RECRUITMENT AND SEELECTION

ABSTRACT

Recruitment is the process of searching for and obtains applications so

as to build a pool of job seekers from whom the right people for the right jobs
may be selected. Recruitment represents the first contact a company makes
with potential employees. Recruitment done well will result in better selection.

Selection is process of picking the right candidates from pool of

applications which is significant as it has its impact on work performance and
employee cost.

The study aims at the effective recruitment and selection which

contributes to increased efficiency of the organisation. LAKSHMI HYUNDAI
is a large organisation undertaking with a big human resource and wide variety
of HR practices being carried out in it. As the scope my study was emphasized
on recruitment and selection process I found that all the methods of
recruitment and selection is been adopted.

It is generally done by HR department often in consultation with the

line managers where the right people for the right jobs are placed

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CHAPTER-1
INTRODUCTION

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 INTRODUCTION

Defining Management education:

Management education deals with the art and science of directing and controlling
or handling any organization, especially under resource constraint situations, be it
business, industry, public system or government. Such education not only covers a
through understanding of behavioral science. Human Resource Development,
Finance, Marketing, Operations and Information systems, but also calls for an
adequate grasp of the National and Global economics, politics, Sociology. Legal
Framework, Technology trends and natural environment in which the organization
has to function and proper the formulation of effective strategies. All organizations
need to have a vision and mission with a milestone to achieve a common goal.

Experience of successful organizations has proved beyond doubt the personality

factory plays a key role in day-to-day interactions. In today's competitive
environment, organizations are becoming more and more personality conscious and
are making efforts to develop the facets of personality of their employees. The focus
is on developing a pleasing personality that insures success and happiness
emphasizing on motivational as well as behavioral aspects of personality. Institutions
offering management programmes cannot afford to ignore this vital component. In
fact, planned efforts are required to be made to evolve comprehensive programmes
for personality development in management education.

Definition:

The conscious and specific direction of effort towards the quality of the
workforce in the short and long term. It involves all quality of the workforce in the
short and long term. It involves all processes and activities aimed at managing the
human resource of an organization i.e. manpower, planning, recruitment, training and
development, career management and human performance. It also involves the
productive use of people in achieving the organizations strategic business objectives
and the satisfaction of the individual employees needs. In other words it is a fomal
system for the management of people within the organization. It is mainly divided in
to three major areas, staffing, rewarding and designing work.

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SCOPE OF THE STUDY:

To define and describe the scope of human resource management requires an

understanding of the infuluences that the changing environment in which human
resource management is situated have on human resource management systems and
roles. For this reason, a brief survey is given of aspects of the environment that were
taken into account when compiling the definition and scope of human resource
management.

The organizational context in which HRM finds itself at present is one of rapid
change and considerable uncertainty. As various views of HRM were discussed, it
became apparent that this sub-field of management is, in a phase of transition. In the
context of traditional organizational structures, HRM was placed as a function withing
a 'silo', as were other organizational functions like finance, production and marketing.
However, a turbulent enviroment has brought a concurrent change in organizational
structures and the nature of HRM and its functions are in the process of change. Many
organizations are now structured around multi-disciplinary project teams with the
HRM professional as one member of the team or as consultants to team, and where
line managers take on various HRM roles.

Nature of HR:

Human resource management is also in the process of change with regard to the
nature of the role performed. In the past, many functions were performed by HRM
professional themselves, the role they are taking on, is one of consultants to line
management, where line mangers perform many of the functions traditionally handled
by HRM professional. Similarly there is a trend in which businesses are shedding all
functions that are not directly related to core business. In the process many HRM
functions are being outsource. Hence the change in the nature of services provided.
The activity of generating unit standards and designing qualifications can be used as
an opportunity to catapult HRM Practices into the future. To do this, those issues that
are going to shape the future for HRM practices need to be identified and analyzed
especially in relation to current roles that will still be required of HRM practitioners.
These issues are central to the activity of generating unit standards (e.g. outsourcing,
societal responsibility) and their impact on HRM roles (e.g. statting, performance

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management). In addition, supportive roles or functions required by HRM
practitioners will also have to be identified in order to complete the HRM
practitioners qualifications design packages.

Future of HR:

When people mention HR( human resource ) these days, a few words such as
talent management and human capital evidence that human resource as a discipline is
changing to keep up with the demands of business in the 21st century can be heard.
With new opportunities opening up for HR professional, what will the future hold,
and will this future be right?

Five steps to help HR professional prepare for the future:

 RETHINK THE ROLE: HR professionals need to think of themselves as

managers who are part of a company management team.
 INVEST IN BUSINESS TRAINING: Having an HR diploma is no longer
enough. Financial and business training is also required, in addition to well-
developed leadership skills.
 CREATIVITY: Those in HR should know how to advise leaders on subjects
as motional intelligence, creating a fun but not trivial work environment and
inspiring commitment.

 MOVE AROUND A GREAT DEAL: As an HR professional, work for an HR

outsourcing firm. Work as an HR executive within a firm. Work as a
consultant not to HR, but to business managers who have talent management
challenges to address.
 RECOGNIZE THE CHALLENGE: HR professional needs to be proactive in
changing the role of human resources and in building a better future for HR.

IMPORTANCE OF THE STUDY

To understand the current Recruitment Policies being followed at “LAKSHMI

HYUNDAI” conducted this study and to know how effectively it is being
implemented in the organization.

OBJECTIVES OF THE STUDY

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  To prepare the employees to meet the present and changing future job
requirements.
 To prevent employee obsolescence.
 To develop creative abilities and talents.
 To prepare the employees to move higher in their jobs.
 To impart new entrants with basic HRD skills and knowledge.
 To develop the potentialities of the employees for the next level job.
 To aid total quality management.
 To promote individual and collective morale, a sense of responsibility, co-
operative attitudes and good relationships.
 To ensure smooth and efficient working of the organization and enhance
organizational capabilities.
 To create a climate that enables every employee to discover, develop and use
his/her capabilities to a fuller extent in order to goal.

The Major functions of the HR department are:

 Recruitment and selection of new employees

 Performance and potential appraisal
 Placement, promotion, demotion etc., activities
 Employee training
 Executive development
 Career planning and development
 Involvement in social activities
 Organization change and organizational development
 Involvement of workers participation in management.
 Employee benefits and grievance mechanism.
 Recreational activities
 Communication policies and practices
 Team work
 Employee counseling
 Monetary and non-monetary rewards.

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METHODOLOGY:
DATA COLLECTION METHODS:

The data for the study was collected through primary and secondary METHODS

Primary Methods;

Primary methods are those methods that provide first hand information. The methods

followed were interview methods and questionnaire method

(a) Interview method:

By this method the employees and managers of the LAKSHMI HYUNDAI were
asked questions regarding the recruitment and selection process, its effectiveness and
the relevant or required changes they intended to have in the present recruitment and
selection process of the company. The managers of different departments were the
majority to be interviewed in the entire sample taken.

Secondary methods:

Secondary methods are those methods that provide already existing information of the
past, also called as second hand information. The information was obtained from the
different HR journals published by the organization for various purposes like HR
'department personal use, reference by any other department about the performance of
various activities that have been started by the HR department, to know about the
performance appraisal system or the bonus system etc.

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OBJECTIVES OF THE STYDY:

 To study the present Recruitment Policies in “LAKSHMI HYUNDAI”

 To study the type of recruitment/methodology undertaken in the organization.

 To study the different methods of recruitment depending on the requirements of the

organization.
 To find the relationship between the qualification and the jobs offered to the
employees in the organization.
 To study the level of job satisfaction in the organization.

 To study the changes of recruitment policy in recent times in the organization.

 To know how the company fulfills its manpower requirements.

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LIMITATIONS:

 The study thus conducted is restricted to the “LAKSHMI HYUNDAI.” Hyderabad

only.

 The accuracy of the study is based on the information given by the respondents.

 Data collected cannot be asserted to be free from errors because of bias on behalf of

the respondents.

 As the sample size consists size consists of only 60 employees its accuracy has its

limitations.

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 CHAPTER-II
REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

RECRUITMENT AND SELECTION PROCESS:

Human resources planning means deciding the number and type of the human
resources required for each job, unit and the total capacity for a particular future date
in order to carry out organizational activities. Human resources planning as "a process
by which an organization should move from its current man power position to its
desired manpower position. Though planning management strives to have the right
number and right kind of people at the right place at the right time, doing things,
which result in both the organization and the individual receiving maximum long run
benefit.

Once the required number and the kind of human resources are determined,
the management has to find places where required human resources are/will be
available and also work out strategies for attracting them towards the organization
before selecting suitable candidates for jobs. This process is generally known as
recruitment. Technically speaking the function recruitment precedes the selection
function and it includes only finding, developing the sources of prospective
employees and attracting them to apply for jobs in an organization

UNDERSTANDING RECRUITMENT PROCESS:

Recruitment is the phase, which immediately precedes selection. Its purpose is to pave
the -way for the selection procedures by producing, ideally, the smallest number of
candidates who appear to be capable either of performing the required tasks of the job
from the outset, or of developing the ability to do so within a-period of time
acceptable to the employing organization. The smallest number of potentially suitable
candidates can in theory, of course, be any number. The main point that needs to be
made about the recruitment task is that the employing organization should not waste
time and money examining the. credentials of people whose qualifications do
not match the requirements of the job.

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Apart from the methods used and the general administration of task, the achievement
of the objective will depend very much in the end on how efficiently the basic tasks of
manpower planning and job analysis have been carried out and applied. In short,
efficient recruitment of staff may be described as knowing what resources you want,
what resources are available, where and how they may be found.

The Objectives of Recruitment are:

 To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies
 To induct outsiders with a new perspective to lead the company
 To infuse fresh blood at all levels of the organization
 To develop an organizational culture that attracts competent people to the
Company
 To search or head hunt/ head pouch people whose skills fit the . company's
values.
 To devise methodologies for assessing psychological traits
 To seek out non-conventional development grounds of talent
 To search for talent globally and not just within the company
 To design entry pay that competes on quality but not on quantum
 To anticipate and find people for positions that does not exist yet.

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Merits of Centralized Recruitment:

 Average cost of recruitment per candidate/unit should be relatively less due to

economies of scale
 It would have more expertise available to use
 It can ensure board unifonnity among human resources of various units/zones
in respect of education, skill, knowledge, talent etc.,
 It would generally be above malpractices, abuse of powers, favoritism, bias
etc.,

Merits of Decentralized Recruitment:

 The unit concerned concentrates only on those sources/places where it

normally gets the suitable candidates. As such, the cost of recruitment would
be relatively less.
 The unit gets the most suitable candidates as it is well aware of the
requirements of the jobs regarding cultural, traditional, family background
aspects, local factors, social factors etc.,
 Units can recruit candidates as and when they are required without any delay.

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The different kinds of internal sources are:

Present permanent employees:

Organizations consider the candidates from this source for higher-level jobs due to
availability of most suitable candidates for jobs relatively or equally to the external
source, to meet the trade union demands and due to the policy of the organization to
motivate the present employees.
Present temporary/casual employees:

Organizations find this source to fill the vacancies relatively at the lower level owning
to the availability of suitable candidates or trade union pressures or in order to
motivate them on the present job.
Retired employees:

Generally, particular organizations retrench the employees due to lack of work. The
organization takes the candidates for employment from the retrenched employees due
to obligation, trade union pressure and so on. Sometimes, the organizations prefer to
re-employ their retired employees as a token of their loyalty to the organization or to
postpone some internal conflicts for promotion.

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External sources:

External sources are sources outside organizational pursuits. Organizations search for
the required candidates from these sources for the following

reasons:

 The suitable candidates with skill, knowledge, talent etc., are generally
available.
 Candidates can be selected without any pre-conceived notion or reservations.
 Cost of employees can be minimized because employees selected from this
source are generally organization.
 Human resources mix can be balanced with different background, experience,
skills etc.,
 Latest knowledge, skill, innovative or creative talent can also be flowed into
the organization.
 Existing sources will also broaden their personality
 Long run benefit to the organization in the sense that qualitative human
resources can be brought. Placed in the minimum pay scale.

Different kinds of External sources are:

Campus recruitment:

Different types of organizations like industries, business firms, service organizations,

social or religious organizations can get fresh candidates for different types of jobs
from various educational institutions like collages and universities imparting
education in science, commerce, arts, engineering and technology, agriculture,
medicine, management studies etc.,
Private employment agencies/consultants:

Public employment agencies or consultants like ABC consultants in India perform

recruitment functions on behalf of a client company by charging fees. Line managers
are relieved from recruitment functions so that they can concentrate on their
operational activities and recruitment functions are entrusted to a private agency or
consultants.

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Professional associates;

Professional organizations or associates maintain complete bio-data of their members

and provide the same to various organizations on requisition. They also act as
exchange between their members and recruiting firms in exchanging information,
clarifying doubts etc. organizations find this source more useful to recruit the
experienced and professional employees like executives, managers, engineers.

MODERN METHODS OF RECRUITMENT:

A number of modem recruitment sources are being used by the corporate sector in
addition to traditional sources. The sources are divided into internal and external
sources.

Internal sources:

Employee referrals:

Present employees are well aware of the qualifications, attitudes, experience and
emotions of their friends and relatives. They are also aware of the job requirements
and organizational culture of their company. As such, they can make preliminary
judgments regarding the match between the job and their friends or relatives. Hence,
the HR Managers of the company depend on the present employees for reference of
the candidates for various jobs. This source reduces the cost and the time required for
recruitment. Further this source enhances the effectiveness of recruitment.

External sources:

Walk in interviews and tests:

The busy and rapidly changing organizations do not find time to perform various
functions of recruitment. Therefore, they advice the potential candidates to attend for
an interview directly and without a prior application on specified date, time and at a
specified place.

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Consult in:

The busy and dynamic companies encourage the potential job seekers to approach
them personally and consult them regarding the jobs. The companies select the
suitable candidates from among such candidates through the selection process.

E-Recruitment:

The technological revolution in telecommunications helped the organizations to use

Internet as a source of recruitment. Organizations advertise the job vacancies through
the world wide web (www). The job seekers send their applications through e-mail
using Internet. Alternatively job seekers place their CV's in the worldwide web/
Internet, which can be drawn by the prospective employers depending upon their
requirements. For eg: Monsterindia.com, timesjobs.com, naukri.com, Chckjobs.com

Outsourcing:

Some organizations recently started developing human resources pool by employing

the candidates for them. These organizations do not utilize the human resources
instead they supply HRs to various companies based on their needs on temporary or
ad-hoc basis. Various companies, rather than employing HRs draw HRs from these
organizations on commission basis.

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UNDERSTANDING SELECTION PROCESS:

Recruitment function helps the organization to develop a pool of prospective human

resources. It is difficult for the HR manager to employ the suitable people out of the
pool. Infact, many organizations face critical problems in choosing the people.
Selection techniques and methods reduce the complexities in choosing the right
candidates for the job.

After identifying the sources of human resources, searching for prospective

employees and stimulating them to apply for jobs in an Organization, the management
has to perform the function of selecting the right employees at the right time. The
obvious guiding policy in selection is the intention to choose the best qualifies and
suitable job candidate for each unfilled job.

The objective of the selection decision is to choose the individual who can most
successfully perform the job from the pool of qualified candidates. The selection
procedure is the system of functions and devices adopted in a given company to
ascertain whether the candidate's specifications are matched with the job
specifications and requirements or not.

The selection process can be successful if the following requirements are satisfied:

 Someone should have the authority to select. This authority comes from the
employment requisition, as developed by an analysis to the workload and
work force.
 There must be some standard of personnel with which a prospective employee
may be compared, i.e. a comprehensive job description and job specification
should be available before hand.
 There must be a sufficient number of applicants from whom the '' required
number of employees may be selected.

Selection of personnel to man the organization is a crucial, complex and continuing

function. The ability of an organization to attain its goal effectively and to develop in
a dynamic environment largely depends upon the effectiveness of its selection
programmer. If the right person is selected, he is valuable asset to the organization.

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SELECTION PROCEDURE:

Selection procedure employs several methods of collecting information about the

candidate's qualifications, experience, physical and mental ability, nature and
behavior, knowledge and aptitude for judging whether a given applicant is suitable or
not for the job. Therefore the selection procedure is not a single act but is essentially a
series of methods or stages by which different types of information can be secured
through various selection techniques. At each step facts may come to light, which are
useful for comparison with the job requirement and employee specifications.

Steps in Scientific Selection Procedure:

 Job analysis
 Recruitment
 Application form
 Written examination
 Preliminary interview
 Business games
 Tests
 Final interview
 Medical examination
 Reference checks

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INDETAIL EXPLANATION:

JOB ANALYSIS:

Job analysis is the basis for selecting the right candidates. Every organization should
finalize the job analysis, job. Description, job specification and employee
specifications before proceeding to the next step of selection.

APPLICATION FORM;

Application form is also known as application blank. The techniques of application

blank are traditional and widely accepted for securing information from the
prospective candidates. It can also be used as a device to screen the candidates at the
preliminary level. Many companies formulate their own style of application forms
depending upon the requirement of information based on the size of the company,
nature of business activities, type and level of the job etc. Information is generally
required on the following items in the application forms:

 Personal background information

 Educational qualifications
 Work experience
 Salary (drawing and expecting)
 Personal attainments including likes and dislikes

WRITTEN EXAMINATION:

Organizations have to conduct written examination for the qualified candidates after
they are screened on the basis of the application blanks so as to measure the
candidate's ability in arithmetical calculations, to know the candidate's attitude
towards the job, to measure the candidate's aptitude, reasoning, knowledge in various
disciplines, general knowledge and English language

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PRELIMINARY INTERVIEW:

The preliminary interview is to solicit necessary information from the prospective

applications and to assess the applicant's suitability to the job. An assistant in the
personnel department may conduct this preliminary interview. The information thus
provided by the candidate may be related to the job or personal specifications
regarding education, experience, salary expectations, attitude towards job, age,
physical appearance and other requirements etc. Thus, preliminary interview is useful
as a process of eliminating the undesirable and unsuitable candidates. If a candidate
satisfies the job requirements regarding most of the areas, he may be selected for
further process. Preliminary interviews are short and known as stand up interviews or
sizing up of the applicants or screening interviews. However, certain required amount
of care is to be taken to ensure that the desirable

BUSINESS GAMES:

Business games are widely used as a selection technique for selecting management
trainees, executive trainees and managerial personnel at junior, middle and top
management positions. Business games help to evaluate the applicants in the areas of
decision-making, identifying the potentialities, handling the situations, problem-
solving skills, human relations skills etc. participants are placed in a hypothetical
work situation and are required to play the role situations in the game. The hypothesis
is that the most succe
ssful candidate in the game will be most successful one on the job.
TESTS:

Psychological tests play a vital role in employee selection. A psychological test is

essentially an objective and standardized measure of sample of behavior from which
inferences about future behavior and performance of the candidate can be drawn.

Objectivity of tests refers to the validity and reliability of the instruments in

measuring the ability of the individuals. Objectivity provides equal opportunity to all
the job seekers without any discriminating against sex; caste etc. standardization of
test refers to uniformity of procedure in conducting the tests for all the candidates.

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Sample behavior refers to the sample of the total behavior of the prospective
employee on the job.

Types of Psychological Tests

(I) Aptitude Tests:

(a) Intelligence Test (IQ)

(b) Emotional Quotient

(c) Skill Tests

(d) Mechanical Aptitude

(e) Psychometric Tests

(f) Clerical Aptitude Tests

Type of Test

(ii) Achievement Tests:

(a) Job Knowledge Test

(b) Work Sample Test

(iii) Situational Tests:

(a) Group discussions

(b) In Basket

(iv) Interest Test:

(v) Personality Tests:

(a) Objective Tests

(b) Protective Tests

(vi) Multi-Dimensional esting

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Types of test:

Tests are classified into six classes, each class is again divided into different types of
tests. They are:

APTITUDE TESTS:

These tests measure whether an individual has the capacity or latent ability to learn a
given job if given adequate training. Aptitudes can be divided into general and mental
ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative
capacity etc. General aptitude test is of two types namely intelligence quotient (IQ)
and emotional quotient (EQ).

CLERICAL APTITUDE TESTS;

These types of tests measure specific capacities involved in office work. Items of this
tests include spelling, computation, comprehension, copying, word measuring etc.

ACHIEVEMENT TESTS:

These tests are conducted when applicants claim to know something- as these tests are
concerned with what one has accomplished. These tests are more useful to measure
the value of a specific achievement when an organization wishes to employ
experienced candidates. These tests are classified into (a) job knowledge test and (b)
work sample test.

SITUATIONAL TESTS:

This test evaluates a candidate's in a similar life situation. In this test the candidate is
asked either to cope with the situation or solve clerical situations of the job

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Group discussion (GD) :

This test is administered through the group discussion approach to solve a problem
under which candidates are observed in the areas of initiating, leading, proposing
valuable ideas, conciliating skills, oral communicating skills, coordinating and
concluding skills.

INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work,
job, occupations, hobbies and recreational activities. The purpose of this test is to find
out whether a candidate, is interested or disinterested in the

Job for which he is a candidate and to find out in which area of the job
range/occupation the candidate is interested. The assumption of this test is that there is
a high correlation between the interest of a candidate in a job and job success. Interest
inventories are less faked and they may not fluctuate after the age of 30.

MULTI-DIMENSIONAL TESTING:

However, the need for multi-skills is being felt be most of the companies consequent
upon globalization, competitiveness and the consequent customer-centered strategies.
Organization have to develop multidimensional testing in order to find out whether
the candidates possess a variety of skills or not, candidate's ability to integrate the
multi-skills and potentiality to apply them based on situational and functional
requirement.

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PRELIMINARY INTERVIEW:

(1) Informal interview:

This is the interview, which can be conducted at any place by the person to secure the
basic and non-job related information. The interaction between the candidate and the
personnel manager when the former meets the latter to enquire about the vacancies or
additional particulars in connection with the employment advertisement is an example
of the informal interview.

(2) Unstructured interview:

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

CORE INTERVIEW:

It is normally the interaction between the candidates and the line executive

Or experts on various areas of job knowledge, skill, talent etc. This interview

may take various forms like:

(1) Back ground information interview:

This interview is intended to collect the information, which is not available inThe
application blank and to check that information provided in theApplication blank
regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes
and extra curricular activities of the applicant.

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(2) Job and probing interview:

This interview aims at testing the candidate's job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, methods of handling those areas
etc.

(3) Stress interview

This interview aims at testing the candidate's job behavior and level of understanding
during the period of stress and strain. The interviewer tests candidate by putting him
under stress and strain by interrupting the applicant from:areas, keeping silent for
unduly long periods after he has finished speaking etc.

(4) Group discussion interview;

There are 2 methods of conducting group discussion interviews, viz. group interview
method and discussion interview method. All the candidates are brought into one
room and are interviewed one by one under group interview. This method helps a
busy executive to save valuable time and gives a fair account of the objectivity of the
interview to the candidates.

(5) Formal and structured interview:

In this type of interview, all the formalities, procedures like fixing the value, time,
panel of interviewers, opening and closing, intimating the candidates officially etc. are
strictly followed in arranging and conducting interview. The course of the interview is
preplanned and structured, in advance, depending on job requirements

(6) Panel interview:

A panel of experts interview each candidate, judges his performance individually and
prepares consolidated judgment. This type of interview is known as panel interview.
Interviewers for middle level and senior level mangers are normally conducted are the
panel of experts.

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DECISION-MAKING INTERVIEW:

After the experts including the line managers of the organization in the core areas of
the job examine the candidates, the head of the department/section concerned
interviews the candidates once again, mostly through informal discussion. The
interviewer examines the interest of the candidate in the job, organization,
reaction/adaptability to the working conditions, career planning, promotional
opportunities, work adjustment and allotment etc. The personnel manger also
interviews the candidates with a view to find out his reaction/acceptance regarding
salary, allowances, benefits, promotions, opportunities etc..

MEDICAL EXAMINATION:

Certain jobs require certain physical qualities like clear, vision, perfect hearing
unusual stamina; tolerance of hardworking conditions, clear tone etc. Medical
examination reveals whether or not a candidate possesses these qualities. Medical
examination can give the following information:

 Whether the applicant is medically suited for the specific job

 Whether the applicant has health problems or psychological attitudes likely to
interfere with work efficiency or future attendance.

REFERENCE CHECKS:

After completion of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the
names of references in their application forms. These references may be from the
individuals who are familiar with the candidate's academic achievement or form the
applicant's previous employer, who is well versed with the applicant's job
performance, and sometimes from co-workers.

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FINAL DECISION BY THE LINE MANAGER:

The line manager concerned has to make the final decision whether to select or reject
a candidate after soliciting the required information through techniques discussed
earlier. The line manager has to take much care in taking the final decision not only
because of economic implications but also because of behavioral and social
implications. A careless decision of rejecting would impair the morale of the people
and they would suspect the selection procedure and the basis of selection of this
organization. A true understanding between line managers and personnel managers
should be established to take proper decisions.

JOB OFFER:

Thus, after taking the final decision, the organization has to intimate this decision to
the successful as well as unsuccessful candidates. The organization offers the job to
the successful candidates either immediately or after some time depending upon its
time schedule. The candidate after receiving job offer communicates his acceptance to
the offer or requests the company to modify the terms and conditions of employment
or rejects the offer.

EMPLOYMENT:

The company may modify the terms and conditions of employment as requested by
the candidate. However the alteration is purely depends on the sole discretion of the
Management / company. The company employs those candidates who accept the job
offer with or without modification of terms and conditions of employment and place
them on the job.

With the employment of the candidate the recruitment and selection process is
completed.

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CHAPTER-III
INDUSTRY PROFILE

&
COMPOANY PROFILE

31
 INDUSTRY PROFILE

The automobile industry in India is the ninth largest in the world with an
annual production of over 2.3 million units in 2010. In 2011, India emerged as Asia's
fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive

industry has demonstrated sustained growth as a result of increased competitiveness
and relaxed restrictions. Several Indian automobile manufacturers such as Tata
Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and
international operations. India's robust economic growth led to the further expansion
of its domestic automobile market which attracted significant India-specific
investment by multinational automobile manufacturers. In February 2011, monthly
sales of passenger cars in India exceeded 120,000 units.

Automotive industry emerged in India in the 1940s. Following the

independence, in 1953, the Government of India and the private sector launched
efforts to create an automotive component manufacturing industry to supply to the
automobile industry. However, the growth was relatively slow in the 1950s and 1960s
due to nationalisation and the license raj which hampered the Indian private sector.
After 1970, the automotive industry started to grow, but the growth was mainly driven
by tractors, commercial vehicles and scooters. Cars were still a major luxury.
Japanese manufacturers entered the Indian market ultimately leading to the
establishment of Maruti Udyog. A number of foreign firms initiated joint ventures
with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for

building motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture small cars. Following
the economic liberalisation in 1991 and the gradual weakening of the license raj, a
number of Indian and multi-national car companies launched operations. Since then,
automotive component and automobile manufacturing growth has accelerated to meet
domestic and export demands.

32
 COMPANY PROFILE

HISTORY:

The Company is an authorized Dealer of Hyundai Motors India Limited

(HMIL) for sale of its entire range of motor vehicles. It is also authorized to service &
repair of all Hyundai cars and also deals in spare parts of Hyundai cars.

Lakshmi Hyundai was established in the year 1998 in Himayathnagar with the
launch of Hyundai’s first car in India- the evergreen SANTRO. The entire business is
managed under the able leadership and guidance of the managing Director Shri
K.Rama Mohana Rao.

Soon after the Himayathnagar showroom, came up the ‘state-of-art service

facilities at Kukatpally, Banjarahills and L.B.Nagar. These service centers are well
equipped to cater to the needs of valued customers. The management left no stone
unturned to review, research and implement the latest of technologies and
methodologies to improve on the sales, service on the customer satisfaction.
Continuous up gradation of the facilities at the sales and service outlets and adding to
the service agenda each time, add been sales graph go high by the year.

FACILITIES:

The main aspects of car shopping are sales facility equipped with amicable sales
consultants, after sales service, customer friendly schemes, easy finance options,
speedy delivery, exchange option a part from mandatory formalities such as
registration, insurance, tax payments and accessories loading, etc., each of these
aspects are attended to utmost concern at Lakshmi Hyundai.

SUCCESS:

The resounding success of Lakshmi Hyundai makes one wonder as to how the
company ascended such great heights in such short pan of time? The answer is very
simple: “continuously striving for customer satisfaction by the way of every effort in
that direction is what brought Lakshmi Hyundai to the top position today. This
struggle for excellence was recognized at a very high level.

33
AWARDS:

The awards received for “ Best in sales ” in south region, “Best in finance ”, “Top
performer ” in 2005 and their technicians being awarded with a Gold Medal for
standing No.1 in the world at World skill Olympics held at Korea-stand testimony to
the recognition that received at the global level.

According to the popular belief, a customer walking into LAKSHMI HYUNDAI

is treated like an asset. His/her needs are assessed in the first stage and the customer is
educated subsequently about the product line, service range, allied services, etc.,
ample information and time is given to the prospective buyer to make up his/her mind
on which car to buy.

Totally focused customer centric approach, unparalleled service motto, top-end

facilities, bouquet of allied services, solid after sales backup, quality assurance,
unconditional warranty promise and desire to excel through service are some of the
threads which blend in effectively to give birth to the fabric called LAKSHMI
HYUNDAI.

LAKSHMI HYUNDAI’s success is just beginning and more to expect

spectacular chapters in the preamble “Winning Edges”.

34
LAKSHMI HYUNDAI DEALER PROFILE:

 Dealer principle: Mr. K.Rama Mohana Rao

 Other Business: Hyundai dealerships (Vizag & Rajamundry)
Hero Honda Two wheeler dealership HYDERABAD.

Mr. Pavan Kanth Munjal, Director of Hero Honda Motors Ltd. Inaugurated the
Hero Honda motorcycle franchise on the name of SRI LAKSHMI MOTORS Pvt
Ltd, Moosarambagh, Hyderabad

The director of Sri Lakshmi motors Mr. Ram Mohan Rao entered in the
automobile field after the graduation. They have built clientele of more than 45,000
automobile customers they have varied experience in various lines Lakshmi Hyundai
started in a small way in 1989 with automobile spares and there after added with cars
earth moving equipment light commercial vehicles and tractors etc.

The member of the family are devoted to business by serving the customers
with best of their abilities to utmost satisfaction of customers in order to see that to
come again and again to do business Sri Lakshmi Motors sold approximately 40,000
Hero Honda motor cycles and 96,000 vehicles serviced and enjoys the customers
goodwill Sri Lakshmi motors take care of the customers and tried their level best to
serve the millennium customers very carefully with help of their sales, service and
spare parts team.

35
LAKSHMI HYUNDAI FACILITIES:

 Operational from: Sept, 1998

 Showroom Area: 650 sq.mts

 Three service center total area: 14077 sq.mts

 Total number of boys in workshop: 65

LAKSHMI HYUNDAI MAN POWER:

Department Own Contract Total

Sales 57 0 57

Service 146 49 175

Spaces 15 0 15

Finance & 98 0 98
HR/Administration

Total 296 49 345

DEPARTMENTS IN LAKSHMI HYUNDAI :

 Sales
 Accessories
 Accounts
 Human resources
 EDP

36
OBJECTIVES OF HR DEPARTMENT :

a) HR data preparation.

b) Recruitment process

c) Compensation benefits management

d) Training and development

e) Performance appraisal management

f) Statutory matters

g) Employee services wing

h) General administration

i) Employee retention

j) Framing of HR policies or procedures

37
RECRUITMENT PROCESS AT LAKSHMI HYUNDAI:

The recruitment process involves both internal and external methods. Internal
methods namely are employee referrals, promotions, inter company transfers.

Employee referrals;

This is the most common method of recruitment used by the organization. Last year
the organization recruited 16 employees by employee referrals.
Promotions

Posts falling vacant due to be filled will be notified within the division/office, giving
educational qualifications and experience laid down for the post and the extent to
which these will be relaxed for promotion and inviting applications from eligible
employees in lower group, who have rendered the requisite qualifying service and
who have requisite higher post.
External methods of recruitment followed by the organization are employment
exchange, paper advertisements and campus recruitment. .

Employment Exchange: All vacancies are to be notified to the Local Employment

Exchange. If employment exchanges are unable to sponsor the suitable candidates
with in the prescribed time limits, the vacancies may be advertised in the press on a
local/regional advertisement the vacancies may be advertised on India Basis. A
minimum of two weeks notice is to given to the Local Employment Exchange for
sponsoring suitable candidates.

Paper advertisements:

Of the external methods this method is mostly adopted by the organization. This

method of recruitment involves advertising the requirements of personnel in two of

the leading newspapers one being in English language and other being in regional

language. For recruitments in Hyderabad, Eenadu and Deccan Chronicle are the two

leading newspapers that the requirement of personnel is advertised.

38
 SELECTION PROCESS AT LAKSHMI HYUNDAI:

After the recruitment process next step is the selection process in employing a suitable
candidate into the organization. At Hindustan Aeronautics Limited the selection
process mainly includes test/interviews. If a candidate passes through the different
rounds of interviews/test then he is employed into the organization. The Personnel
Department of each division or the corporate office will screen the applications
received and categorize them to those that satisfy prescribed minimum educational
qualification and experience and those do not .

Personal Manager Interview:

This is the first round of interview for the candidate. The Personal manager checks the
knowledge of the candidate in the applied field along with his positive attitude,
communication skills and so on. On personal dissatisfaction the manager can call the
candidate for another round of interview. He prepares an evaluation report on the
candidates' performance in the interview.

Board Directors Interview:

After the personal manager interview, the next in line is the Board Directors
Interview. There are 4 directors who take the seat of interviewer. Questions about
family background, health details, academic performance and activities, likes and
dislikes, attitudes and capabilities etc. are all questioned. The interview conducted by
the Board directors can take any shape from stress interview to formal or informal
interview depending on the kind of department they are being recruited for. All the
directors prepare an evaluation report individually on the candidates performance in
relation to personality, intelligence, attitudes, skills and knowledge and so on. .

Verification of Date of Birth, Character and Antecedents

The secondary school certificate is the accepted document required for verification of
date of birth. However, if this document is not available, the candidate should produce
a RESUME. In that he/she mention all study details of them.

39
APPOINTMENT OF SELECTED CANIDIDATES

Candidates who are selected for appointment to post will be issued with a letter

proposing to offer the post or offering the post. If they accept appointment offer

they are to be reply in the form.

SALES PERFORMANCE

Current 2010 2011 2012 2013 2014 2015 2016

year

Compact 523 833 950 1480 1607 2164 3388

Mid, 215 380 356 528 605 822 880

Exec,&
Premium

Total 738 1416 1606 1818 2214 2986 4268

Table 1

4500
4000
3500 Compact
3000
2500 Mid, Exec,&
2000 Premium
1500 Total
1000
500
0

Graph 1

SERVICE PEFORMANCE
40
Current year 2010 2011 2012 2013 2014 2016 2016

Turn over in 14.8 231.4 382.2 440.2 440.4 845.5 1350.8

US $(000)

No. of 4.4 7.9 13.0 16.5 18.1 29.1 40.0

vehicle
serviced(000)

Table 2

1400
1200
1000 Turn over in US
800 $(000)
600 No. of vehicle
400 serviced(000)
200
0

Graph 2

41
 PARTS AND ACCESSORIES PERFORMANCE

Current 2010 2011 2012 2013 2014 2016 2016

Year

Turn 131.1 216.2 326.0 463.8 499.8 793.8 1512.9

over

Table 3

Turn over

2000

1500

1000 Turn over

500

0
2008 2009 2010 2011 2012 2013 2014

Graph 3

42
 SALES TEAM PERFORMANCE BONUS POINTS

Universal Factors Sub-Factors No. of Points Total points

Job Knowledge & Product Information 120

Judgment

Communication Skills 75

GDMS Up gradation 120

Accessories Selling Skills 25 350

Finance Dealing Skills 50

Sales Personality Presentation Skills 50

Confidence Level 50

Voice & Body Culture 120

300
Appearance 50

Selling Skills 50

Code Of Conduct Time Management 50

Obeying Orders 120

Alertness 75
350
Company Dress 50

Attendance Record 75

43
CHAPTER-5
DATA ANALYSIS
&
INTERPRETATION

44
 DATA ANALYSIS

1 .By which method did you get recruited in to the organization?

------------------------------------------------------------------------------------------------

S. No Response ' No of Respondents Percentage

------------------------------------------------------------------------------------------------
1. Internal method 50 50%
2. External Method 50 50%
120 120

Interpretation

The above table shows that 50% of respondents were recruited by internal method and
remaining 50% by external method

45
2. If by internal method, by which method were you recruited?

------------------------------------------------------------------------------------------------

S. No Response No of Respondents Percentage

------------------------------------------------------------------------------------------------

1. Referred by employees 70 70%

2. Inter department transfer 20 20%

3. Promotion 12 12%

120 120%

------------------------------------------------------------------------------------------------

Interpretation

The percentage of usage of different internal methods of recruitment like employee

referrals, interdivisional and promotion followed by the organization is 70%, 20% and

12% respectively.

46
3.If by external method, by which method were you recruited?

------------------------------------------------------------------------------------------------

S. No Response No of Respondents Percentage

------------------------------------------------------------------------------------------------

1. HR Consultancy 25 25%

2. Newspaper 75 75%

120 120

------------------------------------------------------------------------------------------------

Interpretation

The information regarding the preference of the external methods of recruitment like
HR consultancy; Newspaper advertisements followed by the organization are 75%
and 25% respectively.

47
4. After screening of application how did the organization approach you?-

S.No Response No of Respondents Percentage

1. Direct call for an interview 55 55%

2. Call to attend the test 15 15%

3. Direct appointment 30 30%

120 120%

Interpretation

The above table shows that 55% of respondents agreed direct call for an interview and

15% call to attend the test and the remaining 30% by direct appointment.

48
5. If called for test what kind of test did you appear for?

S.No Response No of Respondents Percentage

1. Technical Test 15 15%

2. Situation Test 15 15%

3. Subject Test 70 70

120 120%

Interpretation

The above table reveals that 15% of respondents attended technical test 15% of
respondents attended siuation test and 70% of respondents appeared for subject test.

49
6. If called for an interview what kind of interview did you face?

S.No Response No of Respondents Percentage

1. Formal Interview 75 75%

2 Boar interview 25 25%

120 120%

Interpretation

The table reveals that 75% respondents faced formal interview, and the remaining

25% stress and board interview.

50
7. How many rounds of interviews did you face?

S.No Response No of Respondents Percentage

1. HR Manager Round 20 25%

2. 3 Member Interview 20 25%

3. Head of dept 60 60%

120 120%

Interpretation

The above table reveals that 20%of respondents faced HR manager round 20% of
respondents faced 3-member committee and 60% respondents faced head of
department round

51
8. Is the process of recruitment and selection satisfactory or dissatisfactory? S. No

Response No. Of Respondents Percentage

Satisfactory 80 80%

Dissatisfactory 20 20%

120 120

Interpretation

The above table reveals that 20%of respondents faced HR manager round 20% of
respondents faced 3-member committee and 60% respondents faced head of
department round.

52
CHAPTER - 6
FINDINGS
SUGGESTIONS
CONCLUSIONS

53
 FINDINGS

Lakshmi Hyundai is currently using the following training methods.

1. Introduction training
2. On-job-training
3. Off-job-training
4. Theoretical training.
5. Practical training
 The organization is conducting training programs for employees for the
changing organization needs.
 They are also training the people who fail in their actual duties, for their
performance.
 Hyundai Management is giving very important of training for Marketing
Executives and Sales Executives , Technical Staff staff.
 50% of respondents were recruited by internal method and remaining
50% by external methods.

 The percentage of usage of different internal methods of recruitment like

employee referrals, interdivisional and promotion followed by the
organization is 70%, 20% and 12% respectively
 The information regarding the preference of the external methods of
recruitment like HR consultancy; Newspaper advertisements followed by the
organization are 75% and 25% respectively.
 55% of respondents agreed direct call for an interview and 15% call to attend
the test and the remaining 30% by direct appointment
 15% of respondents attended technical test 15% of respondents attended
siuation test and 70% of respondents appeared for subject test.
 75% respondents faced formal interview, and the remaining 25% stress and
board interview
 20%of respondents faced HR manager round 20% of respondents faced 3-
member committee and 60% respondents faced head of department round.
 20%of respondents faced HR manager round 20% of respondents faced 3-
member committee and 60% respondents faced head of department round.

54
 SUGGESTIONS
1) While it is a fact that Lakshmi Hyundai is deploying a good number of
recruitment methods. What is important is that the traveling public should
further explore and install such recruitment methods, which go to improve
public handling methods especially by Marketing Executives . It is suggested a
sensitivity training method tailored to enable dealing with commuters should
be evolved in consultation with management experts and social psychologists.

2) Employees who are on ‘long sick’, ‘or long absent’ should be included in the
recruitment need analysis. They should be directed to undergo training at the
training college. This is all the more important when it is realized that Work is
skill oriented and time on and off the job has its impact on the effectiveness or
otherwise of the working performance.

3) The top management should consider giving strict instructions to the

management to relieve the employees due for refresher recruitment as per the
she duke drawn up.

4) Hyundai cars are on of the important public utility vehicle, the requirements
of the customers should be taken periodically and that they are factored into
the training programmes. This is all the more important that the traveling
public as a customer of the organization can always bank up on the assistance
and guidance of the consumer protection councils.

55
CONCLUSIONS

Recruitment and Selection Process is the “Only Sub-System of the Human

Resource Management System which providers for the use of Recruiting the
prospective employee to communicate Organizational objectives& expectations, agree
on man takes & responsibilities of the individual, review progress, problems, tasks &
needed support from time to time & finally record achievements &failures during the
year”.

56
QUESTIONNAIRE

57
 QUESTIONNAIRE
Name:

Experience:

Department:

Designation:

—————————————————Please tick the appropriate box———•

Q.I. Did which method recruit you into the organization?

Internal method [ ]

External method [ ]

Q.2. If by internal method, by which method were you recruited?

Referred by employees [ ]

Referred by management [ ]

Inter department transfer [ ]

Inter company transfer [ ]

Q.3. If by external method, by which method were you recruited?

HR consultancy [ ]

Campus recruitment [ ]

Paper advertisement [ ]

Employment exchange [ ]

Direct applicant approach [ ]

58
Q.4.After screening of the application how did the organization approach you?

Direct call for an interview [ ]

Call to attend the test ' [ ]

Direct appointment [ ]

Q.5. If called for tests, what kind of test did u appear for?

Technical test [ ]

Aptitude test [ ]

Psychological test [ ]

Subject test [ ]

Situation test [ ]

Q.6. If called for interview, what kind of interview did you face?

Formal and Structured interview [ ]

Informal and Unstructured interview [ ]

Stress interview [ ]

Board interview [ ]

Q.7. How many rounds of interview did you face?

HR manager [ ]

3-member interview committee [ ]

Head of the dept interview [ ]

59
Q.8. Is the process of recruitment and selection, satisfactory or
dissatisfactory?

Satisfactory [ ]

Dissatisfactory [ ]

Q.9. If dissatisfactory, state the reasons for dissatisfaction?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________

__________________________________________________________________

Q.1O. What measures do you suggest for effective recruitment and selection process?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________

__________________________________________________________________

60
BIBLIOGRAPHY

61
 BIBILOGRAPHY

Personnel Management C.B.Mamoria

Organization Behavior L.M.Prasad

Personnel/Human Resource Management P.Subba Rao &

V.S.P.Rao

Human Resources Management Pearson 9th edition

Monday 2007

Web Sites Browsed

WWW.lakshmigroup.Org

WWW.Google.Com

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