A SUMMER PROJECT REPORT

ON

“STUDY OF HUMAN RESOURCE OUTSOURCING

AT

LG ELECTRONICS INDIA PVT LTD”

Submitted in Partial Fulfillment for the Award of the

Degree of MBA 2022-2024

Guide: Submitted by-:

DR. DIVYA MOHAN SIDDHARTH SINGH

(ASSISTANT PROFESSOR) Roll No.:- 06012303922

Delhi Institute of Advanced Studies (14, Bold)

Plot No. 6, Sector-25, Rohini, Delhi-110085
Re-Accredited with ‘A’ Grade by NAAC
(Approved by AICTE & Affiliated with GGSIP University for B. Com(H), BBA, B.COM(H), MBA & MBA(FM) Programmes) (An
ISO 9001:2015 Certified Institution)
 ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this
Summer Training Report.
I am deeply indebted to my guide DR. DIVYA MOHAN from Delhi Institute of Advanced Studies
whose help, stimulating suggestions and encouragement helped me in all the time of research and
writing of this project.

The learning was immense and valuable.

Candidate’s Name :- Siddharth Singh Enrollment No.

:- 06012303922

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 DECLARATION

I hereby declare that the project work entitled “Study Of Human Resource Outsourcing”
submitted to the Delhi Institute of Advanced Studies, is a record of an original work done by me
under the guidance of Dr. Divya Mohan , ASSISTANT PROFESSOR and this project work is
submitted in the partial fulfilment of the requirements for the award of the degree of MBA (G).

I hereby certify that all the endeavor put in the fulfilment of the task are genuine and original to the
best of my knowledge and I have not submitted it earlier elsewhere.

Siddharth Singh

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 EXECUTIVE SUMMARY

This project is about the study of human resource outsourcing at LG ELECTRONICS INDIA
PVT LTD Solutions
(I) Pvt Ltd. Lions Workforce Solutions (I) Pvt Ltd is among India‘s growing Manpower
Outsourcing or Staffing Organisation. LG ELECTRONICS INDIA PVT LTD has a division of
experienced and qualified HR professionals to manage Outsourced Manpower. It is involved in
manpower outsourcing, flexi staffing, payroll processing, HR legal compliances and
behavioural training.
Outsourcing is a practice used by different companies to reduce costs by transferring portions
of work to outside suppliers rather than completing it internally. Outsourcing is an effective
cost-saving strategy when used properly.

Each outsourcing agency has a talented and well experienced staff. They analyse the client
requirement effectively. Similarly they judge the skill of each candidate. Human Resource
outsourcing is a risky and responsible job. They have to satisfy their client‘s requirements by
providing talented candidates to meet their requirements. And the same way they have to satisfy
the candidates by providing better job opportunity. Nowadays, most of the MNC companies
and government organizations use Human Resource outsourcing. For a time oriented job, they
are not interested place a new staff permanently. So they are deciding to place a new staff
temporally for that time period.

This project analyses the efficiency of the organisation in the process of manpower outsourcing
.It studies the Recruitment process outsourcing for hiring the candidates for different profiles
as per the requirements of the client and also finds the reasons for the less efficiency that is
being observed in the process.

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 TABLE OF CONTENTS
S.NO TITLE PAGE NO.

1 Acknowledgement 1

2 Declaration 2

3 Executive Summary 3

4 Chapter I: Introduction 5-24

• Recruitment
• Recent trends in Recruitment
• Human Resource Outsourcing
• Advantages of Outsourcing
• Issues related to HR Outsourcing
• Challenges to HR outsourcing
• How to overcome those Challenges
5 Chapter II: Company Profile 25-36

• About the company

• Vision and Mission of the Company
• Major areas in which the company is involved
• Recruitment process followed at LG ELECTRONICS
INDIA PVT LTD
6 Chapter III: Literature Review 37-40

7 Chapter IV: Research Methodology 41-42

a. Objective of the study
b. Research Design
c. Data Collection
d. Data Sampling
8 Chapter V: Data Analysis 39-43

9 Chapter VI: Findings and Conclusion 44-49

10 Limitations 50

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11 Recommendations 51

12 References 52

13 Annexure 53

CHAPTER I INTRODUCTION

HUMAN RESOURCE
Human Resource refer to the individuals or personnel or workforce within an organisation
responsible for performing the tasks given to them for the purpose of achievement of goals and
objectives of the organisation which is possible only through proper recruitment and selection,
providing proper orientation an induction, training, skill developments, proper assessment of
employees (performance appraisal), providing appropriate compensation and benefits,
maintaining proper labour relations and ultimately maintaining safety, welfare and health
concern of employees, which is process of the human resource management.

RECRUITMENT
Recruitment means to estimate the available vacancies and to make suitable arrangements for
their selection and appointment. Recruitment is understood as the process of searching for and
obtaining applicants for the jobs, from among whom the right people can be selected. A formal
definition states, ―It is the process of finding and attracting capable applicants for the
employment.

The process begins when new recruits are sought and ends when their applicants are submitted.
The result is a pool of applicants from which new employees are selected‖. In this, the available
vacancies are given wide publicity and suitable candidates are encouraged to submit
applications so as to have a pool of eligible candidates for scientific selection. In recruitment,
information is collected from interested candidates. For this different source such as newspaper
advertisement, employment exchanges, internal promotion, etc. are used. In the recruitment,
a pool of eligible and interested candidates is created for selection of most suitable candidates.

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Recruitment represents the first contact that a company makes with potential employees.
Recruitment refers to the process of identifying and attracting job seekers so as to build a pool
of qualified job applicants. The process comprises five interrelated stages, viz,

• Planning
• Strategy Development
• Searching
• Screening
• Evaluation and Control

The ideal recruitment programme is the one that attracts a relatively larger number of qualified
applicants who will survive the screening process and accept positions with the organisation,
when offered. Recruitment programmes can miss the ideal in many ways i.e. by failing to attract
an adequate applicant pool, by under/over selling the organisation or by inadequate screening
applicants before they enter the selection process. Thus, to approach the ideal, individuals
responsible for the recruitment process must know how many and what types of employees are
needed, where and how to look for the individuals with the appropriate qualifications and
interests, what inducement to use for various types of applicants groups, how to distinguish
applicants who are qualified from those who have a reasonable chance of success and how to
evaluate their work.

RECRUITMENT CYCLE
Recruitment life cycle is a complete process of recruitment such as:

• Identification and Understanding the requirement

• Applying the sources of recruitment
• Screening
• Conducting telephonic round of interview
• Scheduling personal interviews with concerned department heads
• Short listing the candidates
• Conducting final round of interview

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• Selecting the right candidate
• Verifying the collected documents-
• Issuing the offer letter
• Completing the joining formalities

A Full Life-Cycle Recruiter manages the entire recruitment process, initiating it by posting a
job, procuring and screening candidate resumes, interviewing candidates, and extending formal
offers of employment.

• Identification and Understanding the requirement:

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 It is the process of identifying and analysing the requirement from the Recruiting
Manager/Client about his/her needs and expectations about the position to be filled. Things
to be considered-experience required, Education Qualification, Flexibility of the candidate,
Knowledge and skills set, Compensation etc.

• Sourcing:
Sourcing for candidates refers to proactively identifying people who are either:

a) Not actively looking for job opportunities (passive candidates)

b) Candidates who are actively searching for job opportunities (active candidates)

Though the industry also recognizes the existence of 'active candidate sourcing' using candidate
databases, job boards and the like. Though there has been much debate within the staffing
community as to how to accurately define an "active candidate" versus a "passive candidate"
typically either term is irrelevant to a candidate source as the status of any particular candidate
can change from moment to moment or with a simple phone call from a recruiter that happens
to present a job opportunity that is perceived to be either better or worse than the job the person
has now. The status of being an "active" or "passive" candidate is fluid and changing depending
on the circumstances and position being offered

• Screening:
As recruiters, we have a natural tendency to go easy on our candidates, especially during
the first screening. To help you decide whether a candidate gets the red light or the green
light, consider these four factors:

1. Time frame:
Is the candidate ready to accept a new position now? If not, file the person away for future
use or use the candidate as a source of new referrals. A typical time frame question might
be, ―If I set up an interview next week, and the company offered you the right job, would
you be able to accept the job, turn in your resignation and start your new job at the end of
this month?‖

2. Profile:
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 Does the candidate possess the skills and work history needed for a job you‘re trying to fill?
If so, fine. If not, come back to the person when his or her skills are in demand.

3. Motivation:
Can the candidate give you a sufficiently good reason for changing jobs? If not, you may
find yourself stuck with a tire-kicker or recruiter-manipulator. With the exception of certain
circumstances (such as a spousal relocation or imminent unemployment), people only
change jobs if there‘s something they desperately want and can‘t get at their current job, or
if there‘s something they have at their current job and can‘t deal with.

To find out if a candidate is money-motivated, remember this simple rule: The only acceptable

reason for changing jobs for more money is if the increase in pay will materially change the

candidate‘s lifestyle or self-identity. If it won‘t, the ―more money‖ candidate should be

quarantined and filed under ―MONEY ONLY.‖

4. Urgency:
A person may be genuinely motivated to make a job change, but unless there‘s a sense of
urgency, you may end up coddling a whiner or enabling a serial interviewer. Try to discover
the tipping point that pushed the person from ―passively disgruntled‖ to ―locked and loaded.‖

If you can‘t find the urgency, you may be better off working with someone else.

• Telephonic and/or Personal Interview and Feedback:

While the resume may give a basic outline of an applicant's knowledge, skills and experience,
the interview allows you to get more detailed information as to whether this candidate is right
for your workgroup. In most cases, an interview pool of five applicants is optimal. Below you
will find practical tips and considerations to guide you through the employment process.

1. Develop Your Plan of Action:

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• Prior to interviewing candidates, develop a core set of questions to ask each applicant based
on the required and preferred skills, knowledge, and abilities listed in the position
description.
• Review the applicant's profile, transcripts, and relevant licenses, certificates and clearances.
If information is inconsistent, seek clarification during the interview process and document
your findings.

2. Guide the Interview

• Minimize distractions, avoid outside interruptions, and hold all phone calls.
• Allow the same amount of interviewing time for each applicant.
• Review the position description and job announcement with the applicant. When
appropriate, offer your web address and/or department publications to help the applicant
understand the vision, mission, function and activities of your department.
• Discuss the following topics: duties and responsibilities of the job, location, travel
requirements, equipment and facilities, hours, attendance and performance expectations,
on-the-job training and development opportunities.

3. Take Good Notes and Obtain Reference Information

• Document applicant responses and job-related criteria. Summarize your notes and keep it
for the conclusion of the recruitment process.
• Be sure to get the contact information for reference checks.

4. Maintain Confidentiality
• Everyone involved in the hiring process must treat all applicant information confidentially.

• At no time should candidates' qualifications be discussed outside the recruitment process.

5. Short listing:
The interviewing process is vital in ensuring that you choose the best person for the job, but
may have very little experience of the process itself. Sit with The concerned Hiring Manager
and discuss about the interviews happened and shortlist the best candidate among the
technically shortlisted by the interview panel.

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6. Back ground check and Offer:
In this process collect all the communication details about the candidate and ask for some
professional references who can best describe the candidate.HR persons will help us in
doing verification and checks. Share the same thing with the Hiring Manager also and take
his views for value addition. Based on this roll out the offer to the perspective candidate.

7. Joining Formalities / On-Boarding:

The process of helping new employees become productive members of an organization.
Similar terms are induction, and socialization. In general, on boarding can be defined as the
process of acquiring, accommodating, assimilating and accelerating new users into a
system, culture or methodology.

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RECENT TRENDS IN RECRUITMENT

OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now. A company may
draw required personnel from outsourcing firms. The outsourcing firms help the organisation
by the initial screening of the candidates according to the needs of the organisation and creating
a suitable pool of talent for the final selection by the organisation.

Outsourcing firms develop their human resource pool by employing people for them and make
available personnel to various companies as per their needs. In turn, the outsourcing firms or
the intermediaries charge the organisations for their services.

Advantages of outsourcing:
1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage

3. turning the management‘s focus to strategic level processes of HRM

4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates. 5.
Company can save a lot of its resources and time

POACHING/FISHING
―Buying talent rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced person already
working with another reputed company in the same or different industry; the organisation might
be a competitor in the industry. A company can attract talent from another firm by offering
attractive pay packages and other terms and conditions, better than the current employer of the
candidate. But it is seen as an unethical practice and not openly talked about. Indian software
and the retail sector are the sectors facing the most severe brunt of poaching today. It has

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become a challenge for human resource managers to face and tackle poaching, as it weakens
the competitive strength of the firm.

E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E- Recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through worldwide
web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using
the Internet. Alternatively job seekers place their CV‘s in worldwide web, which can be drawn
by prospective employees depending upon their requirements.

Advantages of recruitment are:

• Low cost
• No intermediaries
• Reduction in time for recruitment
• Recruitment of right type of people

ANONYMOUS RESUME SCREENING AND BLIND INTERVIEWING

Irrelevant information on resumes can provide an opportunity to be biased. Background
information (like a candidate‘s name, grades, their address, or their school) that has not been
proven to be valid predictors of new hire success can be removed or obscured from the resumes
that are presented to hiring managers. Firms like Deloitte and Google are experimenting with
this practice.

Visual biases during the interview can be reduced by using more telephone interviews, where
the individual is not visible. Another approach is, as many symphony orchestras now do,
literally hide the performing candidates behind a screen.

Voice biases can be reduced by offering written or questionnaire Internet interviews. This is
where the candidate types their answers to the posed questions on a computer screen, so the
candidate is neither seen nor heard.
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HUMAN RESOURCE OUTSOURCING
Human Resource outsourcing is a normal procedure followed by several MNC companies.
Human Resource outsourcing is a routine, it helps the companies to find the skilled candidate,
to achieve the company requirements. The selection procedure done by the company itself take
too much time to select a perfect one. Human Resource outsourcing helps to simplify the
procedure of selecting the perfect skilled candidate. Through this way most of the companies
consume their time.

Each outsourcing agencies has a talented and well experienced staff. They analyse the client
requirement effectively. Similarly they judge the skill of each candidate. Human Resource
outsourcing is a risky and responsible job. They have to satisfy their client‘s requirements by
providing talented candidates to meet their requirements. And the same way they have to satisfy
the candidates by providing better job opportunity. Nowadays, most of the MNC companies
and government organizations use Human Resource outsourcing. For a time oriented job, they
are not interested place a new staff permanently. So they are deciding to place a new staff
temporally for that time period.

ISSUES RELATED TO HR OUTSOURCING

Some of these issues include:

• The future purpose and contribution of HR because of possibilities of functions being

transformed, or partially outsourced, through HRO deals.
• The strategic and management complexities of HRO deals.
• Deciding what is "core" and "non-core" in HR.
• The position of off shoring, including job losses and redeployment. The challenges of trying
to manage HR process effect on a global scale and across different cultures. Some
organizations believe the HR function is an integral business success factor, but others view
HR as over-resourced, inefficient and thus vulnerable to the cost reduction possibilities of
HRO.

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HUMAN RESOURCE OUTSOURCING IN INDIA
The human resource department is the business function that takes care of the organization‘s
key assets—its employees. The principal day-to-day activities in an organization that the HR
deals with include:
• Payroll management
• Compensation & benefits
• Learning and development
• Recruitment/exit process
• HR strategy
The contribution of the HR department is considered significant as they have to deal with people
who come from diverse geographies, education backgrounds and with different requirements.
Hiring, retaining and engaging quality talent is another important area for the organization in
this competitive environment, which the HR department is responsible for HR Outsourcing in
India.

In recent times, companies have been struggling to retain profit levels due to a slowdown in the
economy. Rising employee costs, raw material costs and increasing competition to grab the
market share are driving companies to cut down on costs and increase the efficiency of the
various departments across the organization. Even the HR department is not untouched by these
problems and there has been a growing concern among the organizations as to how to improve
the efficiency of the HR department and streamline its operations.

One of the solutions to efficiently and effectively manage the HR department is outsourcing.
Outsourcing in business terms means contracting a business process to another firm. HR
outsourcing refers to outsourcing the functions of the human resource department to an external
third-party organization. In recent years, many business organizations have transferred their HR
functions partially or completely to a third-party vendor company.
Major reasons as cited by companies in India for outsourcing various HR functions include:

• Cost saving

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• Increasing productivity
• Accommodating peak loads
• Getting specialized services
• Sharing risks

Major heads under HR Outsourcing

Payroll outsourcing
The Payroll department takes care of the payroll management of the firm. Being a nonstrategic
process, payroll processing is currently one of the most outsourced function within HR.
Outsourcing the payroll function is much cheaper than handling them internally. Most of the
firms outsource the payroll function to reduce costs, focus on their core competency and free
up resources.
According to a report by Growth Praxis, the Indian payroll and compliance outsourcing services
market is highly fragmented with more than 100 service providers across the country. Over
70% of the payroll and compliance market is dominated by small regionfocused players. Some
of the leading payroll outsourcing providers in India includes ADP, Aon Hewitt, People Strong
and Allsec Technologies.

Recruitment process outsourcing

Recruitment of employees holds to be of utmost importance for an organization. A carefully
selected employee is an asset to the organization and helps the organizations to grow by meeting
critical deadlines for projects and doing the work more efficiently. Some of the important steps
in recruitment planning are:

• Projecting the demand for future recruitments

• Planning recruitment based on growth prospects of the organization
• Estimate the size of employees if entering in new markets

According to a report by Growth Praxis, organizations can save up to 40% of their recruitment
costs by outsourcing their recruitment process. Many of the Indian firms have started
recruitment process outsourcing (RPO) to achieve some of the benefits associated like reducing
costs and attracting better talent. The Indian market for end-to-end recruitment process
outsourcing is estimated to be around $572 million in 2015 and is expected to grow at a CAGR
of 32%.
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There is an increasing demand for blended RPO models that combine permanent and contingent
recruitment under one process. Some of the major companies offering RPO in India are Ma Foi,
Accenture, Elixir, Team Lease and Manpower Services. These players are currently working
with a profit margin ranging between 12 – 17%.

Temporary Staffing
Post-recession, in order to reduce costs, companies have shown more interest in hiring
temporary staff. This can also help them reduce huge losses which are incurred in the form of
severance pay if they decide to downsize workforce during the time of recession. The report
estimated the Indian temporary staffing market at US$2.1 billion in 2015.
According to Growth Praxis, the temporary staffing industry in India is highly unstructured
with only about 8.3 lakh employees being employed by organized players. Adecco, Team
Lease, Mafoi Randstad and Kelly Services are the key players in this segment.

Learning and Development Outsourcing

The learning and development function under the HR department takes care of the training
needs of the employees. Effective training is required for the development of the employee in
an organization; training is conducted mainly for HR processes compliance, departmental
training for in-house technology, and training for new and emerging technologies. Some of the
major players in this field are IBM, Logica, NIIT, Aptech, Skillsoft, Accenture.
The market for L&D in India is estimated to be at US$1.3 billion at the end of 2015.

Benefits of HR outsourcing
HR outsourcing can prove beneficial for all firms be it large or small. A large firm‘s HR
department grows too big and needs restructuring for faster processing and efficient
management. For a small-sized firm, the problem can be related to a capital requirement for
setting up and running the HR department. Small firms cannot afford costs associated with real
estate. Outsourcing can help them in converting the fixed costs associated with the HR
department to variable costs and will also help up freeing resources. The firms which
outsourced various HR functions among Indian firms showed tremendous overall satisfaction.
Some of the major benefits associated with HR outsourcing are:

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• Cost reduction
HR outsourcing helps in reducing the capital needed for small organizations. Small firms
can convert their initial fixed investment to variable costs by outsourcing their HR
functions. Another major driver for cost reduction is the streamlining of HR processes; even
larger firms can benefit by outsourcing.

• Increased effectiveness and control

By outsourcing their HR functions, companies can exercise greater control on HR
operations. As a company grows in size, the in-house HR functions become hierarchical
and less responsive. In these cases, HR outsourcing can streamline the HR functions
resulting in greater control and increased effectiveness.

• Freeing up critical resources

Outsourcing of HR functions helps firms focus on innovation and strategy rather than
looking into the day-to-day non-strategic issues. HR outsourcing frees up the time of critical
resources that can now focus on more strategic issues such as employee engagement,
process improvement, etc.

• Well-organized training
Training which form an important part of human resource development can be organized
in a better way by outsourcing the HR function. The third-party trainers are more unbiased
towards evolving trends in technology and can form a better roadmap for future training
requirements.

Future of HR outsourcing in India

The future of HR outsourcing in India looks bright. Companies are looking to cut costs and
optimize their business processes; outsourcing will be a viable solution for them. Also, most
companies want to focus on their core competencies and want to free up upper management
resources which can be achieved by outsourcing various business processes.

Furthermore, as we have already seen, the CAGR for the discussed outsourcing functions are
in excess of 30%, which is a very high growth rate. This growth rate will prompt many new
players to enter the industry. The entry of new players will create more competition among rival
firms and help in the business process optimization of outsourcing service providers, bringing
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down the cost of outsourcing drastically. This will, in turn, increase the penetration of
outsourcing in the industry.

In contrast, some of the factors that are hampering the growth of the outsourcing industry are
confidentiality and cost factors. The fear of losing control over confidential data, quality of
vendors and ethics are some of the reasons why companies are reluctant to outsource their HR
functions. Another major concern is quality and lack of benchmarks in the industry which leads
to varied price for similar outsourcing solutions. Overall, we can say that if some of the above
factors are controlled as the outsourcing industry evolves in India, the future looks promising.

ADVANTAGES OF OUTSOURCING

1. Focus on Core Activities:

In rapid growth periods, the back-office operations of a company will expand also. This
expansion may start to consume resources (human and financial) at the expense of the core
activities that have made your company successful. Outsourcing those activities will allow
refocusing on those business activities that are important without sacrificing quality or
service in the back-office.
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Example: A company lands a large contract that will significantly increase the volume of
purchasing in a very short period of time; Outsource purchasing.

2. Cost and Efficiency Savings:

Back-office functions that are complicated in nature, but the size of your company is
preventing you from performing it at a consistent and reasonable cost, is another advantage
of outsourcing.

Example: A small doctor's office that wants to accept a variety of insurance plans. One parttime
person could not keep up with all the different providers and rules. Outsource to a firm
specializing in medical billing.

3. Reduced Overhead:
Overhead costs of performing a particular back-office function are extremely high.
Consider outsourcing those functions which can be moved easily.

Example: Growth has resulted in an increased need for office space. The current location is
very expensive and there is no room to expand. Outsource some simple operations in order to
reduce the need for office space. For example, outbound telemarketing or data entry.

4. Operational Control:
Operations whose costs are running out of control must be considered for outsourcing.
Departments that may have evolved over time into uncontrolled and poorly managed areas
are prime motivators for outsourcing. In addition, an outsourcing company can bring better
management skills to your company than what would otherwise be available.

Example: An information technology department that has too many projects, not enough
people and a budget that far exceeds their contribution to the organization. A contracted
outsourcing agreement will force management to prioritize their requests and bring control back
to that area.

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5. Staffing Flexibility
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional
resources when you need them and release them when you're done.

Example: An accounting department that is short-handed during tax season and auditing
periods. Outsourcing these functions can provide the additional resources for a fixed period of
time at a consistent cost.

6. Continuity & Risk Management

Periods of high employee turnover will add uncertainty and inconsistency to the operations.
Outsourcing will provided a level of continuity to the company while reducing the risk that a
substandard level of operation would bring to the company.

Example: The human resource manager is on an extended medical leave and the two
administrative assistants leave for new jobs in a very short period of time. Outsourcing the
human resource function would reduce the risk and allow the company to keep operating.

7. Develop Internal Staff

A large project needs to be undertaken that requires skills that your staff does not possess.
Onsite outsourcing of the project will bring people with the skills you need into your company.
Your people can work alongside of them to acquire the new skill set.

Example: A company needs to embark on a replacement/upgrade project on a variety of custom

built equipment. Your engineers do not have the skills required to design new and upgraded
equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will
allow your engineers to acquire a new skill set.

CHALLENGES TO HR OUTSOURCING
Outsourcing HR offers many incentives -- namely the opportunity to save money, time and
resources in order to focus on long-term goals and growing the business.

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But there are plenty of drawbacks to shutting down your in-house HR department and relying
on an outside vendor to handle its duties.
Talk to any veteran HR rep, and they'll no doubt be able to tell you how messy and complicated
working with employees can be.

In short, a good HR person knows how to navigate the tricky waters of an organization and can
steer around potential landmines toward calmer shores.

While an off-campus third party can handle many basic HR functions, the people-to-people
communication requires someone embedded in the organization who can read situations and
respond appropriately.

Following are the challenges faced:

1.Disconnection with staff:

The word "human" isn't part of the title "human resources" for nothing. HR representatives are
critical to helping employees feel like they have a voice and are valued. Transferring these
duties to computer software or to an off-campus third party can lead to staff feeling
disconnected from their employers and employers not fully understanding their staffs' needs.

2. Reduced flexibility:
In smaller-sized businesses especially, HR reps and managers can help employees out in a
pinch -- paying out unused vacation days in an emergency or letting them dip into next year's
leave early. When HR becomes automated and/or outsourced, these types of accommodations
for loyal workers can be difficult if not impossible.

3. Problems that take longer to fix:

In situations where an error's been made -- say with payroll or with the number of vacation
days an employee has -- going through a third-party vendor can mean a long wait before the
error is fixed, leaving the employee angry or frustrated. In addition, when an employee quits
and the business is using an outside recruiter, the hiring and training process can take longer
than an in-house HR department, which can be more proactive about hiring and training
employees before positions even become open.

5. Fewer choices:

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 Companies using a Professonal Employer Organization (PEO) to handle everything from hiring
to firing and payroll to insurance might find that they have fewer choices when it comes to
selecting benefits for their organization. By handing off control of certain functions to a
thirdparty, you're also limiting your company to whatever packages that PEO has to offer.

6. Security issues:

Many service providers use web-hosted software to handle HR functions, leaving sensitive
employee information vulnerable to security threats as well as crashes. Checking your vendor's
security record and calling references is essential will shopping around for any webhosted HR
services.

HOW TO OVERCOME THESE CHALLENGES

A satisfied, hardworking staff is the biggest competitive advantage a business has, and you can
help create a company culture that values employees and their contributions by making sure
their voices are heard. As you can see from the list above, one of the biggest challenges of
outsourced HR is not having someone who can troubleshoot the workaday problems,
frustrations and miscommunications that are inevitable in any work environment.

Fortunately, for companies considering outsourcing, they can pick and choose which functions
they wish to hand over to someone else, keeping personnel on hand to handle those important
interpersonal relationships and to act as a liaison between employees and your HR vendors.

While some vendors have an all-or-nothing policy regarding your HR Functions (they either
want to handle all of them or you can't use them), many offer an ala carte option, allowing you
to decide which functions you'd like to keep in the building and which can be performed
elsewhere .

The most common services offered by HR companies include:

• Payroll services (paying employees, handling taxes and keeping track of sick time and vacation)

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• Benefits (health insurance, life insurance, 401ks, etc.)
• HR management (recruiting, hiring, firing, exit interviews, annual reviews)
• Risk management (employee compensation, safety, conflict resolution, office policies, etc.)

While outsourcing any one of these would save your business time and money, keep in mind
that it might be wise to keep people-centric jobs (thinking hiring, firing and reviews) on the
premises. In addition, allowing your employees to air their frustrations and concerns about the
outsourced services will help you better assess what's working and what isn't to find the best
solution for your business.

CHAPTER II COMPANY PROFILE

ABOUT THE COMPANY

Lions Workforce Solutions (I) Pvt Ltd is among India‘s growing Manpower Outsourcing or
Staffing Organisation. Lions Work Force came into existence in the year 1999. Till date Lions
Work Force has successfully serviced over 150+ clients in more than 14+ locations PAN India.
Lions Work Force specialize in helping organizations meet their Outsourced Manpower needs
in Senior, Middle, Junior, Entry Level, Highly Skilled, Skilled & Semi Skilled Manpower on
Contractual or Permanent basis for all of the Corporate functions. We are not a recruitment
consulting company. Proud to have long standing relationship with our existing clients now for
more than 15 years. Operations PAN India . Specialized team for Fetching Outsourced
Manpower, Payroll processing, HR related Legal compliance, Behavioural Training. Lions

Work Force does not do run of the mill recruitment consultancy as Lions Work Force is not a
manpower consultancy but is an Outsourced Manpower provider. Lions Work Force USP is
working with the Business Leaders in their Field. Lions Work Force also has a division which
provides End to End Security Services.

24
Lions Work Force was formulated with the following Mission, Vision and values:

MISSION
• To make the business Easy for the Client.
• Enable our Clients to scale up their business growth through innovative Outsourced Human
Resources interventions & Behavioural Training.
• Enable our Clients to save on the all-important cost arising due to recruitment &
management of non-essential manpower.
• Enable our Clients to timely get trained outsourced manpower so that the client can execute
their business plans flawlessly.

VISION
• To be a Partner to all business enterprises

• ―TODAYS TALENT TOMORROW‘S SUCCESS ―Effectively Lions Work Force

brings to table Practical People Strategy. Moto is to make India work.
• To work with the Business Leaders in their field

VALUES
Passions, Teach & Learn, Innovate, Simplicity, Openness, Quality, Team Work, Focussed
and

Customer first.

25
MAJOR AREAS IN WHICH THE COMPANY IS INVOLVED

Lions Work Force has a division of experienced and qualified HR professionals to manage
Outsourced Manpower. It is involved in the following:

MANPOWER OUTSOURCING

Lions Work Force Solutions India Pvt. Ltd. is a leader in providing Man Power Solutions to
Corporates and Institutions. The company has more than fifteen years of presence in India,
serving clients and candidates for Recruitment and Staffing solutions across industries. In this
span of time, Lions Work Force has built a credible team of specialist in the staffing industry.
As the demand for technical & professional employees continues to grow in numerous
industries Pan India, Lions Work Force continues to answer the call. Lions Work Force has
established credibility in India over the last fifteen years.

Company has added specialist to cater to the evolving and growing staffing industry in India.
In these last fifteen years, Lions Work Force strengthened its professional & technical
recruitment division and sourcing capabilities specializing in Retail, Hospitality, Engineering,
Processing, Manufacturing, Automotive, Oil & Gas sectors, Medical Device Industry,
Hospitals, Banking, IT, Engineering and Science and many more… verticals of Industry.

Lions Work Force continues to work towards providing customers with a complete and
integrated talent management solution and meet Temporary, Contractual, Permanent and Flexi
Staffing needs of clients in the respective geographical areas through a cohesive blend of
services and expertise in this space. Lions Work Force started its operations in 1999 & from a
modest start, increased its presence in India and currently operates from 14+ strategic locations
across the country. The company finds the clients the right manpower and solutions there

26
by.Lions Work Force Solutions India Pvt. Ltd. is now a known brand where client can find
complete Staffing Solution.

Staffing and hiring process encompass three core phases:

SOURCING AND RECRUITING

It sources manpower and provide to the client from their internal Data Base, Head hunting and
connections in the Industry. This makes Lions Work Force unique to do the client requirement
matching process a robust one.

SCREENING

Comprehensive screening process is helpful in determining the skills, experience, and fit of
each of our candidates. This process ranges from an initial in-person meeting to a complete
reference and background investigation.

PERFORMANCE MONITORING

Staffing process does not stop once a candidate has been placed. Instead, it monitor a
candidate‘s performance on a continuous basis to ensure in providing the client with the highest
level of service in the industry.

Over and above the Lions Work Force has a division of experienced and qualified HR
professionals to manage Outsourced Manpower. Lions Work Force designs for self and clients
consumption the followings;

• Policies & Various HR process

• JD‘s & KRA formulations

• Retention Management Strategies
• Performance management
• Industrial Relations Interventions
• HR Data Mining and Management
• HR Audit and Smooth exit of the Employee

27
TEMPORARY AND CONTRACTUAL STAFFING
LG ELECTRONICS INDIA PVT LTD insure client‘s decision towards taking its services for
their manpower outsourcing requirement and it takes care of each and every aspect of their
manpower starting from sourcing to Exit. Everything it takes care on behalf of the clients and
it used to say that ―We take our clients end to end manpower management from their head to
our head‖
A combination of people, process & technology focus enables LG ELECTRONICS INDIA
PVT LTD to enhance business productivity by enabling clients to outsource their staffing
requirements and allowing them to focus on operating and growing their core businesses.

• Sourcing
• Onbording
• HRMIS
• Attendance Management
• Leave Management
• Payroll Processing & Management
• Salary Preparation & Distribution
• Online Salary Distribution

(1) BENEFITS TO CLIENTS

• Single Window Contact

• Implementation of minimum wages
• Manpower availability at all times
• Help Clients to concentrate on core areas of their business
• Reducing internal hiring cost
• Issue offer letter & appointment letters Easy online access to Associate details
• Online billing makes the process faster
• Labour Law Management
• Maintenance of all statutory issues like PF, ESI, PT, IT and TDS

(2) BENEFITS TO ASSOCIATES

• Induction Program

28
 • Company Manual, Policy, Guidelines
• Offer Letters, Appointment letters & Permanent ID Card
• Zero Balance Salary Accounts & Payroll Cards
• Single Window Contact for all Associates deputed at their work location
• Local ESI sub-codes and ESI cards ensuring full benefits
• Personal records for individual associates
• Insurance coverage – ESIC/ Mediclaime / Personal Accident
• Speedy EPF Management (UAN No. Activation & Claim Withdrawal) Online
Salary Slip

PERMANENT RECRUITMENT AND RECRUITMENT PROCESS

OUTSOURCING

The Permanent Recruitment Services Business Constitutes a small but strategically important
part of the portfolio of Human Resources Services for different Clients across country.

LG ELECTRONICS INDIA PVT LTD identifies the permanent staff for its clients in India and
charge clients a onetime recruitment fee for each successful recruitment after completion of
their joining along with a replacement period.

LG ELECTRONICS INDIA PVT LTD mainly serve clients in the following industry sectors:
Logistics, Pharma, Telecom, Manufacturing, Electronic, FMCG, Retail Hotel Breweries,
Education, Automotive, BPO & KPO and E-commerce for both IT & Non-IT Profiles.

It serves its clients with their permanent recruitment requirement with the help of its 150 (+)
Team of Recruitment Specialist.
LG ELECTRONICS INDIA PVT LTD works for client‘s requirement of their Permanent
recruitment requirement for the following level of their hierarchy.

• Associate & Front Liners

• Executive
• Sr. Executive
• Asst. Manager
• Deputy Manager
• Manager

29
 • Sr. Manager
• Asst. General Manager
• Deputy General Manager
• General Manager
• Asst. Vice President
• Vice President
RPO (RECRUITMENT PROCESS OUTSOURCING)

Lions RPO Model defines as ―a form of business process outsourcing where an employer
transfers all or part of its recruitment processes to LIONS WORKFORCE.

So here LIONS can manage the entire recruiting/hiring process, or can manage one or two

aspects of the process, essentially serving as an extension of the company‘s human resources

department‖.

LIONS WORKFORCE RPO MODEL

30
HR LEGAL COMPLIANCES
We take care of entire spectrum of Legal compliances related to Human Resource starting from
―ESIC, EPF, EDLI, Bonus, Professional Tax, TDS, Gratuity and other statutory compliance
along with complete coordination with all the legal govt. bodies.
Lions Work Force provides services in the entire gamut of Legal HR compliance services
relating to the outsourced manpower it provides to the organizations such as:-

• Employee State Insurance Act.

• Provident Fund & Miscellaneous Provisions Act.
• Professional Tax Minimum wages act.
• Bonus act.
• Payment of Gratuity act.
• Leave rules.
• Overtime pay.
• Incentives related.
• Income tax.
• And many other related Central & State legislation regulating the manpower in an
organization today and as and when the existing legislations are amended or new
legislations are enacted.

31
RECRUITMENT PROCESS FOLLOWED AT LG ELECTRONICS INDIA
PVT LTD

Sourcing and Recruiting

The manpower is provided to the client from the database. Candidates are sourced through
different job portals like naukri, monster,talent now,timesjob etc.

These are the different criteria of sourcing candidates from job portals:

1. Job posting:

When the Job Description is being received by the company from client, job posting is done
as shown below:

The responses to the job posting are received and then the candidates are being called for the
interview.

32
2. Advanced search:

Search query is created by mentioning all the essential keywords and a list of relevant
candidates is displayed on the portal

3. Mass mailing:

33
 When the relevant candidates are displayed on the portal mail regarding the job is being
sent to all the candidates and then responses are viewed.

4. Calling:

The candidates are being called for the interview on the scheduled date.

5. Screening:

The solicited applications are screened out and suitable candidates are appointed as per the
requirements. Comprehensive screening process is done which is helpful in determining the
skills, experience and fit of each of our candidates. This process ranges from an initial in-
person meeting to a complete reference and background investigation.

6. Follow up of the candidates:

34
 Either through a quick email or a phone call, employees are always advised to follow up
the candidates after a job interview.

CHAPTER III LITERATURE REVIEW

There are a number of reasons, at both the strategic and operational level, why firms want to
outsource HR activities. Many share similarities with the outsourcing of other organizational
functions. In particular, demands for increased productivity, profitability, and growth have
forced organizations to examine their internal HR processes, resulting in a move toward
strategic outsourcing services and away from discrete services.

As Greer, Youngblood, and Gray (1999) observe, HR outsourcing decisions are frequently a
response to an overwhelming demand for reduced costs for HR services. Downsizing and
tougher competition mean that the HR function is under increasing pressure to demonstrate
value, both in terms of efficiency and effectiveness (Roberts, 2001). Although some elements
of the HR functions may have always been performed by external service providers, Brewster
observes that a new dimension ―is this finance-driven idea connecting outsourcing to human
resource management – the idea that you can save a lot of money by outsourcing‖ (quoted in
35
Turnbull, 2002, p. 10). In addition, outsourcing is seen as a way of liberating HR professionals
within the client organization to perform the more consultative and strategic role of designing
and implementing programs aimed at retaining the workforce and enhancing its performance.
This rationale is in line with Ulrich‘s (1998) influential thesis of the four roles of HR, in which
he proposed that HR should be a strategic partner, an administrative expert, an employee
champion, and a change agent. In a similar vein, Greer et al. (1999) argue that HR outsourcing
is consistent with the business partner role that the inhouse HR department is attempting to
assume. These roles arguably are where HR can add the greatest value to the organization, but
they are difficult to measure quantitatively. Outsourcing HR is also seen as an effective way to
bypass organizational politics and improve efficiency. For example, according to the sales and
training manager of United Kitchen, a company that has outsourced all personnel and training,
the company‘s aim was to buy an expert who could maintain an objective view, would not get
embroiled in office politics, and yet could call on the support of a wide range of other experts
in their own organization (Pickard, 1998). In short, the main reasons for outsourcing HR appear
to be fairly consistent (Sisson & Storey, 2000). Typical reasons include seeking specialist
services and expertise, cost reduction, and enabling HR specialists to take on a more strategic
role. In general, most commentators are convinced that outsourcing is seen not only as a
costcutting exercise but also as a strategic tool. As Oates (1998) suggests, the outsourcing
decision is a strategic one and is generally taken at a senior level.

Another survey, by IDC (www.idc.com), reports that worldwide HR business process

outsourcing (BPO) will be the fastest-growing segment of the HR service spending market.
Worldwide and U.S. HR Management Services 2005-2009 forecast predicted that BPO will
grow at a compound annual growth rate of 16.1% to more than $16 billion. Gartner, Inc.
(Stanford, Conn.; www.gartner.com) predicts that worldwide BPO this year alone will generate
$133.7 billion, up 8% over last year.

The growing choice to outsource, especially HR services, means that you may soon be in the
position of choosing a vendor, or helping to do so. This choice requires great care, as the vendor
must be held accountable. If you outsource HR correctly, it can improve service quality, save
money and time, and free HR time for core functions, noted Geoffrey Dubiski, director of
operations at Yoh HR Solutions (Philadelphia), an HR outsource vendor. Poor outsourcing,
however, could bring lower service quality and the employee complaints that lower quality can
spawn. ―Most HR outsourcers provide satisfactory levels of service, but none of them provide
exceptional service,‖ claims Michael Cornetto, a senior consultant at Watson Wyatt Worldwide
36
(Washington, D.C.). Service quality is also something you must consider and explore, notes
Patrick Wright, professor of HR studies at Cornell University (Ithaca, N.Y.). ―The expectation
is that the quality of service gets better, [but] there‘s no quantitative data out there to support
the actual decision saying that outsourcing is always cheaper and better.‖ While a lack of clarity
in expectations is partly to blame, HR professionals who are setting up the transfer of services
to an outsourcer may also be at fault, Wright says. How? They may not have the skills in vendor
management to make sure the process – from contract to implementation to monitoring results
– is properly handled. The top reason that many employers outsource HR is the desire for more
services at a lower cost.
Perceived savings stem from having fewer in-house HR staff. In SHRM‘s 2004 survey about
HR outsourcing, 56% of the 169 surveyed HR professionals said that their companies
outsourced HR functions to save money or reduce operating costs, and 41% to reduce the
number of HR staff and related expenses.

Outsourcing is never a fix for poor internal systems, Wright stressed. ―You have to fix your
own processes within the company first, before outsourcing, or you will have a bigger headache
on your hands than when you started.‖ Dissatisfaction with surprise additional costs was a
powerful negative in an outsourcing review of 25 large companies by Deloitte
Consulting‘s (www.deloitte.com) ―Calling a Change in the Outsourcing Market Report,
2005‖. The study looked at both business process and information technology outsourcing: 70%
of the companies said they have had significant negative experiences with outsourcing projects
– and were dissatisfied with its costs and complexity. Also reported was the need for more
senior management attention and skills than anticipated. Additional costs came from
unexpected complexity of the outsourcing process and lack of transparency in vendor pricing
or cost structures. 57% said they absorbed costs for services they believed were included in
contracts with vendors or outsource providers. Many indicated there were ―hidden‖ costs in
managing outsourcing projects, as well.

One reason for the results, according to Ken Landis, a senior strategy principal at Deloitte, may
be that vendors and the companies that hire them have ―conflicting Objectives.‖ Another
observation: ―The structural advantages envisioned do not always translate into cheaper,
better, or faster services.‖ As a result of the findings, he observed, ―outsourcing will become
less appealing for large companies because it is not delivering the value as promised.‖ As with
the outsourcing of other organizational functions, one major issue in outsourcing HR is to

37
decide what types of HR activities should be outsourced. In making this decision, organizations
need to consider the likely impact of outsourcing these activities on the organization‘s
performance. To do so, they may need to distinguish between ―core‖ and

―noncore‖ activities.

A survey by Hewitt Associates (2005) found that 94% of 129 companies polled outsource at
least one HR activity and respondents expect to expand outsourcing beyond its traditional limits
of payroll and health and welfare benefits. New areas are expected to include global mobility,
headhunting, and recruiting. Other areas that employers would like to consider outsourcing
include HR technology support, performance management, and staff learning and development,
noted Bryan Doyle, president of Hewitt‘s HR Outsourcing Business. It is equally unclear as to
whether and how the effectiveness of these outsourcing activities is evaluated and how
outsourcing provider and client firms coordinate their in-house and outsourced HR activities to
create a coherent HR function. One way to understand these relationships is to examine the
recent trends in HR outsourcing.

A number of firms outsource routine administrative HR activities to release their in-house HR

team for a more strategic role. However, a minority of others have opted to outsource the entire
package, including the design of HR systems that are likely to have a fundamental impact on
organizational culture and performance (Klaas, McClendon, & Gainey, 2001). This emerging
trend raises a number of questions. For example, what HR activities should be outsourced? How
does HR outsourcing affect the role of the in-house HR function and the rest of the workforce?
What are the pitfalls for the HR function? Evidence from professional and practitioner
publications indicates that HR outsourcing has increased substantially over the last decade
(Woodall, Gourlay, & Short, 2000). However, few academic researchers have investigated
empirically how decisions of outsourcing are made, the manner in which these decisions are
implemented, how the effectiveness of the outsourcing is measured, and, most important, the
implications of these outsourcing decisions for the role of the HR function and for different
groups in the workforce. This dearth of research is in sharp contrast to the burgeoning
prescriptive literature on the financial and strategic reasons why firms should outsource
(Rubery, Earnshaw, Marchington, Cooke, & Vincent, 2002) and how to go about it (e.g., Cook,
1999; Rippin, 2001). As Purcell (1996, p. 22) noted, ―We lack the research to make definite
statements on the effect of outsourcing on employees.‖ What has been

38
conspicuously missing in much of the research ―is the ‗insiders‘‘ perspective – the employees‘
voice‖ on the impact of outsourcing on employment relations (Kessler, CoyleShapiro, &
Purcell, 1999, p. 6).

CHAPTER IV RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

The major aim of the report is to recognize and identify how theories and concepts discussed
in the MBA program can be applied in the aspect of Recruitment process outsourcing at LG
ELECTRONICS INDIA PVT LTD Solutions.

The objectives of the report is:

1. To study the HR Outsourcing process followed at LG ELECTRONICS INDIA PVT LTD.
2. To estimate the efficiency of the organisation in meeting the client requirements.

RESEARCH DESIGN

Conclusive research is meant to provide information that is useful in reaching conclusions or

decision-making. It tends to be quantitative in nature,that is to say in the form of numbers that
can be quantified and summarized. It relies on both secondary data, particularly existing
databases that are reanalysed to shed light on a different problem than the original one for which
they were constituted, and primary research, or data specifically gathered for the current study.

39
This research is a conclusive research in which the conclusion is being made on the basis of the
data analysis of the work that has been done.

DATA COLLECTION

Primary Data
Primary data is the information that you collect specifically for the purpose of your research
project. An advantage of primary data is that it is specifically tailored to your research needs.

Secondary Data
Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by
government departments, organisational records and data that was originally collected for other
research purposes.

The research has been done using both the primary data as well as the secondary data. The
candidates for different profiles have been sourced through different job portals like
naukri.com, monster, timesjob, indeed, talentnow etc. Also the candidates have been referred
for different job profiles by posting ads on facebook, linkedin and through reference of friends.

DATA SAMPLING

Simple random sampling is the basic sampling technique where we select a group of subjects
(a sample) for study from a larger group (a population). Each individual is chosen entirely by
chance and each member of the population has an equal chance of being included in the sample.
Every possible sample of a given size has the same chance of selection.

The sampling of data has been done through random sampling. The resumes of different
candidates for different job profiles have been sourced through different job portals randomly.

40
 CHAPTER V DATA ANALYSIS

1. Company: LG ELECTRONICS INDIA PVT LTD (Internal Hiring) Profile:

HR recruiter
Location : Saket, New Delhi
Experience : 0-2
Salary :Upto 20k pm
Qualification : Graduate/ Post Graduate

Job Responsibility:
Will be responsible for recruitment process.
Client Coordination.
Work on different job portals.

Efficiency in calling

Total number of calls 15

Effective Calls 12

Ineffective Calls 3

Efficiency 80%

Turn-up Ratio

No of candidates shortlisted 10

No of candidates who went for interview 7

No of candidates got selected 5

Turn-up Ratio 5:2

No of back outs 1

41
2. Company: Policy Bazaar Profile: Associate Sales Consultant
Location: Gurgaon
Experience: 0-1 years Salary:
15k plus incentives pm
Qualification: Minimum 12th

Job Responsibility
Cold Calling

Consulting the customers

Efficiency in calling

Total number of calls 120

Effective Calls 88

Ineffective Calls 32

Efficiency 73%

Turn-up Ratio

No of candidates shortlisted 50

No of candidates who went for interview 45

No of candidates got selected 15

Turn-up Ratio 1:2

42
No of back outs 2

43
 Company:

3. Fundoodata Profile: Sales Consultant

Location : Noida, Ghaziabad
Experience : 1-4 years
Salary : 3,00,000 - 3,84,000 PA
Qualification : Graduate/ Post Graduate in Business Management/
Sales/ Marketing from reputed college/university.
Minimum 60% marks throughout academics

Job responsibility:
 Will be responsible for handling "end-to-end sales process" for our high-value product.
 Researching and identifying sales opportunity, generating leads, target identification and
classification.
 Reaching out to new clients and pitches outlining the benefits of product/ services.
 Understanding the client requirements and then customizing the product/ services as per
their needs.
 Maintaining relationship with all potential and existing clients

Efficiency in calling

Total number of calls 34

Effective Calls 19

Ineffective Calls 15

Efficiency 55.89%

44
 Company:
Turn-up Ratio

No of candidates shortlisted 10

No of candidates who went for interview 5

No of candidates got selected 1

Turn-up Ratio 1:4

No of back outs 0

4. Indiamart Profile: Field Sales Executive

Company Name : Indiamart
Location : Delhi
Experience : 1-4 years
Salary : Upto 25 k pm

Qualification : Graduate/ Post Graduate in Business Management/ Sales/

Marketing from reputed college/university.
Minimum 55%marks in 10th and 12th and 50%in

Graduation

Job Responsibility:
 Responsible for new enterprise registration, building new relationships and increasing depth
in existing relationships.
 Following up with new business opportunities.
 Provide regular updates to the immediate superiors.

45
 Company:

Efficiency in calling

Total number of calls 30

Effective Calls 22

Ineffective Calls 8

Efficiency 73.33%

Turn-up Ratio

No of candidates shortlisted 15

No of candidates who went for interview 10

No of candidates got selected 7

Turn-up Ratio 7:3

No of back outs 1

5. My Signature Image Consulting Profile: Business Development

Executive
Location: Noida
Experience: 0-1 years
Salary: 25k plus incentives pm

Job Responsibilities:
 Should convert potential clients by giving presentations in audio-visual mode on our
services.

46
Company:
 To examine client records, and convert leads in to business with new leads generation and
cold calling.
 To visit client site for concept selling of our services across India both manually and
digitally.
 To call and fix up appointments with clients and then convert them to business.
 To interact with clients over call or face to face with hard core selling skills and revenue
generation for the firm.
 To close the overall process and client engagement cycle along with revenue generation.
Efficiency in calling

Total number of calls 34

Effective Calls 24

Ineffective Calls 10

Efficiency 70.58%

Turn-up Ratio

No of candidates shortlisted 10

No of candidates who went for interview 6

No of candidates got selected 3

Turn-up Ratio 1:1

No of back outs 0

47
 CHAPTER VI FINDINGS

EFFICIENCY
• Overall I was 70.4% effective while calling the candidates for different profiles.
• I was more effective in calling while I was doing internal hiring for HR Recruiter.
• Least effective in calling when working for the sales consultant profile for Fundoodata.

CLOSINGS
• In the period of 2 months of internship I closed 31 openings of different profiles.
• Highest turn-up ratio for internal hiring for HR Recruiter, which is 5:2.
• Lowest turn-up ratio for sales consultant profile for Fundoodata, which is 1:4.

BACK-OUTS
• Out of 31 candidates, 4 candidates did back out.
• Maximum number of back (2) outs from Policy Bazaar.
• 1 back out from each Indiamart and HR Recruiter (Internal Hiring).

48
 CONCLUSION

This project studies the human resource outsourcing practices that are being followed at LG
ELECTRONICS INDIA PVT LTD and it also describes the challenges that are faced by the
employees during the recruitment process outsourcing.

The study has analysed the efficiency and the effectiveness during calling the candidates by
sourcing them through different job portals to hire them for the job profiles which matches the
candidate‘s skills and the requirements by the clients for a particular profile. The closing of the
profiles depends on the effectiveness during the calling and screening the resumes of the
candidates. Also if an employee is efficient in his work, it will lead to very less number of back
outs or no back outs. Right candidate will be placed on right job. So in order to get the desired
results and complete the targets in time one has to follow the process in a right manner and make
optimum use of resources to get the best out of it.

49
 LIMITATIONS

TIME CONSTRAINT
Due to the short duration of the internship I could not work on more profiles.

LOCATION ISSUES
Some candidates had the issues related to the job location as they had the preference for specific
locations only so they were not ready for the job offered to them.

SALARY ISSUES
Expectations of some candidates were very high regarding the salary so they did not go for the
job offered to them.

BACK OUTS
The candidates who got selected for any particular profile did back-out because some of them
got a better job somewhere else and some of them were not comfortable with the working
environment in the job

50
 RECOMMENDATIONS
 Client coordination should be done to better understand their requirements and source
the candidates as per their requirements.

 Proper job postings should be done to get the revert of desired candidates.

 Use of social networking sites should be done to post the advertisements for different
vacancies and to reach out a large pool of candidates.

 Database of the sourced candidates should be maintained for the future reference.

 Regular follow up of the candidates should be taken to know their status.

51
 REFERENCES

WEBSITES
 https://www.LG ELECTRONICS INDIA PVT LTD.com/
 http://www.managementstudyguide.com/staffing-function.htm
 https://www.linkedin.com/pulse/understanding-recruitment-life-cycle-ramesh-busavalla
 http://www.whatishumanresource.com/
 http://blog.ucmsgroup.com/payroll-and-hr-administration/outsourcing-selection-criteria/
 https://www.thebalance.com/top-outsourcing-advantages-2533765
 http://www.indian-manpower.com/benifits_of_manpower_outsourcing.php
 http://rhrsolutions.in/in/web/man_power_outsourcing.php
 http://www.sciencedirect.com/science/article/pii/S1822801115000090
 http://www.hrzone.com/hr-glossary/what-is-human-resource-outsourcing-hro

BOOKS
 T.N. Chabbra; Human Resource Management; Dhanpati Rai and Co. Pvt. Ltd New Delhi
2003.Dr.
 C.B. Gupta; Human Resource Management, Sultan Chand and Sons, New Delhi, 2003.

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 ANNEXURE

• Working on different job profiles for different companies like

 Fundoodata
 Policy Bazaar
 Indiamart
 My Signature Image Consulting

• Coordinating with the clients

• Receiving the JD from the clients
• Sourcing candidates through different job portals like naukri, monster, timesjob etc.
• Job postings on portals
• Screening resumes
• Calling the candidates
• Taking telephonic interview of the candidates
• Scheduling the interview date of the candidates
• Taking the follow up of candidates
• Giving the hourly update to the manager
• Maintaining the record of all the activities being performed

53