to
time.

31

External (direct) Methods

Campus Recruitment
It is a method of recruiting by visiting and participating in college campuses and their
placement centers. Here the recruiters visit reputed educational institutions such as
IITs, IIMs, colleges and universities with a view to pick up job aspirants having
requisite technical or professional skills. Job seekers are provided information about
the jobs and the recruiters, in turn, get a snapshot of job seekers through constant
interchange of information with respective institutions. A preliminary screening is
done within the campus and the short listed students are then subjected to the
remainder of the selection process. In view of the growing demand for young
managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor &
Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and
IITs regularly and even sponsor certain popular campus activities with a view to earn
goodwill in the job market. Advantages of this method include: the placement centre
helps locate applicants and provides resumes to organizations; applicants can be prescreened; applicants will not have to be lured away from a current job and lower
salary expectations. On the negative front, campus recruiting means hiring people
with little or no work experience. The organizations will have to offer some kind of
training to the applicants, almost immediately after hiring. It demands careful advance
planning, looking into the placement weeks of various institutions in different parts of
the country. Further, campus recruiting can be costly for organizations situated in
another city (airfare, boarding and lodging expenses of recruiters, site visit of
applicants if allowed, etc.). If campus recruitment is used, steps should be taken by
human resource department to ensure that recruiters are knowledgeable concerning the
jobs that are to be filled and the organizations and understand and employ effective
interviewing skills.

32

Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by mix
of various internal and external forces. The internal forces of factors are the factors
that can be controlled by the organization. And the external factors are those factors
which cannot be controlled by the organization. The internal and external forces
affecting recruitment function of an organization are:

FACTORS AFFECTING RECRUITMENT

EXTERNAL
FACTORS

Supply and
demand

Recruitment policy

Human resource
planning

Labour
market

Image/Goodwill

EXTERNAL FACTORS

Size of the firm

Cost of recruitment

Growth and expansion

PoliticalSocial-Legal
Environment

Unemployment rate

Competitors
33

Recruitment relationships with other activities:

Job analysis

Personal Planning

NATURE AND REQUIREMENT OF

SPECIFIC JOBS
NO.OF SPECIFIC JOBS TO BE
FILLED

CONTRAINS
POOLOF
1. POOR
IMAGE
APPLICANTS
2. GOVERNMEN
T
POLICY
3. UNATTRACTI
VE
JOBS
SELECTION

RECRUITMENT
INDUCEMENT
1.
2.
3.
4.

COMPENSATIO
N
IMAGE
REPUTATION
CARREER
OPPURTUNITIE
S

QUALIFIED

34

INDUCEMENTS:

Organizational inducements are all the positive features and benefits offered by
an organization that serves to attract job applicants to the organization. Three
inducements need specific mention here, they are: Compensation: Starting salaries, frequency of pay increases, incentives and fringe
benefits can all serve as inducements to potential employees.
Career Opportunities: These help the present employees to grow personally and
professionally and also attract good people to the organization. The feeling that the
company takes care of employee career aspirations serves as a powerful inducements
to potential employees.
Image or Reputation: Factors that affect an organizations reputation include its
general treatment of employees, the nature and quality of its products and services and
its participation in worthwhile social endeavors.
CONSTRAINTS
If a firm has a poor image in the market, many of the prospective candidates
may not even apply for vacancies advertised by the firm. If the job is not attractive,
qualified people may not even apply. Any job that is viewed as boring, hazardous,
anxiety producing, low-paying, or lacking in promotion potential seldom will attract a
qualified pool of applicants. Recruiting efforts require money. Sometimes because of
limited resources, organizations may not like to carry on the recruiting efforts for long
periods of time, this can, ultimately, constrain a recruiters effort to attract the best
person for the job. Government policies often come in the way of recruiting people as
per the rules of the company or on the basis of merit/seniority, etc.
For example, reservations to specific groups (such as scheduled castes,
scheduled tribes, backward castes, physically handicapped and disabled persons, exservicemen, etc.) have to be observed as per constitutional provisions while filling up
vacancies in government corporations, departmental undertakings, local bodies, quasigovernment organizations, etc.
35

IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES

Recruitment policies are mostly drawn from personnel policies of the organization.
According to Dale Yoder and Paul D. Standohar, general personnel policies provide a
wide variety of guidelines to be spelt out in recruitment policy. After formulation of
the recruitment policies, the management has to decide whether to centralize or
decentralize the recruitment function.
CENTRALISED V/s DECENTRALISED RECRUITMENT
Recruitment practices vary from one organization to another. Some organizations like
commercial banks resort to centralized recruitment while some organizations like the
Indian Railway 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/ zone level perform all the
functions of recruitment concerning to the jobs of the respective unit or zone.
MERITS OF CENTRALISED RECRUITMENT
o Average cost of recruitment per candidate/unit should be
relatively less due to economies of scale.
o It would have more expertise available to it.
o It can ensure broad uniformity among human resources
of various units/zones in respect of education, skill,
knowledge, talent, etc.
o It would generally be above malpractices, abuse of
powers, favoritism, bias, etc.
o It would facilitate inter changeability of staff among
various units/zones.
o It enables the line managers of various units and zones to
concentrate on their operational activities by relieving
them from the recruiting functions.
o It enables the organization to have centralized selection
procedure, promotional and transfer procedure, etc.
36

o It ensures the most effective and suitable placement to

candidates.
o It enables centralized training programs which further
brings uniformity and minimizes average cost of staff.

MERITS OF DECENTRALISED RECRUITMENT

o The unit concerned concentrates only on those
sources/places wherein normally gets the suitable
candidates. As such the cost of recruitment would be
relatively less.
o The unit gets most suitable candidates as it is well aware
of the requirements of the job regarding culture,
traditional, family background aspects, local factors,
social factors, etc.
o Units can recruit candidates as and when they are
required without any delay.
o The units would enjoy freedom in finding out, developing
the sources, in selecting and employing the techniques to
stimulate the candidates.
o The unit would relatively enjoy advantage about the
availability of information, control and feedback and
various functions/processes of recruitment.
o 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.
Alternatively management may decentralize the recruitment of
certain categories of employees preferably middle and top level
managerial personnel and centralize the recruitment of other
categories of employees preferably lower level positions in view
of the nature of the jobs and suitability of those systems for those
37

categories of positions. The management has to find out and

develop the sources of recruitment after deciding upon
centralizing or decentralizing the recruitment function.

Recruitment Policy of a Company

In todays rapidly changing business environment, a will defined recruitment policy is
necessary for organizations to respond to its human resource requirement in time.
Therefore, it is important to have a clear and concise recruitment policy in place,
which can be executed effectively to recruit the talent pool for the selection of the
right candidate at the right place quickly. Creating a suitable recruitment policy is the
first step in the efficient hiring process. A clear and concise recruitment policy helps
ensure a sound recruitment process. It specifies the objectives of recruitment
programme. It may involve organizational system to be developed for Implementing
recruitment and procedures by filling up vacancies for implementing recruitment
programmers with best qualified people.

COMPONENTS OF THE RECRUITMENT POLICY

The general recruitment policies and terms of the organization

Recruitment services of consultants
Recruitment of temporary employees.
Unique recruitment situations
The selection process
The job descriptions
The terms and conditions of the employment
A recruitment policy of an organization should be such that:
It should focus on recruiting the best potential people.
Top ensure that every applicant and employee is equally with dignity and

respect
Unbiased policy.
To aid encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
38

Weight age during selection given to factors that suit organization needs.
Optimization of manpower oat the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy legislation on hiring and employment

relationship.
Integrates employee needs with the organizational needs.

FACTORS AFFECTING RECRUITMENT POLICY

Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications

Recruitment Management System

Recruitment management system is the comprehensive tool to manage the entire
recruitment processes of an organization. It is one of the technological tools facilitated
by the information management system to the HR of organizations. Just like
performance management system helps to contour the recruitment processes and
effectively managing the ROL on recruitment.
The features, functions and major benefits of the recruitment management system are
explained below:
o Structure and systematically organize the recruitment processes.
o Recruitment management system facilitates faster, unbiased, accurate and
reliable processing of applications from various applications.
o Helps to reduce the time-per-hire and cost-per-hire.
o Recruitment management system helps to incorporate and integrate the various
links like the application system on the official website of the company, the
unsolicited applications, outsourcing recruitment, the final decision marking to
the main recruitment process.
o Recruitment management system maintains an automated active database of
the applicants facilitating the talent management and increasing the efficiency
of the recruitment processes.

39

o Recruitment management system provides and a flexible, automated and

interactive interface between the online application system, the recruitment
department of the company and the job seeker.
o Offers tolls and support to enhance productivity, solutions and optimizing the
recruitment processes to ensure improved ROI
o Recruitment management system helps to communicate and create healthy
relationship with the candidates through the entire recruitment process.
The recruitment management system (RMS) is an innovative information
system tool which helps to save time and costs of the recruiters and improving the
recruitment processes.
RECRUITMENT STRATEGIES:

Recruitment of the most crucial roles of the human resource professionals. The
level of performance of an organization depends on the effectiveness of its recruitment
function. Organizations have developed to follow recruitment strategies to hire the
best talent for their organization and to utilize their resources optimally. A successful
recruitment strategy should be well planned and practical to attract more and good
talent to apply in the organization.
For formulating an effective and successful recruitment strategy, the strategy should
cover the following element:
(1)

Identifying and prioritizing jobs requirements keep arising at various levels in

every origination: it is amount a never ending process. It is impossible to fill all the
positions immediately. Therefore, there is a need to identify the positions requiring
immediate attention and action. To maintain the quality of the recruitment activities, it
is useful to prioritize the vacancies whether to focus on all vacancies equally or
focusing on key jobs first.
(2)

Candidates to target the recruitment process can be effective only if the

organization completely understands the requirements of the type of candidates that

are required and will be beneficial for the organization. This covers the following
parameters as well:
40

A.

performance level required: Different strategies are required for focusing on

hiring high performers and average performers.

b.

Experience level required: the strategy should be clear as to what is the

experience level required by the organization. The candidates experience can range
from being a fresher to experienced senior professionals.
C.

Category of the candidate: the strategy should clearly define the target

candidate. He/ She can be from the same industry, different industry, unemployed, top
performers of the industry etc.
(3)Sources of recruitment the strategy should define various sources (external and
internal) or recruitment. Which are the sources to be used and focused for the
recruitment purposes for various positions? Employee referrer is one of the most
effective sources of recruitment.
(4) Trained recruiters the recruitment professionals conducting the interviews and the
other recruitment activities should be well trained and experienced conducting the
activities. They should also be aware of the major parameters and skills (e.g.:
behavioral, technical, etc) to focus while interview and selecting a candidate.
(5) How to evaluate the candidates the various parameters and the ways to judge them
i.e. the entire recruitment process should be planned in advance. Like the rounds of
technical interviews, HR interviews, return tests, psychometric tests, etc.

HR Challenges in Recruitment

41

Recruitment is a function that requires business perspective, expertise, ability

to find and match the best potential candidate for the organization, diplomacy, and
marketing skills (has to sell the position to the candidates) and wisdom to align the
recruitment process for the benefit of the organization. The HR professional handling
the recruitment function of the organization are constantly facing new challenges. The
biggest challenge for such professionals is to source or recruited the best people or
potential candidates for the organization.
In the last few years, the job market has undergone some fundamental changes
in terms of technology, sources of recruitment, competition in the market, etc. in an
already saturated job market, where the practices like poaching and raiding or gaining
momentum, HR professionals are constantly facing new challenges in one of their
most important function recruitment they have to face and conquer various challenges
to find the best candidates for the organizations.
The major challenges faced by the HR recruitment are:
Adaptability to globalization the HR professionals are expected and required
to keep in tune with the changing times, i.e. the changes taking place across the
globe HR should maintain the timeline of the process
Lack of motivation recruitment is considered to be a thankless job. Even if
the organization is achieving results, HR department or professionals are not
thanked for recruiting the right employees and performers
Process analysis the immediacy and speed of the recruitment process are the
main concerns of the HR recruitment. The process should be flexible, adaptive
and responsive to the immediate requirements. The recruitment process should
also be cost effective
Strategic prioritization the emerging new systems are both an opportunity as
well as a challenge for the HR professionals. Therefore, reviewing staffing
needs and prioritizing tasks to meet the changes in the market has become a
challenge for the recruitment professionals.

SELECTION
Introduction
42

The size of the labour market, the image of the company, the place of
posting, the nature of job, the compensation package and a host of other factors
influence the manner of aspirants are likely to respond to the recruiting efforts of
the company. Through the process of recruitment the company tries to locate
prospective employees and encourages them to apply for vacancies at various
levels. Recruiting, thus, provides a pool of applicants for selection.

Definition
To select mean to choose. Selection is the process of picking individuals
who have relevant qualifications to fill jobs in an organization. The basic purpose
is to choose the individual who can most successfully perform the job from the
pool of qualified candidates.

Purpose
The purpose of selection is to pick up the most suitable candidate who would meet
the requirements of the job in an organization best, to find out which job applicant
will be successful, if hired. To meet this goal, the company obtains and assesses
information about the applicants in terms of age, qualifications, skills, experience,
etc. the needs of the job are matched with the profile of candidates. The most
suitable person is then picked up after eliminating the unsuitable applicants
through successive stages of selection process. How well an employee is matched
to a job is very important because it is directly affects the amount and quality of
employees work. Any mismatched in this regard can cost an organization a great
deal of money, time and trouble, especially, in terms of training and operating
costs.
In course of time, the employee may find the job distasteful and leave in
frustration. He may even circulate hot news and juicy bits of negative
information about the company, causing incalculable harm to the company in the
long run. Effective election, therefore, demands constant monitoring of the fit
between people the job.

The Process
Selection is usually a series of hurdles or steps. Each one must be successfully
cleared before the applicant proceeds to the next one. The time and emphasis place
43

on each step will definitely vary from one organization to another and indeed, from
job to job within the same organisation. The sequence of steps may also vary from
job to job and organisation to organisation. For example some organizations may
give more importance to testing while others give more emphasis to interviews and
reference checks. Similarly a single brief selection interview might be enough for
applicants for lower level positions, while applicants for managerial jobs might be
interviewed by a number of people.

Steps in Selecting Process:

Hiring Decision
Reference Checks
Medical Checkups
Selection Interview
Selection Test
Application blank
Screening Interview
Reception

Step-8
Step-7
Step-6
Step-5
Step-4
Step-3
Step-2
Step-1

Factors affecting selection decisions

The goal of selection is to short out or eliminate those judged unqualified to meet the
job and organisation requirements, where as the goal of recruitment is to create a large
44

cool of persons available and willing to work. Thus, it is said that recruitment tends to
be positive while selection tends to be somewhat negative.
A number of factors affect the selection decisions of candidates. The important
among them are:
(I) Profile matching.
(ii) Organizational and social environment.
(iii) Successive hurdles.
(iv)Multiple correlations.
(i) Profile matching: Tentative decision regarding the selection of candidates (who
are known) is taken in advance. The scores secured by these known candidates in
various tests are taken as a standard to decide the success or failure of other candidates
at each stage. Normally the decisions about the known candidates is taken at interview
stage. Possible care is also taken to match the candidates bio data with the jobs
specifications.
(ii) Organizational and social environment: some candidates, who are eminently
suitable for the job, may fail as successful employees due to varying organisation and
social environment. Hence candidates specifications must match with not only job
specifications but also with organizational social environmental requirements.
(iii) Successive hurdles: In this method hurdles are created at every stage of selection
process therefore, applicants must successfully pass each and every screening device
in case of successive hurdles as shown in figure 5.1
(iv) Multiple correlations: Multiple correlations is based on the assumptions that a
deficiency in one factor can be counter balanced by an excess amount of another. A
candidate is routed through all the selection steps before a decision is made. The
composite test score index is taken into accounting the selection tests. Hence, for
broader line cases multiple correlation method is useful and for other successive
hurdles method is useful.
Selection Procedure
There is no standard selection process that can be followed by all the companies in all
the areas. Companies may follow different selection techniques or methods depending
45

upon the size of company, nature of the business, kind and number of persons to be
employed, government regulation to be followed etc. Thus, each company may follow
anyone or the possible combinations of methods of selection in the order convenient
or suitable to it. Following are the selection methods generally followed by the
companies.
Selection procedure employs several methods of collecting information about
the candidate's qualifications, experience, physical and mental ability, nature and
behavior, knowledge, aptitude and the like for judging whether a given applicant is or
is not suitable for the job. Therefore, the selection procedure is not a single act but is
essentially a series of methods or stages by which different types of information can
be secured through various selection techniques. At each step, facts may come to light
which are useful for comparison with the job requirement and employee
specifications.
(1) Job Analysis.
(2) Recruitment.
(3) Application Form.
(4) Written Examination.
(5) Preliminary Interview.
(6) Business Games.
(7) Tests.
(8) Final Interview.
(9) Medical Examination
(10) Reference Checks.
(11) Line Managers Decision.
(12) Employment.

46

CHAPTER-5
HUMAN RESOURCE MANAGEMENT AT LUCAS TVS

History of Human Resource Management

The History of Human Resource Management is the strategic and coherent approach
to the management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business.
The terms "human resource management" and "human resources" (HR) have largely replaced
47

the term "personnel management" as a description of the processes involved in managing

people in organizations. Human Resource management is evolving rapidly. Human resource
management is both an academic theory and a business practice that addresses the theoretical
and practical techniques of managing a workforce.
Human resource management has its roots in the late and early 1900's. When there are
less labour then there are more working with machinery. The scientific management
movement began. This movement was started by Frederick Taylor when he wrote about it a
book titled The Principles of Scientific Management. The book stated, "The principal object
of management should be to secure the maximum prosperity for the employer, coupled with
the maximum prosperity for each employee. Taylor believed that the management should
use the techniques used by scientist to research and test work skills to improve the efficiency
of the workforce. Also around the same time came the industrial welfare movement. This was
usually a voluntary effort by employers to improve the conditions in their factories. The effort
also extended into the employees life outside of the work place. The employer would try to
provide assistance to employees to purchase a home, medical care, or assistance for
education. The human relations movement is the major influence of the modern human
resource management. The movement focused on how employees group behaviour and how
employee feelings. This movement was influenced by the Hawthorne Studies.
Functional area of HRM
Human resource auditing
Human resource strategic planning
Human resource planning
Manpower panning
Recruitment / selection
Induction
Orientation
Training
Management development
Compensation development
Performance appraisals
Performance management

48

 Career planning / development

Coaching
Counsellings
Staff amenities planning
Event management
Succession planning
Talent management
Safety management
Staff communication
Reward

PEOPLE
Human resource is an asset never disclosed in a company's balance sheet. We at
Lucas-TVS strongly believe that an organization's most valued assets are its people who
individually and collectively contribute to the achievement of the objectives of the business.
Keeping this in mind, Lucas-TVS's management style lays great emphasis on employee
involvement and actively encourages participation and commitment through Small Group
Activities (SGA), Suggestion Schemes, Voluntary Work Teams and the like.
MANAGEMENT
Management of almost all the companies is by family members. Most of the
group companies maintain a low profile and follow a conservative management style.

CULTURE

49

A highly visible culture of Commitment, backed up by Discipline & Positive Attitude

prevails across the organization. We believe in the following equation:
Employee Performance = [Knowledge + skill] X [Will]
Trust, Value, and Service are the key words and beliefs practiced always internally and
externally. Openness and transparency are seen in leadership styles meetings. Internal
customer- Supplier equations are extremely strong. SOP (Standard Operating Procedure-shop
floor) & SWP (Standard Work Procedure-office areas) are base points of DRM in line and
staff functional departments. TEI (Total Employee Involvement) is the foundation of the
organization. Learning culture prevails at all times and all places in the company. 5S is the
first step in every function. Approach and outlook of engineers / managers is always bi-focal
(short term and long term). PDCA is the belief and the Continuous improvement is the driver
of growth. Systems and procedures are always put in place in reality to recognize an orderly
workflow. Performance culture is encouraged and visible results are rewarded. Customer,
economy in operations and Gemba are the basics of business culture. We take care of our
employees and they in turn take care of our customers.

HR POLICY
To build a strong corporate constitution (HR) in the organization by constitution
improving skill and morale of the employees and ensuring climate for total employee
involvement in the organization in all facets of business.

HR Philosophy
We believe:
In people and their unlimited potential
In content and focus in problem solving
In teams for effective performance
In the intellect and its power

50

HR Vision
To be the foundation that integrates Culture, Vision and Values and creates an environment
that facilitates the maximization of human potential.

Our Endeavour
a

To select, train and coach people to obtain higher and early responsibilities

To nurture talent to build leaders of our tomorrow's LIS.

c Reward and activate all intellectual business contributions for the growth of
the company.

Responsibility of HR department in organization

Position

Job Responsibilities

HR

Executive committee, organization planning, HR planning & policy,

Organization development

Manager,

recruitment

& Recruiting, Interviewing, Testing, Placement & Termination

employment
Manager , compensation & Job analysis and evaluation, surveys, Performance appraisal,
benefits

compensation administration, bonus, Profit sharing plans, Employee

benefits.

Manager,

Training

& Orientation, Training, Management development, Career Planning &

Development

development

Manager, Employee relations

EEO relations, contract compliance, staff assistance programs,

Employee counselling.

Table : Responsibility of HR department

51

RECRIUTMENT PROCESS AT LUCAS TVS

In Lucas-TVS recruitment and selection process is done by a specific process and

which is very much modern. Its starts with the manpower requisition and end with an
appointment. And after than Lucas TVS arrange various types of training and development
program for the employees to develop their skill. In true sense Lucas TVS follow a developed
recruitment process for selecting right people in right place.
The internal communication system of Lucas Tvs called Indha Maadha Seitni Which was
conducted every month at every Departments and every quarterly by which the manpower
requirements of various departments are identified well in advance.
Recently, the Lucas TVS have recruitment in this year for the post of Software
Engineer, Recruitment for Engineer and Diploma Trainees by way of advertisements in
various Employment News and other job related papers. The Lucas TVS has a WEBSITE
called http://www.lucas-tvs.com/lucastvs/opportunities. In which all recruitment portals
are kept. The details of the candidates applied and their related date was maintained in a
confidential way.

Role of Human Resources in Recruitment and Selection Process:

In recruitment and selection process the main role is played by HR division. The
process
Is start with manpower requisition and end with appointment? When there is a need of
manpower, the required departments send the manpower requisition to HR consist the
approval of MD. Then HR starts the process. The process include some step or task that done
by a sequential order. First step is manpower requisition. It comes from the division who has
vacancies. It can be replacement or for the new candidates. In the second step the requisition
comes to HR department the particular officer of HR takes approval from the CHRO. Then
the third step starts, HR give advertisement for the job, it can be external or internal. After
collecting CVs HR starts sorting suitable CVs for that post. After sorting of CV the forth step
starts. The forth step is written exam. Written exam has two parts, one is the HR parts and
another is the particular departments parts. The candidates must have passed HR part. When
52

a candidate passed the written exam then he or she gets call for interview. It is the fifth step of
the process. Generally, the candidates have to face one Interview but sometimes they have to
face two interviews. After interview a candidate is selected by the interviewers. Then the
selected candidate has to go for medical checkup. It is sixth step. Then comes reference
check step. Lastly selected candidates fill up joining forms and then he/she gets the
appointment letter.
This is the procedure that Lucas TVS HR follow to recruit people. Actually in Lucas
TVS the Recruitment and selection is totally control by HR divisions. HR division makes the
policy for recruitment and selection and also taken decision sometimes that a department
required manpower. When the requisition come HR starts the process. HR also supervise that
Recruitment and Selection are not simply mechanisms for filling vacancies rather they are
viewed as the key factor for suitable placements. For a better recruitment and selection
process HR arrange done some tasks like

Collecting suitable and better CV

Arranging written exam
Arranging interviews
Ensure medical tests
Appointment letter and others

BASIC RULE OF RECRUITMENT IN LUCAS TVS:

For recruitment Lucas TVS HR follow some rules. These rules are set by HR for
better recruitment and selection. The rules are
Lucas TVS Recruitment is to hire the right kind of people at the right place
selecting them through an effective process from a pool of candidates in
the job market.

Effective recruitment shall ensure the competency and

high quality performance of

the whole organisation.

No one who is below 18 years of age can be hired as an employee for

Lucas TVS on regular, contract or temporary status.
Under no circumstances a regular or contract employee of any other
organization is

allowed to undertake regular or long term contract

employment in Lucas TVS.

53

Recruitment & Selection Process at Lucas TVS:

The Process of recruitment and selection at Lucas TVS is consisting of number of sequential
steps. The following picture can show the process very clearly:

MANPOWER
REQUISITION

ACCEPTANCE
OF OFFER
LETTER AND
JOINING
PROCEDURE

OFFER LETTER

COLLECTING CV FROM
SOURCES:
1. INTERNAL
SOURCES
2. EXTERNAL
SOURCES
i.
CAMPUS
RECRUITMENT
ii.
RECRUITMENT
AGENCIES
iii.
JOB PORTAL

SORTING CV THAT
ARE SUITABLE FOR
JOB

REFERENCE
CHECK
WRITTEN EXAM
GROUP
DISCUSSION
FINAL SELECTION

MEDICAL CHECK

PERSONAL
INTERVIEW
(THERE MAY BE
TWO INTERVIEW)

Figure: Recruitment & Selection Process at Lucas TVS

54

HUMAN RESOURCE PLANNING

Recruitment and Selection are not simply mechanisms for filling vacancies rather they
are viewed as the key factor for suitable placements. With a view towards placing the right
person at the position in Lucas TVS following procedures in Recruitment and Selection will
be practiced:
Lucas TVS Human Resource planning will start at the beginning of the year in
accordance with the approved business Plan and budget provisions.
Each Division will submit their month wise recruitment plan to HR for the whole
year and on the basis of such requirement HR Division will prepare the upcoming recruitment
plan of each Division/Department.

MANPOWER REQUISITION:
Based on the HR Planning respective Division/Department Head will inform HR on
personnel requirement through Manpower Requisition form, after obtaining necessary
approvals from the Managing Director. Employment Requisition Form must contain a JTOR
(Job Terms of Reference), comprising Job Description and Job Specifications / Requirements
of the position.
Requisition form contain some information like
Name of the position
Status of the employment
Job description
Job specification
Approval of the MD
When the approval comes to HR, the process begins by collecting suitable candidates from
sources.

55

RECRUITMENT SOURCES
First and foremost step of recruitment is collecting CVs from sources. There are two
sources of recruitment:
Internal source (within the organization)
The external job market.

INTERNAL SOURCES
For encouraging the internal candidate, job vacancies in Lucas TVS may be
advertised through internal notices to all Lucas TVS Ltd employees. Recruitment from the
internal source may be through Promotion or delegating individuals with new assignments.
In the case of internal sourcing, HR along with the concerned Division/Department will
identify prospective candidates on the basis of Individual Capability matching with
Competency/Role Profile and will conduct appropriate tests to select the most suited person.
In internal source Lucas TVS consider mainly two types of employees:
Contractual
Internship
Contractual employees are those who are working in a contact of six months or one year.
Internship, after completing their internship and completing their graduation can apply for
job.

EXTERNAL SOURCES
In short, external sources mean collecting CVs from outside. Lucas TVS collect a lot
of CVs from outside. Recruitment from external sources will be through
Executive search for Senior Managers and Above Positions.
Advertisements - for managers and below positions.

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The CVs are collect by following ways:

Advertisement
Job portal
Employee Reference
Campus Interview
Recruitment Agency

ADVERTISEMENT:
Advertisement is a well known and worldwide accepted source of recruitment. Like
other company Lucas TVS also have a career website from where applicants can fill up an
application forms. When the job requirement is matched with the applicants CV then HR
selects these applications for recruitment.

JOB PORTAL
Job Portals are the most popular and widely used tool by companies and recruitment
teams to facilitate the smooth flow of recruitment process in the competitive world. Job
Portals provide a platform for the employers to meet the prospective employees. The job
aspirants can register in job Portals by creating a user ID. Job Portals allow users to submit
and edit their resumes and apply for specific jobs at companies of their choice. Once
registered, job aspirants get e-mail job alerts and can respond to job related questions from
the employer companies. The companies have the choice to search for their ideal candidate
from the resume database using various options and parameters available in the job Portals.
Now a day every company has a website and they collect CVs by job portal. Ever
there is lots of job website and company can send advertisement over there. Lucas TVS has a
career portal and gives advertisement in www.naukri.com. The interested candidates whose
profiles match with the requirements can apply for job over the net. By this way Lucas TVS
gets many CVs.

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EMPLOYEE REFERENCE
Employee Referrals may be collected through circulation of advertisement to all
employees. Lucas TVS consider employees reference because it got some advantage, the
internal employees know how to do the work so he can easily understand who can do the
Work. If an employee refer someone that means he knows about him better and that helpful
for the company because Lucas TVS believes employees cannot be harmful for company.

CAMPUS INTERVIEW:
Campus placement or campus interview is the program conducted within educational
institutes or in a common place to provide jobs to students pursuing or in the stage of
completing the programme. In this programme, Lucas TVS visit the colleges to select
qualified students. Recently, Lucas TVS done Campus Interview from following colleges
thats SRM University, Dhivya Polytechnic college, Jayaram polytechnic college,etc.,

RECRUITMENT AGENCY:
A recruitment agency can help you by submitting you for vacancies notified to the
agency by employers. Many agencies specialise in certain types of work, within certain
sectors or in particular geographical areas.
The employers pay the agency to assist them in filling a particular job. You should
not be asked to pay the agency for finding you work - although there will normally be a
charge for additional services such as personality testing or preparing a CV. On filling the
post, the employer will pay the agency a fee (normally a percentage of the first year's salary).
Frequently, the advert will not name the employer.
Lucas TVS pay the agency to assist them in filling a particular job. Lucas TVS pays a
fee 12 to 15% of the first years salary to agency. Mostly, Lucas TVS done their recruitment
with recruitment agencies out off 80%.

OTHER SOURCES:
Depending on the circumstances professional employment agencies, notice boards of
technical universities and polytechnics. Lucas TVS should have recruited from TV Sundram
polytechnics.
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SCREENING OF CANDIDATES
Following publication of Job Vacancy, concerned Divisional/ Department Head and
HR Division will scrutinize the applications and short list candidates for inviting to oral
interviews or written tests where applicable.
When screening the following criteria will be followed:
For the Executive position, candidate must be at Post graduate (from Lucas
TVS preferred universities)
For Executive and above, candidate must have at First and at least second
class in all academic level. However, in case of competent candidates with
strong experience in the relevant field such educational qualification may be
relaxed.
For Non-Executive permanent employees, minimum educational requirement
is graduate or SSC.
For Non-Executive contractual employees, candidate must be of class eight
pass.

WRITTEN EXAM
For every job Lucas TVS HR arrange a written exam for candidates. The written
exam is must for each and every candidate.
The written exam is called General Ability. It contain
General Ability
In this section, the general ability of the candidate has been checked. This is the way of
written exam that taken by Lucas TVS for job. It is a very important and useful way to find
our good candidate from the all kind of candidate.

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ORAL INTERVIEW
For the oral interview, competency based structured interview will be
conducted. The standard Interview Assessment Form along with probing questions will be
supplied by HR Division. Position specific structured interview with necessary Proving
Questions and Assessment form can also be developed/ used.
The oral interview may take place in different phases according to the decision of HR
Division and concerned Division/ Department and on the basis of Position:

GROUP DISCUSSION
PRELIMINARY INTERVIEW
Conducted by the respective immediate Manager and another member from cross
functional area.
SECOND INTERVIEW OR FINAL INTERVIEW
Conducted by the particular departments next level managers along with the
respective Divisional/ Departmental Heads.
INTERVIEW OF KEY POSITION:
If the recruitment is for any key position/ AGM or above level a final interview must
be conducted with the Managing Director. Sometimes one interview makes the final result
and sometimes there are two interviews. Interviews are arranged by HR.

HR arrange

interview for every post even for a tea boy and for a driver. Generally these interviews are
held in Personnel department floor of Lucas TVS. There is a separate room for interview.
These interviews are generally taken by managers of the required division and there
must be an HR person in that interview. In interview the interviewer find out the fact
candidate behaviour as well as the ability of the candidate. Interviews also test the
intelligence and smartness of the candidate.

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FINAL SELECTION
From the interview some suitable candidates comes out. Once the final incumbent is
selected, HR Division (Compensation & Benefit) will initiate the compensation Plan and will
make offer/ process the appointment formalities. This time HR discuss about few things like:
Terms and condition of company
Salary and benefit
Joining

FINAL APPROVAL
Like the requisition for appointing candidate the approval of MD is needed. This time
HR sends the approval to MD that these candidates are selected in interview for this position
and they are going to appoint these candidates for the post.

MEDICAL TEST
When the MD approved the appointment of the candidate HR call the candidate for a
medical check up. The candidates have to collect a letter for medical from HR and go for the
medical test. The selected candidate must undergo a medical check up and subject to
satisfactory medical report formal appointment letter will be issued.

REFERENCE CHECKS
When a candidate is selected for the job, his or her given reference has been checked
by HR. Reference check may be conducted by HR Division upon acceptance of offer. Subject
to satisfactory response joining will be accepted

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APPOINTMENT OR OFFER LETTER

At last the after the medical test and reference checked, the offer letter for the
candidate has been issued. After that the candidate gets the call that he or she has been
appointed and he or she has to collect the letter from HR.

ACCEPTANCE OF OFFER LETTER & JOINING PROCEDURE

The joining also has some procedure. In time of joining at first the candidates have
accept the offer letter by signing it. Then he or she has to fill up some forms like,
HRIS form
ID card form
Medical Reimbursement form
Declaration
When all this formalities are over the candidate will become one of the member of Lucas
TVS and start working as an employee of Lucas TVS.

RECRUITMENT CYCLE
Lucas TVS Human Resources Division will take maximum 15 days to complete a
recruitment process. The breakdown of the 15 days as follows:

Requisition
Advertisement

= 1 days
= 7 days

Short listing/Screening

= 2days

Written test

= 1 days

Compilation & Approval

= 1 days

Reference Check

= 1 days

Medical Check

= 1 days

Appointment letter

= 1 day

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RECRUITMENT OF CONTRACTUAL & OTHERS

This policy governs the appointment of individuals on Contract/Causal basis and
through Third Party service providers. Prior to process the employment on the above
category, the Division/ Department concerned must obtain approval from the Managing
Director. The manpower requisition must contain the job specification with justification of
the need along with the period.

CONTRACT APPOINTMENT
Jobs which are temporary in nature and is likely to be for a limited period or need is
for a long term but cannot be hired on a permanent basis due to headcount restrictions. The
period of appointment will be of 6 (Six) months to maximum 1 (One) years.
Person appointed on contract may be terminated during the tenure at the discretion of
the employing department with reasons (performance/ redundancy) or without assigning any
cause. A termination clause (with notice period/pay in lieu of) must be incorporated in the
contract.
The division/ department concerned will initiate the recruitment in concert with HR.
Upon finalizing the selection; HR will issue the formal appointment letter. Employees hired
on contract must go for pre-employment medical test and subject to satisfactory results (fit
for work) the incumbent will be allowed to join.
Standard terms and conditions similar to permanent employee especially adherence of
code of business ethics, confidentiality and full time engagement clauses must be included.
If a contract employee is made permanent (based on performance/capability/ headcount) the
service length of that individual will be counted from the first day of the joining provided the
contract period was continuous/uninterrupted.

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Salary and benefits will be fixed based on the incumbents educational and
professional background. A contract employee will be entitled to same level of salary and
benefits if he/she is hired in a position that already exist in the permanent payroll.
A contract employee will not be eligible for end service benefits or loan facilities from
the company. A contract appointment should be for a fixed period and will become void
automatically on the end date unless the contract is shortened or extended in writing prior to
the expiration date.

RECRUITMENT FOR APPRENTICES

In India, the Apprentices Act was enacted in 1961. It regulates the programme of
training of apprentices in the industry so as to conform to the syllabi, period of training etc. as
laid down by the Central Apprenticeship Council and to utilise fully the facilities available in
industry for imparting practical training with a view to meeting the requirements of skilled
manpower for industry.
The Apprentices Act enacted in 1961 and was implemented effectively in 1962. Initially the
Act envisaged training of trade apprentices. The Act was amended in 1973 to include training
of graduate and diploma engineers as "Graduate" & "Technician" Apprentices. The Act was
further amended in 1986 to bring within its purview the training of the 10+2 vocational
stream as "Technician (Vocational)" Apprentices.
Overall responsibility is with the Directorate General of Employment & Training (DGE&T)
in the Union Ministry of Labour. DGE&T is also responsible for implementation of the Act in
respect of Trade Apprentices in the Central Govt. Undertakings & Departments. This is done
through six Regional Directorates of Apprenticeship Training located at Chennai.
State Apprenticeship Advisers are responsible for implementation of the Act in respect of
Trade Apprentices in State Government Undertakings/ Departments and Private
Establishments. Department of Education in the Ministry of HRD is responsible for
implementation of the Act in respect of Graduate, Technician & Technician (Vocational)
Apprentices. This is done through Boards of Apprenticeship Training located at Chennai.

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Lucas TVS have apprentice only for mechanical auto electronics. The apprentice
candidates should pass out 10th class examination under 10+2 system of education or diploma
or ITI. Lucas TVS contacted Interview on every week of Tuesday. After, a selected candidate
should register the CRC form its contract registration under the control of board apprentices
training centre. The period of contract is 1(one) to 2(two) years. Then, Lucas TVS provided
the Dress Code and C.C.No, Breakfast Coupon and Snacks Coupon. Lucas TVS contact a
training program for apprentice at every 4 month that is Apprentice Development Programme
and Computer Numerical Control Programme. Lucas TVS have a Boat Communication
which interacts with apprentice. Ratio of apprentices to workers other than: 1:2

RECRUITMENT FOR INTERNSHIP

Internship is one of the parts of graduation for student. In case of Bachelor of
Business Administration and Master of Business Administration, MSW, Engineering
students, it is an obligatory.
Recruitment of the internship is a contractual based. The candidates have
recommendation from Lucas TVS employee. Then only they will appoint as intern. Generally
for internship Lucas TVS ask for CVs to the reputed Universities like Anna University, SRM,
Sathya Baba, and Madras University, reputed B-Schools.
The requisition for interns is send by the departmental head or the employee who need
internship.
GRADING SYSTEM
Lucas

TVS have a grading

system which is grading

an

easy

system

Grade

Designation

T13
T05
T02
A4
T04

Technician
Apprentices
Short Term Trainee
Act Apprentice
Senior Engineer
Progression Trainee

to

responsibilities of the
taken their graduation
grading an employee.
grading system and they
salaries based upon this
grade I have mentioned

W01-W107
S04-S07
T12
T20
T21
S06
W03
T22

Regular Workers
Regular Stuff
DET
Govt Apprentices
GET
Technician Assistant
Cell Support
Operator
Permanent employee

among employees. Its

allotting a salaries and
employee. Lucas TVS
and work experience for
Lucas TVS follows this
fix the job title and
grading system. Some of
below as follow as:

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Communication Styles in Lucas TVS:

Lucas TVS has followed some communication system for Interacting employee,
Trainee, and Contractual Employees.
1. Boot Communication
2. R1 Communication
3. Five Star Programme
This are the communication Lucas TVS currently using and make an interaction between
management and employee more effective.

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67

FINDINGS
Findings at Lucas TVS on Recruitment and Selection Process:
1. Lucas TVS sourcing a candidates through the Recruitment Agencies, campus Interview,
Job portal, and employee referral. Here, the Lucas TVS mostly recommended
www.naukri.com.
2. In recruitment process, Lucas TVS followed three stages in interview thus, personal
interview, written test, group discussion, etc.,
3. Lucas TVS followed different recruitment process for different grades of employee. They
are grading a employee and segment their position, salary, and bonus on the basis of grade.
4. 5% of candidates back out after being offered, 20% of candidates leaves form a company
within the less than 3-6 months,10% of candidates leave within the less than one year.
5. Recently, Lucas TVS using the Video conference technological system in recruitment
process and they are aware from video resume and implementing that.
6. In last fiscal years, Lucas TVS recruited more than 100 employees.
7. 12-15% Lucas TVS paid to recruitment agency. 80% of candidates Lucas TVS recruited
through Recruitment agency.
8. Line function support is a biggest challenge of Lucas TVS HR department at this process.
9. 60% of employee would leave from job after the training. They would not continue with
them.
10. Employee does not satisfied with salary packages.

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SUGGESTION

1. Manpower requirement for each department in the company is identified well in advance.
2. Perfect manpower consultants should avoid dealing with low profile requirements (like
recruiting office assistants, front office executives or were the salary package is less than Rs
8000). Because time and energy (work force) used to fulfil the low profile requirement can be
used in a better else were to generate more revenues.
3. Though consultancy has already owned a good reputation, but it always need some type of
publicity as a reminder to the young stars approaching to the jobs. This might help in
accumulating good data base.
4. Every department employee should aware about the current recruitment process.
5. Lucas TVS should give to advertisement for current job vacancy. Then the outsourcing or
fresher can know about the job vacancies at Lucas TVS.

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CONCLUSION
This presents the summary of the study and survey done in relation to the Recruitment and
Selection in Lucas TVS. The conclusion is drawn from the study and survey of the company
regarding the Recruitment and Selection process carried out there.
The recruitment process at Lucas TVS to some extent is not done objectively and therefore lot of
bias hampers the future of the employees. That is why the search or headhunt of people should be
of those whose skill fits into the companys values.

Selection process is good but it should also be modified according to the requirements and
should job profile so that main objective of selecting the candidate could be achieved.

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BIBLOGRAPHY
WEBSITES:
1. www.lucas-tvs.org
2. www.google.com
3. www.citehr.com
4. www.managementstudyguide.com
5. www.scribd.com
6. www.wikipedia.com

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