CHAPTER I

INDUSTRY PROFILE
The Telecom Industry in India has undergone a major revolution in the recent years and no
doubt we all know about it looking at the latest technologies that are being introduced to the
customers every day. India is ranked second world-wide in terms of having the largest
communication network only after China. Tele-density in India has improved significantly
over the recent years, currently standing at 72.08%. All this has been possible owing to
improving network infrastructure as a result of the ongoing investments. One of the world’s
most progressive telecom markets – the Indian Telecom Industry has seen massive
investments by both private and government sectors in the previous decade. Increasing
network coverage and competitive tariffs – these are the two most prominent catalysts that
are contributing to the growth of the Indian Telecommunication Sector. Mobile telephony
continues to fuel growth in the Indian telecom sector with mobile subscriber base projected to
grow at a CAGR of around 6.6 per cent during 2011-12 to 2014-15, according to RNCOS’
new research report ‘Indian Telecom Analysis (2008-2012)’.
The Market Size
The number of telephone subscribers in India increased to 861.48 million at the end of April
2011 from 846.32 million at the end of March 2011, thereby registering a growth rate of 1.79
per cent, according to the data released by Telecom Regulatory Authority of India (TRAI).
With this, the overall tele-density (telephones per 100 people) in India reached 72.08 at the
end of April 2011 from 70.43 in the previous month.The growth in the wireless category was
led by Reliance Communications, which added 2.93 million subscribers, taking the subscriber
base to 138.65 million at the end of April 2011. Broadband subscription reached 12.01
million in the reported month from 11.87 million in March, growing 1.17 per cent.
The Indian Global System of Mobile Communication (GSM) telecom operators added 9.53
million subscribers in May 2011, taking the all-India GSM cellular subscriber base to 590.19
million, according to Cellular Operators' Association of India (COAI). The GSM subscriber
base stood at 580.66 million at the end of April 2011.
Key Players
The Indian Telecom Industry is highly fragmented and has become highly competitive over
the last four years. There are as many as 15 players who strive to gain competitive edge in the
market. As of April 2011, Bharti Telecom led the market with 19.19 per cent share, followed
by Reliance (16.77 per cent), Vodafone (16.56 per cent), BSNL (11.13 per cent), BSNL
(11.12 per cent), Tata (10.93 per cent), Aircel (6.77 per cent), with the remaining share being
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held by other smaller operators, according to Telecom Regulatory Authority of India (TRAI)
database.

The Value Added Services (VAS) Market

Value added services (VAS) market has been expanding at about 60 per cent year-on-year,
according to a study by the firm ‘Research and Markets’. The study underlines mobile
advertising, m-commerce, multi-media games, 3G, mobile internet for faster data upload, as
major factors for growth. Also the rural VAS market possesses a huge potential in
India.Features like SMS, Ringtones, Caller Ring Back Tone (CRBT) and Games form part of
VAS and their delivery is mainly based upon IVR, GPRS and WAP platforms. In India, VAS
accounts for 9-10 per cent of the operator's revenue, which contributes 20 per cent to global
telecom revenues.Mobile VAS are expected to garner US$ 12.25 billion in sales by 2015
(more than double the current figure of US$ 4 billion), reports consulting firm
PricewaterhouseCoopers (PwC). The students section looks the most lucrative market for
VAS in next four years. The study also assessed that the new generation of content users will
desire for more entertainment and utility-based services.
Major Investments
The booming domestic telecom market has been attracting huge amounts of investment
which is likely to accelerate with the entry of new players and launch of new services. The
telecommunications sector which includes radio paging, mobile services and basic telephone
services attracted foreign direct investment (FDI) worth US$ 1.66 billion during April-March
2010-11, according to the Department of Industrial Policy and Promotion (DIPP). The
cumulative flow of FDI in the sector during April 2000 and April 2011 is US$ 10.61
billion.The 12th Plan period (April 2012-March 2017) entails an investment of about US$ 110
billion for telecom infrastructure development, revealed an official note by the Department of
Telecom (DoT). Of this, the two telecom PSUs -- BSNL and MTNL are expected to invest
around US$ 22.38 billion during the five years to revamp their telecom infrastructure. Private
players, on the other hand, are expected to invest US$ 89.53 billion during the same period
(2012-2017) in expanding their infrastructure.
Policy Initiatives The existing merger and acquisition (M&A) rules will be eased in the new
telecom policy that will be in place by the year-end, according to communication minister
Kapil Sibal. The move is aimed at bringing in much-needed consolidation in the hyper-
competitive telecom market.The minister also proposed a series of reforms to address all
issues related to airwaves, including the formulation of a National Spectrum Act to govern all
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allocations of this scarce resource. Retired Supreme Court Judge Shivraj Patil will head the
committee to draft this Act, he added.TRAI has fired the starting gun on radical changes in
the mobile sector by proposing deep cuts in charges paid by operators to each other, a move
that could lower tariffs for consumers.
The Road Ahead
 The sector is a huge employment generator, expected to generate numerous
employment opportunities. There is a huge demand for qualified and skilled
professionals with technical knowledge and hands on experience.
 As per the 12th five year plan (2012-2017), the total number of telecom subscribers is
projected to grow from the existing 860 million to 1,200 million during the five year
period. About 25 per cent (roughly 300 million) would be 3G/4G subscribers, which
would require scaling up the infrastructure.
COMPANY PROFILE
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in India:
Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,
VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public
sector units in India.BSNL has installed Quality Telecom Network in the country and now
focusing on improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 46 million line
basic telephone capacity, 8 million WLL capacity, 52 Million GSM Capacity, more than
38302 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 614755
Rkm of OFC Cable, 50430 Rkm of Microwave Network connecting 602 Districts, 7330
cities/towns and 5.6 Lakh villages.BSNL is the only service provider, making focused efforts
and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is
no telecom operator in the country to beat its reach with its wide network giving services in
every nook & corner of country and operates across India except Delhi & Mumbai. Whether
it is inaccessible areas of Siachen glacier or North-eastern region of the country, BSNL
serves its customers with its wide bouquet of telecom services.BSNL is the numero uno
operator of India in all services in its license area. The company offers vide ranging & most
transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493
3Gcustomers as on 30.11.2009. In basic services, BSNL is miles ahead of its rivals, with 35.1

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million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent
share in revenue terms. BSNL has more than 2.5 million WLL subscribers and 2.5 million
Internet Customers who access Internet through various modes viz. Dial-up, Leased Line,
DIAS, account-less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in
the country. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million DataOne
broadband customers. The company has vast experience in Planning, Installation, network
integration and Maintenance of Switching & Transmission Networks and also has a world
class ISO 9000 certified Telecom Training Institute.
CURRENT SCENARIO
Organizational behaviour is currently a growing field. Organizational studies departments
generally form part of business schools, although many universities also have industrial
psychology and industrial economics programs.
The field is highly influential in the business world with practitioners like Peter Drucker and
Peter Senge, who turned the academic research into business practices. Organizational
behaviour is becoming more important in the global economy as people with diverse
backgrounds and cultural values have to work together effectively and efficiently. It is also
under increasing criticism as a field for its ethnocentric and pro-capitalist assumptions

During last 20 years organizational behavior study and practice has developed and expanded
through creating integrations with other domains:

 Anthropology became an interesting prism to understanding firms as communities,

by introducing concepts like Organizational culture, 'organizational rituals' and
'symbolic acts' enabling new ways to understand organizations as communities.
 Leadership Understanding the crucial role of leadership at various level of an
organization in the process of change management.
 Ethics and their importance as pillars of any vision and one of the most important
driving forces in an organization.

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ORGANIZATIONAL CULTURE

Organizational culture is a concept in the field of Organizational studies and

management which describes the attitudes, experiences, beliefs and values of an
organization. It has been defined as "the specific collection of values and norms that are
shared by people and groups in an organization and that control the way they interact with
each other and with stakeholders outside the organization
Strong culture is said to exist where staff respond to stimulus because of their alignment to
organizational values.
Conversely, there is weak culture where there is little alignment with organizational values
and control must be exercised through extensive procedures and bureaucracy.
Where culture is strong—people do things because they believe it is the right thing to do—
there is a risk of another phenomenon, Groupthink. "Groupthink" was described by Irving L.
Janis. He defined it as "...a quick and easy way to refer to a mode of thinking that people
engage when they are deeply involved in a cohesive ingroup, when members' strivings for
unanimity override their motivation to realistically appraise alternatives of action." This is a
state where people, even if they have different BSNLs, do not challenge organizational
thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur,
for example, where there is heavy reliance on a central charismatic figure in the organization,
or where there is an evangelical belief in the organization’s values, or also in groups where a
friendly climate is at the base of their identity (avoidance of conflict). In fact groupthink is
very common, it happens all the time, in almost every group. Members that are defiant are
often turned down or seen as a negative influence by the rest of the group, because they bring
conflict.
Innovative organizations need individuals who are prepared to challenge the status quo—be it
groupthink or bureaucracy, and also need procedures to implement new BSNLs effectively.
ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness is the concept of how effective an organization is in achieving
the outcomes the organization intends to produce. The BSNL of organizational effectiveness
is especially important for non-profit organizations as most people who donate money to
non-profit organizations and charities are interested in knowing whether the organization is
effective in accomplishing its goals.An organization's effectiveness is also dependent on its
communicative competence and ethics. The relationship between these three is simultaneous.

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Ethics is a foundation found within organizational effectiveness. An organization must
exemplify respect, honesty, integrity and equity to allow communicative competence with the
participating members. Along with ethics and communicative competence, members in that
particular group can finally achieve their intended goals.Organizational effectiveness is an
abstract concept and is basically impossible to measure. Instead of measuring organizational
effectiveness, the organization determines proxy measures which will be used to represent
effectiveness. Proxy measures used may include such things as number of people served,
types and sizes of population segments served, and the demand within those segments for the
services the organization supplies.
For instance, a non-profit organization which supplies meals to house bound people may
collect statistics such as the number of meals cooked and served, the number of volunteers
delivering meals, the turnover and retention rates of volunteers, the demographics of the
people served, the turnover and retention of consumers, the number of requests for meals
turned down due to lack of capacity (amount of food, capacity of meal preparation facilities,
and number of delivery volunteers), and amount of wastage. Since the organization has as its
goal the preparation of meals and the delivery of those meals to house bound people, it
measures its organizational effectiveness by trying to determine what actual activities the
people in the organization do in order to generate the outcomes the organization wants to
create.Activities such as fundraising or volunteer training are important because they
provide the support needed for the organization to deliver its services but they are not the
outcomes per se. These other activities are overhead activities which assist the organization in
achieving its desired outcomes.
EMPLOYEE ENGAGEMENT
Employee engagement is a concept that is generally viewed as managing discretionary
effort, that is, when employees have choices, they will act in a way that furthers their
organization's interests. An engaged employee is a person who is fully involved in, and
enthusiastic about, his or her work.Engaged employees care about the future of the company
and are willing to invest the discretionary effort. Engaged employees feel a strong emotional
bond to the organization that employs them.
FACTORS AFFECTING EMPLOYEE ENGAGEMENT:

 Employee perceptions of job importance.

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  Employee clarity of job expectations. "If expectations are not clear and basic
materials and equipment not provided, negative emotions such as boredom or
resentment may result, and the employee may then become focused on surviving
more than thinking about how he can help the organization succeed."

 Career advancement/improvement opportunities. "Plant supervisors and managers

indicated that many plant improvements were being made outside the suggestion
system, where employees initiated changes in order to reap the bonuses generated by
the subsequent cost savings."

 Regular feedback and dialogue with superiors. "Feedback is the key to giving
employees a sense of where they’re going, but many organizations are remarkably
bad at giving it. "'What I really wanted to hear was 'Thanks. You did a good job.' But
all my boss did was hand me a check.'

 Quality of working relationships with peers, superiors, and subordinates. "...if

employees' relationship with their managers is fractured, then no amount of perks will
persuade the employees to perform at top levels. Employee engagement is a direct
reflection of how employees feel about their relationship with the boss."

 Perceptions of the ethos and values of the organization.

 Effective Internal Employee Communications - which convey a clear description of
"what's going on". "'If you accept that employees want to be involved in what they are
doing then this trend is clear (from small businesses to large global organizations).
The effect of poor internal communications is seen as its most destructive in global
organizations which suffer from employee annexation - where the head office in one
country is buoyant (since they are closest to the action, know what is going on, and
are heavily engaged) but its annexes (who are furthest away from the action and know
little about what is happening) are dis-engaged. In the worst case, employee
annexation can be very destructive when the head office attributes the annex's low
engagement to its poor performance... when its poor performance is really due to its
poor communications.

CORPORATE SOCIAL RESPONSIBILITIES

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 BSNL is committed to provide quality Telecom Services at affordable price to the
citizens of the remotest part of the Country. BSNL is making all effort to ensure that the
main objectives of the new Telecom Policy 1999 (salient points indicated below) are
achieved.
 Access to telecommunications is of utmost importance for achievement of the country's
social and economic goals. Availability of affordable and effective communications for
the citizens is at the core of the vision and goal of the new Telecom policy 1999.
 Strive to provide a balance between the provision of universal service to all uncovered
areas, including the rural areas, and the provision of high-level services capable of
meeting the needs of the country's economy encourage development of
telecommunication facilities in remote, hilly and tribal areas of the country.
 Transform in a time bound manner, the telecommunications sector to a greater
competitive environment in both urban and rural areas providing equal opportunities and
level playing field for all players.
BSNL Units

The BSNL is divided into different administrative units based on certain criteria and
characteristics such as telecom circles, projects, telecom factories, training and development
institutions. The details about the different units of BSNL are provided in Annexure – II
under the Annexure section of this report.

VISION, MISSION AND OBJECTIVES

VISION 2013

 Be the leading telecom service provider in India with global presence.

 Create a customer focused organization with excellence in sales, marketing and
customer care.
 Leverage technology to provide affordable and innovative products/services across
customer segments.
MISSION 2013
 Maintain high rate of growth to protect and increase the market share in all segments
of operations.
 Generating value for all stakeholders – business associates, vendors, shareholders and
employees.

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  Become the most trusted, preferred and admired telecom brand.
 Developing a marketing and sales culture that is responsive to customer needs.
 Achieve excellence in customer service – which is friendly, reliable, time-bound,
convenient and courteous.
 Leverage technology to provide affordable and innovative products/services across
customer segments.
 To provide a conducive work environment with strong focus on performance.
 Establish efficient business processes enabled by IT.
PROJECT SHIKHAR

 Develop a shared aspiration for BSNL’s future.

 Articulate a well-defined strategy to take BSNL back on the path of growth and
profitability.
Create a 5-year business plan outlining a range of potential outcomes.
Develop a thorough Sales and Marketing strategy for each of the core businesses
(Landline, Mobile, Broadband, enterprise, etc).
 Outline key implications on operations and customer service to support various
businesses.
Define the right organizational model to achieve strategic objectives, along with
critical changes needed in HR policies.
No sector in India has undergone so much of dynamics as telecom sector. Along with that,
structural changes have also taken place. It is also interesting to note that the organisational
structure has also responded to the market structure. As long as monopoly market structure
existed, the organisational structure was Government department playing the all pervasive
roles of licensing authority, regulating authority and service provider. But once the telecom
sector was opened up to the private players, the organisational structure had to change. In the
monopoly set up it was Department of Telecommunications which was the sole provider of
telecommunication services. But with the opening up of the sector, the three roles, as
described earlier, are being played by three different agencies.

 Licensing and policy role by Department of Telecommunications

 Regulatory and Tariff fixation by Telecom Regulatory Authority of India (TRAI).

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  Service provider role by BSNL, a corporate set up in which the Government has
100% stake.
This section covers the different organisational structures of BSNL existing at the corporate,
departmental and circle levels. It also covers the different authorities and responsibilities and
their relationships available at the above mentioned office of BSNL.
Authority and Responsibility Relationship
As shown in the departmental organisational structure in section 2.2, the authority and
responsibilities of each level and their inter-relationships is as described below.
Divisional Engineer
The Divisional Engineer (DE) is the officer in-charge of the BSNL unit in Dharwad where
the internship was carried out. He is responsible for the overall performance of the unit of
BSNL. He is involved actively in every activity – right from attracting a suspect and
converting it into a valuable customer.

 He has to ensure that the marketing strategies as devised by the Top Management
of BSNL are in proper place and are implemented accordingly.

 He has to monitor each and every activity of the unit like marketing & sales of
BSNL products and services, operations like new connections, reconnections, etc.,
collection of receivables, maintenance of the telephone exchange and the other
support functions.

 He is liable to report to the DGM by the end of every month and provide with a
detailed report on each of the department under him.
The reports, today, are paperless. Everything is entered in to the intranet application of
BSNL, where in the higher authority can generate the report on their own. This applies to
each and every level of the heirarchy. The use of hard copy reports is almost eliminated.
The DE is assisted by four SDEs in four different departments of the organisation, namely

1. SDE - Indoor

2. SDE - CDMA-MSC (Mobile Switching Center)

3. SDE - MDF, Power Plant and Building Maintenance.

4. SDE - Sales (Commercial Officer)

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SDE – Indoor
The Indoor department of any telephone exchange is broadly categorised into three sub-
departments, which are:

 OCB Exchange – A digital switching system which supports a variety of

communication needs like Basic Telephony, ISDN, Mobile Communication, Data
Communication, etc.

 PCM (Pulse Code Modulation) Room – This room consists of the various switches
related to the leased lines, GSM & CDMA switches, etc where the analog signals are
digitized.

 Subs Management – This department consists of the JTOs, TTAs, and TMs who
using the terminals (PCs) control the above mentioned equipments and provide other
VAS.
The SDE – Indoor is responsible for managing and maintaining the activities related to the
above sub departments. His duties and responsibilities include:

 Monitoring the subs management to ensure that the new connections of land line,
broadband and leased lines are done on time and without any faults.

 He/she should ensure that the faults and complaints registered with respect to the land
line and broad band connections are solved at the earliest with proper customer
satisfaction.

 Should have a proper co-ordination with the other departments like MDF and the
Outdoor section which serve as the input to the Indoor team.

 Ensure that the VAS available for land line and broadband are provided properly to
the customers.
The SDE – Indoor is liable to send the following reports to the DE on a daily basis. Some of
the daily reports include:

 No. of new connections, disconnections, reconnections for both land line and broad
band services.

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  No. of complaints registered, how many solved within time and how many with a
delay, unsolved cases.
SDE – CDMA MSC
CDMA refers to Code Division Multiple Access, a mobile telephony technology. The MSC
refers to the Mobile Switching Center, which by the name itself, means switching of the
mobile connections. The SDE CDMA-MSC is responsible for the following:

 Monitoring and ensuring smooth functioning of the CDMA connections.

 Handling the greivances and complaints of the CDMA subscribers.

 Maintenance of the equipments like MSC, BSC and BTS.

Some of the reports generated and sent to the DE are:

 No. of new connections, disconnections and reconnections.

 Status of the different BTS (Base Transmission Systems – Towers) i.e. how many
are working, how many are down and the reason.

 What actions have been taken for the rectification of failures and defects.
The SDE is assisted by JTOs, TTAs and TMs in the above activities and he/she has the
authority of assigning the tasks to them.

SDE – MDF, Power Plant, Battery and Building

This is one of the most important departments which acts like a support function to all
the other departments. It includes the maintenance of the Main Distribution Frame (MDF),
Power Plant, Battery and UPS and the building.

The SDE handling this department is responsible in ensuring that these units are in
proper working condition in any point of time and a proper backup or stand-by is available in
case of failures. Reports like the no. of batteries available, working, non-working, and so on
are sent either on a daily or a weekly basis.
The SDE is assisted by JTOs, TTAs and TMs in the above activities and he/she has the
authority of assigning the tasks to them.

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SDE – Sales (or Commercial Officer)
This Section acts as an interface to the customers of the BSNL. For any new connections or
queries, the customer always approaches this section. The duties and responsibilities of a
commercial officer are:

 Handling customer greivances and queries.

 Monitoring the collection counters and ensure payments are collected properly.

 Ensure that the sales at the DTO, DSA happen smoothly with utmost customer
satisfaction.

 Should ensure that proper marketing strategies are used in attracting the
customers.
This SDE is assisted by TOAs and TMs and he/she has the authority of assigning the tasks to
them.
There are many tasks every business needs to do if it is going to succeed. Each of these tasks
is described as being a function of a business. The following is a brief introduction to each of
these functions:

 Human Resources -Ensures the business has the best staff for the job and that they
are able to work effectively in a safe environment.
 Finance - will keep a record of all money coming in and going out of the business.
They have responsibility for securing finances for future expansion and paying staff
and suppliers.
 Administration and ICT support - ensure the smooth running of the business on a
day-to-day basis. They have responsibility for clerical duties, cleaning, computer and
software support, security and health and safety.

 Operations - have the task of producing the goods or service in the most efficient
way. This is done by making best use of the business's staff, machinery, building and
raw materials.
 Marketing and Sales - will try and maximize the level of sales by carrying out
market research and promoting the goods or service through a motivated sales team.

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 Customer Service - will help the customer before and after a sale has been made by
providing information, giving advice, providing credit facilities, delivering goods and
providing after-sales support.
 Research and Development - will help the business remain competitive by
developing new goods and services and updating the existing ones; Use of ICT - ICT
will be used in each of these functional areas.

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HUMAN RESOURCE DEPARTMENT
Employees are the key functional units of any organization. Their selection, training,
placement and induction play a very important role for the company’s well being. Hence,
they have to be given good facilities like medical care, incentives and other useful schemes.
The company’s economic depends upon the measures and schemes adopted by the company
to its employees.

All these things all looked into, by HR department. The staff department of BSNL
deals with the recruitment, selection, deployment and development of the employees.

Top Management

Designation Name
CMD Shri R. K. Upadhyay
Director (Finance)
Director (HR) Shri A. K. Garg
Director (Consumer Fixed Access) Shri Rajesh Wadhwa
Director (Consumer Mobility & Enterprise) Shri R. K. Aggarwal
Company Secretary & Sr. GM (Legal) Shri H. C. Pant

Board of Directors
The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time
Directors; 2 Government Nominee Directors and 4 Non-official Part Time Directors. Thus,
the Board has the optimum mix of 50% Whole-time and 50% part-time Directors. The
composition is as per Corporate Governance Norms for the unlisted CPSEs, laid down by the
Department of Public Enterprises.
1. Shri R. K. Upadhyay
2. Shri Rajesh Wadhwa
3. Shri R. K. Aggarwal
4. Shri A. K. Garg
5. Shri S. R. Rao
6. Shri Sanjiv Gupta
7. Shri Ashish Guha
With a corporate philosophy that considers Human Resource as the most prized assets of the
organization, it's natural for BSNL to continually hone employee skills, enhance their
knowledge and their expertise and their aspirations to fruition. Even as BSNL goes about

15
conducting its business activities, it lays emphasis on constant enhancement of knowledge
and skills through regular training programs.

 BSNL has a vast reservoir of highly skilled and experienced work force of about 3,
37,000 personnel.
 They believe that their staffs, one of the best trained manpower in the telecom sector,
are their biggest asset.
 They believe that their future depends on staff who provide services to valued
customers and stay in touch with them.
 To apex training centers of BSNL i.e. Advance level Telecom Training Center
(ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center at
Jabalpur are comparable to any world class Telecom Training Center. Moreover, 43
zonal training centers and a National Academy of Telecom Finance and Management
have been running for several years now.
 Different curriculum run in these centers to impart technology based training, training
for attitudinal change, basic educational and skill development program etc
Incentives to the Employees

There has been a continuous implementation of the employee benefits for the better
performance of the employees. Apart from the basic salary, BSNL provides various
incentives to its employees. BSNL gives many incentives to its employees: Some of them
are:-
1. Daily Allowance
2. Travel Allowance
3. Diet Allowance
4. House Rent Allowance
5. Medical Facilities
6. Leave Travel Concession
The employees can avail medical facilities in CGHS dispensaries of the central government.
Also for the convenience of the employees BSNL has taken a policy of reimbursing the
medical bills of the employees if they opt out from CGHS. L.T.C is given to all the BSNL
employees once in a year, when they can travel anywhere in the entire India and reimburse
their onward and return journey fairs. Also in addition to this, BSNL provides free travel for
the employees to their home-towns, once in two years.

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Training for Employees
Human Resource Development is a continuous process. As the biggest Public Sector
Undertaking in India, BSNL has realized the importance in HRD, for continuous learning and
development of its employees, resulting in the successful development of the company. With
the continuous changes in technology, the employees need to be well informed about the
changes, for the better functioning. The following training programs are given to the
employees, depending upon their requirement.
 Introductory
 Skill Development
 Information Technology Methods
 Managerial Skill Development
 Stress Management

BSNL has training centers, spread all over the country, for the continuous learning of their
employees. To meet the technological challenges, up gradation, modernization and
computerization, these training centers have an excellent infrastructure.

Some of the infrastructure facilities are-

Lecture Rooms
The lecture rooms are very advanced with all the modern equipments available to provide the
employees, the best of the learning.

Audio and Visual facilities

Audio and Visual facilities are also available in the centers for the effective communication
of the subject matter to the employees.
Libraries
Libraries are available in each and every training center of BSNL, which have the books of
the latest editions to update the knowledge of the employees.

Hostels
Excellent hostel facilities are available at the training centers to provide the employees
comfort, during the training program.

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BSNL Employees Union – Karnataka Circle
Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) were
corporatized on 1st October 2000 with the name Bharat Sanchar Nigam Limited (BSNL). The
changeover could be made six months earlier than the proposed date of 1-4-2001, due to the
whole hearted support given by NFTE and other Federations. The change from government
Department to corporation had its own problems for the unions. While in the Department,
Cadre unions were recognised; in corporation, industry wise union alone is allowed. It
became necessary to form an industry wise union including all cadres of employees. The
issue was thoroughly discussed by the National Action Committee and it was decided to form
a new industrial union. A Telecom convention as well as a Joint Central Working Committee
of All India Unions was decided to be held at Visakhapatnam. The Joint Conference held on
21st –22nd March, under a presidium consisting of the Presidents of all the unions being
merged, unanimously adopted the Resolution forming BSNL Employees Union and the
Constitution of the union with thunderous applause.
MARKETING DEPARTMENT

The marketing department must act as a guide and lead the company's other departments in
developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of the
market and customer needs, but should not act independently of product development or
customer service. Marketing should be involved, and there should be a meeting of the minds,
whenever discussions are held regarding new product development or any customer-related
function of the company. The Objective of the Marketing Department is to promote services
and improve market share by:
a. Implementing Offers:
There has been a rise in the competitors in each and every field of telecommunications. In the
Internet, even local players are giving the service at a cheaper rate. To withstand the
competition, there have to be some customer friendly offers, so that the customers are
attracted. Hence, the delivery of the service should not only be of a good quality, but also at a
cheaper rate. The expectations of different customers of different groups, like students,
executives, business people, etc., are different. Hence the target group should be divided
among the various services, so that all the customers’ needs are catered. Hence BSNL has
been conscious of dividing the services, so that, they can be used by all the parts of the
society.

18
b. Advertising:
Various offers, without proper awareness among the target group are in vain. Hence BSNL
has laid a great emphasis on the advertisements.

The main sources of advertisements are:

Hoardings:
Hoardings are placed in various towns, cities, villages, highways and public places like bus
stands and railway stations to attract the customers’ attention.

Electronic Media:
Electronic media mainly consists of televisions and radios. Hence there has been a rapid
increase in advertising through these channels.

Print Media:
Print media mainly consists of newspapers and magazines. An elaborate process of
advertising has been laid through this channel.
SMS to customers:
The existing customers are made aware of the new offers by the process of messaging, both
to their mobiles and also the landlines. In this way, the customer can be directly informed
about the new services.
Call to customers:
The existing customers are made aware of the new offers by the process of calling, both
to their mobiles and also the landlines. In this way, the customer can be directly informed
about the new services.

c. Customer Care:
As said earlier, customer relationships play a great role in the prosperity of a company. The
customers Views and feedback play a very important role in the development of successful
products. Hence, there should be a rapid interaction with the customers in order to produce
innovative products to serve them better. BSNL has made rapid strides in developing the
customer relationships. Several steps have been taken to augment the customer care to the
international standards. Some of the steps taken to achieve this are:

19
Customer Service Centers:
All BSNL Customer Service Centers (CSCs) now remain open on all seven days from 8.00
AM to 8.00 PM without any break for all activities. Cheque deposit machines have also been
installed in many cities, so that customers can make payments 24X7 at their
convenience.Customers can also make payments by cheque/Demand Draft to BSNL
franchisees all over the country.
Call Centers:
Round the clock service has been given to the customers through the service. To make the
service simplified, different numbers have been allotted to different services, for providing
individualized attention for the service users. These services are toll-free and can be used
from any part of the country. The following are some of the services provided by BSNL,
taking in view, the customer care:With a view to simplify and offer customer friendly
services, more than one BFone Connections can be applied on a single application form.
Accordingly, a single demand note would be issued to the customer in respect of all the
connections applied for:
 Shifting charges for local as well as all India shifting of fixed telephone (BFone)
has been abolished.
 Mobile (service connections) being given to outdoor staff in a phased manner for
speedy rectification of faults.
 Majority of the local network is built up on jelly filled and OFC for trouble free
service.
 Internal Distribution Points (DPs) being provided in the customer premises to
eliminate the faults arising out of overhead wires.
 Remote Line Units (RLUs) and Remote subscriber Units (RSUs) being provided
extensively to reduce the long lengths of copper cables.
 Countrywide Network Management & Surveillance System (NMSS) to ensure
uninterrupted and efficient flow of telecom traffic.
 Application Forms for new connections have been made free of charge for all
services.
 Procedure for restoration of telephones disconnected due to non-payment
simplified and powers delegated to Secondary Switching Area (SSA) heads.
 Payment of telephone bills being received on Saturday and Sunday through
cheques in City Telecom Offices (CTOs).
 More than one Public Call Office (PCO) permitted at the same premises.
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PRODUCTION AND OPERATIONS DEPARTMENT

BSNL being a service provider, there is no such production department in any of its
administrative units or circles, except for the four telecom factories located at Mumbai,
Jabalpur, Kolkata, Richchai. These factories are responsible for the production of towers,
Line Stores, LJUs, etc for the smooth functioning of BSNL.Being a service provider, BSNL
has a robust operations and service department, whose main aim is to satisfy the customer
needs and address his complaints, if any, thus achieving high level of customer satisfaction.
BSNL has a vast no. of services (as shown in Annexure – I) for its customer. The operations
process at the DE Office, Dharwad is based on the word called “C.O.M.I.T.” Basically, this
office is primarily focused on getting the new connections for Basic Telephony and Broad
Band, supported by the Mobile Telephony. The word “C.O.M. I.T.” refers to:

C – Commercial Section

O – Outdoor Section

M – MDF (Main Distribution Frame)

I – Indoor Section

T – Test Desk

Any new land line/broad band connection starts with the customer filling the application form
and submitting it in the commercial section of the office. Then, the application is fed into a
integrated system known as “CDR”, which in turn serves as an input to the outdoor section.
The outdoor sections, on getting the work order, physically check for the feasibility of the
connection to be made. Once this is done, the outdoor team updates accordingly in the CDR
system, thus generating a work order for the MDF Section.The MDF or Main Distribution
Frame is the distinguishing or segregating point between the outdoor and the indoor section.
Outdoor is Hardware, where as Indoor is like a software. The linking is done in the MDF
section for the connection by generating a unique number known as “Network Equipment
Number (NE)”. This is again submitted by the MDF team in CDR system.

Using this NE, the indoor team creates a connection in the switch using a terminal (PC) and
submits. Then the connection is tested in the section called Test Desk for validation.The same
thing applies to the Mobile Telephony, with a few differences. There is no physical work in

21
case of mobile. Every step as discussed in previous section is made logical i.e. through the
use of software.

Apart from the services, this office being a telephone exchange has some of the equipments
like the OCB exchange, MSC, BSC, BTS, Switches, Battery, Power Plant, and Generator.
The office has a proper layout for each of the above mentioned equipments and is
maintaining the same properly. Every device or equipment available is having a stand-by, so
that in case of break-downs there is no interruption of service to its customer. It has a specific
officer-in-charge, SDE assisted by JTOs, TTAs and Mechanics.

FINANCE DEPARTMENT

In this modern era of making money, finance is one of the basic foundations for all kinds of
economic activities. It has been rightly said that business needs money to make more money.
This spinning of money out of money is entrusted with the Finance department. In BSNL to
work more effectively the finance department is divided into 7 sections which look after
entire unit are as follows:

 Establishment Section
 Bills Payable Section
 Bills Receivable Section
 Books Sections
 Costing and materials Accounts Section
 Cash Section
 Provident Fund Section
 Central excise
Establishment Section
 This department is concerned with wages, salaries, medical reimbursement,
conveyance reimbursement, tour advance settlement, and air fare settlement, payment
of medical expenses of retired employees, provident fund and gratuity.
 It is also concerned with recording and maintenance of attendance, leave taken and
over time work by each and every employee. Here the department records time in and
out of employee through the medium of automatic time recorders provided at the
vantage points within the factory.

22
  This is purely a financial document required for the purpose of calculating the wages
of artisans and other workers. Salary of an employee is paid through banks.

Bills Payables Section

This section is concerned with the payment of all revenue bills. A revenue bill includes
payment made to suppliers, payment to government agencies like KPTCL, RTO TAXES,
etc. In case of purchasing the materials, the actual process starts once the order is placed and
the material is received by stores and it is sent to quality section. Where in inspection
department will certify and then clear the stores receipt vouchers. The cleared stores receipt
will then come to material management who will value it. After this it is forwarded to bills
payable section. They will release the payment. Before payment was made was only through
cheques now they use even E-payment for settlement of bills.

The various means by which the vendors are paid are as follows:
 GRN(Goods Receipt Note)
 ECS(Electronic Clearing Service)
 EFT(Electronic Fund Transfer)
 RTGS(Real Time Gross Settlement)

Bills Receivable Section

The main function of this section is mainly:
 Maintenance of customer accounts.
 Follow up of after sales procedure.
The payment/amount which has to be received by the customer is checked by this section.
After the sales is done that is after the dispatch of products is over which is done by
commercial department, the sales department follow the invoice raised by commercial
department and collects the amount from the customers. Each customer is identified with a
unique customer code. This code is common to all the branches of BSNL and is identified by
corporate office.
With reference to the invoice raised by the commercial department this section raises the bill.
It is also concerned with speedy recovery of period barred debtors as early as possible. This
section has to maintain a debtor’s ledger that will periodically be reviewed in terms of
recoveries, whether customer is paying regularly or not, whether there is any outstanding, and

23
reasons for that. Usually are 45 days credit period is allowed&10% advance. Provision for
bad debts and provision for liquidated damages are maintained.
Book Section
This section is maintenance of general ledger and coordination with other sections. It is also
entrusted with passing journal entries, transfer entries passed by the various sections of
finance, and to ensure that proper code are used while passing the entries. Because BSNL
follows the common code system for all its units, so that consolidation of accounts will not be
a big problem for them. This is also concerned with preparation of budgets. The daily receipt
is credited to bank of branch which in turn is credited to corporate office at the end of each
day. The fund is also allocated by the corporate office on the basis of budget.
Costing and material Account Section
Costing section in BSNL is a part of finance department. Process costing has been
implemented. The main task of this department is to classify, accumulation assignment and
control of cost. The information supplied by this department has a great importance to the
management in decision making. By cost splits the management will be in a position to know
where exactly wastages is more, or which method is causing runoff profits etc., it also
prepares the cost estimates, based on which the marketing department will make the bidding.
Another important function of this section is preparing the price stock ledger and major task
of this section is to looks after the capital payments.
Cash Section

The main function is to account the cash and bank balance. Other than this function the actual
payment of money is done through this section. The employee’s salary, contract labours
wages, supplier’s amount and receipt of customer’s payment all are through this section.
The payment of salary for regular employee is made on last working day of every
month. Wage period is 25th of previous month to 24th of this month.11th of every month
supplementary payments are made like O.T, telephone bills etc. For supervisors and
executives the salary is credited to their accounts for which 6 to 7 banks are identified.
Here the books maintained for cash and bank transaction are:
 Cheque drawn register  Payment cash book
 Payment bank book  Receipt cash book
 Receipt bank book

Provident Fund Section

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In BSNL there is separate department to maintain the provident fund of employees. Company
also contributes 12.5% in addition to the employee’s contribution. This department maintains
the records that whether the employee has taken loan or no, if an employee has taken loan the
loan amount is deducted from the total provident fund. If he has not taken the employee gets
the lump sum amount at the time of his retirement.
Internal Audit
It acts as a watch job of the various functions by the continuous checking and evaluation of
records, both financial as well as others. This section mainly functions as a service to
management. The main activity of internal audit is to physically verify the assets mentioned
in the records. This investigation helps in identifying losses, pilferage on inventory and
controlling them.

BUSINESS DEVELOPMENT DEPARTMENT

There has been an emerging trend of increase in communication infrastructure. Business
Development department deals mainly with Business-to-Business transactions (B2B). The
following are the main functions of Business Development department:
I. Participating in Tenders
BSNL is the main service provider of advanced technologies like data circuits, both local and
long distance, speech circuits, Managed Leased Line Network [MLLN], Virtual Private
Networks, etc. There has been a considerable increase in demand for these services, and also
the service providers. Hence, a separate department has been formed to handle these services.
Participating in Tenders is one of the important functions of Business Development
department. BSNL participates in all the public and private tenders.
II. Providing Consultations
Apart from providing communication services, BSNL also plays an active role in providing
consultations, both for the existing customers and the non customers of BSNL. These
consultations involve the suggestions in acquiring the type of network, bandwidth to be used,
etc.

III. Designing Networks

BSNL also specializes in designing and building networks for its customers. The networks
designed are both in a single leased line and also between the leased lines.
IV. Providing Hardware Networks

25
Apart from designing and building networks, BSNL also provides hardware necessities like
modems and other requirements, for building the communication networks.
Hierarchical Functions
Operations Section
The operations section of the Business Development department deals with all the operational
functions like:
o Participating in tenders
o Provision of services
o Maintenance of Services
For any work like participation of tenders, JTO, under the supervision of the Additional
Director, will make a technical report an estimate of the equipment and the labour involved.
The prepared report will go to the DGM, who will look for any errors and clarifications and
sends it for the approval of the GM, who after approves it, sends the report to the CGM.
Further, Operations section is also responsible for the technical work such as, installation of
the network and their maintenance.
Customer Services section
Customer Services section is a separate section which deals with all the complaints and
grievances from the customer. All the customer grievances are noted by the SDE, Customer
Grievances and are sent to the DGM customer service, who in turn responds to the
complaints. The customer services section deals with the services like taking bills from the
customers and also provision of information regarding the services. JTO customer services
deals with the technical aspects of the customer service.
PLANNING DEPARTMENT
For any task to be executed successfully there should be a well-made plan. The planning
department consists of three sections
1. Switching Planning
2. Transmission Planning
3. Building Planning
Switching Planning
Switching process is like the heart of the telecommunication process. In the past, there were
manual and analogue exchanges. Now those exchanges have given their way to the digital
exchanges, which are superior, both in their performance and capacity
Some of the digital exchanges, adapted by BSNL are:-

26
  E10B  OCB
 SIEMENS  ERRIKSON

Each of the exchanges has a capacity of 2.5 Lakh. Switching planning department deals with
the planning of installation of future exchanges by estimating the future increase in the
number of connections. Switching department deals with the exchanges, which are in due
course of overload and suggest the remedy, either to install a new exchange or to upgrade the
present one?
Material Management Switching
This section deals with the management of the materials required for the installation and
maintenance of the exchanges. The main materials required for a switching exchange are
computers, drop wire, jumper wire, etc. An estimate for a year of these materials is made in
advance and an approval is got from the CGM.After the approval from CGM, Tenders are
invited for various materials and the lowest bid is invited for the supply of the materials. JTO,
Switching, under the supervision of SDE switching, looks into the technical aspects involved
in the Material Management. AD, switching is responsible for calling of tenders and picking
the lowest bids. All the transactions should be done under the approval of DGM and GM
planning.
Transmission Planning
The telephone traffic in an area may differ from another area. Hence, the exchanges installed,
should be well distributed in terms of area, so as to provide effective transmission. This
aspect is looked into, by the transmission department. The areas in which, there is more
traffic are given, extra exchanges or upgraded exchanges. The technical aspects are looked
into, by JTO.
Transmission Planning, in the supervision of SDE, AD Transmission Planning looks into the
aspects of provision or up gradation of exchanges. All these aspects are done under the
supervision of AGM Transmission, who reports to DGM planning.

Land and Buildings Planning

This section of planning deals with the future requirements of Land and Buildings. The need
of Land and Buildings arises from the increase in the number of exchanges, due to the
increase in the telephone traffic, which is further related to increase in the number of users.
SDE Buildings looks into the area and the capacity of the buildings. Based on the capacity,

27
SDE civil looks into the technical aspects. Both of them are under the supervision of AGM,
Land and Buildings, who further reports to DGM, planning.
NETWORK DEPARTMENT
BSNL is the only operator in the telecom field to have its reach to each and every nuke and
corner of the country. It has its network available, even in the remote villages. Hence it has an
immense chance of spreading and developing its network.For the private operators, to expand
their network to the remote locations is a very difficult and expensive process.BSNL has a
policy of giving some of its lines, on lease to the private operators. A certain bandwidth of
BSNL is allotted for the use of the private operators. All the private operators, existing in
India take a certain Bandwidth from BSNL as lease. Network Coordination department looks
into the issue of allotting Bandwidth to the private operators.
There are two sections in the Network Coordination department:

1. Network Coordination
2. Line Control
Network Coordination section deals with the provision of bandwidth to the private operators.
JTO, Network Coordination, under the supervision of SDE, looks into the process of allotting
bandwidth to the private operators, who reports to AGM. Line Control department looks into
the process of control of traffic. JTO looks into the technical aspects, under the supervision of
SDE. Any requirement of additional bandwidth is immediately reported to AGM.
SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in
a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to achieve
that objective. The technique is credited to Albert Humphrey, who led a convention at
Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject of much research.

 Strengths: characteristics of the business or team that give it an advantage over others
in the industry.
 Weaknesses: are characteristics that place the firm at a disadvantage relative to
others.
28
  Opportunities: external chances to make greater sales or profits in the environment.
 Threats: external elements in the environment that could cause trouble for the
business.

First, the decision makers have to determine whether the objective is attainable, given
the SWOTs. If the objective is NOT attainable a different objective must be selected and the
process repeated.
STRENGTHS AND WEAKNESS
Strengths:
Pan-India reach
Experienced telecom service provider
Total telecom service provider
Huge Resources (financial & technical pool).
Huge customer base.
Most trusted telecom brand.
Transparency in billing.
Easy deployment of new services.
Copper in last mile can be used for easy broadband deployment.
Huge Optical Fibre network and associated bandwidth.

Weakness:
Non-optimization of network capabilities.
Poor marketing strategy.
Bureaucratic organizational set up.
Inflexibility in mindset (DOT period legacies).
Limited number of value added services.
Legacy of poor service image.
Huge and aged manpower.
Procedural delays.
Lack of strategic alliances.
Problems associated with incumbency like outdated.
Technologies, unproductive rural assets, social obligations.
Political interference.
Poor IT penetration within organization.
29
 Poor knowledge Management.
OPPORTUNITIES AND THREATS
Opportunities:
Tremendous market growing at 20 Lakh customers per month
Untapped broadband services
Untouched international market
Can capitalize on public sector image to grab government’s ICT initiatives
ITEB service markets
Diversification of business to turn-key projects
Leveraging the brand image to source funds
Almost un-invaded VSAT market
Fuller utilization of slack resources
Can make a kill through deep penetration and low cost advantage
Broaden market expected from convergence of broadcasting, telecom and
entertainment industry.

Threats:
Competition from private operators
Keeping pace with fast technological changes
Market maturity in basic telephone segment
Manpower churning
Multinational eyeing Indian telecom market
Private operators demand for sharing last mile
Decreasing per line revenues due to competitive pricing.

30
PROBLEM IDENTIFICATION AND SOLUTION

Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is
certainly on a financial ground that's sound.  The Company has a net worth of Rs. 86,476
crores (US$ 19.26 billion), Authorized Equity capital of Rs. 10,000 crores (US $ 2.22
billion), Paid up Equity Share Capital of Rs. 5,000 crores (US $ 1.11 billion) and Revenue is
Rs. 32,045 crores (US $ 7.13 billion) in 2009-10.
The downward performance path in BSNL during the period 2005-10 is mainly on
account of following reasons:
i. Reduction in Revenue:
There has been a decline in revenue from wire-line business due to churning of Subscribers
of Fixed Line Services in view of preference to Mobile telephony and fall in ARPU (Average
Revenue Per User). Though there is a net increase in number of connections in case of
Wireless connections yet revenue decreased mainly due to the reduction in tariff by BSNL in
the competitive market.
ii. Increase in Expenditure:
The staff expenditure has increased due to implementation of recommendations of Wage
Revision Committee. The wage revision has alone caused an additional expenditure of Rs.
2900 crores over the previous year on account of payment of arrears for the period from
01.01.2007 to 31.03.2010. 
iii. Lack of store materials like cables, broad band modems and other accessories, which
are essential for provision of fixed access networks like basic telephony and broad
band. This is due to the non-allocation of funds.
iv. Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for
provide service in non-lucrative areas especially rural areas) has been slashed by 20%
by TRAI, w.e.f. April 1, 2009.  The reduction in ADC has hit the bottom lines of
BSNL.
RECRUITMENT AND SELECTION IN BSNL
MARKETING DETAILS
Marketing generally refers as the task of creating, promoting and delivering goods and
services to consumers and business. Marketing managers seeks to influence the Level of
timing and composition of demand to meet the organization’s objectives .Marketing people
are involved in 10types of entities: goods, services, experiences, Events, persons, places,

31
properties, organization, information and BSNLs. The Marketing concept rests on four
pillars: target market, customer needs, integrated Marketing and profitability.
“Marketing is defined as a societal process by which individuals and groups obtain what they
need and want through creating, offering and freely exchanging products and services of
value with others.
The basic four P’s of marketing are PRODUCT, PRICE, PLACE and PROMOTION.
The last few years have seen an increased attention to mutual funds across all genres of
investors’ big or small, individuals or corporate
FINANCIAL DETAILS
IMPORTANCE OF FINANCE
Finance is regarded as the life blood of a business enterprise. This is because in the Modern
money oriented economy. Finance is the one of the basic foundation of all Kind of electronic
activity. It is the master key which provides access to the entire Source for being employed in
manufacturing and merchandizing activities. It has rightly been said the business needs
money to make more money. However it is also true that money begets more money, only
when it is properly managed. Hence, efficient management of every business enterprise is
closely linked with efficient Management of its finance.
MEANING OF BUSINESS FINANCE
In general finance may be defined as the provision of money at the time it is wanted.
However, as a management function it has a special meaning. Finance function may Be
defined as the procurement of funds and their effective utilization. Some of the Authoritative
definitions are as follows:
“Business finance is that business activity which is concerned with the acquisition and
Conservation of capital funds in meeting financial needs and overall objectives of far
Business enterprise.”
“Business finance can broadly be defined as the activity concerned with planning rising,
controlling and administrating of the funds used in the business.”
RECRUITMENT:
Recruitment is concerned with developing suitable techniques for attracting more and more
candidates. The aim of personnel planning is to determine the needs for persons both in terms
of number and type. For deciding about the number both present and future requirements
should be taken into account. If there are expansion plans in near future then these
requirements should also be considered. Besides number, the type of persons needed is also
important. The educational and technical requirements to manage various jobs should e
32
 properly analyzed so that right type of persons is employed. Recruitment is sometimes
confused with employment. The two are not one and the same. Recruitment is just one step in
the process of employment. Recruitment is a linkage activity bringing together those with
jobs and those seeking jobs. When more persons apply for jobs then there will be scope for
recruiting better persons.
DEFINITION:
“Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.”
PROCESS OF RECRUITMENT –
It passes through the following stages:
1) Recruitment process begins when personnel department receives requisition for
recruitment from any department of the company.
2) Locating and developing the sources of required number and type of employees.
3) Identifying the prospective employees with required characteristics.
4) Developing the techniques to attract the desired candidates.
5) The next stage in the process is to stimulate as many candidates as possible.
6) Evaluating the effectiveness of recruitment process.
SOURCES OF RECRUITMENT –
Before an organization actively begins to recruit applicants it should consider the mostly
likely source of the type of employee it needs. Some companies try to develop new sources
while most try to tackle the existing sources they have. These sources accordingly may be
termed as internal and external.
Internal Sources –
This is one of the important sources of recruitment. The employees already working in the
organization may be more suitable for higher jobs than those recruited outside. Internal
sources consist of the following:
1) Present Employees:
Promotions and transfers among the present employees can be a good source of internal
recruitment.
2) Employee Referrals:
In an organization with a large number of employees referrals can provide quite a large pool
of potential organizational members.
3) Former Employee:

33
These are another internal source of recruitment. Some retired employees may be willing to
come back to work.
4) Previous Employees:
Those who have previously applied for jobs can be contacted by mail.
External Sources: These are as follows –
1. Advertisement
2. Professional Organization
3. Data Bank
4. Walk in
5. Recruiting Agencies
6. Competitors
7. Displaced Persons
8. E-recruitment
9. Cold calling
RECRUITMENT PROCESS COMPANY ADOPTS–
1) Internal sources
2) Advertisement
3) Consultants
4) Data bank
UNDERSTANDING SELECTION PROCESS
Recruitment function helps the organization to develop a pool of prospective human
resources. It is difficult for the HR manager to employ the suitable people out of the pool.
Infact, many organizations face critical problems in choosing the people. Selection
techniques and methods reduce the complexities in choosing the right candidates for the job.
After identifying the sources of human resources, searching for prospective employees and
stimulating them to apply for jobs in an organization, the management has to perform the
function of selecting the right employees at the right time. The obvious guiding policy in
selection is the intention to choose the best people who have good social contact. The
objective of the selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. The selection procedure is the system
of functions and devices adopted in a given company to ascertain whether the candidate
specifications are matched with the job specifications and requirements or not.
The selection process can be successful if the following requirements are satisfied:

34
 Someone should have the authority to select. This authority comes from the employment
requisition, as developed by an analysis to the workload and work force.
 There must be some standard of personnel with which a prospective employee may be
compared, i.e. a comprehensive job description and job specification should be available
before hand.
 There must be a sufficient number of applicants from whom the required number of
employees may be selected.
The ability of an organization to attain its goal effectively and to develop in a dynamic
environment largely depends upon the effectiveness of its selection programme. If the right
person is selected, he is valuable asset to the organization
SELECTION PROCEDURE:
Selection procedure employs several methods of collecting information about the candidates
qualifications, experience, physical and mental ability, nature and behavior, knowledge and
aptitude for judging whether a given applicant is suitable or not 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.
Steps in Scientific Selection Procedure:

 Job analysis

 Recruitment

 Application form

 Written examination

 Preliminary interview

 Tests

 Medical examination

 Reference checks

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 Line manager s decision

IN DETAIL EXPLANATION:

36
(A) JOB ANALYSIS:
Job analysis is the basis for selecting the right candidates. Every organization should finalize
the job analysis, job description, job specification and employee specifications before
proceeding to the next step of selection.
(B) HUMAN RESOURCE PLAN:
Every company plans for the required number of and kind of employees for a future date.
This is the basis for recruitment function.
(c) RECRUITMENT
Recruitment refers to the process of searching for prospective employees and stimulating
them to apply for jobs in an organization. It is the basis for the remaining technologies of the
screening the candidates in order to select the appropriate candidates for the jobs
(D) DEVELOPMENT OF BASES FOR SELECTION:
The company has to select the appropriate candidates from the pool of applicants. The
company develops or borrows the appropriate bases/techniques for screening the candidates
in order to select the appropriate candidates for the jobs.
(E) APPLICATION FORM:
Application form is also known as application blank. The techniques of application blank are
traditional and widely accepted for securing information from the prospective candidates. It
can also be used as a device to screen the candidates at the preliminary level. Many
companies formulate their own style of application forms depending upon the requirement of
information based on the size of the company, nature of business activities, type and level of
the job etc. Information is generally required on the following items in the application forms:

 Personal background information

 Educational qualifications

 Work experience

 Salary (drawing and expecting)

 Personal attainments including likes and dislikes

 References

(F) WRITTEN EXAMINATION:

37
Organizations have to conduct written examination for the qualified candidates after they are
screened on the basis of the application blanks so as to measure the candidate s ability in
arithmetical calculations, to know the candidate s attitude towards the job, to measure the
candidate s aptitude, reasoning, knowledge in various disciplines, general knowledge and
English language.
(G) PRELIMINARY INTERVIEW:
The preliminary interview is to solicit necessary information from the prospective
applications and to assess the applicant s suitability to the job. An assistant in the personnel
department may conduct this preliminary interview. The information thus provided by the
candidate may be related to the job or personal specifications regarding education,
experience, salary expectations, attitude towards job, age, physical appearance and other
requirements etc. Thus, preliminary interview is useful as a process of eliminating the
undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding
most of the areas, he may be selected for further process. Preliminary interviews are short and
known as stand up interviews or sizing up of the applicants or screening interviews.
However, certain required amount of care is to be taken to ensure that the desirable workers
are not eliminated. This interview is also useful to provide the basic information about the
company to the candidate.
(H) BUSINESS GAMES:
Business games are widely used as a selection technique for selecting management trainees,
executive trainees and managerial personnel at junior, middle and top management positions.
Business games help to evaluate the applicants in the areas of decision-making, identifying
the potentialities, handling the situations, problem- solving skills, human relations skills etc.
participants are placed in a hypothetical work situation and are required to play the role
situations in the game. The hypothesis is that the most successful candidate in the game will
be most successful one on the job.
GROUP DISCUSSION is used in order to secure further information regarding the suitability
of the candidate for the job. Group discussion is a method where groups of the successful
applicants are brought around a conference table and are asked to discuss either a case study
or subject matter. The candidates in the group are required to analyze, discuss, find
alternative solutions and select the sound solution. A selection panel then observes the
candidates in the areas of initiating the discussion, explaining the problem, soliciting
unrevealing information based on the given information and using common sense, keenly
observing the discussion of others, clarifying controversial issues, influencing others,
38
speaking effectively, concealing and mediating arguments among the participants and
summarizing or concluding aptly.
The selection panel, based on its observation, judges the candidate s skill and ability and
ranks them according to their merit.
In some cases, the selection panel may also ask the candidates to write the summary of the
group discussion in order to know the candidate s writing ability as well.
Recruitment and Selection Types of Test:
Tests are classified into six classes; each class is again divided into different types of tests.
They are:
APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given
job if given adequate training. Aptitudes can be divided into general and mental ability or
intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc.
General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient
(EQ).
(1) Skill tests:
These tests measure the candidate s ability to do a job perfectly and intelligently. These tests
are useful to select the candidates to perform artistic jobs, product design, design of tools,
machinery etc. The candidates can be selected for assembly work, testing and inspection also.
(2) Mechanical aptitude tests:
These tests measure the capabilities of spatial visualization, perceptual speed and knowledge
of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical
employees, technicians etc.
(3) Psychomotor tests:
These tests measure abilities like manual dexterity, motor ability and eye hand coordination
of candidates. These tests are useful to select semi-skilled workers and workers for repetitive
operations like packing and watch assembly.
(4) Clerical aptitude tests:
These types of tests measure specific capacities involved in office work. Items of these tests
include spelling, computation, comprehension, copying, word measuring etc.
ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something as these tests are
concerned with what one has accomplished. These tests are more useful to measure the value
of a specific achievement when an organization wishes to employ experienced candidates.
39
These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the
candidate s achievement in his career is tested regarding his knowledge about the job and
actual work experience.
SITUATIONAL TESTS:
This test evaluates a candidates in a similar real life situation. In this test the candidate is
asked either to cope with the situation or solve critical situations of the job.
(1) Group discussion:
This test is administered through the group discussion approach to solve a problem under
which candidates are observed in the areas of initiating, leading, proposing valuable BSNLs,
conciliating skills, oral communicating skills, coordinating and concluding skills.
(2) In basket:
Situational test is administered through in basket method. The candidate in this test is
supplied with actual letters, telephone and telegraphic message, reports and requirements by
various officers of the organization, adequate information about the job and organization. The
candidate is asked to take decisions on various items based on the in basket information
regarding requirements in the memoranda.
INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work, job,
occupations, hobbies and recreational activities. The purpose of this test is to find out whether
a candidate is interested or disinterested in the job for which he is a candidate and to find out
in which area of the job range/occupation the candidate is interested. The assumption of this
test is that there is a high correlation between the interest of a candidate in a job and job
success. Interest inventories are less faked and they may not fluctuate after the age of 30.
PERSONALITY TESTS:
These tests prove deeply to discover clues to an individual s value system, his emotional
reactions and maturity and characteristic mood. They are expressed in such traits like self-
confidence, tact, distrust, initiative, emotional control, optimism, decisiveness, sociability,
conformity, objectivity, patience, fear, judgment dominance or submission, impulsiveness,
sympathy, integrity, stability and self-confidence.
(1) Objective tests:
Most personality tests are objective tests as they are suitable for group testing and can be
scored objectively.
(2) Projective tests:

40
Candidates are asked to project their own interpretation of certain standard stimulus basing
on ambiguous pictures, figures etc. under these tests. Personality tests have disadvantages in
the sense that sophisticated candidates can fake them and most candidates give socially
acceptable answers. Further, personality inventories may not successfully predict job success.
A number of corrective measures tried as personality inventories are widely subject to faking.
They are:

 Forced choice of Edward s personnel preference schedule.

 Gordon personal profile.

 The Minnesota Multi-phasic Inventory offers different methods for identifying faking.
The faking can be countered by repeating the same question in different parts to
measure consistency.

MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent upon
globalization, competitiveness and the consequent customer-centered strategies. Organization
have to develop multidimensional testing in order to find out whether the candidates possess
a variety of skills or not, candidate s ability to integrate the multi-skills and potentiality to
apply them based on situational and functional requirement.
(J) INTERVIEW:
Final interview follows after tests. This is the most essential step in the process of selection.
In this step the interviewer matches the information obtained about the candidate through
various means to the job requirements and to the information obtained through his own
observation during the interview. The different types of interviews are:
PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure the basic
and non-job related information. The interaction between the candidate and the personnel
manager when the former meets the latter to enquire about the vacancies or additional
particulars in connection with the employment advertisement is an example of the informal
interview.
(2) Unstructured interview:

41
In this interview, the candidate is given the freedom to tell about himself by revealing his
knowledge on various items/areas, his background, expectations, interest etc. Similarly, the
interviewer also provides information on various items required by the candidate.

42
CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive or experts on
various areas of job knowledge, skill, talent etc. This interview may take various forms like:

(1) Back ground information interview:

This interview is intended to collect the information which is not available in the
application blank and to check that information provided in the application blank
regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes
and extra curricular activities of the applicant.
(2) Job and probing interview:
This interview aims at testing the candidate s job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, methods of handling those areas etc.
(3) Stress interview:
This interview aims at testing the candidate s job behavior and level of understanding during
the period of stress and strain. The interviewer tests candidate by putting him under stress
andstrain by interrupting the applicant from answering, criticizing his opinions, asking
questions pertaining to unrelated areas, keeping silent for unduly long periods after he has
finished speaking etc. Stress during the middle portion of the interview gives effective
results. Stress interview must be handled with utmost care and skills. This type of interview is
often invalid, as the interviewer s need for a job and his previous experience in such type of
interviews may inhibit his actual behavior under such situations.
(4) Group discussion interview:
There are 2 methods of conducting group discussion interviews, viz. group interview method
and discussion interview method. All the candidates are brought into one room and are
interviewed one by one under group interview. This method helps a busy executive to save
valuable time and gives a fair account of the objectivity of the interview to the candidates.
Under the discussion interview method, one topic is given for discussion to the candidates
who assemble in one room and they are asked to discuss the topic in detail. This type of
interview helps the interviewer in appraising certain skills of the candidates like initiative,
inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc.
Interviewers are at ease in this category of interview because of its informality and flexibility.
(5) Formal and structured interview:
In this type of interview, all the formalities, procedures like fixing the value, time, panel of
interviewers, opening and closing, intimating the candidates officially etc. are strictly
43
followed in arranging and conducting interview. The course of the interview is preplanned
and structured, in advance, depending on job requirements.
(6) Panel interview:
A panel of experts interviews each candidate, judges his performance individually and
prepares consolidated judgements. This type of interview is known as panel interview.
Interviewers for middle level and senior level mangers are normally conducted are the panel
of experts.
(7) Depth interview:
In this interview, the candidate would be examined extensively in core areas of job skills and
knowledge. Experts test the candidate s knowledge in depth. Depth interviews are conducted
for specialist jobs.
DECISION-MAKING INTERVIEW:
After the experts including the line managers of the organization in the core areas of the job
examine the candidates, the head of the department/section concerned interviews the
candidates once again, mostly through informal discussion. The interviewer examines the
interest of the candidate in the job, organization, reaction/adaptability to the working
conditions, career planning, promotional opportunities, work adjustment and allotment etc.
The personnel manger also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The
head of the department and the personnel manager exchange the view and then they jointly
inform their decision to the chairman of the interview board, which finally makes the
decision about the candidate s performance and their ranks in the interview. Most of the
organizations have realized that employee s positive attitude matters much rather than
employee s skill and knowledge. Employees with positive attitude contribute much to the
organization. Hence, interviewers look for the candidates with the right attitude while making
final decision
. (K) MEDICAL EXAMINATION:
Certain jobs require certain physical qualities like clear vision, perfect hearing unusual
stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals
whether or not a candidate possesses these qualities. Medical examination can give the
following information:
 Whether the applicant is medically suited for the specific job
 Whether the applicant has health problems or psychological attitudes likely to interfere
with work efficiency or future attendance.
44
 The offer. Whether the applicant suffers from bad health which should
be corrected before he can work satisfactorily
 It reveals the applicant s physical measurements and
 It is used to check the special senses of the candidates.
(L) REFERENCE CHECKS:
After completion of the final interview and medical examination, the personnel department
will engage in checking references. Candidates are required to give the names of references
in their application forms. These references may be from the individuals who are familiar
with the candidate’s academic achievement or form the applicant s previous employer, who is
well versed with the applicant s job performance, and sometimes from coworkers. Incase the
reference check is from the previous employer; information for the following areas may be
obtained. They are job title, job description, and period of employment, pay and allowances,
gross emoluments, benefits provided, rate of absence, willingness of the previous employer to
employ the candidate again and soon. Further, information regarding candidate s regularity at
work, character, progress etc. can be obtained.
Often a telephone call is much quicker. The method of mail provides detailed information
about the candidate s performance, character and behavior. However, a personal visit is
superior to the mail and telephone methods and is used where it is highly essential to get the
detailed, actual information, which can also be secured by observation. Reference checks are
taken as a matter of routine and treated casually or omitted entirely in many organizations.
But a good reference check used sincerely will fetch useful and reliable information to the
organization.
(M) FINAL DECISION BY THE LINE MANAGER:
The line manager concerned has to make the final decision whether to select or reject a
candidate after soliciting the required information through techniques discussed earlier. The
line manager has to take much care in taking the final decision not only because of economic
implications but also because of behavioral and social implications. A careless decision of
rejecting would impair the morale of the people and they would suspect the selection
procedure and the basis of selection of this organization. A true understanding between line
managers and personnel managers should be established to take proper decisions.
(N) JOB OFFER:
Thus, after taking the final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the
successful candidates either immediately or after some time depending upon its time
45
schedule. The candidate after receiving job offer communicates his acceptance to the offer or
requests the company to modify the terms and conditions of employment or rejects the offer.
(O) EMPLOYMENT:
The company may modify the terms and conditions of employment as requested by the
candidate. The company employs those candidates who accept the job offer with or with out
modification of terms and conditions of employment and place them on the job.
With the employment of the candidate the recruitment and selection process is completed.

46
 CHAPTER II
Literature Review
Telecommunications has been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for rapid
growth and modernization of various sectors of the economy. It has become especially
important in recent years because of enormous growth of information technology and its
significant potential for the impact on the rest of the economy. The Telecom Sector, which
has the multiplier effect on the economy, has a vital role to play in economy by way of
contributing to the increased efficiency. The available studies suggest that income of business
entities and households increases by the use of telecom services.
 National Telecom Policy (1999) the introduction of the New Telecom Policy in
1999, Indian telecom industry has witnessed exponential growth, especially in the
wireless segment. The industry has evolved as a basic infrastructure on the similar
lines of electricity, roads, water etc.

 The overall tele-density has increased from 4.3 in March 2002 to 78.1 in February
2012, wherein the rural areas registered an increase from 1.2 in March 2002 to 38.5 in
February 2012, according to a report titled ‘Telecom Sector in India: A Decadal
Profile’ prepared by the Telecom Regulatory Authority of India (TRAI). Also, the
share of telecommunication services (excluding postal and miscellaneous services), as
a per cent of the total gross domestic product (GDP), has increased from 0.96 in 2000-
01 to 3.78 in 2009 -10. The Government has given estimates that every 10 per cent
increase in access of broadband connectivity boosts the GDP by 1.38 per cent.
International comparisons (among 222 countries) in the same report show that India
has the second largest number of telephone subscribers in the world accounting for 12
per cent of the world’s total telephone subscribers.

 Videsh Sanchar Nigam Limited (VSNL) 16th Annual Report (2002) India like
many other countries has adopted a gradual approach to telecom sector reform
through selective privatization and managed competition in different segments of the
telecom sector. India introduced private competition in value-added services in 1992
followed by opening up of cellular and basic services for local area to competition.
Competition was also introduced in National Long Distance (NLD) and International
Long Distance (ILD) at the start of the current decade.
47
Singh Anil Kumar (2003) in the paper, ‘Philosophy of management and
human resource management in Indian organization’ has assessed various
HRM practices in Indian organization and examine the relationship between
HRD practices and the philosophy of management. The objectives of the
study were (1) to investigate the various HRD practices like HR planning,
recruitment selection, performance evaluation, training and development,
career management and rewards at managerial level in public and private
sector organization, (2) to examine the nature of differences in the philosophy
and management subscribe by the organization towards employee working,
(3) to examine the nature of relationship between HRD practices philosophy
and management in public and private sector; (4) to examine the impact of
HRD practices and organizational culture on philosophy and management in
public and private sector. and impact of HRD practices and organizational
culture on philosophy and management was assessed.
Tejsingh(2003) studied the leadership style of managers in the Indian and
foreign bank, taking Punjab National Bank and Standard Chartered Bank as
sample and a comparison is made between two regarding leadership styles.
The study is primary database collected through questionnaire. 318 was
sample size selected from lower, middle and top level management. The
secondary data was collected from memorandum, articles, brochures, annual
reports and books. The study shows that involvement leadership style prevails
in Punjab National Bank than Standard Chartered Bank with respect to lower
level management, at higher level it was reverse of it. This whole exercise
show that there is no significant difference in two types of banks. HRD
general practices in drugs and pharmaceuticals industry was studied by Patel
and Iyer (2004)43. This study is based on primary data collected from 125
respondents of eight pharma companies in Gujarat State of India. Lirket five
scale model was employed by researcher as (1) not at all true, (2) rarely true,
(3) sometimes true, (4) mostly true and (5) almost true. Study shows that
organizations are giving adequate important for development of human
resources in the organization. Companies are helping to employee to acquired
required skills and competencies. HRD practices are practiced in
pharmacompanies, it is true, pointed out by this study.

48
Kumar (2005) identifies the relationship between human resource
development practices and the philosophy management of the Indian business
organization based on x and y theory 95 and 119 respondents from two
private and public organizations were selected. The study found that there
was no significant relationship between the variable of human resource
development practices and the philosophy of management in the public sector
organization whereas in the private sector it is highly for training and reward.
Bains (2007 5studied a comparative human resource development system of
public and private sector organizations and trace that there is need to create a
desirable organizational culture. He concluded that integrated human resource
system developed by the private sector in a better way as compared to the
public sector companies.
Vazirani (2007) studied benchmarking of human resource practices in
selected pharmaceuticals companies and finds that all the companies surveyed
had a performance management system, which in turn helps to identify
training needs of employees, promotions enhancing decision making ability,
career planning discipline.
Virmani (2007), covers a wider field, management practices in different
organization all over India. Main purpose of this study is to find out what are
the current trends, how can they be objectively quantified for a systematic
study what conditions prevail in the organization and what element constitute
the practices. Objective of the study are To find out current trends of Indian
Management practices Different study to quantified three practices
objectively. For this study 56 organizations situated in various parts of the
country are covered and 102 employees are interviewed. Primary data was
collected through questionnaire. The aim of questionnaire is to find out
whether policies and plans exists in different areas, what kind of practices
really takes place and reasons for it and what are the factors affecting
motivation and climate in the organization. Study covered 4 types of
organization, the public sector, the government department, the multinationals
and the traditional family owned company. Analysis shows that almost all
managers in all type of organization said that long term goals do exist in the
organization.

49
Khan (2008) finds that most of the employees feel need to re-restructure the
organizations, train and develop them according to its pre-determined
objectives. They feel that their potentialities are not fully utilized for
enhancing performance/productivity of organizations. Conflict between
employees and the management leads to unsatisfactory service.
Human resource management practices in insurance companies was studied
by Kundu and Malhan (2009)61. It is comparative study of Indian and
multinational companies. Performance appraisal, workforce diversity and
contemporary human practices, training and benefits, human research
planning and recruitment, selection and socialization of employees, and
competitive compensation etc. was assessed by researcher based on 218
sample respondents from four Indian and multinational insurance companies
and it was found that multinational companies were comparatively weaker
on performance appraisal, training and benefits, HR planning and
recruitment etc. than Indian companies.
Dixit (2009) assessed human resource development practices in urban co-
operative banks in Pune district based on manpower planning, performance
potential appraisal, training, career planning, organizational development,
rewards, employee welfare, quality of working life and human resource
information for 9 co-operative banks at top, middle and lower level. This is
comprehensive and empirical study. Study used comparative approach and
suggested transformational model.
Gowali (2010) reviewed 50 studies on human resource development /
management incorporate sector of Indian covering manufacturing and service
sector. Her study was based on primary data. Data was collected by preparing
questionnaire I & II for 8 and 11 parameters. Mean, standard Deviation,
coefficient of correlation. ‘Z’ test were used as statistical tools and technique.
100 organization and 333 respondents was the sample size. She found that
there is not much difference between the human resource development
practices in manufacturing sector and service sector and there is a impact of
employee motivation towards training programme on transfer of learning on
the job.Improving the competence of workforce through training and
development activities is seen as a way of creating a competitive advantage.
From the strategic perspective, training is employed not only to improve an
50
employee’s current skills, but also to prepare each employee for future
responsibilities. In the process of learning within an organization, human
capital becomes increasingly firm – specific and cannot readily be reproduced
by its competitor (Chen and Hung, 2010) 64.Initially, human resource planning
is critical to an organization’s strategic plan through systematically matching
the interests, skills and talents of the workforce with long-term goals and
opportunities in the organization, pointed out by Nixon (2011)65.
Bhamare (2011), studies human resources practices of women’s urban co-
operative banks in Maharashtra. Practices in manpower planning, recruitment,
training performance appraisal, promotion, career planning and welfare were
studied on the basis of primary data collected by way of questionnaire, by
using frequency and percentage and average as a statistical tools and
techniques. Strategic approaches to recruitment are rare but recruitment is a
strategic opportunity indeed. BSNLlly recruitment should not simply be a
question of filling gaps, instead should be productivity focused on bringing
the specific kind of skills and experiences in the organization especially those
which cannot be built from withinShafique, (2012)67.
Suryawanshi (2012) studied conceptual framework of human resource
management and hospitals, identify the HRM practices in the hospitals,
function wise, activity wise human resources practices and whether study
object having human resource development system in place and fulfilling
adequately human resource management objectives. Pimpri-Chinchwad area
was selected for study purpose. 30 hospitals were selected randomly from
private, government and semi-government.
Venkat (2013) in his study try to find out impact of globalization on HR
practices. In today’s environment due to globalization, HR practices have to
be applied with different strategy in order to survive in the globalized world
Sundaram (1986) HRD practices in TVS Iyangar and Sons, Sundram
Fasteners Ltd. (SFL) BHEL were studied by, Usha Krishna (1986) 9, and Jain
(1986)10 respectively. Similarly D’souza had critical look of training in Indian
industry (1986)11 and concluded that the return on investment on training is
very poor because people are sent for training in many industries as ‘fringe
benefits’ and very little is being done to make use of learning, once the people
return from a training programme. This was also confirmed by Rao and
51
Abraham (1986)12 in one of their studies on HRD climate of 42 Indian
organizations. Japanese experiment has proved quite successful in developing
its human resource and achieving desired growth. They adopted different
methods at different levels for different people to get their involvement. The
members of the organization feel themselves as a member of team and
therefore, cooperate in achieving the organizational goal and the managers try
to develop subordinates for increasing their effectiveness, pointed out by
Narayan (1987).
John Keller (1987) developed ARCS model for motivational purpose.
Attention, relevance, confidence and satisfaction (ARCS) is must be adopted
in motivational design. Thus training most introduced this model for the
benefit of employee, stated by John Keller.
Abrahm studied banks’ HRD climate based on 38 items of HRD climate
(1988) A questionnaire was developed and administered. He found out
certain gap between belief of the top management and their practice with
regard to human resource development, promotions was time-bound practiced
and seniority principle was used. Bank employees think job rotation as
facilitator for them.
Sachdeva and Arora (1989) studied relationship between improving
employee relations climate and human resource development in Eicher good
Earth. They explored in detail the experiences in developing HRD system in
the company. The feedback intervention was carried out, including an attitude
survey to assess employer satisfaction covering 19 aspects of their jobs and
organizational climate, ranging from job content and compensation to
opportunities for development and union management relations. SWOT
analysis was also carried out to identify areas requiring improvement and then
HRD was implemented. After 15 months later, a significant change was
observed.
Rao (1992) studied HRD practices introduced in Voltas Ltd. And observed
that Volta believe on people’s strength.Companies conduct/adopted
performance appraisal, management development programmes, counseling,
communication policy, potential appraisal, trining etc. through it, Voltas HRD
experience brought out by Rao. He also studied Bharat Earth Movers Ltd.
(BEML) and brought out their experiences on HRD practices (1992).
52
Kapoor (1992) assessed HRD practices of Indian Oil Corporation (IOC). He
conducted a survey to measure organizational climate and observed that role
analysis exercises were conducted and 40 workshops were organized to
enhance HRD competencies.
Whereas Reddy (1995) show that 90 percent lecture method used, on the job
instruction method 76, computer conferencing is least used pedagogical
methods in training programs. Jain (1996)32 examined on the basis of primary
data HRD sub-systems including (i) goal setting, role analysis, career
planning, performance appraisal and executive development, in two
organization at middle management level, (ii) management policy, potential
appraisal and organization development at the top management level, (iii)
training at the lower level, (iv) inter-level relationship in the various HRD
sub-systems, effectiveness variables and personal history. Bharat Heavy
Electricals Ltd. (BHEL) and National Fertilizers Limited (NFL) two
companies are studied. The result shows that there exist better career planning
in BHEL than NFL. On the job training and class-room training were found
to be the most widely used methods for imparting training in two
organization. Almost 70 percent respondent responded that their supervisor
shows the moderate interest when they return from training.
Kondula (1998) conducted survey in India’s most valuable 59 companies and
their case studies to explore the alignment between strategic responses of
organizations and the strategic HRD system. The study finds that the status of
strategic HRD system is moderate. There are constrained in the
implementation of performance appraisal, worker involvement and
communication.
Lapla and Benstel (1999) has assessed the role of training and innovation in
work place performance productivity. They observed that training leads to an
increase in the quality of labour, by equipping employees with greater skills
and knowledge. Training needs as per changes in demographics of
employees, increasing job complexity technology and competition.

53
Jitendran and Baum (2000) studied human resource development and
sustainability in Indian tourism and observed that only ‘on the job’ training is
practiced by Indian tourism industry.
Hansson (2002) studied two questions, based on 26 company’s data. He
examines (1) what determines employee training from an organizational
perspective and (2) to what extent training investments contributes to
company performance. He concluded that the training have positive impact
on organization performance.
Study undertaken by Srinivas (2002) was based on primary data and 59
companies and 3 case studies to explore the relationship between strategic
responses of organizations and the strategic human resource development
system. The study finds moderate relationship between two. Management,
Unions, frontline officers / supervisors and individual workers seem to be
having certain apprehensions which might have contained the implementation
and progress of strategic human resource development practices specially job
enrichment programmes, performance appraisal, communication, works
involvement and empowerment programmes. He found that the managerial
staff are better informed and are better involved in organizational decision
making in comparison with other categories of employees.
Rao (2003) state in his another study that Indian organizations seem to have
played only lip sympathy to human resource development as (i) they do not
follow the structure principles, (ii) very few have feedback and counseling
system (iii) no separate potential appraisal system and (iv) mostly do not have
full time human resource development facilitator.

54
 CHAPTER III
Research Methodology:
Methodology is a way to systematically solve the research problem. It may be
understand as a science of studying how research is done scientifically. Research
Methodology is a step by step study of a problem. Physical activities involved in the study
are:
 Developing the questionnaire regarding the customer satisfaction of the product

 Optimum respondents as a sample size are chosen for the activity to resemble the
entire population.

 Get the questionnaire filled by the customers in the place through interview or
personal interaction.

 Analysis of data on computer with special market research statistical package called
SPSS.

In this research questionnaire is framed in such a way management wants to know

how the customers are taking things that they had done to them and to find out the
expectation of the customers thus it will impact in policy making of the firm in the current
fiscal year.
The questionnaire designed had closed question to find the respondents actual feeling
as well as their opinion rating about the satisfaction regarding the product.
The methodology followed for conducting the study includes the specification of
research design, sample design, questionnaire design, data collection and statistical tools used
for analyzing the collected data.
RESEARCH DESIGN:
The research design is the conceptual structure within which research is conducted. It
constitutes the blueprint for the collection, measurement and analysis of data.
Descriptive research
This study is descriptive in nature where the data is collected through well structured
questionnaire and from the information taken from the customers.
Sampling Design/Techniques:
Sampling is the process of selecting a sufficient number of elements from the
population, so that a study of the sample and an understanding of its properties or

55
characteristics would make it possible for us to generalize such properties or characteristics to
the population elements.
Sampling design is to clearly define set of objects, technically called the universe to
be studied. The sampling design used in this study is probability sampling. Sampling
technique used is Simple Random sampling.
Population:
Population for this research is set as costumers who are using BSNL
Sample size:
The research was conducted in Mumbai with 50 respondents.

Objectives
 To find out if they are satisfied and aware of the services and offers provided

 To recommend measures for improving the product

56
CHAPTER IV
Finding & Analysis

1. Are you aware of the objective of the Organizational system?

NO OF RESPONDENT(SAMPLE
SIZE 50)
OPTIONS PERCENTAGE

VERY MUCH

42 84%

SOME WHAT

7 14%

DON’T KNOW

1 2%

90

80

70

60

50

40

30

20

10

0
very much some what don't know

INTERPRITATION- 84% Employees are aware of the object of the Organizational system.

2. Organizational helps the organization in achieving goal.

57
 NOS OF
RESPONDENT(Sample size 50)
OPTIONS PERCENTAGE

YES 38 76%

NO 10 20%

DON’T KNOW 2 4%

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRITATION - 76% Employees say yes that Organizational helps the organization in
achieving goal.

58
 3. Hold meeting in the beginning of the year to explain & clarify activity task &
goals to be achieved.

NOS OF RESPONDENT(Sample
size 50)
OPTIONS PERCENTAGE

YES 39 78%

NO 11 22%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 78% Employees say that yes organized meetings helps goal and
task. While the other 22% employees that is not very much helpful.

59
 4. Organization has to make a fixed duration for performance appraisal.

NOS OF
OPTIONS RESPONDENT (Sample PERCENTAGE
size 50)

YES 40 80%

NO 10 20%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION -: 80% Employees agree with that is organization should have to make
a fixed duration for performance appraisal. While the other 20% employees do not agree with
this statement.

60
 5. Satisfied for point allocation on the basis of KRA’s & managerial dimension.

NOS OF RESPONDENT(Sample
size 50)
OPTIONS PERCENTAGE

FULLY SATISFIED 20 40%

SATISFIED 26 52%

DISSATISFIED 2 4%

UNCERTAIN 2 4%

60

50

40

30

20

10

0
fully satisfied satisfied dissatisfied uncertain

INTERPRITATION-: 40% Employees are fully satisfied for point allocation on the basis
of KRA’s and managerial dimension.

6. Performance appraisal affects the working efficiency of employees.

61
 NOS OF
RESPONDENT(Sample size 50)
OPTIONS PERCENTAGE

YES 42 84%

NO 8 16%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 84% Employees say that yes performance appraisal system affect
the working efficiency of employee. While the other 16% employees do not agree with this
statement.

62
 7. Appraisal system is able to develop high result orientation approach.

NOS OF
RESPONDENT(Sample size 50)
OPTIONS PERCENTAGE

YES 47 94%

NO 3 6%

100

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 94% Employees say that yes the appraisal system is able to develop
high result orientation approach. While the other 6% employees do not agree with us.

63
 8. The systems will also contribution in potential appraisal.

NOS OF
RESPONDENT(Sample size 50)
OPTIONS PERCENTAGE

36 72%

YES
10 20%

NO
4 8%

DON’T KNOW

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRITATION-: 72% employees think that the systems will also Contribution in
potential appraisal.

64
 9. Promotion process in the organization is based on –

NOS OF
RESPONDENT(Sample size 50)
OPTIONS PERCENTAGE

PERFORMANCE 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

90

80

70

60

50

40

30

20

10

0
Performance experience both

INTERPRITATION-: 4% employees say that promotion says that process in the

organization is based on performance, 12% employees say that based on experience and
84% say both.

10 .The present Organizational system is transparent &

Free from bias.

65
 NOS OF RESPONDENT(Sample
size 50)
OPTIONS PERCENTAGE

YES 42 84%

NO 8 16%

90

80

70

60

50

40

30

20

10

0
YES NO

INTERPRITATION-: 84% Employees agree with this statement that the present
Organizational system is transparent and free from bias.

66
 11 .Satisfied with the current Organizational system.

NOS OF RESPONDENT(Sample PERCENTAGE

size 50)
OPTIONS

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 1 2%

JUST SATISFIED 4 8%
60

50

40

30

20

10

0
Highly satisfied Satisfied Dissatisfied Just satisfied

INTERPRITATION-: 54% Employees are highly satisfied with the current Organizational
system. While 36% employees are satisfied with the current Organizational system.

67
Conclusion
The survival of any organization is dependent upon series of exchange between the
organization and its environment. For any organization to survive, it has to properly take part
in social responsibility activity. Most organizations and government agencies agrees that
social responsibility is well and truly on the agenda in the business world because businesses
operate in an environment where her resources are sourced and for this citizens will be
looking up to them with high expectations and if this expectationsare dashed, it will not go
well with both the organization and the citizens.In conclusion, corporate social responsibility
can therefore be best described as a total approach to business. Corporate social
responsibility creeps into all aspect of operations. Like quality it is something that you know
when you see it. It is something that business today should genuinely and wholeheartedly be
committed to. The dangers of ignoring social responsibility are too dangerousWhen it is
remembered how important brands are to the overall company’s value.

68
BIBLIOGRAPHY

Asika, N. (1991). Research Methodology in the Behavioural Science, Lagos: Longman

Nigeria limited.
Caroll, A. B. (1999). Corporate Social Responsibility of Business and Society, New York:
South Western College Publishing Limited.
Cole, G. A. (1993). Personnel Management 3rd ed, London: Heinemann Publication Limited.
Courtney, C. B. (1963). The Ethics of Business, New York: John Wiley and Son Int.
Drucker, P. F. (1986). Management Task, Responsibilities and Practice, Cavaye place
London: Pan Books Limited.
Fagbohunde, O. B. (1993). Research Method for Nigeria Tertiary Institution, Lagos: Kole
Consults Limited.
Koontz & O’Donnell. (1986). Essentials of Management, USA: McGraw-Hill Book
Company.
Kotler, P. (2005). Marketing Management, 11 editio,. New Delhi: Prentice Hall London.
Milton, F. (1962). Capitalism and Freedom, Chicago: The University of Chicago
Press.
Nwachukwu, C. C. (2006). Management Theory and Practic,Onitsha: African First
Publishers.
Stoner, J. (1995). Management 6th edition, London: Prentice Hall London

69
QUESTIONNAIRE

1) Are you aware of the objective of the Organizational system?

a) Very much

b) Some what

c) Don’t know

2) Organizational helps the organization in achieving goal?

a) Yes

b) No

c) Can’t say

3) Do you hold meeting in the beginning of the explain & clarify activity task & goals to be
achieved?

a) Yes

b) No

4) Should organization have to make a fixed duration for performance appraisal?

a) Yes

b) No

5) To what extent are you satisfied for point allocation on the basis of KRA’s & managerial
dimension?

a) Fully satisfied

b) Satisfied

c) Dissatisfied

70
 d) Uncertain

6) Do Organizational affect the working efficiency of employee?

a) Yes

b) No

7) Whether the appraisal system is able to able to develop high result

a) Yes

b) No

8) Do you think that the system wills also contribution in potential appraisal?

a) Yes

b) No

c) Can’t say

9) Promotion process in the organization is based on-

a) Performance

b) Experience

c) Both

10) Do you think that the present that the present Organizational system is transparent & free
bias?

a) Yes

b) No

11) Are you satisfied with the current Organizational system?

a) Highly satisfied

71
b) Satisfied

c) Just satisfied

d) Dissatisfied

72