Chapter - 1: 1.1 Background of The Study
Chapter - 1: 1.1 Background of The Study
Chapter - 1: 1.1 Background of The Study
1. INTRODUCTION
Recruitment and selection are two of the most important functions of personnel
management. Recruitment precedes selection and helps in selecting a right candidate. Recruitment
is a process to discover the sources of manpower to meet the requirement of the staffing schedule
and to employ effective measures for attracting that manpower in adequate numbers to facilitate
effective selection of efficient personnel. Staffing is one basic function of management. All
managers have responsibility of staffing function by selecting the chief executive and even the
foremen and supervisors have a staffing responsibility when they select the rank and file workers.
However, the personnel manager and his personnel department are mainly concerned with the
staffing function. Every organization needs to look after recruitment and selection in the initial
period and thereafter as and when additional manpower is required due to expansion and
development of business activities. “Right person for the right job” is the basic principle in
recruitment and selection. Ever organization should give attention to the selection of its manpower,
especially its managers. The operative manpower is equally important and essential for the orderly
working of an enterprise. Every business organization/unit needs manpower for carrying different
business activities smoothly and efficiently and for this recruitment and selection of suitable
candidates is essential. Human resource management in an organization will not be possible if
unsuitable persons are selected and employment in a business unit.
1.1.1 RECRUITMENT
Meaning
Recruitment is a positive process of searching for prospective employees and stimulating
them to apply for the jobs in the organization. When more persons apply for jobs then there will
be a scope for recruiting better persons.
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Definition
According to Edwin B. Flippo, "Recruitment is the process of searching for the potential
candidates for employment and stimulating them to apply for job vacancies in the organization".
Recruitment involves the activity that links the job seekers with employment providers
i. Recruitment Planning
The first step involved in the recruitment process is planning. Here, planning involves
to draft a comprehensive job specification for the vacant position, outlining its major and
minor responsibilities; the skills, experience and qualifications needed; grade and level of
pay; starting date; whether temporary or permanent; and mention of special conditions, if
any, attached to the job to be filled ”.
iii. Searching
This step involves attracting job seekers to the organization. There are broadly two
sources used to attract candidates.
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iv. Screening
Though some view screening as the starting point of selection, we have considered it as
an integral part of recruitment. The reason being the selection process starts only after the
applications have been screened and shortlisted. Let it be exemplified with an example.In the
Universities, applications are invited for filling the post of Professors. Applications received
in response to invitation, i.e., advertisement are screened and shortlisted on the basis of
eligibility and suitability. Then, only the screened applicants are invited for seminar
presentation and personal interview. The selection process starts from here, i.e., seminar
presentation or interview.
Job specification is invaluable in screening. Applications are screened against the
qualification, knowledge, skills, abilities, interest and experience mentioned in the job
specification. Those who do not qualify are straightway eliminated from the selection process.
The techniques used for screening candidates vary depending on the source of supply
and method used for recruiting. Preliminary applications, de-selection tests and screening
interviews are common techniques used for screening the candidates.
In view of above, it is necessary for a prudent employer to try to answer certain questions
like. whether the recruitment methods are appropriate and valid? And whether the recruitment
process followed in the organization is effective at all or not? In case the answers to these questions
are in negative, the appropriate control measures need to be evolved and exercised to tide over the
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situation. However, such an exercise seems to be only rarely carried out in practice by the
organizations employers. Having discussed recruitment process, it will be now relevant to have an
idea about recruitment practices in India. The following section delineates the same.
Basically, there are two sources of recruitment. One is internal source and another is
external source. Every organization has the choice of choosing candidates from these two kinds of
sources, for its recruitment process.
Internal sources are the most obvious and most likely sources of recruitment. Before an
organization actively begins recruiting applicants, it ought to consider internal sources to choose
the type of employees it needs. Different types of internal sources are as follows.
i. Present employees
Promotion and transfer from among the existing employees can be good sources
of recruitment. Since, the existing employees are well conversant with the organization
culture, and practices, their motivation level may increase and they can be more
productive. Again, internal source is cheaper as it requires less job training. However,
the major disadvantage lies in limiting the choice by choosing out of the few people
and denying the vast external sources. Furthermore, it may results in inbreeding that
creates frustration among other employees, those are not promoted.
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people whose performance is already known. Sometimes the employers recruit the
relatives and dependents of deceased too.
i. Employment exchanges
National employment services were established after India got independence.
The basic objective is to bring employers and job seekers in a common platform. The
compulsory notification of vacancies Act of 1959 (employment exchange act) was
instituted and is operative since 1960, in response to it. These employment exchanges
have branches operating in most cities. They primarily indulge in registration of job
seekers and their placement in the notified vacancies. Employment exchange serves as
the useful source for blue-collar, white- collar and technical workers.
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ii. Employment agencies
There are number of private agencies, in addition to the government agencies.
They invite applications and register them, maintain a databank for providing
employment. They shortlist the data bank and furnish a list of suitable candidates as
and when needed by the prospective employers. The representatives of the employer
organization take the final decision on selection. In this method, the employer
organizations save time in getting a large pool of potential candidates. Many times
organizational identity remains undisclosed to the job seekers, for which attempts to
influence ca can also be avoided.
iii. Advertisement
News paper job advertisement is the oldest method but still pretty efficient for
recruitment. It is cost effective and is still considered as one of the best technique for
many jobs, although many HRM professionals do not believe in newspaper
advertisement. Web job advertisement is the modern recruitment method and fully
managed by the organization.
v. Campus Recruitment
Campus Recruitment is otherwise known as Campus Placement. It has become
very popular to-day and commonly used method for picking the required personnel for
an organization. Companies pay visit to some of the premier technical and Professional
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Institutes with the objective to hire young, intelligent and smart talents at source. In
campus recruitment, the job seekers do not approach employers. The employers
approach prospective candidates with job offer. The major advantage of this approach
is that, the employers get a wide variety of talent pool at one place. They can arrange
interviews at short notice. The employers may also take the opportunity of selling their
respective organizations to a large student’s body who would be graduating
subsequently. The basic disadvantage is that, only entry positions can be filled up by
campus recruitment.
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ix. Deputation
Deputation is considered as a source of recruitment. It involves sending employees of
an organization to another for the short duration, usually of two to three years. This
practice is basically practiced in the Government Departments and public sector
organizations.
x. Word-of-mouth
"Word-of-mouth" or personal recommendation is also a source of recruitment,
followed by some organizations in India. In this method, the word of the existing
vacancies or opening up new organization is passed around. "Employee-poaching’’ is
a form of word of mouth type of recruitment. It involves offering employment to the
employees working for an organization by the rival organization. This method is
economical in terms of both time and money.
xii. Walk In
The busy organizations and rapid changing companies do not want to spend
much time on recruitment. In order to smooth out their interview process, they entertain
walk-in interview by which the potential candidates attend interview directly without
putting a prior application. This type of interview does not require specified place, date
and time
1.1.4 SELECTION
Meaning
Selection is defined as the process of differentiating between applicants in order to
identify (and Hire) those with a greater likelihood of success in a job.
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Selection is basically picking an applicant from (a pool of applicants) who has the
appropriate. Qualification and competency to do the job.
Definition
According to Dale Yoder “selection is the process in which candidates for
employment are divided into two classes, those who are to be offered employment and
those who are not to be
i. Inviting applications
The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job description and job
specification are provided in the advertisement for the job. It attracts a large number of
candidates from various areas.
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iv. Written tests
As the final list of candidates becomes ready after the scrutiny of applications,
the written test is conducted. This test is conducted for understanding the technical
knowledge, attitude and interest of the candidates. This process is useful when the
number of applicants is large. Many times, a second chance is given to candidates to
prove themselves by conducting another written test.
v. Psychological tests
These tests are conducted individually and they help for finding out the indi-
vidual quality and skill of a person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test
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ix. Final selection
At this step, the candidate is given the appointment letter to join the
organization on a particular date. The appointment letter specifies the post, title, salary
and terms of employment. Generally, initial appointment is on probation and after
specific time period it becomes permanent.
x. Placement
This is a final step. A suitable job is allocated to the appointed candidate so that
they can get the whole idea about the nature of the job. They can get adjusted to the job
and perform well in future with all capacities and strengths.
i. Intelligence Test
Intelligence test is used to judge the mental ability of the candidates. It measures the
general ability of understanding the things, learning and decision making.
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iv. Interest Test
It is used to discover a candidate's activity preferences. The personal interests such as like and
dislikes are identified by interest test. It identifies the patterns of interest that an individual holds.
v. Situational Test
It is all about evaluating whether the particular person is situation specific. It means,
under situational test, it is drilled whether the candidate performs the job in future, in a situation
if he/she is selected. It evaluates whether a particular candidate can perform the job in a given
situation.
i. Structured Interview
In this type, the interview is designed and detailed in advance. A structured
interview is pre-planned, accurate, and consistent in hiring the candidates.
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among the candidates and the interviewer judges the innovativeness and behavior of
each candidate in the group.
v. Stress Interview
Stress interviews are conducted to discover how a candidate behaves in
stressful conditions. In this type of interview, the interviewer will come to know
whether the candidate can handle the demands of a complex job. The candidate who
maintains his composure during a stress interview is normally the right person to
handle a stressful job.
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1.2 INDUSTRY PROFILE
The human resource consulting industry has emerged from management consulting and
addresses human resource management tasks and decisions. HR Consultants can fill two typical
roles one is expert Resource Consultant and another is Process/People consultant. Companies in
this industry provide advice and assistance to businesses regarding human resources and personnel
policies, employee compensation and benefit planning, and wage and salary administration. Major
companies include Aon Hewitt and Mercer (both based in the US), Willis Towers Watson (based
in Ireland), and divisions of global consulting firms such as Deloitte and Accenture.
1.2.2 HR CONSULTING
The market for Human Resource consulting services consists of five main disciplines
Organizational Change, Talent Management, HR Function, Benefits & Rewards and Learning &
Development. An overview of the key expertise areas per discipline
The market for human resource consulting services is estimated to be worth $28.7 billion,
representing approximately 12% of the total global consulting market. In 2011 and 2012 the HR
consulting market grew with more than 5% per year, as a result of the aftermath of the economic
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crisis growth rates have since slowed to between 3% and 4%. For 2015 the outlook remains
positive.
Human resource consultants are generally hired by three types of clients.
1. Firstly, HR advisors support HR Directors and Managers of client organisations with
improving the performance of the HR function - examples include implementing a HR
Business Partner Delivery Model, redesigning HR processes or implementing a HRIS
system.
2. Secondly, HR consultants are hired by clients – business, HR or works councils – to
support broader human capital issues, this can range from providing HR support on M&A
programmes to managing a cultural transformation or developing a new talent management
strategy for critical business functions.
3. Lastly, HR consultants are typically staffed on large transformations to ensure that the
necessary people and human capital expertise is on board, complementing the traditional
'hard' functional skills that already are part of the project. In this case, the client is often an
internal consulting department that leads the engagement delivery. For example: a Finance
Transformation programme at a client will be led by the Finance service line, which
subsequently will call upon human capital consultants to covers areas such as Leadership
Alignment, Change Management, Learning and Communication.
Analysts typically distinguish between three types of HR firms: the large global players
that specialize in Human Resources (e.g. Aon Hewitt, Hay Group, Mercer, Towers Watson),
consulting firms that have a separate HR consulting unit and niche players - local players that focus
on a specific discipline/market.
1.2.6 CONSULTANTS
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the consulting industry. The chapter further provides consultants with information on salaries /
compensation & benefits, as well as a range of information on career and health topics.
Profiles of consultants
Interview with consultants
Salaries of consultants
Industry Total
Payroll Accounting Services
Strategic Management Consulting And Implementation Services
Financial Management Consulting And Implementation Services
Human Resources Management Consulting And Implementation Services
Compensation And Benefits Consulting Services
Other Human Resources Management Consulting Services
Actuarial Consulting Services, Excluding Employee Pensions And Other Benefits
All Other Receipts
All Other Operating Receipts
The human resource consulting industry has emerged from management consulting and
addresses human resource management tasks and decisions. Steele F. (1975), Kubr,M. (1993,
1996); Niedereicholz (1996), Curnow-Reuvid (2003) and Kipping, K. and Clarck (2014) they
defined HR Consultants can fill two typical roles These two roles are defined by.
(1) Expert Resource Consultant
(2) Process/People Consultant
The Expert Resource Consultant suggests solutions based on expertise and experience and
assists in the implementation. The role is very typical in information benchmarking and design
consulting (see examples of actual design practices in the subsequent section below).
The Process/People consultant assists in searching for solutions with methods that facilitate
and raise creativity of the client company so that they will be able to implement solutions
themselves. The role is traditionally demonstrated by organizational development and change
consulting.
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1.2.7 CORE FIELDS IN PRACTICE
The following are core fields around which most human resource consultancies are based
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1.3 COMPANY PROFILE
Creative hands human resource consultancy is a startup firm, formed by young and
dynamic entrepreneur having experience and knowledge in US financial market recruiting. The
prime motto of this organization is
They one among the few firms equipped to provide a comprehensive end-to-end HR
service platform to our clients. Given the high cost, legal complexity and administrative burden
associated with temporary staffing and other HR functions in India, corporations are increasingly
seeking to outsource these functions. Flawless client servicing is our mission. Their project
management methodology is uniquely different for product development projects and that helps a
great deal in accomplishing targeted milestones. There is no denying that every product and service
in this world has the potential to be E-Commerce enabled. Creative hands, have built skill sets
covering the entire spectrum of the E-Commerce ecosystem from transactional front ends to final
check out .and all the functions in between such as database management ,user experience design,
super lean programming skills, payment gateway linkages, security trends and finally, logistical
and delivery challenges.
1.3.1 INDUSTRIES
They serve –
Automobile
Banking, Financial services and Insurance (BFSI)
Business processing outsourcing (BPO)
Knowledge processing outsourcing (KPO)
IT and ITES
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1.3.2 CLIENTS
AGS healthcare
Cognizant Technology solution (CTS)
Sitel
HCL
Cheyyar SEZ Developer (PVT) LTD - LOTUS
Other than campus recruits, a drive will be arranged based on the necessity some fresher’s and
some experienced but all of them who seek job in Creative hands will have to undergo 4 types of
interview they are;
1. Aptitude
2. HR Interview
3. Technical Round
4. Managerial Round
The candidates have to pass in each round to qualify to the next round.
1.3.3 SOURCING
This team is responsible for getting relevant profiles for the recruiters sourcing has varies
channels by with they get candidates they are;
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Naukri, Monster, Linkdln, etc. Online recruitment is the process of using the Internet to actively
seek out and recruit talented candidates for an organization. The Internet has quickly become one
of the primary recruitment tools for both internal recruitment and talent acquisition committees
and third-party talent search companies. With readily available public and niche electronic job
boards, social media, specialized business networking sites, and other forums, the size of the
potential candidate pool has increased exponentially for organizations everywhere.
1.3.6 STRENGTH
High quality & price performance
Large pool of knowledge workers
Flexibility and adaptability
Reliability
1.3.7 WEAKNESS
Lack of domestic computerization
Project management skills
Localization
1.3.8 OPPORTUNITIES
Global market
Domestic demand
E – commerce /E – Business
1.3.9 THREATS
Economical threat
Technological threats
Government interference
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1.4 NEED FOR THE STUDY
The present research is confined to study the recruitment process followed at creative hands
consultancy, Chennai. The scope of this study is by observing the recruitment and selection
techniques adopted by the company the most used sources of recruitment can be identified. That
will the company to bring about positive improvements into the source. It also helps the company
to place better trained recruiters who are experienced enough to use the most preferred recruitment
source competently. This study also helps to select more competent candidates as required by
clients by finding out the number of candidates not turning up for joining the company as well the
qualification possessed by them. The turnover of the recruiter can be reduced by identifying the
training needs of them. Apart from the above said scope this study also helps to identify the most
cost effective source of recruitment.
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1.6 SUMMARY OF THE CHAPTER
This chapter dealt with an explanation of recruitment and selection and the various sources
used for recruiting. In the chapter selection techniques is explained in detail and its importance is
depicted. As this study has focused on the Recruitment and selection process at Creative Hands
HR Consultancy, (i.e.) the study has been conducted by taking the response from employees
working at Creative Hands HR Consultancy an introduction about the company and it vision,
mission, values are explained for the understanding. The industry in which creative hands falls is
shown clearly in a separate part. Apart from these why this study is needed is explained and the
scope of this study in other areas is put forward in this chapter. The chapter 2 deals with review of
literature related to recruitment and selection process.
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