, Tatisilwai, Ranchi

By Amrit Linda
Chetan Munda BBA [2007-10] UNDER THE GUIDENCE OF
Mr.AMIT RANJAN SINHA

DEPUTY GENERAL MANAGER –HR & IR

MARWARI COLLEGE, RANCHI

A NAAC B++ GRADED
[A CONSTITUENT UNIT OF THE RANCHI UNIVERSITY, RANCHI]
ACKNOWLEDGEMENT

At this very outset, it is a matter of pleasure for us to present this project report
to MARWARI COLLEGE, RANCHI as well as USHA MARTIN LIMITED, WIRE ROPES
AND SPECIALITY PRODUCTS DIVISION, TATISILWAI, RANCHI.

We express our deep sense of gratitude, respect and sincere thanks to all those
who have extended their helps, guidance and suggestions in completing this
report.

We are also thankful to those who have cooperated to complete this project
report, namely MR. AMIT RANJAN SINHA (Dy. General Manager- HR & IR ) at
USHA MARTIN LIMITED as well as faculty members of the management
department of MARWARI COLLEGE, RANCHI.

Amrit Linda
Chetan Munda
 DECLRATION

I hereby declare that this project report have been prepared by the partial
fulfillment of the requirement for the award by BBA, MARWARI COLLEGE,
RANCHI.

I also declare that to the best of my knowledge this project a result of my own
afford and it has not been submitted to any other university or institute for the
award of my professional degree.

Date signature

Place
 Bonafide Certificate
This is to certify that project report title (RECRUITMENT & SELECTION at USHA
MARTIN Ltd) is a bonafide work done by Mr. Chetan Munda in USHA MARTIN
Ltd., Tatisilwe, Ranchi. It is submitted under the partial fulfillment of the
requirement or his degree of BBA in HR.

He has worked under my supervision and guidance and that no part of his
report has been submitted for the award of the any other institute.

Place Certified
Date Guides Name

Signature
Context
 Executive summery
 Company Profile
 Look Back—A Brief History
 Organization of USHA MARTIN
o Vision
o Mission
o Group Company of the USHA MARTIN
o Management
 Objective of the Study
 Scope of the Study
 Introduction of the HRM
o Concept of HRM
o HR the new Hot Rod!
o Importance of HRM
 What is HRP?
o Definition
 Importance of planning
 Steps in HRP
 Recruitment
o Recruitment Process

o Sources Of Recruitment

 Internal Sources
 External Sources
 o Factors Affecting Recruitment
 Internal Factors
 External Factors
o Recruitment Policy Of an Organization

o Recent Trends in Recruitment

 E-Recruitment
 Out sourcing Recruitment
 Headhunting Process
o Selection
 Introduction
 Definition
 The Selection Process
o Recruitment Vs Selection
o Summery
o Conclusion
o Bibliography
  

    

EXECUTIVE SUMMARY

"Take up one idea. Make that one idea your life - think of it, dream of it, and live
on that idea. Let the brain, muscles, nerves, every part of your body, be full of
that idea, and just leave every other idea alone. This is the way to success that
is a way great spiritual giants are produced"

It has been a good learning experience to do the detailed project report on

"RECRUITMRNT & SELECTION "as a part of my Summer Training program. The
study has been made an attempt to gain better understanding about the
procedures of organizational environment.
Company profile
Started in 1961 in Ranchi, Jharkhand as a wire rope manufacturing company,
today the USHA MARTIN group is RS 3000 crore canglometer with global
presences. The group has set new slandered manufacture of wire ropes, bright
bars, steel wire , specialty wire, strand ,wire ropes wire drawing and cable
machineries. In continuous growth in both domestic and international market,
USHA MARTIN the group’s flagship company has immersed India largest and
world’s 2nd largest steel wire rope manufacturer.

For USHA MARTIN, the path to sustainable growth was long, the management
constantly tired out innovative business practices. With initiative to diversify the
customer base by venturing into the international market- moving up the value
change and fully integrating its business process to maximize to stake holder
value.
Looking Back – A brief History
The Company is a part of the Usha Martin Group, which was formed in India in the
early 1960s with the establishment of Usha Martin Industries Limited (UMIL),
engaged in the manufacture of steel wires, wire ropes and other related products.
The group was promoted by Mr. B. K. Jhawar, who is the Chairman of the
Company. Usha Beltron Limited was incorporated on 21 May, 1986 as a joint
venture between Usha Martin Industries Limited, Bihar State Electronics
Development Corporation Limited, AEG Kabel, Germany (now Kabelrhydt and a
member of the Alcatel group) and DEG, Germany, to manufacture Jelly Filled
Telephone Cables (JFTC). Pursuant to the Orders of the Hon'ble High Court of
Kolkata and Patna( Ranchi Bench) Usha Martin Industries Limited merged with
Usha Beltron Limited with effect from 15th May, 1998. Thereafter the registered
office was shifted from Tatisilwai, Ranchi, Bihar to Kolkata in the State of West
Bengal in the year 2000. The name of Usha Beltron Limited was changed to Usha
Martin Limited with effect from 1st May, 2003.

 1960
The Wire Rope Plant with a capacity of 3600 TPA was set up at Tatisilwai,
Ranchi in collaboration with Martin Black & Company (Wire Ropes) Ltd,
UK.
 1962
UMIL commenced production of wire and wire ropes
 1965
UMIL promoted "Usha Ismal Limited" in collaboration with CCL Systems
Ltd, UK for manufacture of rope accessories and splicing equipment at its
factory at Ranchi. UIL merged with UMIL in 1990 and became a division of
the company.
 1971
UMIL promoted " Usha Alloys & Steels Limited" for the manufacture of
steel billets at Adityapur, Jamshedpur. UASL merged with UMIL in 1988.
 1975
 UMIL set up its Machinery Division at Bangalore for manufacture of wire
drawing and allied products in collaboration Marshall Richards Barcro Ltd ,
UK.
UASL acquired an ongoing rolling mill at Agra.
 1979
In order to obtain steady supply of wire rods for its wire rope plant, UASL
set up a Wire Rod Rolling Mill at Jamshedpur.
 1980
The joint venture company " Usha Siam Steel Industries Public Limited
Company" was incorporated in Thailand for manufacture of wire, wire
ropes and auto cables.
 1986 UMIL, along with Bihar State Electronics Development Corporation,
promoted Usha Beltron Ltd. (UBL) in collaboration with AEG KABEL of
Germany for the manufacture of Jelly Filled Telephone Cables.
 1991
Usha Martin completed its supplies of the parallel wire stay cables for the
Second Hooghly Bridge at Kolkata and established the Company's
capability for manufacturing sophisticated special cables.
 1994
The Company made its first GDR issue at a price of US$ 10.70 per GDR, for
a total consideration of US$ 35,000,000.
The Company established Usha Martin Europe Limited as its subsidiary, in
joint venture with Exim Bank of India to create worldwide marketing and
distribution set up for export of wire ropes.
 1995
Commissioning of Mini Blast Furnace at Jamshedpur to reduce cost and
improve productivity.
 1996
 New state of the art Wire Rod Mill at Jamshedpur commissioned to
produce higher weight coils for better productivity.
 1998
UMIL merged with UBL wef 1st October,1997. The shareholders of UMIL
were allotted one equity share of UBL in respect of every three shares of
UMIL held by them.
 2000
The Company’s IT division was demerged into a new Company named as
Usha Martin InfoTech Limited (UMITL). In accordance with the Scheme,
UMITL issued and allotted one equity share of Rs. 5/- each to all the
shareholders of the Company in the ratio of one equity share of Rs. 10/-
each held by them in the Company. Consequently as per the Scheme of
De-merger, the face value of the shares of the Company was reduced to
Rs. 5/- each.
 The Company established UM Cables Limited as its wholly owned
subsidiary to set up a green field JFTC and OFC plant at Silvassa.
 Commissioning of 25 MW thermal power plants at Jamshedpur for captive
consumption.
 The Company acquired a majority stake in Usha Siam Steel Industries
Public Limited Company, Bangkok (engaged in manufacture of wire ropes
at its plant in Bangkok).
 The Company also acquired 80% stake in Brunton Shaw Limited, UK, from
Carclo Group.
 The Company made its second GDR issue at a price of US$ 3.25 per GDR,
for a total consideration of US$ 11,375,000 (1 GDR representing 1 equity
share).
 2001
 The Company established Usha Martin Singapore (Pty.) Limited as its
wholly owned subsidiary to set up a distribution center at Singapore for
wire ropes.
 Commissioning of 2nd SMS at Jamshedpur to enhance capacity to 350000
TPA and produce quality specialty steel.
 2003
The Company has disposed off its Rolling Mill Division at Agra for focusing
on core business.
 The Promoters & IFC contributed towards equity 53,45,455 and 52,64,727
no of shares respectively @ Rs 33/- per share. IFC & DEG also provided to
the Company foreign currency loans of USD 21 million and Euro 10 Million
respectively.
 The name of the Company was changed to Usha Martin Limited with
effect from 1st May, 2003.
 Brunton Wolf Wire Ropes FZ Co Middle East Dubai commenced its
commercial production with production capacity of 6,000 MT p.a. A joint
venture between Usha Martin International Ltd and Gustav Wolf of West
Germany.
 The Company obtained prestigious order for wire ropes for a period of 3
years from OTIS Elevators for worldwide supplies.
 The Company successfully created new facilities by modifying the cable
plant to manufacture value added products such as bright bars, special
wires and conveyor cords.
 2004
The Company successfully commissioned DRI and WHRB power plant at its
Steel Division in Jamshdedpur.
 2005
 The Company signs an MOU with Joh.Pengg for manufacturing of the
specialty oil tempered spring steel wire.
 Takeover of JCT Ltd.’s steel division completed and successfully integrated
with Usha Martin.
 Commences Iron ore mining successfully.
 Railway Siding commenced.
 DRI power plant capacity augmented by further 5 mw by putting up 40 tph
char boiler.
 Commissioning of 3rd Ladle Furnace at SMS to increase steel capacity to
3,60,000 mt p.a.
 The Company made its third GDR issue at a price of US$ 4.61 per GDR, for
a total consideration of US$ 33.29 Million (1 GDR representing 1 equity
share).
 Preferential allotment of 5800000 warrants to promoters@ Rs 153/- per
warrants totaling Rs 88.74 Crores.
 Incorporation of Brunton Shaw America Inc as a new subsidiary of the
company
 2006
Pursuant to B.T.A the company acquired the business of Usha
Construction Steel Ltd, Rolling Mill at Agra w.e.f 1st December,2006 as a
part of its steel segment.
 2007
o The company acquired Netherland based distribution and rigging
company De Ruiter Staalkabel B.V.
 Successful commissioning of Wire Rope Plant at Houston, America.
 The company subdivided its equity share from Rs 5/- each to Rs 1/- each.
 Preferential allotment of 385,00,000 warrants to promoters @Rs 87/- per
warrants totaling Rs 335 Crores.
The organization of USHA MARTIN
The vision of USHA MARTIN
Mission:-
 Enriching Lives
We will do our best to provide quality product and services, which will
improve the styles of our users and shall be globally competitive
through customers.

 Quality is our first priority

We aim to achieve customers satisfaction by producing quality
products. No sale is a good sale unless it fulfills our customers
expectation.

 Our world is our bond

Our dealers are our partners. We endeavor to practice this golden rule
in all our relation with others.

 Integrity is our commitment-

The conduct of our company affair must be pursued in a manner that
command respect for honesty and integrity.

Commitment
 To Quality
Committed to deliver reliable products satisfaction of customers,
requirement, complying with international standards.

 To shareholders
 Committed to enriching stakeholder value through synergic
integration of business of group with quality earnings on a
sustained basis.
 To Society
committed to preserve the environment and to improve the life of
rural people where the group has its operations through its social
welfare wings.
Social Commitment Through Krishi Gram Vikas Kendra
Management commitment and support since 1977
''In every village where hunger persist , human being must be
empowered to discovered
their own vision expresses their own leadership; create their own
solutions and work together achieve their own success.''
KGVK Activities
• augmenting water resources through watershed management
• sustainable income generation through cottage industries &
live stock management
• capacity building through ''agivika research & training centre .''
• health &family welfare programmers
• women empowerment thru ''swashakti '' programme
KGVK project
In partnership with grass root civic society, corporate and government.
• India Canada environment facility (ICEF) project-for water
resources conservation & conjunctive utilization for environmental
restoration (project cost Rs. 10.0Cr)
• ICICI-Cini project -for primary health services at the grass root
level project cost Rs. 2.0 Cr.
Total projects worth Rs.18 Crore in hand

Group company of the USHA MARTIN

USSIL

Usha Siam Steel Industries ( "USSIL") was incoporated in 1980 as a joint

venture between Usha Martin Industries, India and Leading
Industrialists in Thailand - Promoted by Board of Investment ("BOI") for
production of Steel Wires and Ropes.
USSIL became a Public Company Limited in 1997 and subsequently
become an wholly owned subsidiary of the Usha Martin Limited, India.
USSIL is among the largest integrated Steel Wires, Industrial Strands,
Control Cables and Wire ropes Plants based in the ASEAN region with
an annual manufacturing capacity of 36,000 MT.
UM Singapore

Established in 2000, is a wholly owned subsidiary of Usha Martin

Limited, India. It has been operational as a distribution center for Usha
Martin Group’s core business of steel wire ropes and related products
in South East Asia. It also has distribution set up in Australia &
Indonesia.
BWWR

Established in 2003, Brunton Wolf Wire Ropes FZCO is a joint venture

between Usha Martin Limited of India and Gustav Wolf of Germany.
BWWR is the first wire rope factory set up in the Middle East, situated
in Jebel Ali Free Zone Enterprise (FZE) with an annual capacity of
12,000 MT. The product range includes general engineering rope,
elevator rope, crane rope, off-shore application rope, etc.
UM Cables

A wholly owned subsidiary of Usha Martin Limited, located at Silvassa,

Western India, manufactures PIJF Copper Telecom cables and Optical
Fibre Cables and has an annual capacity of 2.9 MCKM and 35000 RKM
respectively.

UMIL

Established in 1997, Usha Martin International Limited is a wholly

owned subsidiary of Usha Martin Limited, formed to facilitate
distribution & marketing of the group’s wire & wire rope products in
Europe. The company also acquired in 2001 a Nottinghamshire based
Wire Rope manufacturing company “Brunton Shaw UK” with an annual
capacity of 6,000 MT. It also specializes in providing services to oil
drilling and offshore exploration activities thru its arm European
Management & Marine Corporation having offices in Aberdeen (UK),
Baku & Tananger(Norway).
UM America

A wholly owned subsidiary of Usha Martin Limited, India. It has been

operational as a distribution center for Usha Martin Group’s core
business of steel wire ropes and related products in United States of
America.

Brunton Shaw America

Established in 2007, Brunton Shaw America is a wholly owned
subsidiary of Usha Martin Limited, India having a wire rope
manufacturing capacity of 6000 TPA.
Management
Board of Directors (as on 31.12.2009)
 Mr. B.K Jhawar – Chairman
 Mr. B.K Jhawar, Chairman,
 Mr. Prashant Jhawar, Vice Chairman,
 Mr. Brij K Jhawar – Director
 Mr. N.J.Jhaveri – Director
 Mr. A.K. Chaudhuri – Director
 Ms. Ramni Nirula – Director
 Mr. Ashok Basu – Director
 Mr. Salil Singhal – Director
 Mr. Rajeev Jhawar – Managing Director
 Dr. P. Bhattacharya – Jt. Managing Director

Objectives of the study

 1. To have an overall view of the Recruitment & Selection process in a
private sector company.

2. To get a firsthand knowledge as regards to the proper implementation

of the recruitment policies in USHA MARTIN LTD. And its preparedness
to meet the new challenges in the area of recruitment.

3. To understand the current impact of globalization in company policy for

recruitment & selection.

Scope of the Study

Recruitment is the process of searching for prospective employees and
stimulation to apply for job in the organization. On the other hand selected
 means employment of workers or establishing a contractual relationship
between the employer and the worker.

Recruitment is a positive process of searching for prospective employees.

Whereas selection is a negative process because it involves rejection of
unsuitable candidates.

Today the scope of the recruitment & selection is very broad. The scope of
the Recruitment & Selection at USHA MARTIN generally covers the
following steps:

 A scientific method of selection process.

 Periodical induction of employees.
 Workforce motivation.
 Quality manpower
 Development of team work.
 Assurance of carrier growth.

Introduction to the HRM

Excellence and innovation should not only be discussed but also be practiced by
Proceeding Infrastructure facilities, keeping persistence, patience, monitoring
continuously, supporting rewarding success.
An organization with good HR practices not only care of major things but also
minor things important to the employees. This helps them to grow and expand
their vision not only as employees of the organization but also as individual.

Having an able HRD department leads to organizational success practicing HRD

involves human being who are most complex and unpredictable in nature.
Human being is guided, controlled by themselves, families and societies, culture
and ethos. Thus what is tries for one person cannot hold the same for the other,
this is what HR must recognize and understand.

HRD engaged in well-run organization meet business challenge flexible systems

to enable roles. Its goal is long terms benefit for both the individual and
organization.

“The bond that links your true families is not one of blood but of respect and
joy”. It’s these bonds that HRD thrives to bring about.

CONCEPT OF HUMAN RESOURCE MANAGEMENT

Among the various factors of production, which are used in an organization,
human resource is the most important of all. This is because the efficient use of
physical resources (i.e. land, machinery, materials). Ultimately depends on how
the human facto is put to good use on various operations. Human resource
management is a process of bringing people together so that the goals of the
organization are met. It tries to secure the best from people by winning their
wholehearted cooperation; in short it defined as

“the art of producing, developing and maintaining competent workforce to

achieve the goals of an organization in an effective manner.”

Human resource management (HRM) 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 the term "personnel
management" as a description of the processes involved in managing people in
organizations. In simple sense, HRM means employing people, developing their
resources, utilizing, maintaining and compensating their services in tune with
the job and organizational requirement.

HR the new hot rod!

“It’s really important for me to spend more time with my people. We had have
a number of HR consultancy, but HRD initiatives are time consuming and one
has to be patient for culture and mind-set changes.”
 (Adi Godrj)

“It is important to realize that employees are your greatest assets. Unlike other
assets, people are the only asset, which do not, depreciate over time. On the
contrary, the more you use the, the better they get over time. Their values keep
on appreciating with the passage of time.”

--Bried Friedman.
 HR helps in transforming the lifeless factors of production into useful
products.
 They are capable of enlargement i.e. capable of producing an output
and that is a greater than the sum of inputs, once they get inspired,
ever ordinary people can deliver extraordinary result.
 They can help an organization to achieve results quickly, effectively
and efficiently.

Human Resources
Management
An organization success depends on the knowledge attitudes and skills (KAS) of
employees, particularly as they help establish a set of core competencies that
distinguish an organization from its competitors. HRM helps an organization and
its people to realize their respective goals in the following ways:-

At the enterprise level:-

 Good HR practices can help in attracting and retaining the best people in
the organization.
 It helps in training people for the challenging roles, developing right,
attitude towards.
 The job and the company and promoting team sprit among employees.

At the individual level:-

It promotes teamwork and team sprit among employees.

It offers excellent growth opportunities to people who have the
potential to rise.

At the society level:-

 Employment opportunity multiply the world’s leading to scarce talents are

put to best use. Companies that pay and treat people well always race
ahead of other and deliver excellent.

At the national level:-

Effective use of human resource helps in exploitation of natural, physical and

financial resources in a better way. People with right skills, proper attitude and
appropriate values help the nation to act ahead compete with the best in the
world leading to better standard of living and better employment.

Human resource planning

HR planning includes all activates managers do to forecast current and future
HR needs.
 Must be done prior to recruitment and selection

 Demand forecast made by managers estimates the number & qualification

the firm will need.

 Supply forecast estimate the availability and qualification of current

workers and those in the labor market.

What is HR Planning ?
 • Human Resource Planning is the process by which an organization ensures
that it has the right number and kind of people, at the right places, at the
right time, capable of effectively and efficiently completing those tasks
that will help the organization achieve its overall objectives.

• HR/ Manpower Planning is the process of acquiring and utilizing human

resources in the organization. It ensures that the organization has the
right number of employees in the right place at the right time.

• Employment planning is the process of formulating plans to fill future

openings based on an analysis of the positions that are expected to be
open and whether these will be filled by inside or outside candidates.

Definition of HR Planning:-
Quoting Mondy et (1996) they define it as a systematic analysis
of HR needs in order to ensure that correct number of employees
with the necessary skills are available when they are required.

When we prepare our planning programme, Practitioners should

bear in mind that their staff members have their objective they
need to achieve. This is the reason why employees seek
employment. Neglecting these needs would result in poor
motivation that may lead to unnecessary poor performance and
even Industrial actions.

Importance of Planning

Planning is not as easy as one might think because it requires a concerted effort to
come out with a programme that would easy your work. Commencing is
complicated, but once you start and finish it you have a smile because everything
moves smoothly.

Planning is processes that have to be commenced form somewhere and completed

for a purpose. It involves gathering information that would enable managers and
supervisors make sound decisions. The information obtained is also utilized to
make better actions for achieving the objectives of the Organization . There are many
factors that you have to look into when deciding for an HR Planning programme.

HR Planning involves gathering of information, making objectives, and making

decisions to enable the organization achieve its objectives. Surprisingly, this aspect
of HR is one of the most neglected in the HR field. When HR Planning is applied
properly in the field of HR Management, it would assist to address the following
questions:

1. How many staff does the Organization have?

2. What type of employees as far as skills and abilities does the Company
have?
3. How should the Organization best utilize the available resources?
4. How can the Company keep its employees?

HR planning makes the organization move and succeeds in the 21 st Century that we
are in. Human Resources Practitioners who prepare the HR Planning programme
would assist the Organization to manage its staff strategically. The programmes
assist to direct the actions of HR department.

The programme does not assist the Organization only, but it will also facilitate the
career planning of the employees and assist them to achieve the objectives as well.
This augment motivation and the Organization would become a good place to
work. HR Planning forms an important part of Management information system.

HR have an enormous task keeping pace with the all the changes and ensuring that
the right people are available to the Organization at the right time. It is changes to
the composition of the workforce that force managers to pay attention to HR
planning. The changes in composition of workforce not only influence the
appointment of staff, but also the methods of selection, training, compensation and
motivation. It becomes very critical when Organizations merge, plants are relocated,
and activities are scaled down due to financial problems.
Steps in HR Planning
Forecasting

HR Planning requires that we gather data on the Organizational goals objectives.

One should understand where the Organization wants to go and how it wants to
get to that point. The needs of the employees are derived from the corporate
objectives of the Organization. They stern from shorter and medium term objectives
and their conversion into action budgets (e.g.) establishing a new branch in New
Dehli by January 2006 and staff it with a Branch Manager (6,000 USD, Secretary
1,550 USD, and two clerical staff 800 USD per month. Therefore, the HR Plan should
have a mechanism to express planned Company strategies into planned results and
budgets so that these can be converted in terms of numbers and skills required.

Inventory

After knowing what human resources are required in the Organization, the next
step is to take stock of the current employees in the Organization. The HR inventory
should not only relate to data concerning numbers, ages, and locations, but also an
analysis of individuals and skills. Skills inventory provides valid information on
professional and technical skills and other qualifications provided in the firm. It
reveals what skills are immediately available when compared to the forecasted HR
requirements.

Audit

We do not live in a static World and our HR resources can transform dramatically.
HR inventory calls for collection of data; the HR audit requires systematic
examination and analysis of this data. The Audit looks at what had occurred in the
past and at present in terms of labor turn over, age and sex groupings, training costs
and absence. Based on this information, one can then be able to predict what will
happen to HR in the future in the Organization.

HR Resource Plan

Here we look at career Planning and HR plans. People are the greatest asserts in any
Organization. The Organization is at liberty to develop its staff at full pace in the
way ideally suited to their individual capacities. The main reason is that the
Organization’s objectives should be aligned as near as possible, or matched, in order
to give optimum scope for the developing potential of its employees. Therefore,
career planning may also be referred to as HR Planning or succession planning.

The questions that should concern us are:

a) Are we making use of the available talent we have in the Organization, and
have we can enough provision for the future?
b) Are employees satisfied with our care of their growth in terms of
advancing their career?
Assignments of individuals to planned future posts enable the administration to
ensure that these individuals may be suitably prepared in advance.

Actioning of Plan

There are three fundamentals necessary for this first step.

1) Know where you are going.

2) There must be acceptance and backing from top management for the
planning.

3) There must be knowledge of the available resources (i.e.) financial, physical

and human (Management and technical).

Once in action, the HR Plans become corporate plans. Having been made and
concurred with top management, the plans become a part of the company’s long-
range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may
be a serious constraint on the long-range plan. Below is an illustration of how HR
Plan is linked to corporate Plan.

Process of Human Resource

The process of human resource planning is one of the most crucial, complex and
continuing managerial functions. It may be rightly regarded as a multistep
process.
 Recruitment

Introduction
The success or failure of an organization is largely dependent on the caliber of
the people working there in. Organizations therefore have to recruit people
with requisite skills, qualification and legal factors within a country. While doing
so, we have to keep the present as well as the future requirement of the
organization in mind.

Recruitment refers to the process of finding possible candidate for a job or

function, undertaken by recruiters. It may be undertaken by on employment
agencies or a member of staff at the business or organization looking for
recruits. Advertising is commonly part of the recruiting process, and can occur
through several means through newspapers, using news paper dedication to job
advertisement through professional publication, using advertisements placed in
windows through a job center, through a job centre through campus interviews,
etc.

Suitability for a job is typically assessed by looking for skills, e.g. communication
skills, typing skills, computer skills. Evidence for skills, e.g. communication skills,
typing skills, computer skills. Evidence for skills, e.g. communication skills,
typing skills, computer skills. Evidences for skills required for a job may be
provided in the form of qualification (educational or professional) experiences
in a job requiring the relevant skills or the testimony of reference. 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
test may also be assessed on the basis of an interview. Sometimes candidates
will be requested to provide a resume / CV or to complete an application from
to provide this evidence.
Definition

“Recruitment is the process of location & encouraging potential application jobs

opening”.
Recruitment is the premier major steps in the selection process in the
Organizations. It has been explained as an activity directed to obtain
appropriate human resources whose qualifications and skills match functions of
the relevant posts in the Organization. Its importance cannot be over-
emphasized and can also be best described as the ‘heart’ of the organization.

Recruitment aims at--

The process of recruitment does not stop when it commences, it is a dynamic

activity. The purpose of it is to provide an Organization with a pool of qualified
candidates. Its specific purposes are as follows:
  To assist augment the success rate of selection process by reducing the
numbers of obviously under-qualified and over-qualified applicants.

 To increase Organizational and individual effectiveness in the short and long

term plans.

 Attracting a large number of qualified applicants who are ready to take up the
job.

 If it’s offered and offering enough information for unqualified persons to self-
select themselves out (for e.g., the recruitment ad of a foreign bank.

 May invite application from chartered accountants who have cleared the CA
examination in the first attempt only.

 Recruitment aims at creating “a pool of talents”.



Purpose & Importance Of Recruitment

The Purpose and Importance of Recruitment are given below:

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

 Create a talent pool of candidates to enable the selection of best candidates for the
organisation.
  Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.

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

 Increase the pool of job candidates at minimum cost.

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

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

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

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

 Increase organization and individual effectiveness of various recruiting techniques and

sources for all types of job applicants

Recruitment Process

The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the recruitment strategic advantage for the
organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and
requires many resources and time. A general recruitment process is as follows:

 Identifying the vacancy:

The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These
contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
 Preparing the job description and person specification.

 Locating and developing the sources of required number and type of

employees (Advertising etc).
 Short-listing and identifying the prospective employee with required
characteristics.
 Arranging the interviews with the selected candidates.
 Conducting the interview and decision making
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process i.e.
the final interviews and the decision making, conveying the decision and the
appointment formalities.

Sources Of Recruitment

Every organisation has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the
organisation itself (like transfer of employees from one department to other, promotions)
to fill a position are known as the internal sources of recruitment. Recruitment candidates
from all the other sources (like outsourcing agencies etc.) are known as the external
sources of The recruitment.
 SOURCES OF RECRUITMENT

Internal Sources Of Recruitment

Some Internal Sources Of Recruitments are given below:

1. TRANSFERS
The employees are transferred from one department to another according to their
efficiency and experience.

2. PROMOTIONS
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their

performance.

4. Retired and Retrenched employees may also be recruited once again in case of shortage
of qualified personnel or increase in load of work. recruitment such people

Save time and costs of the organisations as the people are already aware of the
organisational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent on
the mercy of others.
External Sources Of Recruitment

1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used
source of recruitment. The main advantage of this method is that it has a wide
reach.

2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges etc. are
a good source of recruiting well qualified executives, engineers, medical staff
etc. They provide facilities for campus interviews and placements. This source is
known as Campus Recruitment.

3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on behalf of
client companies by charging a fee. These
agencies are particularly suitable for recruitment of executives and specialists. It
is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout the
country. These exchanges provide job information to job seekers and help
employers in identifying suitable candidates.

5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close
 contacts with the sources of such workers. This source is used to recruit
labor for construction jobs.

6. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies on their own.
Such callers are considered nuisance to the daily work routine of the
enterprise. But can help in creating the talent pool or the database of the
probable candidates for the organisation.

7. EMPLOYEE REFERRALS / RECOMMENDATIONS

Many organisations have structured system where the current employees
of the organisation can refer their friends and relatives for some position
in their organisation. Also, the office bearers of trade unions are often
aware of the suitability of candidates. Recruitment Management can
inquire these leaders for suitable jobs. In some organizations these are
formal agreements to give priority in recruitment to the candidates
recommended by the trade union.

8. RECRUITMENT AT FACTORY GATE

Unskilled workers may be recruited at the factory gate these may be
employed whenever a permanent worker is absent. More efficient among
these may be recruited to fill permanent vacancies.
 Recruitment

External Factors Internal Factors

Supply and demand Recruitment Policy

Labour Market HRP
Image/Good will Size of the Firm
Political-Social-Legal Environment cost
Unemployment Rate Growth and Expansion
Competitors

External Factors
The external factors which affecting recruitment are the forces which
cannot be controlled by the organization. The major external forces are:

1. SUPPLY AND DEMAND

The availability of manpower both within and outside the organization is an
important determinant in the recruitment process. If the company has a demand
for more professionals and there is limited supply in the market for the
professionals demanded by the company, then the company will have to depend
upon internal sources by providing them special development programs.

2. LABOUR MARKET
Employment conditions in the community where the organization is located will

Influence the recruiting efforts of the organization. If there is surplus of

manpower at the time of recruitment, even informal attempts at the time of
recruiting like notice boards display of the requisition or announcement in the
meeting etc will attract more than enough applicants.

3. IMAGE / GOODWILL
Image of the employer can work as a potential constraint for recruitment.
An organization with positive image and goodwill as an employer finds it
easier to attract and retain employees than an organization with negative
image. Image of a company is based on what organization does and
affected by industry. For example finance was taken up by fresher MBA’s
when many finance companies were coming up.

4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT

Various government regulations prohibiting discrimination in hiring and
employment have direct impact on recruitment practices. For example,
Government of India has introduced legislation for reservation in
employment for scheduled castes, scheduled tribes, physically
handicapped etc. Also, trade unions play important role in recruitment.
This restricts management freedom to select those individuals who it
believes would be the best performers. If the candidate can’t meet
criteria stipulated by the union but union regulations can restrict
recruitment sources.

5. UNEMPLOYMENT RATE
 One of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its rate).
When the company is not creating new jobs, there is often oversupply of
qualified labor which in turn leads to unemployment.

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

Internal Factors
The internal factors or forces which affecting recruitment  and
can be controlled by the organization are

1. RECRUITMENT POLICY
The recruitment policy of an organization specifies the objectives of
recruitment and provides a framework for implementation of
recruitment programmers. It may involve organizational system to
be developed for implementing recruitment programmers’ and
procedures by filling up vacancies with best qualified people.

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

3. SIZE OF THE FIRM

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

4. COST
Recruitment incur cost to the employer, therefore,
organizations try to employ that source of recruitment which
will bear a lower cost of recruitment to the organization for
each candidate.

5. GROWTH AND EXPANSION

Organization will employ or think of employing more personnel
if it is expanding its operations.

Recruitment Policy of a Company

In today’s rapidly changing business environment, a well defined recruitment
policy is necessary for organizations to respond to its human resource
requirements in time. Therefore, it is important to have a clear and concise
recruitment policy in place, which can be executed effectively to recruit the
best 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 and provides a framework for

implementation of recruitment programme. It may involve organizational
system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with best qualified people.

COMPONENTS OF THE RECRUITMENT POLICY

 The general recruitment policies and terms of the organisation

 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 organisation should be such that:

 It should focus on recruiting the best potential people.

  To ensure that every applicant and employee is treated equally with
dignity and respect.
 Unbiased policy.
 To aid and encourage employees in realizing their full potential.
 Transparent, task oriented and merit based selection.
 Weightage during selection given to factors that suit organization needs.
 Optimization of manpower at the time of selection process.
 Defining the competent authority to approve each selection.
 Abides by relevant public policy and legislation on hiring and employment
relationship.
 Integrates employee needs with the organisational needs.

Recent Trends in Recruitment

The following trends are being seen in recruitment:

 OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now.
A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organisation by the initial screening of the
candidates according to the needs of the organisation and creating a suitable
pool of talent for the final selection by the organisation. Outsourcing firms
develop their human resource pool by employing people for them and make
available personnel to various companies as per their needs. In turn, the
outsourcing firms or the intermediaries charge the organisations for their
services.
Advantages of outsourcing are:

1. Company need not plan for human resources much in advance.

2. Value creation, operational flexibility and competitive advantage
3. turning the management's focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable
resumes/candidates.
5. Company can save a lot of its resources and time

 POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced
person already working with another reputed company in the same or different
industry; the organisation might be a competitor in the industry. A company can
attract talent from another firm by offering attractive pay packages and other terms
and conditions, better than the current employer of the candidate. But it is seen as
an unethical practice and not openly talked about. Indian software and the retail
sector are the sectors facing the most severe brunt of poaching today. It has become
a challenge for human resource managers to face and tackle poaching, as it weakens
the competitive strength of the firm.
  E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E-recruitment is the
use of technology to assist the recruitment process. They advertise job vacancies
through worldwide web. The job seekers send their applications or curriculum vitae
i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in
worldwide web, which can be drawn by prospective employees depending upon
their requirements.

Advantages of recruitment are:

o Low cost.
o No intermediaries
o Reduction in time for recruitment.
o Recruitment of right type of people.
o Efficiency of recruitment process.

E-Recruitment

The internet penetration in India is increasing and has tremendous potential. According to
a study by NASSCOM – “Jobs is among the top reasons why new users will come on to the
internet, besides e-mail.” There are more than 18 million resume’s floating online across
the world.

The two kinds of e-recruitment that an organisation can use is –

 Job portals – i.e. posting the position with the job description and the job specification
on the job portal and also searching for the suitable resumes posted on the site
corresponding to the opening in the organisation.

 Creating a complete online recruitment/application section in the companies own

website. - Companies have added an application system to its website, where the ‘passive’
job seekers can submit their resumes into the database of the organisation for
consideration in future, as and when the roles become available.

Resume Scanners: Resume scanner is one major benefit provided by the job portals to the
organisations. It enables the employees to screen and filter the resumes through pre-
defined criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the
job.

Job sites provide a 24*7 access to the database of the resumes to the employees
facilitating the just-in-time hiring by the organisations. Also, the jobs can be posted on the
site almost immediately and is also cheaper than advertising in the employment
newspapers. Sometimes companies can get valuable references through the “passers-by”
applicants. Online recruitment helps the organisations to automate the recruitment
process, save their time and costs on recruitments.

Online recruitment techniques

 Giving a detailed job description and job specifications in the job postings to attract
candidates with the right skill sets and qualifications at the first stage.

 E-recruitment should be incorporated into the overall recruitment strategy of the

organisation.
  A well defined and structured applicant tracking system should be integrated and the
system should have a back-end support.

 Along with the back-office support a comprehensive website to receive and process
job applications (through direct or online advertising) should be developed.

Therefore, to conclude, it can be said that e-recruitment is the “Evolving face of

recruitment.”

Outsourcing Recruitment

Outsourcing Recruitment is the human resource (HR) processes is the latest practice being
followed by middle and large sized organizations. It is being witnessed across all the
industries. In India, the HR processes are being outsourced from nearly a decade now.
Outsourcing industry is growing at a high rate.

Human Resource Outsourcing refers to the process in which an organisation uses the
expert services of a third party (generally professional consultants) to take care of its HR
functions while HR management can focus on the strategic dimension of their function. The
functions that are typically outsourced are the functions that need expertise, relevant
experience, knowledge and best methods and practices. This has given rise to outsourcing
the various HR functions of an organization.
HR Consultancies such as Ma Foi and Planman Consulting provide such services through
expert professional consultants. Human resources business process outsourcing (HR BPO) is
a major component of the worldwide BPO market. Performance management outsourcing
involves all the performance monitoring, measurement, management being outsourced
from a third party or an external organisation.

Many organizations have started outsourcing its recruitment process i.e. transferring all or
some part of its recruitment process to an external consultant providing the recruitment
services. It is commonly known as RPO i.e. recruitment process outsourcing. More and
more medium and large sized organizations are outsourcing their recruitment process right
from the entry level jobs to the C-level jobs.

The present value of the recruitment process outsourcing industry (RPO) in India is
estimated to be $2.5 billion and it is expected to grow at the annual rate of 30-40 per cent
for the next couple of years. According to a recent survey, only 8-10 per cent of the Indian
companies are complete recruitment processes. However, the number of companies
outsourcing their recruitment processes is increasing at a very fast rate and so is the
percentage of their total recruitment processes being outsourced.

Outsourcing organizations strive for providing cost saving benefits to their clients. One of
the major advantages to organizations, who outsource their recruitment process, is that it
helps to save up to as much as 40 per cent of their recruitment costs. With the experience,
expertise and the economies of scale of the third party, organizations are able to improve
the quality of the recruits and the speed of the whole process. Also, outsourcing enables
the human resource professionals of organizations to focus on the core and other HR and
strategic issues. Outsourcing also gives a structured approach to the whole process of
recruitment, with the ultimate power of decision making of recruiting with the organisation
itself. The portion of the recruitment cycle that is outsourced range from preparing job
descriptions to arranging interviews, the activities that consume almost 70 per cent of the
time of the whole recruitment process.

Outsourcing the recruitment processes for a sector like BPO, which faces an attrition of
almost 50-60 per cent, can help the companies in BPO sector to save costs tremendously
and focus on other issues like retention. The job seekers are also availing the services of the
third parties (consultants) for accessing the latest job opportunities.

In India, the trend of outsourcing recruitment is also catching up fast. For example:
Vodafone outsources its recruitment activities to Alexander Mann Solutions (RPO service
provider). Wipro has outsourced its recruitment process to MeritTrac. Yes bank is also
known to outsource 50 per cent of its recruitment processes.

Head Hunting
Headhunting refers to the approach of finding and attracting the best
experienced person with the required skill set. Headhunting is also a
recruitment process involves convincing the person to join your
organization.
Headhunting Process

Figure 1
 Selection

Introduction
Reference checks and detailed background checks are carried out to verify facts
and matter presented in resumes and CVs. Follow-ups are done with certain
selected candidates to firm up the hiring process. A thorough evaluation of the
defined skill sets and qualifications of shortlisted candidates, their written
materials and work samples is done again in a transparent and objective
manner. Additional interviews or final interviews are conducted during this last
stage of recruitment and the hiring decision finalized.

Definition: - According to Yoder, “The hiring process is of one or many “go”, “no go”
gauges. Candidates are screened by the application of these tools. Qualified applicants go
on to the next hurdle, while the unqualified are eliminated”.

Selection is a long process commencing from the preliminary interview of the applicants
and ending with the contract of employment, selection procedure is concern with securing
relevant information about an applicant. This information is secured in a number of Steps
or Stages. The objective of selection process is to determine whether an applicant meets
the qualification for a specific Job and to choose the applicant who is most likely to perform
well in that Job.

Selection
Short listing:- A list of applicants who have been deemed suitable and from which
the successful person will be chosen.
Interview:- Research technique involving face-to-face verbal interchange in which an
interviewer or interviewers attempt to obtain information, opinions, or beliefs from
another person or persons. Highly structured interviews, in which the interviewer poses set
question, are not so liable to interviewer bias and easier to analyse than unstructured
interviews, but the latter often generate a greater depth of data.

Presentation:- Presentation is the practice of showing and explaining the content of a

topic to an audience or learner.

In-tray exercises:- If your assessment centre involves an in-tray exercise then you
will usually be asked to assume a particular role as an employee of a fictitious organisation
and to work through a pile of correspondence in your in-tray. The in-tray exercise items will
be specifically designed to measure job skills such as: ability to organize and prioritize work;
analytical skills; communication with team members and customers; written
communication skills; and delegation.

Psychometric test:- any standardized procedure for measuring sensitivity or

memory or intelligence or aptitude or personality etc.

Aptitude test: - A measure of a person's natural ability or potential to learn a skill or

set of skills. Abilities that are typically measured by aptitude tests include abstract, verbal,
and numerical reasoning, because these give a rounded view of a person's general ability in
relation to the workplace. Aptitude tests are a form of psychometric test and are
administered by trained users
The Selection Process

The selection process consist of

eight steps:
1.Intial screening interview
2.Completing the application form
3.Employment tests
4.Comprehensive interview
5.Background investigation
6.Conditional job offer
7.Medical or physical examination
8.Permanent job offer
Units to do essential elements of job
Difference Between Recruitment and Selection:-
Both recruitment and selection are the two phases of the employment process.
The differences between the two are:
Recruitment
1. The recruitment is the process of
searching the candidates for
employment and stimulating them to
apply for jobs in the organization.
2. The basic purpose of recruitments
is to create a talent pool of candidates
to enable the selection of best
candidates for the organisation, by
attracting more and more employees
to apply in the organization.
3. Recruitment is a positive process
i.e. encouraging more and more
employees to apply.
4. Recruitment is concerned with
tapping the sources of human
resources.
5. There is no contract of recruitment
established in recruitment.
Selection
Selection involves the series of steps
by which the candidates are screened
for choosing the most suitable
persons for vacant posts.
The basic purpose of selection
process is to choose the right
candidate to fill the various position in
the organization.
Selection is a negative process as it
involves rejection of the unsuitable
candidates.
Selection is concerned with selecting
the most suitable candidate through
various interviews and tests.
Selection results in a contract of
service between the employer and
the selected employee.
Summery
Recruitment is essential to effective Human Resources Management. It is the
heart of the whole HR systems in the organization. The effectiveness of many
other HR activities, such as selection and training depends largely on the quality
of new employees attracted through the recruitment the recruitment process.

Policies should always be reviewed as these are affected by the changing

environment. Management should get specific training on the process of
recruitment to increase their awareness on the dangers of wrong placements.

HR practitioners should be on the guard against all the malpractices and

advocate for professional approach throughout the system. The HR should
indicate disagreement in the event that biasing toward certain candidates is
creeping in and point out the repercussions that may follow in terms of
performance and motivation.
Conclusion
Usha Martin is a company with has a lots of potential of growth. The
Recruitment and The Selection process of the company is a good one. Usha
Martin gets efficient employees and worker per year through these
programmes. Thus, the overall study of Recruitment and Selection in a privet
firm like Usha Martine is very impressive.

The HRP policy of Usha Martin is very effective and it lays a background for
Recruitment and Selection in the company. Thus it helps the company in gaining
talented and dedicated employees who contribute a lot towards the
development of the company.

This makes the company capable enough to battle with its rivals in this era of
globalize action and cut throat competition.
BIBLOGRAPHY

Decenzo and Robbins 2000, Personnel/Human Resource Management))

Adhikari, Dev Raj, 2001, Human Resource Management)

Dessler, G. 2000,Human Resource Management

C.B.Mamoria and S.V.Gankar Personal Management

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