EFFECTIVENESS OF RECRUITMENT PROCESS

Submitted in partial fulfillment of the requirement for Master of Business Administration (MBA)

By KATHIRVEL J REGISTER No. 1011301059 BATCH OF 2011-2013

SONA COLLEGE OF TECHNOLOGY [An Autonomous Institution] Affiliated to Anna University of Technology, Coimbatore. Salem-636005. July 2012

SONA COLLEGE OF TECHNOLOGY, AUTONOMOUS SALEM DEPARTMENT OF MANAGEMENT STUDIES PROJECT WORK JULY 2012

This is to certify that the project entitled

EFFECTIVENESS OF RECRUITMENT PROCESS AT LOTTE INDIA CORPORATION LIMITED, SALEM Is the bonafide record of project work done by

KATHIRVEL J Register No: 1011301059

Of MASTER OF BUSINESS ADMINISTRATION During the year 2011-2013

_______________
Project Guide Department

_________________
Head of the

Submitted for the Project viva-voce examination held on _____________

________________
Internal Examiner

_________________
External Examiner

DECLARATION

I KATHIRVEL J Register No: 1011301059 of 2011-2013 batch is, a full time bonafide student of first year of Master of Business Administration (MBA) Programmeof Sona College of Technology (An Autonomous Institution). I hereby certify that this Project work carried out by me at LOTTE INDIA CORPORATION LIMITED,the report submitted in partial fulfillment of the requirements of the programme is an original work of mine under guidance of the faculty Mr. Vincent Joseph Raj L and is not based or reproduced from any existing work of any other time or for any other purpose, and has not been submitted anywhere else at any time.

KATHIRVEL J

I certify that the Declaration made above by the candidate is true.

MS.RAMAYA V ASSISTANT PROFESSOR DEPARTMENT OF MANAGEMENT STUDIES SONA COLLEGE OF TECHNOLOGY

ACKNOWLEDGEMENT

A project is not the outcome of a single persons effort. It is the confluence of varied thought processes harmoniously integrated into resourceful product. It is natural that we feel indebted to several people for having made this project feasible. I take this opportunity to thank the almighty for granting me the strength to do this project and make it successful. Next to god I would like to thank my parents and my sisters who helped me in numerous ways to complete this project successfully.

I would like to express my sincere gratitude to Dr. LATHA KRISHNAN,Director,M.Com.,M.B.A.,PGDMM.PGDIRPM,M-Phil.,Ph.D.,PostDoctoralFelloship(IIT-M)Sona School of Management for having motivated me throughout the project.

I am extremely grateful to my Institutional Guide, Mr. Vincent Joseph Raj L , Assistant ManagerHR and Mr. Vasudevan R , Deputy Manager-HR, LOTTE INDIA CORPORATION LIMITED., for helping me to do this project. I would like to thank all my staff members of SONA COLLEGE OF TECHNOLOGY, for giving me good encouragement in doing this project. I express my special thanks to my Faculty Guide Ms. RamyaV My sincere and heartfelt thanks to LOTTE INDIA Corporation limited, Chennai for the interest, they rendered in my project and in fulfilling my partial requirements in completing the project.

CONTENTS
S.NO TITLE CHAPTER-I 1.1 1.2 1.3 INTRODUCTION INDUSTRY PROFILE LIMITATIONS CHAPTER-II 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 ABOUT THE COMPANY VISION CORPORATE PHILOSOPHY BOARD OF DIRECTORS CODE OF CONDUCT AND ETHICS WHISTLE BLOWER POLICY MILESTONES BUSINESS LOCATIONS COMPANY BRANDS ORGANISATION CHART DEPARTMENTATION SWOT ANALYSIS INTRODUCTION OF RECRUITMENT LICL - RECRUITMENT PROCESS FLOW CHART TYPES OF RECRUITMENT RECRUITMENT POLICY IN LICL SHORT LISTING OF APPLICATION NEED OF THE STUDY SCOPE OF THE STUDY OBJECTIVE LIMITATIONS 4 6 7 10 11 13 14 16 17 21 22 24 25 28 29 32 1 2 PAGE NO

CHAPTER-III 3.1 3.2 3.3 3.4 FINDINGS SUGGESTIONS CONCLUSION BIBLIOGRAPHY 33 34 35

CHAPTER-I
1.1 INTRODUCTION

Despite the world economys recent tryst with recession, the global confectionery industry is experiencing steady growth. Indias contribution to this growth has been significant, thanks to the affluent group of consumers and their exposure to the multinational brands. The Confectionery industry will never cease to lose its popularity; In fact it is arguably in the midst of the best growth cycle in its history. In a country like India where majority of people have a sweet tooth and find every reason to celebrate any occasion with sweets, the confectionery industry is bound to be the largest and most popular among the food processing sectors in the country. If one hast to define the term Confectionery, it would be the category of food items that are rich in sugar. The confectionery industry is broadly divided into chocolate confectionery, sugar confectionery and gums. In India this industry is further divided into chocolates, hard boiled sugar candies, lollipops, lozenges, & chewing bubble gums. 1.2 INDUSTRY PROFILE Confectionery Market in India: The organized confectionery segment in India segment is pretty much dominated by the multinational companies; however, domestic players are gradually increasing their foothold in the market. Cadbury India, Ltd. is by far the market leader, followed by Perfetti Van Melle India, Ltd. and Nestle India, Ltd. Other important players are Lotte India Ltd, Nutrine Confectionery Co Pvt Ltd, CandicoIndia Ltd, Parle Products Pvt Ltd, Wrigley India Pvt Ltd, ITC Foods, Hindustan Lever Ltd and CAMPCOLtd. Since import restrictions were eased in 2001,

imports of confectionery products have grown rapidly. Retail chocolates and sugar confectionery account for the greatest share of total confectionery imported into India. The Indian candy market is currently valued at around $664 million, with about 70 per cent share ($ 461 million) in sugar confectionery and the remaining 30 per cent ($ 203 million) in chocolate confectionery. The domestic confectionery industry is benefiting from the countrys economic boom and growth in consumer spending. With the nations economy growing at around 10 per cent, Indian Consumers are expected to consume more chocolates. This higher consumer spend is also driven by the new found mall culture. While the consumers are becoming more and more health conscious, a wide range of sugarfree products in gums, chocolates and candies have already been introduced. Theres a huge demand for the dark chocolate with a high cocoa content as well. According to Maurizo Decio, president - Asia Pacific, Barry Callebaut AG, one of the worlds leading manufacturers of cocoa and chocolate products, the chocolate market has the potential to grow, especially in metropolitan areas, as the disposable income of an Indian consumer continues to rise. The organised market for confectionery in India is valued at Rs 2,000 crore. The contribution from rural India is estimated at 48 per cent and the balance 52 per cent from urban India. With demand for high-end confectionery going up, India is becoming an attractive place for foreign investments with large multinational companies entering the Indian chocolate & confectionery market. These foreign brands are entering the industry either through direct imports or by acquisitions of existing confectionery companies. This will indirectly help in opening up new avenues in market and also help in exploring possibilities to bring up new products in this country. With the entry of new MNCs in India, there is tremendous potential for exports of these products.
The Future of Indian Confectionery Industry: India is a small market compared to the global numbers, but it has an annual turnover of around Rs 3,500 crores with huge potential to grow. According to a study by Euromonitor, the Indian

sugar confectionery market is projected to expand at a compounded annual growth rate (CAGR) of 8 per cent until 2011. The confectionery market can grow immensely, depending on the kind of categories & products that are introduced. There are some companies which are focusing on niche high-end or designer chocolates. These kinds of chocolates have become status symbols and are linked to the peoples aspiration & lifestyle and malls are the perfect points of sale. As the competition becomes more intense and the scope for confectionery industry is wide, companies are gearing up by introducing new strategies and products in the market. The Indian Confectionery industry and the consumers are sure to get a sweet ending to 2010 and hope more delicious years await them in the future.

1.3 Limitations
The confectionery industry has considerable potential for growth. However, the main issue is that the confectionery industry has today is the price point (MRP). While the input costs of major ingredients like sugar, glucose, milk powder, butter and packaging material are increasing, the industry is not able to increase any MRP on products due to coinage and therefore the manufacturers have to maintain the price at the level of 50 paise and one rupee. The unorganised sector, which is much larger as compared to organised sector, is seeing more growth than the organised sector as it gets the benefit of the differential government duties and taxes. Therefore, government needs to look into these taxations very seriously specially on excise duty, which is 8 per cent, and also on the 12.5 per cent VAT. Another challenge in front of the confectionery market is that it is still not able to target the adult group in the country and is largely associated with products that cater to kids. However some companies are taking initiatives to capitalise upon it.

CHAPTER-II

2.1 ABOUT THE COMPANY Lotte Confectionery is the first Company of the Lotte family of Companies founded by Mr. Shin Kyuk-ho. The three Ls in the Lotte Emblem stand for Love, Liberty and Life. The Corporate philosophy and idealism of Lotte is driven by dream of a world full of Love where people care for each other and respect each others thoughts. The Lotte Group has presence in Food & Beverages, Distribution, Tourism and Leisure business; Heavy Chemicals, Construction and Machinery; Information, Communication and Electronics, Trading and Services apart from Welfare Research and Support Services. The Lotte Confectionery Co. Ltd. is the Lotte Groups flagship Company in Foods and Beverages category. Lotte Confectionery, Korea, was established with 500 employees in 1967 and today it has more than 6000 Employees. It has over 500 products produced at 5 large-scale plants in Korea. Lotte has been actively working towards establishment of overseas branches, production facilities and has a presence in more than 70 countries. Lotte Confectionerys annual Sales are over USD 900 millions, Apart from Korea, Lotte has overseas investments in production facilities in China, Philippines and Vietnam. Lotte Confectionerys Main line products are Chewing Gum (Lotte Xylitol, Lotte Juicy & Fresh, Lotte Spearmint, Lotte Fresh Mint, Flavono, White & E, Spout Caf Coffee) Candy, Biscuits, Chocolates, Snacks, Ice cream, and health care product. Its a story having its origin in the age of British Raj. When children in India found confectionery, which is imported from across the seas until the year 1914, When Parrys picked up the gauntlet and pioneered the manufacture of sweets - the first to do so in the country. Parrys sweets went on to become a household name- a name that people recollect with warmth and a smile. Ever since, the Parrys factory was set up in Nellikuppam, in the Cuddalore District of Tamilnadu in South India. Parrys has become synonymous with Sweets and Confectionery. With the penchant we Indians have for sweets is not surprising
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that this smooth, milky and irresistibly delicious confectionery is the best gift any child could get. And an obsession with quality ensured that children had a choice of nothing but the very best in confectionery. In the nine decades since, the scenario has undergone a dramatic change. There are a number of offerings in the market today, each wooing children with a wide array of products. But Parrys still finds a prominent place in the heart of consumers. Parrys has always stayed at the top, having weathered the vicissitudes of change, with our ear close to the ground - and to the hearts of children, changing, adapting and growing with the times - But never losing sight of its values traditions and ethics. At the turn of this century, Parrys is poised on the threshold of greater challenges in a global village, where dynamism and innovation is the very law of survival. In the backdrop of India joining the WTO, and the global giants eyeing the Indian Market with enthusiasm, the company needed to strengthen itself and broaden its base to delight customers across the country and abroad. With this vision in the mind, Murugappa Group, promoters of Parrys Confectionery Limited entered in to an agreement with Lotte Confectionery Limited, South Korea, by which the, entire shares which Murugappa Group, the founders of Parrys Confectionery Limited, held was divested to Lotte Confectionery Limited -A South Korean Multinational giant. If the decades past are any indication, theres little doubt that even in the coming century, children grow up with the brands Parrys has established.

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2.2 VISION - 2018 LOTTE wants to be a Asias No.1 confectionery company Lets Change, Get Chance! 2018 Basic Thinking Back to the basic Be Practical Solution from within

Basic Behavior Scientific Approach Positive Attitude Opinion Consensus Neutral Thought Go to the Field Endless Challenge

2C Product Customer-Oriented Product Classified Product Management

Management Principle Strengthening the core competencies On-Site Management Developing Talent Enhancing Brand Value

Core Value Customer Focus Originality Partnership Responsibility Passion

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2.3 Corporate Philosophy

Fostering a pioneering and challenging spirit, strengthening the competitiveness of core businesses, maintaining a sense of responsibility towards society-these ideals form the basic philosophy behind the Lotte India Corporation limited as it surges forth into the 21st century. Lotte India Corporation will endeavor to uphold its clean and sincere corporate spirit, maintain the trust of its customers and business partners. 2.4 BOARD OF DIRECTORS
Corporare Board Members

Mr. Jung Woo Lee, Chairman Mr. Milan Wahi, Managing Direcor Mr. Kyo Hee Kim, Whole Time Director Mr. Myung Ki Min, Director Mr. D. G. Rajan, Director 2.5 Code of Conduct and Ethics For the Principal Executive and Senior Management Team
Objectives:

To identify, promote and sustain a set of business practices for orderly and fair conduct of company business. To ensure compliance with requirements of Corporate Governance under the revised clause 49 of the Listing Agreement. To comply with all applicable laws, rules and regulations, policies and procedures adopted by the Company from time to time.

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Applicability:

Managing Director/Joint Managing Director. All Executive members of the SBU. All personnel serving in the role of Finance, Taxation, Accounting, Secretarial, Legal, Purchase, Commercial, Internal Audit and investor relations. Also applicable to the committees to the Board and members of the Board of the company and its subsidiaries if any. As the principles enumerated are general in nature the designated officers are requested to follow the Standard Operating Procedures presently in place.

Areas of Code of Conduct and Ethics

A. Honesty and Ethical Conduct

All officers are expected to act in accordance to the highest standards of personal and professional integrity, honesty and integrity at the workplace, at sponsored business and social events of any other place representing the Company. Honest conduct to be conduct that is free from fraud or deception Ethical conduct to be conduct conforming to the accepted professional standards of conduct and includes ethical handling of actual or apparent conflict of interest between personal and professional relationships

B. Conflicts of Interest

A conflict of interest comes when interests or benefits of one person or entity conflict with the interests or benefits of the company like Officers are expected to devote full and total attention to the business interests of the company. Officers are prohibited to engage in activities that interfere with their performance or responsibilities to the company.

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It is a conflict of interest to serve as a Director of any company that competes with the company. Directors are expected to obtain approval from the Company Audit Committee before accepting the same. Officers shall not deal in securities while in possession of unpublished price sensitive information. Neither pass on price sensitive information nor solicit any person to trade in shares As a general rule, all officers shall avoid conducting company business with any blood relative or even associate in a business in which a relative is associated in a significant way in the Company . Officers are expected to discourage employment of relatives in the Company. Officers may not exploit opportunities for their personal gains, opportunities that are discovered through the use of corporate property, information or position unless the opportunity is cleared in writing by the companys Board of Directors.

Disclosure to Stock Exchange and Public

All officers shall ensure to provide full, fair, timely and understandable disclosure of reports and documents to the Stock Exchange or to our public communications. All communications to the Government and other statutory authorities to be cleared with Managing Director / Joint Managing Director.

Compliance with Government Laws , Rules and Regulations

Officers shall ensure compliance with all the governmental laws, rules and regulations. Officers to recognise potential dangers and seek advice from the Legal Department to steer clear of any civil and criminal liability.

Violations of the Code

Officers are to be alert to possible violation by reporting to the Human Resources and Legal Departments. Officers must co-operate in any internal or external investigations of possible violation.

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Reprisal, threat, retribution or retaliation against any person who has in good faith reported a violation or a suspected violation of law, this code or company policies or against any person who is assisting in the investigating process is prohibited.

Waiver and Amendments of the Code

This code is subject to amendment and modification This will be approved in writing by the companys Board of Directors. This has then to disclose on the companys website and in all applicable regulatory filings.

2.6 Whistle Blower Policy The Whistle Blower Policy is created with the objective of providing employees, customers and vendors an avenue to raise concerns which seem to go against the companys commitment to the highest possible standards of ethical, moral and legal business conduct and its commitment to open communication. The whistle blower policy seeks to provide necessary safe guards for protection of employees from reprisals a victimization, for whistle blowing in good faith. The purpose of this policy is to provide a frame work to promote responsible and secure whistle blowing. It protects employees wishing to raise a concern about serious irregularities within the company. The Policy covers malpractices and events which have taken place/ suspected to take place involving: 1. 2. 3. 4. 5. 6. Abuse of authority Breach of contract Negligence causing substantial and specific danger to public health and safety Manipulation of company data/ records Financial irregularities, including fraud, or suspected fraud Criminal offence
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7. 8. 9. 10. 11.

Proliferation of confidential / propriety information Deliberate violation of law/regulation Wastage/misappropriation of company funds/assests Breach of employee Code of Conduct or Rules Any other unethical, biased, favored, imprudent event

The complaint or the whistleblower as he or she is called is not expected to prove the truth of an allegation; the complainant needs to demonstrate to the ombudsperson, that there are sufficient grounds for concern. Certain safeguards have been provided which will prevent harassment or victimization of the complainant. Every effort will be made to protect the complainants identity, subject to legal constraints. Complainants must put their names to allegations as follow-up questions and investigation may not be possible unless the source of the information is identified. Concerns expressed anonymously will not be usually investigated but subject to the seriousness of the issue raised; the ombudsperson can initiate an investigation independently. Malicious allegations by employees may result in disciplinary action. 2.7 MILESTONES

Introduction
The following information deals with the various management takeovers from Parrys group of company from the year 1910-1981,following management was taken over by an Indian company from Parrys group by Murugappa Group from the year 1981-2000, which was further taken over by Lotte and continue to sell the confectionery Parrys as Lotte.
1910-1911 - Parrys acts as agents for M/s Glazebrook steel & Company of UK selling their sweets in Bombay, Karachi & Calcutta. Till 1913 - Parrys imports confectionery from C&E Morton Ltd. U.K. 1914 - Factory set at Nellikuppam and EID Parry starts manufacturing Confectionery in a small way. 16

1920 1940 1941 1954 1960 made 1978 1981 1982 1983 1986 1987 1987

- Parry sweets develops an All India reputation for quality sweets. - Parrys starts exporting sweets to countries like Africa & Singapore where they were well accepted. - Supplies made to Red Cross (about 300 Tons) - in aid of war victims. - Nellikuppam Confectionery plant of EID Parry spun off in to a newly formed company Parrys Confectionery Ltd - Period of growth for PCL. Pioneers several new trade practices. First to introduce Indian wrapped sweets. - 100% of all Parrys sweets are machine wrapped. - Murugappa Group takes over Parrys. - Unit at Maraimalai Nagar near Chennai opens for packing small consumer packs. - Coco Products and Beverages Limited taken over by Parrys. - PCL developed its own IT Division - and undertakes computersation. PCL takes over the biscuits division that was a part of Parry & Co then. - Modernization takes place at Nellikuppam once again. - Modernization takes place at Nellikuppam once again. Maraimalai Nagar plant starts manufacturing confectionery to meet growing demand.

1988 - Shift from the "King of Sweets" to focus on the Brands Commercials became product oriented. 1992 - PCL Company crosses the Rs. 500 million mark. Nellikuppam crosses 8,00 tonnes production. 1993 1995 1996 2003 for - R&D center opened at Manapakkam. CPBL stops cocoa processing totally and is into full-fledged production of confectionery. - Establishes C & F Agents across the Country. - State-of-art Manufacturing facility established by modernizing the entire plant. - Nellikuppam Plant gets the certifications from BVQI- Bureau Veritas Quality International its best Quality Management System, Environmental Management System and Food Safety Management System ISO 9001: 2001 , ISO 14001:1996 , HACCP:2002 Version 2004 - Parrys Confectionery is now Lotte India Corporation Limited.

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2.8 BUSINESS LOCATIONS

Zonal Offices

Delhi Mumbai Kolkotta Chennai

SUB CONTRACTING UNITS

Nashik Sangli Chennai Kolenchery Kanjikode

STOCK POINTS LOTTE is having its stock points allover India. To name some of the Stock points places such as Jammu, Dehradun, Delhi, Ghaziabad, Kolkotta, Cuttack, Ahmedabad, Hyderabad, Indore, Jaipur, Goa, Bangalore, Palgat, Vijayawada, Bangalore, Chennai, Coimbatore, Trichy, etc.

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2.9 COMPANY BRANDS

GUMS - BooProo Liquid Filled Bubble Gum"

- Spout "Spout Spearmint Liquid Filled Chewing Gum"

CANDY - Coffee Bite "A perfect blend of rich coffee and creamy toffee. Rolled into one stimulating addictive experience."

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- Lacto King "Lacto King - So tasty, you just can't stop eating it."

- Caramilk "Lotte Caramilk - rich taste of Real Milk"

- Eclaris "The Soft, Smooth Eclair."

SNACK - Choco Pie "Cream filled biscuits dipped in delicious Choco..."

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2.10 ORGANIZATION CHART

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2.11 DEPARTMENTATION The first real task in designing an organizing structure is the identification of activities and to group them properly. The process of grouping the activities is commonly known as departmentation. The basic need of departmentation arises of specialization of work and limitation on the number of subordinates that can be directly controlled by the superior. Grouping of activities and consequently of personnel into departments make it possible to expand an organization to any extent. Departmentation may be defined as the process of grouping individual jobs into departments. It involves grouping of activities and employees into departments so as to facilitate the accomplishment of an enterprise is divided into individual functions and sub-functions, these functions are grouped together work units on a particular basis.
Features of the Departmentation are

To specialize the executive activity To expand an organization To assign roles and responsibilities To assign appraisals for managerial performances To group the employees for the purpose of direction and control.

Departmentation may be made on basis of function, territory and products. It leads to the maximum efficiency at minimum costs. Specialization facilitates the fixation of responsibilities within the organization.
The various Departmentation of LOTTE INDIA CORPORTATION LIMITED., are: 1. Purchase department 2. Sales department 3. Human resource and department 4. Administrative department 5. Secretarial department 6. Finance department

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Purchase Department

The purchase department is headed by the commercial manager, one senior assistant purchase officer one looking after the sections such as raw materials, production and maintenance. Materials management, a comparative new concept has now been recognized as a part of the total management of any company in order best results and best return on investments. Terms such as purchasing known in a very elementary, have now being accepted as a major element that plays a vital role in integrated materials management. Purchasing includes selection of supply source, finalization of terms and condition, specification for the purchase, placement of border, follow up, maintenance of smooth relations with the supplier, payment to suppliers evaluation and rating of suppliers.

Objective of Purchasing

To maintain continuity of production To contribute to the competitiveness of the end project To contribute towards higher productivity To buy the best material To reduce cost of end product.

Human resources and development department

The main function of human resources and development department is to recruit and appoint of the candidate whenever a vacancy arises in the company. It is also responsible to look over the functions of other department. The HRD manager has the right for fresh appointment or promote on existing staffs. It is the duty of the HRD manager to maintain optimum level of staff (i.e) their should not be excess nor their should not be a shortage not be a shortage. He is also responsible and liable for factors like death, transfer, retirement and promotions etc.

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Following are some of the functions in HRD department in LICL. Recruitment Performance appraisal Industrial relation issues Appointment of corporate staff and appraisal Hospitalization.
Administrative department

Administrative department is a department, which has the responsibility of providing travel and transport facility, maintaining office, building estate management and mailing and also electrical sections. Administrative department provides travel and transportation facilities in order to enable the officers to travel without any difficulty. Passport facility, hotel reservation, air ticket, seating arrangements and accommodations are also provided to the officers.
GENERAL OFFICE MAINTENANCE

The administrative department is responsible to fulfill the basic requirement of the staff in the office. It is also responsible to provide telephone, telex, fax, computer and other electrical facility, in addition they also have the responsibility of sealing the letter with the help of franking machine after it has been dispatched to the mailing section. This department advertises the companys product effectively. Conducting trade conferences, workshops etc. are also part of marketing techniques.
SECRETARIAL DEPARTMENT

The term secretary is derived from the Latin word secretarius the means of confidential offier. Nowadays it is used to signify an offer who is entrusted with confidential matters by his employer or who conducts correspondence keeps records and transacts other business for

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a person or an organization. The duties of a modern secretary have increased enormously on account of industrial and commercial revolutions. Various organizations and institutions now employ secretaries for varied purposes of those most important. The secretary occupies an important and responsible position in the organization of the company. He/she is an officer of the company with extensive duties and responsibilities. Hence companies act made it compulsory for some companies to have secretary.
FINANCE DEPARTMENT

The various activities carried out in the finance department includes: Treasury and resources Budget and costing

1) Treasury & resources:

Asset of the company will be raised by providing equity shares to the public, or by getting term loan for meeting day to day working capital. To avail these term loan treasury has to get loan from banks. The duty of treasury is to get loan sanctioned for the projects undertaken & availing term loan for project is one time job. The main function of treasury is to provide term loan for working capital at a regular interval. By pledging stock or raw materials of the company gets its required loan from bank. To acquire the loan from the bank the company has to submit weekly statement of the stock according to weekly statement loan will be provided.
2) Budget and costing:

Specifications can be made before buying the product cost optimistic utilization of the product helps to take proper steps.
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2.12 SWOT ANALYSIS SWOT analysis is the useful technique for understanding the strength and weakness of an organization and for identifying both the opportunity open to it and the treats that are like to be faced. SWOT analysis helps an organization to crave a suitable niche in the market.
STRENGTH

Strong foundation in this industry for several decades Varieties of products from the company Well established distribution networks allover India including the rural areas Affordable prize Attractive packing Attractive Advertisements to cover the consumers
WEAKENESS

Have to compete with the emerging new products from other industry Transportation of goods at right time Large Distribution network High investment on Advertisements
OPPORTUNITIES

Large Domestic Market Export potential Increase income levels will result in faster revenue growth
THREATS

Severe pressure on margin for the manufacturer Tax & regulatory structure Slow down in demands

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COMPETITORS

The major competitors of LICL: Nestle Britannia Kwality Dairy

Heritage Foods Wrigley (Boomer)

Perfetti Van Melle (Center Fresh, Big Babol, Marbels, Center Fruit)
2.13 RECRUITMENT

Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. All companies in any industry can benefit from contingency or retain professional recruiters or outsourcing the process to recruitment agencies. The recruitment industry exists basically in four forms: 1) Employment agencies deal with clerical, trades, temporary and temporary to hire employment opportunities. 2) Recruitment websites and job search engines used to gather as many candidates as possible by advertising a position over a wide geographic area. Although thought to be a cost effective alternative, a human resource (HR) department or department manager will spend time outside their normal duties reading and screening resumes. A professional recruiter has the ability to read and screen resumes, talk to potential candidates and deliver a selective group in a timely manner. 3) "Headhunters" for executive and professional positions. These firms are either contingency or retained. Although advertising is used to keep a flow of candidates these firms rely on networking as their main source of candidates.

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4). Niche agencies specialize in a particular industrial area of staffing. Some organizations prefer to utilize employer branding strategy and in-house recruitment instead of recruiting firms. The difference, a recruiting firm is always looking for talent whereas an internal department is focused on filling a single opening. The advantage associated with utilizing a third-party recruiting firm is their ability to know where to find a qualified candidate. Talent Management is a key component to the services a professional recruiting firm can provide. The stages in recruitment include sourcing candidates by networking, advertising or other methods. Utilizing professional interviewing techniques to understand the candidates skills but motivations to make a move, screening potential candidates using testing (skills or personality) is also a popular part of the process. The process is meant to not only evaluate the candidate but also evaluate how the candidate will fit into the organization. The recruiter will meet with the hiring manager to obtain specific position and type information before beginning the process. After the recruiter understands the type of person they analyse according to their needs and process the information to the recruitment team. Recruiters play an important role by preparing the candidate and company for the interview, providing feedback to both parties and handling salary/benefits negotiations.

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2.14 LICL RECRUITMENT PROCESS FLOW CHART

Head Hunting

Employee Referral

Screening of Resumes

Consultants
Line up of Short listed candidates

Conduct Initial Screening

Short listed

No

Reject

Yes Operations / Technical Round No

Short listed

Reject

Yes Final Round of Interview Yes

Short listed

No

Reject Reference Check

Yes

HR Round & offer ( By HR Rep.)

Yes
Positive

No

Reject

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2.15 TYPES OF RECRUITMENT Recruitment is generally classified into 2 types 1. Internal Recruitment 2. External Recruitment

1. Internal Recruitment
Internal recruitment is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions and Re-employment of ex-employees. Reemployment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employees productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done. Internal sources are primarily 3 a. b. c. Transfers Promotions (through Internal Job Postings) and Re-employment of ex-employees - Re-employment of ex-employees is one of the

internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.

2. External Recruitment
External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources
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of recruitment include - Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labour contractors, recommendations etc. a. Employment at Factory Level This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as badli workers. b. Advertisement It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television. c. Employment Exchanges There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Nowa-days recruitment in government agencies has become compulsory through employment exchange. d. Employment Agencies There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns.

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e. Educational Institutions There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions, is called as Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates. f. Recommendations There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient. g. Labour Contractors These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.

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2.16 RECRUITMENT POLICY IN LICL

It is policy of the company to employ always the best-suited persons for all its manpower needs. The process of selection will therefore be on the basis of merit, ability, competence, experience and potential. The company aims at fostering an Organizational climate where employees are able to achieve Organizational excellence and competitive edge in all aspects, as also a conductive climate for development of people, enhancing their individual talents through sustained human resource development programmes. All recruitment of management staff will be initiated with the approval of the HR Function at Corporate office and JMD. Before any recruitment is initiated, Corporate HR Function shall examine along with the respective functional head whether the vacancy can be filled by regrouping of activities, by redevelopment of internal personnel by transfer from another function. According to the various requirements in a department the Job Description and Job Specification forms the required kind of manpower and the skill required for the job are listed by this the HR department schedules the job for the recruiters to do the necessary. Sources of Man Power Candidates already placed on wait-list following an interview. Internal candidates. Existing Data Bank. Approved recruitment consultants. Newspaper advertisement. Internet based recruitment. Campus recruitment. Employee reference. The HR Function of the business shall scan the internal and external sources for the possible candidates who may suit the requirements. It may seek the assistance of recruitment consultant or advertise for the posts depending on the level and type of job.

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Advertisement in daily/magazine will be authorized by the Corporate Head of HR and details of the company to be ascertained before releasing the advertisement. Candidates referred by LICL employees will be included in the selection process, based on suitability of the profile.
2.17 SHORTLISTING OF APPLCIATION

All the applications received from any sources mentioned above shall be screened by HR Function initially and will then be sent to the concerned department for short listing the candidates. Normally the number of candidates called for preliminary interview should be in the range of 3 to 5 candidates for every position to be filled.
INTERVIEW CALL LETTERS

The shortlisted candidates will be called for written test or group discussion or interview as may be decided, depending upon the position. It is advisable to give the candidates atleast 10 days lead time except where exigencies require calling candidates within a shorter time frame, through other modes of communication.
INTERVIEW There are two rounds of interview 1. Preliminary Interview 2. Final Interview PRELIMINARY INTERVIEW

The preliminary interview panel will consist of the Head of the Unit for which the recruitment is being held and the executives of the interview panel should be at least one grade higher than the grade for which the candidate is being interviewed. On completion of preliminary interview the details of shortlisted candidates will be intimated to the Corporate Head of HR.

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FINAL INTERVIEW

The final interview panel will essentially have the presence of Corporate Head of HR and a Senior Manager from the respective function. The interview should also provide an opportunity for the candidate to seek clarification on the organization, its business plans, the job he/she is expected to perform and related issues. If the candidates has a relative father, mother, son, daughter, husband, wife in the company then he/she should not considered the position. In case of any other relative which is distant in nature, the same should also be discussed and a final decision to be taken by the Corporate Head of HR.
ISSUE OF OFFER LETTER AND PRE-EMPLOYMENT MEDICAL EXAMINATION

Based on the final interview panel decision on the selected candidate for the approved vacancy/post, Corporate Head of HR shall prepare the offer letter to the candidate. The offer letter shall be sent by Registered Post Acknowledgement Due or by hand delivery or by courier. All selected candidates should undergo a pre-employment medical examination, no travel allowance shall be given to the candidates for the medical examination. The medical report will be received by the concerned unit and in turn will be forwarded to the Corporate HR at Chennai. No person shall be allowed to join duties before the candidate is confirmed as medically fit.
REFERENCE CHECK

Reference check will be done by the Corporate Head of HR with respect to the candidates who have been selected for the position.
WITHDRAWAL OF OFFER APPOINTMENT

If for any reason (such as candidates unwillingness to join or medically unfit etc.) the offer of appointment has to be withdrawn by the Corporate Head of HR.

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TRAVELLING ALLOWANCE FOR CANDIDATES

Outstation candidates will be eligible for actual local conveyance expenses as per the companys Domestic Travel Policy applicable to the position for which he/she is being considered.
JOINING EXPENSES

Travel expenses and transportation charges are paid on position basis, the same should be approved by the Corporate Head of HR.

JOINING REQUIREMENTS AND ISSUE OF APPOINTMENT LETTER On the date of his/her reporting to duties, the executive shall complete the following in the offer letter: The executive will furnish a written joining report. One set of copies of all certificates, the candidates should also furnish originals of the same for scrutiny and should be returned to the candidates after endorsing on the copy Verified with Original. Three passport size and two stamp size photographs The candidate should furnish the copy of the relieving letter from the previous employer at the time of joining and also should furnish the copy of the last drawn salary particular or certificate of income issued by previous employer(if applicable). On completion of all joining requirements as above, the corporate HR will arrange to issue the Appointment letter. The executive will also be provided with copies of all policies as applicable to him/her.

2.18 NEED FOR THE STUDY

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This study is to find an effective Recruitment method for the company to recruit right person for the right job. This study is also intended to find out various effective recruitment methods with minimal cost and give suggestions and recommendations if any.

2.19 SCOPE OF THE STUDY Covers all the vacant positions across the functions, & levels. To structure the recruitment policy of company for different categories of employee. To analyze the recruitment policy of the organization. To provide a systematic recruitment process. It extends to whole Organization, which includes Factory and Zonal all over India

2.20 OBJECTIVE To find out the effective recruitment methods To ensure that we always hire the RIGHT people at RIGHT role at RIGHT time. Also to retain/attract the best employees.

2.21 LIMITATIONS Though the present study aims to achieve the above mentioned objectives in, full earnest and accuracy, it may be hampered due to certain limitations. Some of the limitations of this study is summarized as follows: The sample units are confined to Chennai. The sample size is limited to three respondents only. Hesitations on the part of respondent to express their views exactly on the questionnaire.

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CHAPTER-III

3.1 FINDINGS In Lotte, recruitment is done mostly through Job Portals and News paper advertisements. They are recruiting Graduates & Post Graduates for the manufacturing plants (Nellikuppam & Nemam) & also for the Corporate Office. Selection process is done through three levels. The first round is telephonic interview The second round is through Video Conference The third round is face to face interview.

Average time taken for selection process is 15days. Background checks will be done for all levels of employees. For interview purpose, the travel expenses are reimbursed for the Management category. Preference is not given for outstation candidates because the company cannot bear their expenses.

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3.2 SUGGESTIONS They are utilizing only few recruitment sources like News paper advertisements and Naukri, they also can utilize other recruitment sources like Employment Agencies, Employee referral. They also can recruit through other online job portals like Monster, Times Jobs, Shine etc. They also can participate in the job fairs every year conducted by online job portals. They also can recruit fresher through tie-up with the Educational Institutions (Campus Recruitment). So far they have not maintained any candidates database. If they maintain the candidates database, they can utilize it for future openings.

3.3 CONCLUSION From the above research and study it has been concluded that the company will be benefited if they utilize all the recruitment channels. If they start to recruit through other channels they will be benefited by recruiting right person for the right position at the right time with minimal cost. It was a great experience to interact with employees work in various departments. Overall it was a good learning and experience for me where I relate all the theoretical concepts in practical situation.

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3.4 BIBLIOGRAPHY

To obtain more information regarding the present study and to substantiate it with theoretical proof, the following references were made:-

TITLE HUMAN RESOURCES MANAGEMENT INTRODUCTION TO HUMAN ICFAI RESOURCE MANAGEMENT

AUTHOR K ASWATHAPPA

PUBLISHED BY TATA MCGRAW HILL

ICFAI

Courtesy Website: www.businessreviewindia.in/lifestyle/travel-food www.candyindustry.com www.economictimes.indiatimes.com

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RECRUITMENT QUESTIONNAIRE
Name of the Organization: HR Person Name: Designation: Lotte India Corporation Limited

1. Average age of Employee a.25 b.30 c.35

d.35&Above

2. Average year of Experience of Employee a.5 b.10 c.15 d.15&Above 3. Educational level of Employee a. Higher Secondary b. Graduate c. Postgraduate 4. a. b. c. d. e. f. g. Which recruitment channel do you use for recruitment process Ads in specialist newspaper : -------------------------------Ads in general newspapers : -------------------------------Employment Agencies : -------------------------------Word of mouth : -------------------------------Links with educational institutions : -------------------------------Employee referral : -------------------------------Others (Pls Specify)

5. Do you use online recruitment channel as one of the tool? a. Yes b. No (If Yes)Which online service do you use? .. 6. Do you think it is necessary to have a different recruitment channels? a. Yes b. No If Yes / No. Why?................................. 7. Are you willing to pay extra for different recruitment channels? a. Yes b. No
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8. What factors will you consider in selecting a Job Protal? ( multiple selection ) a. Cost b. Number of Resumes c. Active Resumes d. Popularity of the portal e. Relevancy of profiles f. Technology g. User Interface 9. Rounds of Interview a. Less than 3 b. 3 10. Time line for Selection a. 1 week b. 15 days 11. Back Ground Checks a. Yes b. No c. More than 3 c. More than 15 days

12. Whether Outstation Candidates are Preferred a. Yes b. No 13. Expenses Borne by the Organization a. Yes b. No 14. Expense Borne for a. Management Staff 15. Expense covered a. Travel b. Non Management Staff b. Accomodation

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