CHAPTER 1 INTRODUCTION

Recruitment is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. According to Edwin B. Flippo, Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization.

Recruitment is the activity that links the employers and the job seekers. The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization. In todays rapidly changing business environment, a well-defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process.

1.1 Statement of the Problem

Recruitment Process must be in conformity with the Recruitment policy and personnel policy of the organization. It must also be in conformity with Government / State / Public Policies. The policy must be dynamic enough to accept changes as required

with the passage of time. The employees will get motivation and their morale will be higher by the effective recruitment policy. A good recruitment process must assist the empowerment of the employees. It must be in conformity with job analysis. The recruitment process and policy must meet long-term requirements of employees in terms of quantity and quality. So a welldesigned recruitment process only fetches effective and efficient personnel to the organization. With this view the research study in HAL, Bangalore Complex is being carried out.

1.2 Objectives of the Study 1. To study the Employees perception on recruitment process in different cadres of Executives of the organization. 2. To understand the Satisfaction level of the employees towards the recruitment process 3. To study about the recruitment process clarity among employees 1.3. Scope of the Study: The present study was limited to the Hindustan Aeronautics Limited, Bangalore Complex only. The study is focused on the detailed analysis of recruitment process in different cadres of executives at HAL, Bangalore Complex. The scope of the study is to understand the employees perception on recruitment process in the executive cadre of the organization. There are about 11 divisions in HAL Bangalore Complex. Due to various constraints the study was limited to Bangalore complex. MDBC is the biggest department in HAL. HR department comes under MDBC. Each function in the HR department is carried out separately and the researcher has access to the recruitment department.

1.4 Research Methodology 1.4.1 Research Design: Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project work together to try to address the central research questions. This study is a descriptive study. Here the researcher goes through the state of affairs existing in the company. The design chosen for the study is descriptive research design.

1.4.2 Research Approach: Research Approach refers to the approach or the methodology that is adopted to conduct the research. The research approach that was used in the study was survey research. Since HAL- BC has more than 3000 employees it is not possible to collect data from each employee. Hence the researcher conducted a sample survey study. 1.4.3 Data Sources: The data required for the research purpose was collected from: 1. Primary data source 2. Secondary data source Primary Data Primary data is information collected by the researcher directly through instruments such as surveys, interviews, focus groups or observation. Tailored to his specific needs, primary research provides the researcher with the most accurate and upto-date data. The information was collected through questionnaires, observation, personnel interviews and informal interviews .Individual information collected from the managers and the workers was also used as a source of primary data.

Secondary Data Secondary data, on the other hand, is basically primary data which has already been collected by someone else. Researchers reuse information because it is easier and less expensive to collect. However, it is seldom as useful and accurate as primary data. The data was collected from various other sources like internet, newspapers, books and magazines of HAL, Rules and regulations manual of HR Department and old project reports. The industry as a whole, present future and global scenarios of the industry were the main secondary data collected. 1.4.4 Sampling Plan:

The present study used sample survey method for collecting the information required for the study. Thus it was necessary to select the sample for the study using a systematic sampling plan. The determination of sampling unit, sample size and sampling procedure are given in the definite form under sampling plan.

1.4.4.1 Sampling Unit:

Sample Unit is that element or set of elements considered for selection in some stage of sampling. In this study the researcher studies about the perception on recruitment process of executives at Hindustan Aeronautics Ltd., Bangalore Complex. Thus all executives working in HAL- BC in the 12 grades formed the sampling unit for the study.

1.4.4.2 Sampling Size:

Sample size is the number of elements in the obtained sample. The size of the population is 3000 in HAL-BC. Twelve different grades of executives are categorized in to three cadres. Officers in Grade V and above come under the Senior Executives cadre. Officers in Grade III and IV come under Executives cadre and Officers in Grade I and II come under Junior Executives cadre. In order to give equal representation to all categories, 40 executives of each category were surveyed in this study. So the total sample size used for the study was 120.
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1.4.4.3 Sampling Procedure:

The researcher used Simple Random Sampling method in this study for selecting the 120 samples, which has the probability that any of the possible subsets of the sample is equally likely to be the chosen sample. The list of executives in 3 categories was collected from the HR department and 40 names were selected from each category using lottery method.

1.4.5 Contact method:

The researcher used direct contact method for collecting the necessary information. The 120 executives selected for the study were met at their work place after obtaining necessary approvals from the concern office and fixing prior appointment with them. This is the method by which the researcher collected the data in direct face-to-face interaction with the respondents. . 1.4.6 Research Instrument:

The research instrument used for the study was questionnaire. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. A structured questionnaire was developed to collect all the relevant information from the employees. Open ended questions were only used in the questionnaire. Likert scale was also included in the questionnaire.

Questionnaire was Pre tested in the MDBC Department before circulating to the designed sample. For the purpose, the draft questionnaire was circulated to Executives each from the three categories and was requested to fill it. The filled in questionnaires were evaluated very closely to find out any problems related to understanding the question and other typographical or problems of sequencing of questions. The researcher

also interviewed the respondents and collected their feedback. Necessary change were incorporated in the questionnaire and used for collecting data. 1.4.7 Research Period The time frame for this project was 60 days, i.e. from 19th March to 18th May. 1.5 Limitations of the study: 1. Some information being very sensitive as far as organization is concerned is left untouched and not mentioned in any way. 2. Top-level strategic type of decisions and information too are not taken under study to keep the confidentiality of the organization. 3. As it was a survey method it relied on a self-report method of data collection. Intentional deception, poor memory, or misunderstanding of the question might have contributed to inaccuracies in the data. 4. When rated in the likert scale of 1 to 5, it's hard to say what one person's rating of 5 means as opposed to another person's rating of 5. 5. The lack of time to carry out a survey 6. The lower priority shown in filling the questionnaire from the part of respondents as they had to complete their urgent tasks. 7. Survey was conducted at a single point in time and so it is difficult to measure changes in the population unless two or more surveys are done at different points in time. 8. Questionnaires were not filled at many times and sometimes not returned that led to distribution of them again. 1.6 Chapter Scheme 1. Chapter 1 Introduction includes Statement of the problem, Objectives of the study, Scope of the study, Research methodology, Research design, Research approach, data source, Sampling plan, Sampling Unit, Sampling Size, Sampling Procedure, Contact method, Research instrument, Research period, Limitation of the study and Chapter scheme.

2. Chapter 2 Industry profile includes Introduction to Industry and its evolution, an analysis of the International scenario, National scenario, and State scenario. 3. Chapter 3 Company profile includes History and growth of the company, Future plans, Financial Performance of the company, Details about HR Department.

4. Chapter 4 is the literature review which includes the theoretical frame work of
the topic and the previous research done on the topic.

5. Chapter 5 includes data analysis and Interpretation. 6. Chapter 6 includes findings suggestions and conclusion

CHAPTER II INDUSTRY PROFILE

2.1. Introduction The aviation industry encapsulates the development, operation and management of aircrafts. While the common perception about the sector is that its only about pilots and airhostesses, there are numerous other, equally significant job options that the industry cannot function without; from in-flight trainers and aircraft maintenance engineers to baggage handlers and reservations agents. Research indicates the global aviation industry is poised to grow at a healthy 5.6% CAGR over the next 15 years. While major conventional mature markets such as the US and Europe will witness a significant fall in market share from 61% to 52%, emerging markets, such as India, China and the Middle East, offer a great growth potential. Aerospace and Defense has been a unified system in India and has been instrumental in showing the enemies a red signal. Aerospace and Defense mechanisms of India has, in the recent past, received rave reviews worldwide. To keep up the name, a lot of things are at stake. If you want to mull over on the factors that have contributed to the rising aerospace and defence grades of India, what has been taking shape, how things occur on and off the field and other related topics, zoom in here. Bestindiansites.com gives you an extensive insight into the business area of things. History of Aviation Aviation is defined as the design, manufacture, use, or operation of aircraft - in which the term aircraft refers to any vehicle capable of flight. Aircraft can either be heavier-than-air or lighter-than-air: lighter-than-air craft including balloons and airships, and heavier-than-air craft including airplanes, autogiros, gliders, helicopters, and ornithopters.

For centuries man has dreamed to soar with the birds. Famous inventors such as Leonardo da Vinci, John String fellow, and Lawrence Hargrave have conjured up ideas of how to get some of the strangest machines to fly long before the Wright brothers' famous first flight at Kitty Hawk.

Early Aviation The first form of an aircraft was the kite, designed in the 5th century BC. Later on in the 13th century, Roger Bacon, an English monk, performed studies which later gave him thse idea that air could support a craft just like water supports boats. In the 16th century, Leonardo da Vinci studied birds' flight, and later produced the airscrew and the parachute. The airscrew, Leading to the propeller later on, and the parachute were tremendously important contributions to aviation. He envisioned three different types of heavier-than-air craft: the helicopter, glider, and ornithopter (a machine with mechanical wings which flap to mimic a bird). Although Leonardo's designs were impractical, seeing they required human muscular power which was insufficient to generate flight with the aircraft he envisioned, he was vital to aviation because he was the first to make scientific suggestions. The 19th Century Some of the more credible developments in actual flight and stability occurred in the 19th century. British Sir George Cayley designed a combined helicopter and horizontally propelled aircraft, and British Francis Herbert Wenham used wind tunnels in his studies and predicted the application of multiple wings placed above each other. Another famous inventor was John String fellow, who designed a steam-engine powered aircraft which was launched from a wire. This model demonstrated lift but failed to actually climb. Lawrence Hargrave, a British-born Australian inventor, created a rigidwing aircraft with flapping blades operated by a compressed-air motor; it flew 312 ft. (95m) in 1891. A famous glider developer in the 19th century was Jean Marie Le Bris, a Frenchman who tested a glider with movable wings.

Kites also played an important role in the development of aviation: they could be used to test aerodynamics and flight stability. Lawrence Hargrave first created the box
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kite in 1893, and Alexander Graham Bell developed a gigantic passenger-carrying tetrahedral-celled kite from 1895 to 1910. Some of the most important full-scale model flight attempts were made by Samuel Langley, who created the first heavier-than-air, gasoline-powered engine which actually flew. The 'aerodrome', which he called it, was powered by a 53 horsepower 5-cylinder radial engine and later crashed into the Potomac River on December 1903 -- days before the Wrights' historic flight. Throughout this century, major developments would give inventors a sound basis in experimental aerodynamics, although stability and control required for sustained flight had not been acquired. Most importantly, inventors noticed that successful, powered flight required light gasoline engines instead of the cumbersome steam engines previously used.

Kittyhawk and After From 1903 to today, it's remarkable how far aviation has come. On December 17, 1903, at 10:35 a.m., the Wright brothers (Orville at the controls) made the first heavierthan-air, machine-powered flight which lasted 12 seconds and spanned 120 feet. Their first flight was 102 feet short of the wingspan of the C-5 Galaxy today, yet they did what every man and woman has dreamed for centuries they flew. Yet, not all flights were victorious, on September 17, their aircraft crashed, injuring Orville and his passenger (Lieutenant Thomas E. Selfridge). Selfridge later died of a concussion and was the first person to be killed in a powered airplane. Yet the show went on and Wilbur went to France in August 1908; on December 31, 1908, he completed a 2 hour 20 minute flight which demonstrated full control over his Flyer. The Flyer was purchased on August 2 and became the first successful military airplane. It remained in service for around two years and was retired to the Smithsonian Institution where it rests today.

Well-known in the aviation field by this time, Glenn Hammond Curtiss won the first American award, the Scientific American Trophy, for an airplane flight when he flew the 'June Bug' 5090 ft. (1552m) in 1 min 42.5 sec on July 4, 1908. Curtiss also went on to win the first international speed event, at about 47mph (75.6 km/h), on August 28, 1910. He also became the first American to develop and fly a seaplane -- the first successful seaplane flight having been done by Henri Fabre of France on March 28, 1910.

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Before World War I, airplane design greatly improved. Pusher biplanes (twowinged airplanes with the engine and propeller behind the wing) were succeeded by tractor biplanes (two-winged airplanes with the engine and propeller in front of the wing). Monoplane designs were rare, and when World War I began, huge biplane bombers with two to four engines were developed. Airmail was also started, although it only lasted a week. The first airmail officially approved by the U.S. Post Office Department began on September 23, 1911, and the pilot (Earle Ovington) would carry the mail on his legs and tossed the bag overboard when he reached his destination. Also in 1911, the first transcontinental flight across the U.S. was completed by Calbraith P. Rodgers. His flight from New York to California took 3 days, 10 hours, and 14 minutes, and was by a Wright aircraft.

Before World War II Between 1919 and 1926, some amazing progress in record breaking for aviation took place. Captain E. F. White made a nonstop flight from Chicago to New York (727 mi - 1170km) in 1919, and Lieutenant Oakley Kelly and Lieutenant John A. Macready made the first nonstop transcontinental flight from May 2 to May 3, 1923. This flight was made from Roosevelt Field, Long Island to Rockwell Field, San Diego. The first roundthe-world flight was made from April 6 to September 28, 1924. Also in 1919, the first nonstop transatlantic flight was made by John William Alcock and Arthur Whitten Brown on June 14 to June 15. It took a little over 16 hours to complete and they won the "London Daily Mail" prize of $50,000.

Mail delivery also took a major turn during these years. In 1925, Congress passed the Kelly Air Mail act which authorized the Post Office Department to contract with airtransport operators. This made it possible to transport U.S. mail by air; after this, 14 domestic airmail companies were created in 1926.

During World War II During World War II, aircraft became a decisive factor in warfare. The largest operator of all international airlines in operation at this time was Pan American Airways. Pan American served 46 countries and colonies linking all continents and nearly all oceans. Small aircraft production increased significantly. Before World War II only
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about 193,000 people were employed in the aviation industry, and during 1941 the number increased to 450,000; also, around 3,375,000 passengers were transported by 18 U.S. airlines at this time, around 1 million more than in 1940. Airmail and express cargo would also increase by around 30 percent. But by the end of World War II, a new frontier of flight would take shape, jet and rocket propelled aircraft.

After World War II After World War II and by 1947 all the basic technology needed for aviation had been developed: jet propulsion, aerodynamics, radar, etc. Civilian aircraft orders drastically increased from 6,844 in 1941 to 40,000 by the end of 1945.

One of the minor military contractors was the Boeing Company who later became the largest aircraft manufacturer in the world. With all the new technologies developed by this time, airliners were larger, faster, and featured pressurized cabins. New aerodynamic designs, metals, and power plants would result in high-speed turbojet airplanes. These planes would later be able to fly supersonically and make transoceanic flights regularly.

One of the more famous record-breaking flights around this time was the Voyager, developed by Burt Rutan. The aircraft held 1,200 gallons (4500 liters) of fuel in its 17 fuel tanks. It weighed about 9,750 lb. (4420 kg) at takeoff and only 1,858 lb. (840kg) upon landing. The flight, maintaining an average speed of 115.8 mph (186.3 km/h), lasted 9 days, 3 minutes, 44 seconds and covered 25,012 miles (40254 km) and was completed in December 1986.

2.2 International Scenario

Global aerospace industry enjoys high growth as military expenditures continue to rise and emerging economies take the lead in the civil aviation industry. While dominant players are based in Western Europe and the US, Asia Pacific, including India is set to gain from outsourcing of manufacturing as well as MRO activity.

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The global aerospace industry has come a long way since the first flight was undertaken in 1903; market size of commercial and defence aircraft was estimated at US$ 97 billion in 2007. Defence sales account for more than 80% of the total market typically dominated by the Government and public sector, while the growing private sector civil aviation has led to a broad-based expansion of the industry across the world. In addition there is sizeable MRO activity Maintenance, Repair and Overhaul which is a major component of operating aircraft. On an average, the aerospace industry spends more annually on MRO than on manufacturing or development. The global aerospace market has five main components, each with distinct market structures and drivers military aircraft and light combat aircraft make up the bulk of the market, while jets and helicopters account for less than 20% share. In the past decade, military expenditure has been rising with the international war on terrorism, while civil traffic has seen a spurt due to robust economic growth, rising incomes, globalisation and falling air fares. Changing landscape in civil aviation: Though the recession in 2008 in advanced countries has been a setback for the civil sector, emerging economies have taken charge of leading global growth by recovering faster China, India and the Middle East are the most promising drivers of the civil aviation market. According to research by Boeing, the fastest growing economies in Asia will lead change in the market space, with AsiaPacific set to be the largest air transport market in the world with 45% share of air travel. Commercial airplane market is estimated to be a huge $ 3.2 trillion by 2027, with AsiaPacific accounting for 37% of the total market. Moreover, while presently the industry is dominated by US and EU based companies, there has been an increasing trend in outsourcing as firms look out for low cost manufacturing locations. MRO outsourcing is set to rise from 52% in 2006 to 65% by 2016. Here again, the Asia-Pacific is set to gain with its efficiency, expertise and labour cost advantages. Demand for military aircraft is also on the rise, with increased military expenditure across the world. Space Industry: There has also been considerable rise in the global space industry, estimated currently at US$ 250 billion, that comprises satellite manufacturing and launching, to imaging, navigation and telecommunications. For many years, government expenditure on space and satellite programmes was the sole driver of the space industry. However, with rise in commercial applications that touch consumer homes directly
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through GPS receivers and satellite television, there has been a surge in the market size as technology works to change the way the common man accesses information and makes his decisions. Total revenue for space products and services was estimated at US$ 91 billion in 2008, up 10.4% from the previous year. The highest revenue earner within the commercial satellite service sector was the direct-to-home television, which generated US$ 69.6 billion. Fixed satellite services were the second highest earner at US$ 16.8 billion, showing a strong growth rate of 31% over the previous year. Commercial space infrastructure, including launch vehicles, satellites, ground stations, in-space platforms etc. yielded an estimated revenue of US$ 83.1 billion, with 69 orbital launches, of which 28 carried commercial payloads. The United States and Russia continue to dominate the launch space, while China has been rising in importance with record domestic launches. India ranks amongst the top ten players in the space industry with its significant achievements in satellite launches, moon mission etc.

Prominent Global Companies:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Boeing USA EADS Netherlands Lockheed Martin USA Northrop Grumman USA BAE Systems UK General Dynamics Raytheon United Technologies General Electric Finmeccanica

Among the largest users of aerospace technology are the Department of Defense (USA), National Aeronautics and Space Administration (NASA), European Space Agency (ESA), Ariane France and others.

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2.3 National Scenario Indian industry today is on the threshold of entering into a new era where it will assume greater responsibility in making the nation self-reliant in Defense Production. The resurgence of Indias manufacturing sector has been remarkable. Not only are the profits soaring, the sector is also making its presence felt abroad as many Indian firms are becoming transnational companies. The Indian manufacturing sector is internationally competitive with international quality standards, efficiency and manufacturing facilities. India is fast developing into a manufacturing hub for world corporations wanting to leverage the sectors proven skills in product design, reconfiguration and customization with creativity, assured quality and value addition. India, also keen to strengthen its own aerospace industry and has asked major weapon exporting countries to transfer technology to India. Indian Aviation Industry

In 2003 the whole world celebrated the centenary of powered flight. But we Indians had to wait for a few more years to observe the centenary of flight in India. It took just seven years, almost to the day, for the first aircraft to get airborne at Allahabad in UP. There was hectic activity to bring planes to India and show them off in December 1910.First off the block was His Highness the Maharaja of Patiala. He sent his British Engineer CW Bowles to Europe to look at the new art or science of flying and bring a couple of planes back with him. Bowles returned to India in December 1910 with a Farman biplane made in England and a Gnome-Bleriot Monoplane fitted with two seats. Apparently in Europe, France was the first to get into the business of flying. The Farman was also a French design but built in England by a Thomas Holt, recognized as the father of the aviation industry in England, in collaboration with Farman Brothers of France. Fortune did not favor Patiala and neither of these aircraft became the first to get into the air.

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The Humber Company asked the team to proceed to Allahabad immediately after it landed in Bombay by a merchant ship. This group with all its packing cases set off for Allahabad with the intention of demonstrating the aircraft at the Industrial & Agricultural Exhibition due to be held there shortly. It arrived on December 5 and assembled the planes in five days at a polo ground right next to the Exhibition Grounds. A Local newspaper reported the first flight in India as follows: The first actual flight was successfully attained by Mr. Davies in a Bleriot. On the 10th of December Mr. Davies had the machine ready and early in the morning circled the polo ground at a height of twenty five or thirty feet The paper added, Thus Allahabad has had the distinction of giving the lead not only in India, but also to the whole of Asian Continent in connection with the latest of scientific wonders.

The aircraft ready to fly weighed five hundred pounds without the pilot and cost 550/=, just under Rs 7,500/= at the rate existing then. Surely this amount was affordable by many people at the time. The second aircraft flew the next day, December 11, 1910, under the control of the French pilot Henri Piquet and carried the first air passenger in India. He was one of the sons of the Maharaja of Benares, obviously an intrepid young man. But The Statesmanof Calcutta, a newspaper still very well respected, published a different version of the flights in Allahabad. Its issue of December 18 reported that Henri Piquet made the first flight in India on December 17.

According to the paper, Piquet flew the biplane over the confluence of the Ganges and the Yamuna (Sangam) and also over Allahabad Fort. The newspaper expected regular display flights to begin on December 20 over the Exhibition Grounds and continue displays till January 6, 1911. The possibility of joyrides being given was also mentioned. By then it was estimated that a total of five hours of flying had been accumulated covering almost 50 miles. Henri Piquet was paid .50/= per hour of flying, provided each flight lasted longer than two minutes. He is today recognized, especially by knowledgeable stamp collectors, as the pilot to carry worlds first airmail from Allahabad to Naini just across the Yamuna River, and back to Allahabad. He carried 6,000 odd letters and postcards, many of which were addressed to celebrities worldwide, including King George V in England. If you can find one of these postmarked covers or
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stamps with the words First Aerial Post, you can sell it today for the price of a flat or a house.

Club for fifteen minutes. The same day the Baron flew with a lady passenger, Mrs.NC Sen, who thus became the first woman in India to get airborne. The paper had also claimed that Mrs. Sen was the first woman in the world to fly in a plane. But this claim was quite wrong, as by then in the West it had become fashionable for society ladies to casually drop their news of having dared a ride in a flying machine. For December 28, Baron de Caters organized a flying display at Tollygunj. This attracted almost all the able population of Calcutta willing to forego work or other pleasures for a day. The Baron did the first few flights in the Farman, gave rides to two ladies and several gentlemen. While this was exciting enough, the next day, December 29, Jules Tyck set two national records in his Bleriot. He became the first to fly over the city, including directly over the Government House. The second record was set when he climbed to all of 700 feet above ground level. But Calcutta was in for more excitement.

The observer, Sefton Bruckner sat close behind, a bit higher and with his feet around the pilot. The reconnaissance sorties were highly successful. But except for a few generals, including the Commander-in-Chief of the Indian Army and the Chief of Staff, most army officers did not think that the aeroplanes had much use for them except perhaps for limited reconnaissance of enemy positions. This attitude persists till today, only slightly moderated due to introduction of aviation within the army itself. Meanwhile Baron de Caters and Jules Tyck took their aircraft around the country and gave displays at many towns.

The show in Bangalore was on February 3, 1911 and in Madras on February 18.The First World War soon interrupted any progress of aviation in India for a while. Two Indians distinguished themselves in this war. InderLal Roy joined the Royal Flying Corps in April 1917 at the tender age of just over eighteen years. After receiving his training and the Kings Commission, he joined No. 56 Squadron in France but was shot down in December. He was given up for dead but gained consciousness surrounded by dead bodies. After recovery he returned to flying and shot down nine German planes before losing his life in his last air combat. He was posthumously awarded the
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Distinguished Flying Cross (DFC), the first Indian to receive the honour. The other famous Indian pilot was SardarHardit Singh Malik, who had also joined in April 1917. He was wounded in November but returned to flying in time for the defense of London. He was demobilized after the war and had a really distinguished career as a diplomat. He was, not long ago, the senior-most citizen playing golf at the Delhi Golf Club.

The Royal Air Force inaugurated its first station in India at Ambala. But the Indian Air Force (IAF) was launched by an act of the Governor General on October 8, 1932. The A Flight of No. 1 Squadron came into existence on April 1, 1933 under the command of an RAF officer on deputation. Its senior-most Indian officer was Pilot Officer SubrotoMukherjee who later became IAFs first Indian Commander-in-Chief as an Air Vice Marshal and then took over as the Chief of Air Staff as an Air Marshal. His successor was Air Marshal AM (Aspy) Engineer. Aspy Engineer had started his flying career rather early. He and RN Chawla were the first Indians to fly a De Havilland Moth from India to England. They left on March 3 and arrived on March 20, 1930. Aspys return flight from England was to contest for the Aga Khan Prize of 500 for flying between the two countries in either direction.JRD Tata took off in a Gypsy Moth on May 3 from Karachi for England. They crossed each other at Aboukir in Egypt where Aspy was in some trouble due to problems with some spark plugs. JRD helped him out. Aspy arrived in India when JRD had just reached Paris. Presumably because he took longer, JRD Tata came second to Aspy who won the Prize. But JRD was never a loser. After protracted negotiations with the Government of India, he started his air mail service under the name of Tata Aviation, later to become Air India. He piloted the first carriage of mail from Karachi to Bombay

On October 15, 1932. The initial efforts at passenger carriage in India were limited to British owned or funded airlines, such as the Indian Trans-Continental Airways and Indian National Airways. But as the need for more air travel facilities became paramount, permission was given to almost anyone wanting to start an airline. This resulted in a profusion of quick start airlines, which competed with each other perhaps by cutting fares and downtime for maintenance. Soon enough the situation became untenable. Eventually the Air Corporation Act of 1953 was passed nationalising all airlines. Air India International took over the international traffic and Indian Airlines Corporation the
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domestic. While the two national airlines still operate, the domestic scene changed recently once again as a result of economic reforms. The prospects of passenger and cargo traffic in India can only be described now as rosy Meanwhile in December 1940, Seth HirachandWalchand launched Hindustan Aircraft Limited (HAL) with the help of an American and the State of Mysore. Dr VM Ghatage, Indias first aircraft designer soon joined the company and designed the G-1 Glider, the first such venture in India. However, due to World War II, the G-1 did not get used and DrGhatage became the first to start teaching aeronautical engineering at the Indian Institute of Science. He rejoined HAL after independence and designed Indias first powered aircraft the HT-2.

In time, HAL became a Corporation with several Divisions in the country. The first fighter aircraft designed in the country was the HF-24, though a German team led by Prof.KW Tank largely managed it. Many aircraft types have been produced under license and in large numbers. Lately the country has come into its own in designing aircraft, engines, avionics and accessories. The success story of indigenous designs restarted with the ALH, now named Dhruv, a helicopter for all the defense services and also meant for civilian use. This has been followed by the Light Combat Aircraft and the Intermediate Jet Trainer India has so far produced transport aircraft only under license from foreign sources. These include the Avro-748, Dornier Do-228 and the Partinavia. But recently National Aerospace Laboratories developed the Saras, a twin turbo-prop commuter aircraft. It is expected to obtain its certification in the next two or three years. HAL is also likely to embark on the development of a Light Armed helicopter and a100-seater aircraft with capabilities for other roles, perhaps in collaboration with Russia. Indian Aerospace The Indian Aerospace Industry is witnessing an unprecedented growth. Hindustan Aeronautics Limited (HAL), which is fully owned by the Government of India, is the premier aerospace company in the country. HAL has played a major role in the Defence aviation of India through design, manufacture and overhaul of fighters, trainers, helicopters, transport aircraft, engines, avionics and system equipment. HAL is now ranked 34th in the list of worlds top 100 defense companies.

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HAL is a major partner for the Space programmes of Indian Space Research Organization (ISRO) and manufactures structures and assemblies for the launch vehicles and satellites at its dedicated Aerospace Division in Bangalore. The civil aviation sector in India is growing rapidly. It has recorded annual growth of over 41% in passenger traffic during in the last two years. In fact, it has contributed significantly to the growth of international civil aviation sector. The rapid growth of civil aviation has put extreme pressure on the existing civil aviation infrastructure. As a result, the thrust is now on modernization of airports, communications, navigation and surveillance systems for air traffic management, radars and facilities for Maintenance Repair and Overhaul of aircraft and sub systems. There are thus enormous potential and huge opportunities for collaboration and creation of joint ventures in the aerospace sector in India for establishing Maintenance Repair Overhaul (MRO) facilities for civil and military aircraft, overhaul and maintenance of aero engines and production of avionics, components and accessories both in the civil and military aviation sectors. Major global aviation industry are already eyeing the local market in India and scouting for outsourcing aerospace and defence products as India is fast emerging as a center for engineering and design services. 1. Hindustan Aeronautics Limited (HAL) HAL, a Defense PSU, is a major player in the global aviation arena. It has built up comprehensive skills in design, manufacture and overhaul of fighters, trainers, helicopters, transport aircraft, engines, avionics and system equipment. Its product track record consists of 12 types of aircraft from in-house R&D and 14 types by license production inclusive of 8 types of aero engines and over 1000 items of aircraft system equipment(avionics,mechanical,electrical). HAL has produced over 3550 aircraft, 3650 aero-engines and overhauled around 8750 aircraft & 28400 engines besides manufacture/overhaul of related accessories and avionics. The Company has the requisite core competence base with a demonstrated potential to become a global player. HAL has 19 production divisions for manufacture

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and overhaul of aircraft, helicopters, engine and accessories. It has also 9 R&D Centres to give a thrust to research & development. HALs major supplies/services are to Indian Air Force, Indian Navy, Indian Army, Coast Guard and Border Security Force. Transport aircraft and Helicopters have been supplied to Airlines as well as State Governments. The Company has also achieved a foothold in export in more than 20 countries, having demonstrated its quality and price competitiveness. HAL is a major partner for the Space Vehicle programmes of the Indian Space Research Organization. It has also diversified into the fields of industrial & marine gas turbine business and real-time software business. HAL is now ranked 34th in the list of worlds top 100 defense companies. HAL continues its growth with a sales turnover of 2.1 Billion US Dollars during the financial year 2007-08. It has doubled its turnover in 3 years. It has declared profit before tax of 538 Million US Dollars. The company has made supplies to almost all the major aerospace companies in the World like Airbus, Boeing, IAI, IRKUT, Honeywell and Ruag etc. All the production Divisions of HAL have ISO 9001-2000 accreditation and sixteen divisions have ISO-14001-2004 environment management system (EMS) certification. Six divisions have also implemented the aerospace sector quality management system requirements stated in As 9100 standard and obtained certification. Four of these divisions have also obtained NADCAP certification (National Aerospace Defence Contractors Accreditation programme USA) for special processes such as NDT, heat treatment, welding etc. In order to meet with the challenges in the 21st Century, the Company has redefined its mission as follows: HAL has successfully designed & developed the Advanced Light Helicopter, which is currently being operated by the Defense Services of India and private Companies. The Advanced Light Helicopter also has great export potential. Apart from licence production of front line fighters like Su-30 MKI, HAL is also developing the following products through design and development:

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1. Intermediate Jet Trainer (IJT) 2. Light combat helicopter (LCH) 3. Weaponization of Advanced Light Helicopter (ALH) 4. Tejas-Light Combat Aircraft 2. Indian Space Research Organization (ISRO) Government of India established the Department of Space in 1972 to promote development and application of space science and technology in the country for the socio-economic benefits. Indian Space Research organization (ISRO) is the primary agency under the Department of Space for executing space programmes. During the early seventies, India undertook demonstration of space applications for communication, television broadcasting and remote sensing building experimental satellites namely, APPLE, Bhaskara and experimental satellite launch vehicles, SLV-3 and ASLV. Today, India has an impressive array of achievements with the largest constellation of domestic communication satellites called Indian National Satellite System (INSAT) in the Asia pacific region with about 210 transponders in orbit. And, India has plans to augment the capacity with the launching of INSAT satellites and increase it to about 500 in 4-5 years to meet its growing needs. India also has the largest constellation of earth observation satellites called Indian Remote Sensing (IRS) satellites with better than one meter resolution. IRS data is being used for a variety of applications such as crop yield estimation, drinking water missions, waste land development, forest cover mapping and a host of other applications benefiting the common man. Using INSATs, besides TV Broadcasting, telecommunications and meteorological applications societal applications such as tele-education, telemedicine applications have been operationalised. Village Resource Centers (VRCs) combining the services of IRS and INSAT satellites for providing an array of services have been established. India, today is considered as a leader in the application of space technology. INSAT and IRS satellites are also providing invaluable services in disaster management.

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To put the IRS and INSAT satellites into orbit, India has developed two work horse launch vehicles namely the Polar Satellite Launch Vehicle (PSLV) and Geosynchronous Satellite Launch Vehicle (GSLV). PSLV weighing about 300 tons at lift off has the capability to put 1500 kg satellite in polar sun-synchronous orbit. PSLV with eleven consecutively successful launches has demonstrated its high reliability. PSLV has launched eight satellites for various customers from abroad. GSLV with four successful flights is capable of launching 2200 kg satellites into geo-stationary Transfer Orbit. India has also created world class facilities at its space port in Sriharikota near Chennai with launch pads besides a host of test facilities for testing satellites and launch vehicle systems. 3. Defence Research Development Organization (DRDO) DRDO is a network of 52 Defence Laboratories in India which are deeply engaged in developing critical defence technologies covering various disciplines like aeronautics, armaments, electronics, combat vehicles, engineering system,

instrumentation, missiles, advanced computing and simulation, special materials, naval systems, life sciences, information systems and agriculture. Presently over 5000 scientists and about 25000 other scientific technical and supporting personnel back the organization. Several major projects for the development of missiles, armaments, light combat aircrafts, radars, electronic warfare systems etc are on hand and significant achievements have already been made in several such technologies.

4. Bharat Electronics Limited (BEL) BEL was established in 1954 to meet the specialized electronic needs of the countrys defence services, is a multi-product, multi-technology, multi-unit company. It serves the needs of domestic and foreign customers with the products/services manufactured in its nine state-of-the-art ISO 9001/2 and ISO 14000 certified manufacturing plants in India.

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BEL manufactures a wide repertoire of products in the field of Radars, Naval systems, Defence Communication, Telecommunication and Broadcasting, Electronic Warfare, Opto Electronics, Tank Electronics and Electronic Components. With the expertise developed over the years, the company also provides turnkey systems solutions and Electronic Manufacturing Services (EMS) on Build to Print and Build to Spec basis. BEL has become a US $ 1 Billion company in the financial year 2007-08. 5. Bharat Dynamics Limited (BDL) BDL is fully owned by the Government of India, was established in 1970. BDL manufactures guided weapons & related test equipment, Launchers, under water weapon systems and decoys for the Indian Defence Services. BDL is the nominated Production Agency for the indigenous Integrated Missile Development Programme. Starting with production of 1st Generation Anti-tank Guided missiles, the Company has grown into a multi technology and multi product organization. Collaborative association with DRDO and world leaders in missile manufacturing has enabled BDL assimilate critical technologies and emerge as a globally competitive and reliable defence equipment manufacturer. 8. Mishra Dhatu Nigam Limited (MIDHANI) MIDHANI an ISO 9002 company - caters to domestic and international customers with modern metallurgical facilities and high degree of technical competence for manufacturing its diverse product mix of super alloys, titanium alloys, special purpose steels, electrical resistance &soft magnetic alloys, molybdenum and other alloys meeting the stringent requirements of the strategic sectors like defense, aerospace, power and general engineering etc. MIDHANI employs its highly integrated and flexible manufacturing facilities to produce a wide variety of special metals and alloys in various mill forms such as ingots, forged bars, hot rolled steels and bar, cold rolled sheets, strips and foils, wires, castings andtubes.

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9. BrahMos Aerospace BRAHMOS-supersonic cruise missile is designed for use in multiple platformsships, silos, mobile launchers, aircrafts and submarines against land and sea targets. BRAHMOS is the World leader flying all through supersonic with maneuverable trajectories ensuring no reaction time to the enemy and a lethal punch owing to huge kinetic energy of impact. BRAHMOS has attained 100% success rates in all flight trials proving the adequacy of the missile system to a maximum range of 290 km with high accuracy and lethality establishing the reliability of the system in all weather conditions. Indian Navy & army have started the induction of the weapon system. The system will also be exported to a few friendly countries. 2.4 State Scenario Bangalore has been the home of aviation and aerospace manufacturing and cutting edge R&D in India. With India's first aerospace SEZ in Belgaum, Karnataka is poised to grow into a global centre with access to a quality eco system.
1.

The state industrial policy of 2009-14 facilitates investment in large projects through fiscal concessions, land bank and single window clearance.

2.

State SEZ policy provides a smooth path for investment in projects in special economic zones.

3. 4.

Positive business environment, no. 1 in web investment climate report. Excellent government support through institutions like HAL, NAL, GTRE etc. Providing research capabilities.

5.

India's first aerospace SEZ at Belgaum in 2009 promoted by quest global; state government is planning another SEZ at Devanahalli, near Bangalore.

The state is home to skilled manpower with the third largest strength of engineering colleges and highest number of vocational training institutes. The state leads in research

25

and development and engineering design capabilities, backed by the presence of internationally renowned institutions - HAL, DRDO, ISRO, NAL, IISC - all based in Bangalore. The state is the third largest steel manufacturing state and important aluminum producer in India and also has the highest number, 32 in total, of CMM level 5 certified software companies, a strong resource for the aerospace industry.Global majors have research and design centres in Karnataka: airbus is expanding its engineering centre in Bangalore, from present strength of 120 employees to more than 400 by 2012.
1.

Government support for projects through a 50,000 acre land bank across 5 industrial corridors.

2.

Infrastructure focus with projects like Bangalore metro, mono rail, pride, ports etc. Raising connectivity

3.

Expansion of airports - airports within 100 Kms of each district HQ, 20 helitourism destinations etc. To boost aviation services.

4. 5.

103 rdcentres, classified by wef.as an innovation cluster. Belgaum SEZ is expected to yield aerospace-related business worth around Rs 2,500 Crore, create more than 7,000 jobs and infuse $500 million into the economy in ten years.

Selected advantages that Karnataka offers as a hub for aerospace activities include:1.

Presence of scientific and technical institutes: The presence of institutions like the Indian Institute of Science and Indian Institute of Management, enable the development of well-qualified technical experts who can be absorbed into aerospace majors operations.

2.

Deep aerospace expertise: Major aerospace organizations are located around Bangalore, including HAL, National Aerospace Laboratories (NAL), QuEST Global, Taneja Aerospace and Aviation Ltd, Dynamatic Aerospace, Air Works India Engineering Pvt. Ltd., The Society of Indian Aerospace Industries and
26

Technologies, etc. Thus an existing supply chain ecosystem has been developed by these organizations.
3.

IT expertise and skill sets: Since independence in 1947, Bangalore has developed into one of India's major economic hubs and is today known as the Silicon Valley of India. Karnataka boasts the presence of major IT companies such as HCL, Infosys, Tata Consultancy Services, Wipro, QuEST among others. Karnatakabased professionals have developed deep IT domain experience. Bangalore is the worlds fourth-largest technology cluster.

4.

Manufacturing Expertise: Bangalore is a leader in heavy manufacturing due to the presence of PSUs, software companies, aerospace companies,

telecommunications companies, machine tools manufacturers, heavy equipment manufacturers, defence establishments, etc. Bangalore serves as headquarters to several public manufacturing heavy industries such as HAL, NAL, Bharat Heavy Electricals Limited (BHEL), Bharat Electronics Limited, Bharat Earth Movers Limited (BEML) and Hindustan Machine Tools (HMT).
5.

Proximity to vendor base: There are approximately 2,000 small and medium enterprises focused on component manufacturing, tooling and testing equipment, and assembling. These companies meet the demand of HAL, NAL and ISRO in addition to global aerospace firms.

6.

Government support: The State Government is investor-friendly and has simplified procedures and fast tracked approvals through Single Window Mechanism and the State High Level Clearance Committee (for investments greater than INR 50 crore) with the objective of faster clearance of proposals. Further, the State has been making efforts to ensure that the infrastructure requirements of the industry are met and has proposed to set up an aerospace SEZ, near Bangalore International Airport at Devanahalli, where 1000 acres are to be devoted to expansion of aerospace activity, particularly MRO outsourcing. QuEST Global has already oriented its SEZ for Precision Engineering to become Indias first aerospace SEZ in Belgaum in November 2009. The State Government is also promoting setting up of an aerospace university in partnership with industry.

27

At the central level, statutory problems and the limit of 26 per cent FDI in offsets is a barrier to investments. At the local level, value-added tax, rationalisation of taxes to favour the sector, provision of quality power and land are said to be the chief issues that are the need of the hour though. The infrastructure issues too have been posing a hurdle to developing the sector in the state. There is enough manpower to leverage on, said Raman, adding, Ecosystem is already there in the space. Even if we are late, there is ample time to catch up with other states that may have stolen a march over Karnataka. We can develop an aero-component sector. The aerospace park SEZs will be eligible for benefits and tax sops applicable to such export zones, Karnataka industry principal secretary V P Baligar said at the session, organised by the Karnataka chapter of the Confederation of Indian Industry.

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CHAPTER III COMPANY PROFILE

3.1 Introduction Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. Today, HAL has 19 Production Units and 10 Research & Design Centres in 8 locations in India. The Company has an impressive product track record - 15 types of Aircraft/Helicopters manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3658 Aircraft/Helicopters, 4178 Engines, Upgraded 272 Aircraft and overhauled over 9643 Aircraft and 29775 Engines.HAL has been successful in numerous R & D programs developed for both Defense and Civil Aviation sectors. Over the past five decades, HAL has spread its wings to encompass various activities in the areas of design, development, manufacture and maintenance of Light Aircraft, Piston and Jet Engine trainers, Advanced Fighter / Combat Aircraft, Helicopters, Commercial Aircrafts, Jet Engines, Aircraft systems, Accessories and Avionics. The manufacturing divisions are fully packed by Research and Design center, new initiative in R&D such a Design and Development of the Advanced Lighter Helicopter (ALH), Light Combat Aircraft (LCA), New Jet Trainer (HJT-36) and update programme for MIG and Jaguar Aircraft, as well as co-production of Civil Aircraft, and many other joint ventures in several high tech field are expected to make HAL fly still higher in this century. Hindustan Aeronautics Limited is the largest Aerospace complex in south-east Asia today, plays crucial role in Indias ambitious plans for broad base industrialization with emphasis on not only self-reliance in defense production, but also to become an
29

international partner in Civil Aircraft manufacturing and maintenance. HAL joins hand with Indian defense forces to provide vigilance over the countrys extensive borders and skies through its sophisticated manufacturing overhaul and maintenance capabilities. It is also towards expanding its activities in Civil Aircraft and Helicopters and Nations space programme. Mission To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace equipment, civil transport aircraft, helicopter and missiles and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ". Values 1. Customer Satisfaction We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers needs and to deliver products and services that fulfill and exceed all their requirements. 2. Commitment To Total Quality We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers. 3. Cost And Time Consciousness We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve this by eliminating waste in all activities and continuously improving all processes in every area of our work. 4. Innovation And Creativity We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness.

30

5.

Trust And Team Spirit We believe in achieving harmony in work life through mutual trust, transparency,

co-operation, and a sense of belonging. We will strive for building empowered teams to work towards achieving organizational goals. 6. Respect For The Individual We value our people. We will treat each other with dignity and respect and strive for individual growth and realization of everyone's full potential. 7. Integrity We believe in a commitment to be honest, trustworthy, and fair in all our dealings. We commit to be loyal and devoted to our organization. We will practice selfdiscipline and own responsibility for our actions. We will comply with all requirements so as to ensure that our organization is always worthy of trust. Motto a) Integrity. b) Credibility. c) Customer satisfaction.

Now HAL is a public sector unit fully owned by Government of India. The Board of Directors manages the company, which has a full time Chairman. The Board is Autonomous except certain powers reserved for the decision of the President of India, which includes:1. Approval of operating plans and capital budgets. 2. Approval of foreign collaboration agreements. 3. Board of Directors / Chairman.

A wide variety of precision items, equipment and assemblies are exported by HAL to leading Aircraft and Airborne equipment manufacturers in UK, Europe, Canada and USA. Future projects of the Company: 1. Basic Turboprop Trainer (HTT-35) 2. Soft Exports. 3. Transport Aircraft.
31

4. Aviation Sector. 5. HAL, BAe Joint Venture. 6. HAL, Russia Joint Venture.

HAL Locations HAL groups divisions are spread over different parts of the country and also abroad viz., Bangalore, Korwa, Koraput, Kanpur, Hyderabad, Lucknow, Delhi, Mumbai, Chennai, Vizag, Moscow and in London. The HAL groups units located in different places are broadly classified into 4 groups. They are: 1. Bangalore Divisions 2. Accessories complex. 3. MIG complex. 4. Liaison offices. 3.2.Background and Growth of Company The history and growth of the Hindustan Aeronautics Limited is synonymous with the growth of Aeronautical industry in India over the past 60 years. The Company which had its origin as the Hindustan Aircraft Private Limited was incorporated on 23 Dec 1940 at Bangalore by Shri Walchand Hirachand a farsighted visionary in association with the Government of Mysore with an Authorised Capital of Rs.4 Crores and with the aim of manufacturing aircraft in India. In March 1941, the Government of India became one of the shareholders in the Company holding 1/3 of its paid-up capital and subsequently took over its management in 1942. In collaboration with the InterContinental Aircraft Company of USA, Hindustan Aircraft Private Limited commenced its business of manufacturing of Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber Aircraft. However, the aircraft manufacture programmes were abandoned a year later in favour of Overhaul & repair of aircraft to support the Second World War effort. And then Hindustan Aircraft Private Limited came under the administrative control of Ministry of Industry & Supply.

In January 1951, Hindustan Aircraft Private Limited was placed under the Administrative control of Ministry of Defense. In August 1963, Aeronautics India
32

Limited (AIL) was incorporated as a company wholly owned by the Government of India with facilities at Nasik, Koraput and Hyderabad to undertake the manufacture of the MIG-21 aircraft under license from Russia. In June 1964, the Aircraft Manufacturing Depot which was set up in 1960 as an Air Force unit to produce the Airframe for the HS748 transport aircraft was transferred to AIL. The two companies i.e. Hindustan Aircraft
st

Private Limited and Aeronautics India Limited were merged on 1 Oct 1964 to form Hindustan Aeronautics Limited (HAL) with its principal business being design, development, manufacture, repair and overhaul of aircrafts, helicopters, engines and related systems like avionics, instruments and accessories.

The Company's steady organizational growth over the years with consolidation and enlargement of its operational base by creating sophisticated facilities for manufacture of aircraft / helicopters, aero engines, accessories and avionics is illustrated below-

33

Fig.No 3.1 Organizational Growth of HAL

34

3.3 Nature of Business Carried:HAL is one of the largest aerospace companies in Asia with its annual turnover to be running above US$2 billion. More than 40% of HALs revenues come from international deals to manufacture aircraft engines, spare parts, and other aircraft materials. Over the last six decades, it has grown progressively into an integrated aerospace organization and has spread its wings to cover various activities in the area of design, development, manufacture and maintenance of advanced fighters, pistons and jet engine trainers, commercial aircraft, helicopters, associated aero-engines, aircraft systems, equipment and avionics. Below is a partial list of major operations being undertaken by HAL. HAL has made substantial progress in its current projects : 1. Advanced Light Helicopter Weapon System Integration (ALH-WSI) 2. Tejas - Light Combat Aircraft (LCA) 3. Intermediate Jet Trainer (IJT) 4. Light Combat Helicopter (LCH) Various Military and Civil Upgrades: Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement. HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like a. PSLV (Polar Satellite Launch Vehicle) b. GSLV (Geo-synchronous Satellite Launch Vehicle) c. IRS (Indian Remote Satellite) d. INSAT (Indian National Satellite) Apart from these, other major diversification projects are manufacture & overhaul of Industrial Marine Gas Turbine and manufacture of Composites.

35

HAL has formed the following Joint Ventures (JVs) : a. BAeHAL Software Limited b. Indo-Russian Aviation Limited (IRAL) c. Snecma-HAL Aerospace Pvt Ltd d. SAMTEL-HAL Display System Limited e. HALBIT Avionics Pvt Ltd f. HAL-Edgewood Technologies Pvt Ltd g. INFOTECH-HAL Ltd h. TATA-HAL Technologies Ltd i. HATSOFF Helicopter Training Pvt Ltd j. International Aerospace Manufacturing Pvt Ltd k. Multi Role Transport Aircraft Ltd Several Co-production and Joint Ventures with international participation are under consideration. HAL's supplies / services are mainly to Indian Defence Services, Coast Guard and Border Security Force. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness. HAL was conferred NAVRATNA status by the Government of India on 22nd June 2007.The Company scaled new heights in the Financial Year 2010-11 with Turnover of Rs.13, 116 Crores and PBT of Rs 2,841 Crores. HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and fulfillment of Social Responsibilities. Social Responsibilities Undertaken by the Organization The social responsibilities undertaken by the organization are as follows:1. Adoption of villages where the organization sets up schools, hospitals, road, electricity, waterlines etc. 2. Undertakes pulse polio campaign in HAL hospitals and outside.

36

3. Tree plantation. 4. Volunteers for operation of the blind or cataract operation. 5. Built schools for mentally challenged. 6. Helps the schedule caste and schedule tribe association for their upliftment.

3.4.Awards and Recognitions Some of the prestigious Awards received during 2009-10 & 2010-11 are: 2009-10 1. MoU Excellence Award for the top performing CPSEs for the year 2006-07(Top Ten Public Sector Enterprises). HAL has been receiving awards consecutively since 2001-02. 2. RakshaMantris Award for Excellence for the year 2007-08 under the Institutional category. 3. Regional Export Award from EEPC, India for the year 2007-08.This award was presented on 21st Feb 2010 in Maldives. 4. The Supplier of the year 2009 by Boeing, USA. 5. Foundry & Forge Division, Bangalore conferred with International Diamond Star Award for Quality in the realm of customer satisfaction, leadership, innovation and technology as established in QC100 TQM Model. 6. Foundry & Forge Division, Bangalore conferred with GargiHuttenes-Albertus Green Foundry Award of the year 2008-09 by Institute of Indian Foundrymen. 2010-11 1. MoU Excellence Award for the top performing CPSEs for the year 2008-09. 2. RakshaMantri's Award for Excellence for the years 2008-09, for Export under the Institutional category. 3. International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of recognition to the Indian Industry for excellence in innovation, indigenous technology and entrepreneurship under the following categories:a. Outstanding contribution to the Defence Industry. b. Most Influential Company of the year
37

c. Excellence in Indigenous Technology d. Excellence in Exports 4. Golden Award for Quality and Business Prestige from Otherways Management Association Club, France 5. Performance Excellence Award -2009 (Organization) for the year Institution of Industrial Engineering. 6. Foundry & Forge Division, Bangalore conferred with Casting of the Year 2010 award to Main Gear Box (MGB) casting of ALH from the Institute of Indian Foundrymen. 7. Aerospace Division, Bangalore: Runner-Up in ViswakarmaRashtriyaPuraskar and National Safety Award 2008 instituted by Ministry of Labour, Government of India. 8. Aerospace Division, Bangalore was awarded Gold Medal by the Society of Aerospace Manufacturing Engineers (SAME) for the year 2010 for outstanding contribution in the field of Aerospace Manufacturing. 9. Engine Division, Bangalore won Rajiv Gandhi National Quality Awards 2009, instituted by Bureau of Indian Standards, New Delhi for Commendation for Large Scale Manufacturing Industry-Engineering & Others. 10. Avionics Division, Korwa conferred with IMTMA-SIEMENS Productivity Championship Award for excellence and outstanding work in the area of productivity. 11. Shri G.C Bhagwanani, Chief Supervisor, HAL- TAD, Kanpur, was awarded the Prime Ministers Shram Shree Award for 2006 on 15th Sept 2010. 12. ShriA.Selvaraj, AGM (Mfg), Foundry & Forge Division, Bangalore was awarded the Foundryman of the year 2010 by the Institute of Indian Foundrymen. 13. Shri Mohan Lal, Chief Supervisor of Accessories Divison, Lucknow was selected for Prime Ministers ShramVir for the year 2009. 2008-09 by

38

Chairman Business Heads (5) Managing Director (Bangalore Complex) Aircraft Division [Incl. Flt. Ops. (FW)]
Engine Division Overhaul Division Foundry & Forge Division Aerospace Division IMGT Airport Services Centre LCA-LSP Project Group IJT-LSP Project Group Facilities mgt div Medical & Health Central Materials & Processes Lab Sukhoi Engine Division, Koraput Transport Aircraft Kanpur Mgt Services Aerospace Systems Lucknow, korwa Indigenization

Functional Heads (3) Managing Director (Helicopter Complex)

Helicopter Mfg. Division Director (Design & Devlpmnt) Director (Corp.Plg.& Marketing) Director (Finance) Director (Human Resources)

Managing Director (MiG Complex)

Aircraft Mfg. Division, Nasik

Managig Director (Accessories Complex)

Transport Aircraft Division, Kanpur

Aircraft R&D Centre Planning

Finance & Accounts Integrated Materials mgt

Hunam Resource

Aircraft Overhaul Division, Nasik

Avionics Division, Korwa

Helicopter MRO Division

Mission & Combat System

Projects

HAL Mgt Academy

Engine Division, Koraput

Accessories Div, Lucknow

Barrackpore Division

Engine Test Bed R&D Centre

Marketing

Company Secretariat

Avionics Division, Hyderabad

Composite Mfg. Division

Quality

Rotary Wing R&D Centre

Customer Services

Aircraft Upgrade R&D Centre, Nasik

Gas Turbine R&D Centre, Koraput

IT

Vigilance

Fig.No 3.2 Showing The Organizational Structure at HAL

39

Fig. No. 3.3 Structure of Board of Directors

40

Fig.No 3.4 Divisions of Hindustan Aeronautics Limited

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3.5.Major Divisions in the Bangalore Complex

3.5.1 Aerospace Division This division manufactures space worthy structure like Satellite Launch Vehicle inter stages, propellant tanks and separator mechanisms for ASLV, PSLV,GSLV, IRS and INSAT series.

3.5.2 Engine Division This division with over three decades of experience has acquired the state of the art technology in manufacture, overhaul and maintenance of Aero engines.This division currently manufactures, overhauls Adour MK 811/Adour MK 804, Garret TPE-315-5, Artoste III B, Dart and Orpheus engines. It is also and authorized service center for Garret-TPE-331-5 series. The division has also diversified into manufacture/repair of Industrial Gas Turbines.

3.5.3Helicopter Division This division was set up to manufacture, repair and overhaul helicopter for the defense sector as well as civil sector. The division undertakes manufacture, repair and maintenance of Chetak and Cheetah Helicopters. Currently, the division is engaged in production of Advanced Light Helicopter.

3.5..4Overhaul Division Established as a repair and overhaul base for fighters, it has so for overhauled over 40 varieties of Aircrafts, major servicing and overhaul of associated ratable in respect of Kiran MK-I,MK-IA/MK II, Jaguar and Mirage 2000 are undertaken. Barrackpore branch factory, and unit of Overhaul Division undertakes servicing of Chetak, cheetah & AN-32 Aircraft.

3.5.5Foundry & Forge Division The divisions Capabilities include precision castings, sand castings, and precision forgings and ring forgings. The division is also involved in the development of materials and alloy for Aerospace and defense applications.

42

3.6. Major Divisions in the Accessories Complex

3.6.1 Hyderabad Division. This division undertakes production and servicing of Avionics, Air route surveillance for IAF/Army/Navy/Coast Guard/Space and other civil applications. The Avionics design centre is part of this division and it undertakes design and development of communication systems, Navigation systems, Airborne Radar Systems, Ground radar systems and specific to type test equipment.

3.6.2 Kanpur Division Originally set up for the manufacture of HS-748 Aircraft, today the division manufactures HPT-32 and dornier-228 Aircraft. The division also undertakes repair, overhauls and maintenance of civil aircrafts including HS-748, Fokker-27, Gliders, DO228 and HPT-32. The division is gearing up for co-production of civil aircraft. The division is supported by a R & D center.

3.6.3 Lucknow Division The manufacturing range of the division includes the mechanical and Hydro mechanical accessories. Fuel system accessories and instruments accessories for the complete range of aircraft produced in HAL. In addition, the division is manufacturing a wide range of Ground Support Equipment. The division has also set up accessories design center, which undertakes indigenous development of accessories, required for the aircrafts, engines and tanks for the services.

3.6.4 Korwa Division. The capability of this division covers the manufacture, repair and maintenance of Advanced Avionics systems for military aircraft of Eastern Origin and Western Origin covering Inertial Navigational System, head of display, Weapon Aiming Computers, combined map electronic display, Laser Ranger and market target seeker, integrated navigation and sighting complex. Production capabilities also include manufacturing and repair of Electronic modules using ATE.
43

3.7. Major Divisions in the MIG Complex

3.7.1 Nasik Division Established as a manufacturing base for MIG series of aircraft, the division has manufactured/overhauled a large number of variants of MIG 21 BIS and MIG 27. It also manufactures flexible fuel tanks, metallic drop tanks and honey comb structures. R& D Center of this division supports the design liaison activities.

3.7.2Koraput Division

The R11 series engines, R 25 engines and R 29B engines are manufactured and overhaul at koraput division. Facilities have also been set up for the overhaul of RD 33 engines. The division has also excellent in hot forging and precision die casting facilities for both ferrous and non-ferrous alloys.

3.8. Major Products Jaguar International HAL commenced production of Jaguar International, deep penetration strike and battlefield tactical Support Aircraft in 1979, under license from British Aerospace, including the engine, accessories and avionics. Jaguar aircraft is designed with 7 hard points (4 under wing, 2 overwing and 1 under fuselage) capable of carrying large variety of weapons in different combinations to meet the Customers needs. 1. Manufacturing of Kiran MK II basic jet trainer. 2. Manufacturing of Composite/Metal drop tanks. 3. Manufacturing of dornier 228 landing gear, airbus A320/321 forward pax doors. 4. Manufacturing of Boeing 757 owx doors pylons for tornado aircraft.

44

5. Upgraded Aircraft programme and Pilotless Target Aircraft Lakshya 6. Manufacturing of Advanced Jet Trainer - HAWK. 7. Manufacturing of Combat Aircraft Trainer and Medium Multi Role Combat Aircraft. 8. Boeing 777 Main Landing Gear Uplock Box Assembly. 9. Boeing-767 Bulk Cargo Door . 10. Any other services / manufacturing activity which is available in the Division

Products of Hindustan Aeronautics Limited

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Fig.No 3.5 Products of Hindustan Aeronautics Limited 3.9. Major Customers (Domestic and International) 3.9.1 Domestic 3.9.1.1 Defense and Space: 1. 2. 3. 4. 5. 6. 7. 3.9.1.2 Civil 1. Border Security Force 2. Oil & Natural Gas Cooperation of India 3. Government of Karnataka 4. Government of Jharkhand 5. Government of Maharashtra 6. Geological Survey of India 7. Bharat Heavy Electricals Ltd. Indian Air Force Indian Army Indian Navy Indian Coast Guard Indian Space Research Organization Defense Research & Development Organization Ordance Factory Board

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3.9.2 Exports: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Airbus Industrie, France Boeing, USA Coast Guard, Mauritius Ecuadorian Air Force, Ecuador ELTA, Israel GE Aviation, USA Hamilton Sundstrand, USA Honeywell International, USA Israel Aircraft Industries, Israel Mauritius Police Force, Mauritius Moog Inc. USA Namibian Air Force, Namibia Nepal Army, Nepal RAC MIG, Russia Rolls Royce Plc, UK Royal Air Force, Oman Royal Malaysian Air Force, Malaysia Royal Thai Air Force, Thailand Ruag, Germany Rosoboronexport, Russia Suriname Air Force Turbomeca, France Vietnam Air Force, Vietnam

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3.10. Future Plans 3.10.1 Kaveri Engine Kaveri, the designated engine for LCA, is being developed by GTRE, Bangalore. Various divisions of HAL are involved in the development and certification. The engine will be manufactured at engine division, HAL. The materials for engine components include high strength super alloy such as inconel on the hot end side and TI-64 on the cold end. The engine is twin spool, by pass type designed to provide dry thrust of 5291 kg reheat thrust of 8264 kg. 3.10.2 Engines for AJT, IJT and ALH The engines for advanced Jet trainer project and intermediate Jet trainer project will also be manufactured by engine division in the near future. Further, the division will be participating in the co-design & co-production of engine for Advanced Light Helicopters. 3.10.3 Diversification Manufacture of auxillaries such as 750 kw turbo alternator, forced draught turbo blowers and main circulating turbo pumps for leander class frigates form part of diversification. 3.11. Departments 1. Human Resource Department 2. Bills Payable Department 3. Bills Receivable Department 4. Payroll Department 5. Purchase Department 6. Stores Department 7. Facility Department 8. Progress Department 9. Management Service Department (MSD) 10. Cost Accounts Department
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11. Material Accounts Department 12. Book Keeping Department 13. I T1 Department 14. Scheduling Department 15. Civil Maintenance/ Electrical Department 16. Design Liaison Engineering Department (DLE) 17. External Outsourcing Department 18. Security Department 19. Vigilance Department 3.11.1 HUMAN RESOURCE DEPARTMENT
Chairman

Director HR

Executive Director HR

Additional General Manager (AGM)

Chief Manager (CM)

Manager

Deputy Manager

HR Officer

Employees

Employees

Employees

Employees

Employees

workman

Fig. No 3.6. Structure of Human Resource Department

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The raison de eter of Human Resource Development (HRD) is to create context for technological and managerial excellence in a globally competitive Aerospace Industry. The changing environment, rapid technological changes accelerated a paradigm shift from licensed production to R&D based production strategies of co-development , co-production, joint ventures, outsourcing, ancilliarisation, Public private Partnership, focused diversification to civilian, export markets. The overall objective of the Human Resource Development plan is to build a vibrant performance and learning culture that meets the challenges of customer, quality cost, delivery and excellence. Recruitment and retention of competent human resources and develop high commitment and a sense of belongingness to the Company. Accordingly, the Company's HR Vision, Mission, Objectives, Strategies and Policies are carefully evolved. HR Vision "Make HAL a dynamic, vibrant & value-based learning organization with exceptionally skilled, highly motivated & committed human resource to meet the current & future challenges, driven by core values embedded in the culture of the Organization" HR Mission "Enable all those working for HAL to give their best to ensure their all-round growth as well as that of the Organization" Objectives
1.

Ensure availability of Total Quality People to meet the Organizational Goals and Objectives.

2.

Facilitate continuous improvement in Knowledge, Skills and Competence (Managerial, Behavioral and Technical).

3.

Promote a Culture of Learning, Innovation and Achievement with emphasis on Integrity, Credibility and Quality.

4. 5.

Motivate workforce through empowerment of Individuals and Team- building. Play a pivotal role directly and significantly to enhance Productivity, Profitability and the Quality of Work Life.

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Strategy
1. 2.

Total alignment with Corporate Strategy. Tone up Human Resources at optimum level to meet the objectives & goals of the Company.

3.

Identify, Build, Analyze & Upgrade the Knowledge & Skills through Training, Re-training, Multi-skilling etc.

4. 5. 6. 7. 8.

Cultivate Leadership with Shared Vision at various levels in the Organization. Focus on Development of Core Competence in High-Tech areas. Build Cross-functional Teams. Promote Vision, Mission and Values throughout the Company. Encourage performance culture that Rewards, Recognizes & Motivates.

Focus of HR Policy
1. 2. 3. 4.

Competence Building Commitment Motivation Employee Relations

People Development initiatives have taken a strategic role for driving business results in HAL. Competency frame work has become the central theme of numerous initiatives in HAL to enhance the HR processes and systems. To motivate the Officers, an accelerated Promotion Policy was introduced to promote the high fliers with Assessment Centre Score as one of the criteria for promotion to the post of Deputy General Manager &above. A Behavioral Competency Model was developed in the Company with three major groups and eleven competencies in three clusters that forms the basis for the Competency Framework:

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Fig.No.3.7. Behavioural Competency Model for HAL Assessment Centres are conducted for Officers in Grade VI & above. Competency Development Programmes are conducted at IIMs Ahmedabad, Bangalore & Calcutta for such Officers with development needs. Recruitment Induction of freshers in HAL takes place in three streams as Management/Design Trainees (Executives); Technician; and Diploma Trainees (Workmen). The induction of meritorious and fresh Engineering Graduates and other Professionals as Trainees is linked to each of the programs with required background, competencies and skill sets. Learning & Development The objective is that learning should become an integral component of individual professional development by:

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1. 2. 3. 4.

updating knowledge to avoid obsolescence enhancing creativity & innovation continuously identify potential for shouldering higher responsibilities enlarge market share through competitive advantage and strategic thinking to take up challenges.

5.

Progressively achieve 7 days training target per employee per year with a budget of 2% of PBT.

Knowledge Management, Coaching and Mentoring are Core Competence of Organizations for coping with changes. HAL has provided unique opportunity to Officers to acquire higher qualifications by sponsoring them at Cranfield-UK, IITs (Kanpur, Kharagpur, Madras&Roorkee), MDI, Gurgoan, IMI Delhi etc. Performance Management System Continuously improve people capabilities, for meeting the Company's goals. The Performance Management System of Executives formulated on work planning and Task (mutually agreed tasks), self-review and analysis, systematic review and performance feedback ensures that the focus be on value adding activities. Identification of Low performers and High performers enables performance differentials for compensation & career development. There is a clearly defined system of performance review for workmen. Other Major Initiatives Initiatives like 360 Degree Feedback for Officers in Grade VII & higher, Knowledge Management etc. are put in place. Getting the best out of people is the primary thrust of HR, with facilitation mechanisms of Competency building, Performance Management etc. The HR processes viz. Recruitment, Placement, Compensation, Career Growth, Career Planning, Succession Planning etc. are linked to the current and future projects of HAL. HAL reviews the HR Policies from time to time and fine tunes them to align with the constantly evolving Business Strategies of the Company.

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CHAPTER IV LITERATURE REVIEW

This chapter is divided in to two. The first part is the theoretical frame work of the study on recruitment process, and the second part is about the research done earlier in the field of Recruitment. 4.1 Theoretical Framework 4.1.1.Recruitment Process:

Recruiting is a process by which organization locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted, and to permit organizational growth. Recruiting can be quite an expensive process-Recruitment follows HR Planning and goes hand in hand with the selection process by which organizations evaluate the suitability of candidates for various jobs. Without accurate planning, organizations may recruit the wrong number or type of employees.

Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or firm, or for a vacancy in a volunteer-based organization or community group. While generalist managers or administrators can undertake some components of the recruitment process, mid- and large-size organizations and companies often retain professional recruiters or outsource some of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization.

The recruitment industry has four main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.

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4.1.2. In-House Recruitment

Larger employers tend to undertake their own in-house recruitment, using their human resources department In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own websites, coordinate internal employee referrals, work with external associations, trade groups and/or focus on campus graduate recruitment. Alternatively a large employer may choose to outsource all or some of their recruitment process (recruitment process outsourcing).

4.1.3. Importance and Purpose of Recruitment:

1. Determine the present and future requirements of the organization in conjunction with the personnel planning and job analysis. 2. Increase the pool of job candidates with minimum cost. 3. Help increase the success rate of the selection process by reducing the number of under qualified or overqualified job applicants. 4. Help reduce the probability that the job applicants, once recruited and selected, will leave the organization only after a short period of time. 5. Meet the organization's legal and social obligations regarding the composition of the workforce. 6. Start identifying and preparing potential job applicants who will be appropriate candidates. 7. Increase organizational and individual effectiveness in a short and long term. 8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

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4.1.4. Recruitment Process Flowchart (Internal)

1.

Press Advertisements Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

2.

Educational Institutes Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.

3.

Placement Agencies Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)

4.

Employment Exchanges Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

5.

Labour Contractors Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.

6.

Unsolicited Applicants Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can

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help in creating the talent pool or the database of the probable candidates for the organization.

7.

Employee Referrals / Recommendations

Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

8.

Recruitment At Factory Gate Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

4.1.5. Internal Sources The most common internal sources of internal recruitment are 1. 2. 3. 4. personal recommendations notice boards News letters memoranda

1) Personal References The existing employees will probably know their friends or relatives or colleagues who could successfully fill the vacancy. Approaching them may be highly efficient method of recruitment but will almost certainly offend other workers who would have wished to have been considered for the job. To keep employees satisfied make sure that potentially suitable employees are informed of the vacancy so that they

57

can apply. Also anyone else who is likely to be interested is told about it as well so that they can apply for the job. 2) Notice Boards This is the convenient and simple method of passing on important messages to the existing staff. A job advertisement pinned to a notice board will probably be seen and read by a sufficient number of appropriate employees at little or no cost. However many of the staff will probably not learn of the vacancy in this way either because the notice board poorly located or is full of out dated notices that they dont bother to look at it, as they assume there is nothing new to find out. A notice board must be ensured that it is well sited. Wherever it is been placed it should be certain that it is seen by everyone. It means there must be equal opportunity to see to it and this happens when they know that just important topical notices are on display. Attention must be paid to the design and contents of the notice if it is to catch the eye and make the employee read on and then want to apply for the job. 3) Newsletters Many companies regularly produce in-house newsletters, magazines or journals for their staff to read. It is hoped that latest company news sheet is read avidly by all staff thus ensuring that everyone is aware of the job opportunity advertised in it. Unfortunately this is not always so, because it is sometimes not circulated widely enough and employees may find it boring and choose not to read it. Newsletter can be utilized as the source of recruitment if it is convinced that everybody will see a copy. 4) Memoranda Possibly the best way of circulating news of the job vacancy is to send memoranda to department managers to read out to the teams or to write all employees perhaps enclosing memoranda in wage packets if appropriate. However it can be a time consuming process to contact staff individually, especially if there is a large work force. It should also be kept in mind as to in which way the memorandum is phrased out so that the job appeals to likely applicants.

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4.1.6. External Sources There are many sources to choose from if you are seeking to recruit from outside the company. 1. Word of mouth 2. Notices 3. Job centers 4. Private agencies and Consultants 5. Education Institutions 6. The Press 7. Radio 8. Television

1) Word of Mouth Existing employees may have friends and relatives who would like to apply for he job. Recruiting in this way appears to be simple, inexpensive and convenient. Never use word of mouth as a sole or initial source of recruitment if the work force is wholly or

predominantly of one sex or racial group. Also employing friends and relatives of present employees may be imprudent because it is not certain that they are as competent as the current staff. 2) Notices Displaying notices in and around business premises is a simple and often overlooked method of advertising a job vacancy. They should be seen by a large number of passerby, some actively looking for work. It can also be inexpensive with a notice varying from a carefully hand written post card up to a professionally produced poster. Pay attention to the appearance and contents of the notice if it is intended that it is applied by the right people. 3) Job Centers Most large towns have a job center which offers employers a free recruitment service, trying to match their vacancies to job seekers. Staff will note information about a

59

post and the types of person sought and then advertise the vacancy o notice boards within their premises. Job center employees can further help if requested to do so by issuing and assessing application forms and thus weeding out those applicants who are obviously unsuitable for the position. Short listed candidates are then sent out for the employer to interview on his business premises. 4) Private Agencies and Consultants There are various types of private organization that can help to find the right person for a particular job. Employment agencies exist in many town and cities. Some handle all general vacancies from junior unto supervisory level while others specialize in various occupations such as accountancy, clerical or computer personnel and marketing or sales. Since they maintain a register of job seekers, they initially attempt to find applicants from this list. A short list will be drawn up by reading through applications and conducting interviews on client organizations behalf. Although fees vary, it isexpected to pay around 10 to 15% of the annual salary offered if a suitable person is found for the job. This will be partly refundable if he leaves within a certain period of time. For temporary staff, it is normally charged on hourly, daily or weekly rate by the agency. They will then pay the employee. Recruitment agencies are similar to employment agencies in the services that they offer. The main difference is that recruitment agencies tend to operate at a higher level, concentrating on technical, managerial and executive appointment. Accordingly, increased time, effort and expertise are needed to compile a quality short list. This will be reflected in the fees charged, often between 18 and 22% of the annual salary of the staff recruited. Again a proportion of this may be refundable if the employees proves to be unsatisfactory and subsequently departs. Search consultants, also known as Headhunters, specialize in finding candidates for senior positions. They normally head hunt people currently at work in similar posts, possibly at rival companies. Discrete approaches, by telephone, are made direct to the persons involved. Such a process is time consuming and requires considerable tact and diplomacy if it is to be successful. Charges may be in excess of 30% of the annual salary. Before opting for this source attention must be paid about those agencies who brashly promise to give a lengthy list of candidates very quickly. It may sound impressive but suggests that they are simply pulling names from a register perhaps of dubious quality and are not actively searching for and screening applicants properly. A good shortlist will
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take time to compile. It must be ensured that the agency with which the organizations contracting must follow a good refund system in case the new recruit resigns or needs to be dismissed shortly after joining. Also a free replacement warranty up to six months must be provided by the recruiting agency. When employing an agency or consultant, make sure that they know exactly what they are expected to do. A clear job description and employee specification, must be provided so that they could screen by referring to the employee specification and so on. Full up to date information about the job and person required. Supply all details and all instructions in writing to avoid subsequent misunderstandings and disagreements. The recruiting agency or consultant must be in touch with the client company through out the recruitment process to ensure that the agency is following the instructions and doing its job well. Also it must be ensured that they are maintaining equality of opportunity and avoiding unlawful discrimination against applicants of a particular sex, marital status or any racial group. All applicants should be judged solely on their ability to do the job. 5) Educational Institutions or Campus Recruitment Those companies which require a steady intake of young persons for new Youth Training to trainee management positions ought establish and maintain close contact with colleges and universities. The advantage of campus recruitment is, it is known that who the audience to be addressed are. Promotional literature in the form of posters, broachers, catalogues; press releases and so on can be issued to the audience so that the companys name remains prominent in their and their students minds all the time. 6) The Press Advertising for the new staff through the press has proved successful for many companies. Choose between local newspapers, national newspapers and the magazines. All will put in touch with different audience. Local newspapers, read by a large crosssection of the immediate population, may be most suitable if there is sufficient talent in the area. National newspapers, with their mass circulations and differing attitudes to news coverage appealing to various tastes, could be better when looking out to fill the senior position.
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Trade Magazines often under estimated as useful source of recruitment might be worth considering if looking out to recruit someone for a specialized job which possibly requires previous experience of the particular industry. Naturally there are some drawbacks to newspaper advertising. It is expensive in relation to other, often equally good source such as job and careers centers, which advertise free. Other drawbacks of newspaper advertising include a high level of wastage (the vast majority of readers will not be job hunting) and a short life span. The daily or evening newspaper is invariably discarded at the end of the day. A short series of advertisement incurring extra expenses may sometimes be required and multiplying one advert by three or four starts to make this source prohibitively costly. Trade magazines could be a better way of recruiting staff depending upon the circumstances. Most will include employment advertisements within a classified section which will be read by a small but select and interested number of people. There some disadvantages, however the financial outlay is still considerable. If the magazine is published bi-monthly or quarterly, may have to wait sometime before the advertisement is seen. It may be intended to fill the vacancy as soon as possible. 7) Radio Many radio stations broadcast special job finders advertisements throughout the day for companies looking for new recruits. Advertising through the radio has got many advantages as it will be transmitted to over a wide geographical area to potentially large audience. Variety of age groups listens thus making it a suitable medium for different types and levels of jobs. Advertisements can be broadcast very quickly sometimes within hours. Nevertheless there are some disadvantages that must be considered carefully. As few have tune in to hear advertisements and their thoughts invariably wander when they are on, or they may start station hopping to find more music. The radio is also transient medium. An advertisement lasts for perhaps 30 seconds, which is a very short period in which to put across all the important points, and is then finished. It is usually difficult to remember (What was the companys name? what was its phone number?) most listeners will not have a pen and pad handy to make notes.

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8) Television You can advertise on a regional or national basis. Recruiting staff through the Television is still widely regarded as a new and innovative approach. Companies which use this medium may therefore be seen as go-ahead and dynamic. Thus, this medium may not be an immediate choice if there is only just one vacancy to be filled, although shorter and expensive one month contracts could be negotiable and worth considering. 4.2. Research Done Earlier in the Field of Recruitment In one of the studies conducted by the HR consulting firm HEWITT it was found that 45% of 129 companies surveyed did not see cost saving as their main consideration. Top three reasons for recruitment outsourcing in corporate are reported to be: 1. Gaining outside expertise 2. Improving service quality 3. Focusing on core business.

So the companies must not go for RSPs simply to reduce the cost of recruitment but they should focus more on improved structure, standardization, efficiency, technology, compliance and other value adds. Behind every Attrition there is recruitment. Whenever an employee leaves an organization without informing and without giving notice or leaves the organization in the middle of the project it should be known that he or she is joining some other organization. Many times the employees of the recruitment consultants are hired by their own clients and are asked to join at a very short notice period. They are been told that relieving letter is not required and some even offer incentives for early joining. There must be some guidelines and ethics for recruitment so that there can be fair recruitment policies. There must be some ethical guidelines such as a) Notice period must be served and nobody must be hired without relieving letter or providing proof of serving the notice period. b) Corporate should not hire anyone who has spent less than one year in his current organization. The logic is obvious. Employees six months to begin their contribution and at least one year is required to recover recruitment process. More

63

importantly if somebody is hired who has worked less than a year with the current organization, that individual will ditch in even shorter period. c) Corporates should not head hunting from competition. They should advertise and encourage employees seeking change to voluntarily respond to this

advertisement. d) Corporate should not bail out the prospective employee commitments such as employment bond etc. the corporate should realize that employee signed the bond and if he wants to break it, he should do at his own cost and the corporate should not reimburse or compensate him for violating the employment contracts says the chairman of TMI NETWORK one of the Indias leading recruitment consultancy.

In one of the study conducted on Recruitment and Selection Process at BIOLOGICAL-E LTD conducted by ManikRao in the year 2005, it was found that company has used internal search for recruiting the employees into more higher or the positions in different departments who can fit into the job. It was found that the company has done it by considering it as the most cost effective way of filling the vacancies. It has also been found that the company opted for external sources such as advertisement agencies to fill vacancies. Employee referrals were also one of the internal sources of recruitment. In another study on recruitment and selection in a HR consultancy, it was found that most of the employees felt that the telephonic interview is not effective and instead direct interviews are more feasible. As with other markets, a perfectly competitive labour market presupposes that no firm could hire a large proportion of employees available on the labour market and that no costs would be associated with searching for, or changing, positions. Furthermore, a perfectly competitive labour market assumes perfect information concerning the structure of the market, that potential employees would be homogeneous in respect to skills and competencies or equivalently that all positions on a market would require identical competencies. Finally, firms would make profit-maximizing decisions and individuals rational utility-maximizing ones. (Barney and Lawrence, 1989) Castetter (1996) referred to recruitment as those activities in personnel administration designed to make available the numbers and quality of personnel needed
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to carry on the work of the school system. According to the study conducted in Lund University 1999 argues that recruitment policy does not influence the recruitment process in terms of internal vs. external recruitment, whereas control systems will have an impact on the recruitment process by shaping the decision assumptions, upon the basis of which recruitment decisions are made. We use the framework developed by Argyris and Schn (1974) to illustrate that there is a discrepancy between, on one hand, recruitment policy, and on the other recruitment decision assumptions, which guide actions resulting in organization norms and the outcome of the recruitment process, i.e. the manager. Thus, although corporations tend to have recruitment policy of internal recruitment, this does not necessarily coincide with the assumption that internal candidates are the best in a recruitment decision.

Earlier research in the area of recruitment has involved the importance of variables such as education (Blaug, 1976; Mincer, 1974), job vacancy rates and career patterns (Doeringer&Piore, 1971; Spilerman, 1977), early career attainments (Rosenbaum,1984), age (Lawrence, 1984), likeness to the recruiter (Kanter, 1977), quality of ones personal network (Granovetter, 1974, 1981) etc. One could say that these variables are taken into account by the corporation, consciously or subconsciously, due to the difficulty of assessing a persons ability. The recruiter will try to reduce information uncertainty by using such proxy variables to predict a persons future behavior, which implies that although the recruiter will try to make profit-maximizing decisions, the basis upon which they are made may not be conducive to such decisions. Apart from the difficulty of evaluating a candidates ability, not many researchers address the question of when recruitment is made internally and when it is made externally. However, this could also be seen as a signal of ability in that prior experience maybe seen as an advantage and therefore, a signal of prior knowledge of corporate norms and values. Nevertheless, internal or external recruitment is a prior assumption to most theories regarding the selection process (Williamsson, 1975).

Research has previously taken the view that internal labour markets are most effective (Williamsson, 1975), due to neither superiors nor subordinates possessing sufficient information to predict future labour requirements and conditions, as well as promoting on-the job learning through more skilled and less skilled employees. Also,
65

internal labour markets tend to establish procedures and rules, which reduce the incentive to engage in short-term opportunism by both parties and thus the need for monitoring. In the context of recruitment, internal recruitment would seem rational, as being able to directly observe a candidate would seem to reduce information uncertainty in the recruitment process. However, the view of internal labour market effectiveness is not shared by all, as will be exemplified by the following citation of Osterman (1984). Taken as a whole, this approach seems unsatisfying. It is easy to establish efficiency-limiting aspects of internal market procedures. For example, senior provisions may prevent those most able from attaining jobs in which their talents are best used. More generally, the rules and procedures of internal markets considerably limit management discretion concerning deployment of this labor force. For proponents of the efficiency-based explanation to prevail, they must assume on a matter of faith, since no data are available on costs and benefits of different procedures, that the arrangement that dominates is, by definition, the most efficient. The theory is reduced to tautology. (Osterman, 1984, p.9). Recruitment forms the foundation of the core activities and processes underlying human resource management and such activities include the acquisition, training and development, and rewarding performance of workers (Gilmore, and Williams, 2009). The success and sustainability of most organizations is directly proportional to skills and competencies of the employees. Equally, the entry point into any organization is dependent on the effectiveness of the recruitment and selection practices of the hiring team within the organization. In light of this, competition in the UK employment market has increased tremendously over the past few decades. This can be attributed to the inability of the employment market to absorb the growing pool of graduates from institutions of higher learning. According to Mohamed Branine, (2008, p. 497), recruitment is one of the leading and toughest challenges facing the majority of potential employers. Mohamed (2008) argues that the causes of this phenomenon can be in part due to the complexities associated with the selection of the most qualified individuals and as well, due to the availability a several graduates in different disciplines from Ivy League institutions. To

66

that purpose, the demand for quality potential employees will remain highly competitive the most advantaged recruiters will be those with strong recruitment policies, coupled with exceptional training and development policies. In some instances, financial abilities of potential recruiters will play a substantial role in future graduate recruitment and selection processes. Varied researches and studies have been carried out and written up regarding the aspect of graduate recruitment, the attitudes of graduates, and the attitudes of recruiters with respect to choosing their employers, and as well, the perceptions of graduates towards their formative years in the employment sector. Covered in past researches also includes the influences of management executives on recruiting activities, the strategies and methods used to conduct and communicate information regarding the recruitment process, and reliability and accuracy of the recruiting tools and instruments. Much of this research has, however, concentrated on different aspects within the recruitment and selection process in different organizations across the work Recruitment forms an essential part in the central activities underlying the management of human resources within many organizations. These activities include the acquisition of talent, training and developing the talent, and eventually rewarding the performance of the acquired talent. As such, the recruitment and selection process forms an integral part of the works undertaken by human resource management and other specialists involved in the graduate and recruitment process. Universally, there is commonly accepted strategy or commonly agreed procedure of recruiting and selecting graduates due to the different recruiting needs and selection methods among many employers. The differences and variations in recruiting and selection methods among employers are dependent on the operations, size, and needs (Sackett&Lievens, 2008). The recruitment and selection process is structured in such a manner that it involves planned rational activities comprising of particular sequentially linked phases within the employee resourcing process.

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CHAPTER V DATA ANALYSIS AND INTERPRETATION This chapter is allocated for analysis and interpretation of the collected data. The study used a structured pre-tested questionnaire comprised of 15 questions. The questionnaire has got three parts. The first part contained 4 questions regarding the experience, Cadre and recruitment processes. The other part contained 11 statements where the respondents were asked to rate their perception about recruitment on a five point scale starting from strongly agree, agree, neither agree or disagree, disagree and strongly disagree. The third part queried on the demographic details of the respondents as age, gender and grade. From among the 3000 executives working in HAL a sample of 120 were selected for this study. Systematic random sampling was used to select the samples and the respondents were contacted directly for administering the questionnaire. The filled in questionnaires were coded, edited, and analyzed using SPSS software. Factor analysis was performed with the responses to the 11 questions used to measure the recruitment process and 2 factors contributing to it were identified. The factors are Contentment and Process clarity. A factor recruitment process was identified after combining the other two factors. The responses for the classification questions are presented first to provide a clear picture about the perception of respondents of this study.

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Experience wise Distribution of Employees at HAL Table. No: 5.1 Experience wise Distribution of Employees Frequency less than 5 years 6 -10 years Valid 11 - 15 years 16- 20 years more than 20 years Total Source: Survey Data Interpretation: The above table shows the Distribution of Employees according to their experience in the organization. The organization has more of those employees who has experience less than 5 years which included 37.5% followed by those employees who has experience of 11-15 years in the organization. The organization has least of those employees who has experience of more than 20 years which includes only 11.7%. 45 19 25 17 14 120 Percent 37.5 15.8 20.8 14.2 11.7 100.0 Valid Percent 37.5 15.8 20.8 14.2 11.7 100.0 Cumulative Percent 37.5 53.3 74.2 88.3 100.0

Cadre 5.1 Distribution of Employees at HAL Fig. No: wise Pie Chart Showing Experience wise Distribution of Employees at HAL

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Table.No: 5.2 Cadre wise Distribution of Employees Frequency Valid Top Executive Senior Executive Executive Total Source: Survey Data 40 40 40 120 Percent 33.3 33.3 33.3 100.0 Valid Percent 33.3 33.3 33.3 100.0 Cumulative Percent 33.3 66.7 100.0

The above table shows Distribution of Employees according to their cadre in the organization. Executives are categorized in to three cadres. Top Executives, Senior Executive and Executive cadre. In order to give equal representation to all categories, 40 executives of each category are surveyed in this study. Thus forms the total size 120.

Fig. No: 5.2 Pie Chart Showing Cadre wise Distribution of Employees at HAL

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Age wise Distribution of Employees Table.No:5.3 Age Wise Distribution of Employees at HAL Frequency less than 30 31 to 40 Valid 41 to 50 51 to 60 above 60 years Total Source: Survey Data 12 48 34 25 1 120 Percent 10.0 40.0 28.3 20.8 .8 100.0 Valid Percent 10.0 40.0 28.3 20.8 .8 100.0 Cumulative Percent 10.0 50.0 78.3 99.2 100.0

The above table shows the Distribution of Employees according to their age. From the table we can comment that the organization has more of those employees of age between 31 to 40 which includes 40% followed by employees whose age group is between 41 to 50 which includes 28.3%, the organization has least of those employees whoseageisabove60years.

Fig. No: 5.3 Pie Chart Showing Age wise Distribution of Employees at HAL

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Gender wise Distribution of Employees Table No: 5.4 Gender wise Distribution of Employees at HAL Percent 55.8 44.2 100.0 Valid Percent 55.8 44.2 100.0 Cumulative Percent 55.8 100.0

Frequency Male Valid Female Total Source: Survey Data 67 53 120

The above table shows Distribution of Employees at HAL according to gender. The organization has 55.8% of Male and 44.2% of Female.

Fig. No: 5.4 Pie Chart Showing Gender wise Distribution of Employees at HAL

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Grade wise Distribution of Employees Table. No: 5.5 Grade wise Distribution of Employees at HAL Grade Frequency grade 1 & 2 Valid grade 3 & 4 5 and above 40 40 40 120 Percent 33.3 33.3 33.3 100.0 Valid Percent 33.3 33.3 33.3 100.0 Cumulative Percent 33.3 66.7 100.0

Total Source: Survey Data

The above table shows Distribution of Employees according to their Grades in the organization. The table shows equal distribution of samples in each cadre. Twelve different grades of executives are categorized in to three cadres in HAL. Officers in Grade V and above come under the Senior Executives cadre. Officers in Grade III and IV come under Executives cadre and Officers in Grade I and II come under Junior Executives cadre. In order to give equal representation to all categories, 40 executives of each category were surveyed in this study. Thus the total size used for the study is 120.

Fig. No: 5.5 Pie Chart Showing Grade wise Distribution of Employees at HAL

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5.1 Identification of Factors Determining Employees Perception about Recruitment Process The major objective of the present study was to study the Employees perception on recruitment process in different cadres of Executives of the organization. Recruitment is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. In order to study the factors contributing the perception of employees at HAL a factor analysis was attempted by using the employees responses to the 11 questions. These 11 questions are framed in such a way that the answers reflect the ideas and thoughts of the respondents with regard to perception about the process and the various factors influencing it. Likert scaling techniques has been used for measuring the response. The scales used were:1. Strongly agree 2. Agree 3. Neither agree nor disagree 4. Disagree 5. Strongly disagree Respondents specified their level of agreement or disagreement on the symmetric agree-disagree scale for the series of 11 statements. Points were given to each scale staring from 5 to 1.

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Table No: 5.6 Showing Rotated Component Matrixa Rotated Component Matrixa Component Sl.No 1 2 3 4 Statements 1 I feel valued to be part of this org I enjoy the type of work I do Inspired to perform my best Org communicates compensation, procedure, policy 5 6 7 Understand what is expected out of me Superiors are satisfied with my performance Recruitment Process is a Challenging task for the recruiter 8 9 work is just as I was told in my induction Recruitment Process should be done by Knowledgeable & experienced person 10 Satisfied with the Candidate Eligibility Verification in the organization 11 I have Clear understanding on job & align with organization goals Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. Source: Survey Data .915 .790 .774 .608 .530 .455 .429 .411 -.041 2 .091 -.019 .152 .016 .502 .301 .245 .256 .833

.080

.806

.306

.743

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The columns under this heading are the rotated factors that have been extracted. As we can see that four factors were extracted. As per the above table it can be identified that the statements can be divided into 2 factors such as:

Factor 1: a. I feel valued to be part of this organization b. I enjoy the type of work I do c. I am Inspired to perform my best d. Org communicates compensation, procedure, policy e. I Understand what is expected out of me f. Recruitment Process is a Challenging task for the recruiter g. The work is just as I was told in my induction

All the above statements are related to the Satisfaction of recruitment process. So it is grouped and profiled as Contentment. Factor 2: a. I Understand what is expected out of me b. Recruitment Process should be done by Knowledgeable & experienced person c. I am Satisfied with the Candidate Eligibility Verification in the organization d. I have Clear understanding on job compensation & alignment with organization goals

All the above statements are related to the Clarity of process recruitment. So it is grouped and profiled Process Clarity.

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The above 2 factors were added together and a new factor recruitment process was named and one sample test was done to find out the opinion regarding recruitment process among the respondents. Table No: 5.7. Computations Based on the Tested Value of Recruitment Process factor One-Sample Statistics N Recruitment Process 120
Source: Analysis of Survey Data

Mean 32.6000

Std. Deviation 3.69055

Std. Error Mean .33690

One sample test is done to understand the opinion of employees regarding the recruitment process and it was found that the mean value is 32.6 with a standard deviation of 3.69 Table No: 5.8. One Sample Test for Recruitment Process One-Sample Test Test Value = 44 Sig. (2tailed) .000 Mean Difference -11.40000 95% Confidence Interval of the Difference Lower -12.0671 Upper -10.7329

T Recruitment Process -33.838

Source: Analysis of Survey Data

Df 119

Here the tested value of factor is 44 i.e. 80% of maximum score given in the opinion. The difference in the tested value and mean value of respondents are not statistically significant at 95% confidence interval. So it is concluded that the employees are not satisfied with the Recruitment Process at HAL

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Influence of Gender wise Distribution of Employees at HAL Table No 5.9. Distribution of Influence of Gender of employees on the Recruitment Process Group Statistics Gender Recruitment Process
Source: Analysis of Survey Data

N 67 53

Mean 31.5672 33.9057

Std. Deviation 3.93594 2.89737

Male Female

Table No: 5.10. Showing T-Test for Influence of Gender of Employees on the Recruitment Process Factor Recruitment Process Levene's Test for Equality of Variances F Equal variances assumed Equal variances not assumed
Source: Analysis of Survey Data

t-test for Equality of Means T df 118 Sig. (2Mean Std. Error tailed) Difference Difference .000 .000 -2.33850 -2.33850 .64640 .62419

Sig.

2.211

.140 -3.618

-3.746 117.445

Interpretation: The Group statistics table shows, there exist a difference in perception of recruitment process of Male and Female. It can be observed from the table that Female employees have a higher mean of 33.90 than the male employees whose mean score is 31.57 In order to find out perception on recruitment process among male and female are significant, a T Test is conducted and the results are shown in table 5.28. The table shows that f value is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the perception about recruitment process among male and female are similar
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Influence of Experience wise Distribution of Employees at HAL Table No: 5.11. Distribution of Influence of Cadre of employees on the Recruitment processes Factor Group Statistics Recruitment Process less than 5 years 6 -10 years 11 - 15 years 16- 20 years more than 20 years Total
Source: Analysis of Survey Data

N 45 19 25 17 14 120

Mean 32.4222 32.6842 32.5600 32.2353 33.5714 32.6000

Std. Deviation 4.02542 2.66776 3.61801 4.82868 2.40878 3.69055

Std. Error .60007 .61203 .72360 1.17113 .64377 .33690

Table No: 5.12. Showing Anova for Influence of Cadre of Employees on the Recruitment processes Factor ANOVA Recruitment Process Sum of Squares Between Groups Within Groups Total
Source: Analysis of Survey Data

df 4 115 119

Mean Square 4.267 13.945

F .306

Sig. .873

17.070 1603.730 1620.800

Interpretation: The Group statistics table shows, there exist a difference in the perception about recruitment process with regard to experience. It can be inferred from the table that, employees having experience more than 20 years have highest mean score of 33.57 with a standard deviation of 2.40. Employees having experience of 16 20 years have the least mean score of 32.24 with standard deviation 4.83. In order to find out that difference in the perception about recruitment process in regard with the experience of employees are significant, anova Test is conducted and the results are shown in table 5.30. The table shows that mean value is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the perception about recruitment process in regard with experience of employees is similar
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Influence of Cadre wise Distribution of Employees at HAL Table No 5.13. Distribution of Influence of Cadre of Employees on the Recruitment Processes Factor Group Statistics Recruitment Process Top Executive Senior Executive Executive Total
Source: Analysis of Survey Data

N 40 40 40 120

Mean 32.2250 33.4000 32.1750 32.6000

Std. Deviation 3.82628 3.08678 4.05025 3.69055

Std. Error .60499 .48806 .64040 .33690

Table No 5.14. Showing Anova for Influence of Cadre of Employees on The Recruitment Processes Factor ANOVA Recruitment Process Between Groups Within Groups Total
Source: Analysis of Survey Data

Sum of Squares 38.450 1582.350 1620.800

df 2 117 119

Mean Square 19.225 13.524

F 1.422

Sig. .245

Interpretation: The Group statistics table shows, there exist a difference in perception about recruitment process with different cadres of employees. It was found that the Senior Executive Cadre have highest mean score of 33.4 with standard deviation 3.08, employees in the Top Executive Cadre with a mean score of 32.17 with standard deviation of 4.05 and employees in the Executive Cadre with the least mean score of 32.17 with standard deviation 4.05. In order to find out the difference in perception about recruitment process in different cadres are significant, anova Test is conducted and the results are shown in table 5.32. The table shows a value not significant at 95% confident level. Thus it was inferred that the difference in mean is significant. Thus the study proved that the employees perception on recruitment process does not change among different cadres of employees.
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Influence of Age wise Distribution of Employees at HAL Table No 5.15.Distribution of Influence of Age group of Employees on the Recruitment processes Factor Group Statistics Recruitment Process less than 30 31 to 40 41 to 50 51 to 60 above 60 years Total
Source: Analysis of Survey Data

N 12 48 34 25 1 120

Mean 33.3333 32.6042 32.8824 31.8000 34.0000 32.6000

Std. Deviation 2.34844 3.99329 3.32816 4.17333 . 3.69055

Std. Error .67794 .57638 .57077 .83467 . .33690

Table No 5.16. Showing Anova for Influence of Age group of employees on the Recruitment processes Factor ANOVA Recruitment Process Between Groups Within Groups Total
Source: Analysis of Survey Data

Sum of Squares 27.125 1593.675 1620.800

df 4 115 119

Mean Square 6.781 13.858

F .489

Sig. .744

Interpretation: The Group statistics table shows, there exist a difference in perception about the recruitment process among different age groups. It can be observed from the table that employees with in the age group above 60 have highest mean score of 34. Employees in between 50 to 60 have the least mean score of 31.8 with a standard deviation of 4.17. In order to find out the perception about recruitment process of different age group are significant, anova Test is conducted and the results are shown in table 5.34. The table shows the mean value is 0.744 which is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the perception about the recruitment process of employees among different age group is similar
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Influence of Grade wise Distribution of Employees at HAL Table No 5.17. Distribution of Influence of Grade of Employees on Recruitment Process Factor Recruitment Process grade 1 & 2 grade 3 & 4 5 and above Total
Source: Analysis of Survey Data

N 40 40 40 120

Mean 32.1750 33.4000 32.2250 32.6000

Std. Deviation 4.05025 3.08678 3.82628 3.69055

Std. Error .64040 .48806 .60499 .33690

Table No: 5.18. Showing Anova for Influence of Grade of Employees on Recruitment Process Factor ANOVA Recruitment Process Sum of Squares Between Groups Within Groups Total
Source: Analysis of Survey Data

df 2 117 119

Mean Square 19.225 13.524

F 1.422

Sig. .245

38.450 1582.350 1620.800

Interpretation: The Group statistics table shows, there exist a difference in perception about recruitment process among different grades of employees. Among them, employees in the Grade 3 and 4 have highest mean score of 33.40 with standard deviation 3.08. And employees in the grade 1 and 2 with the least mean score of 32.17 with standard deviation 4.05. In order to find out the contentment of different grades are significant, anova Test is conducted and the results are shown in table 5.36. The table shows a significant value at 95% confident level. Thus it was inferred that the difference in mean is significant. Thus the study proved that the employees perception about recruitment process changes with different grade.

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The researcher then tried to assess the influence of respondents characteristics such as experience, cadre, age, gender and grade on the factors contentment and process clarity. Let us first discuss in detail about contentment. Contentment means 'acknowledgement and satisfaction of reaching capacity.' Contentment factor of Recruitment Process

Table No: 5.19. Computations Based on the Tested Value of Contentment Factor of Recruitment Process One-Sample Statistics N Contentment 120
Source: Analysis of Survey Data

Mean 20.0500

Std. Deviation 2.86928

Std. Error Mean .26193

One sample test is done to know about the contentment factor of recruitment process and it was found that the mean value is 20.05 with a standard deviation of 2.89.

Table No: 5.20. One Sample Test for Contentment Factor of Recruitment Process One-Sample Test Test Value = 32 Sig. (2tailed) .000 Mean Difference -11.95000 95% Confidence Interval of the Difference Lower -12.4686 Upper -11.4314

t Contentment -45.623

df 119

Source: Analysis of Survey Data

Here the tested value of factor is 32 i.e. 80% of maximum score given in the opinion. The difference in the tested value and mean value of respondents are not statistically significant at 95% confidence interval. So the respondents do not have good opinion regarding Contentment factor. Thus the study proved that the employees are not content with their recruitment process at HAL.

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Influence of Gender on the Contentment Factor Table No 5.21. Distribution of influence of Gender on the Factor Contentment Group Statistics Gender Contentment with the job Male Female N 67 53 Mean 19.4179 20.8491 Std. Deviation 3.21054 2.14293

Source: Analysis of Survey Data

Table No: 5.22. Showing T-Test for Influence of Gender on the Factor Contentment Levene's Test for Equality of Variances F Equal variances assumed Equal variances not assumed
Source: Analysis of Survey Data

Contentment

t-test for Equality of Means T -2.790 Df 118 Sig. (2tailed) .006 Mean Difference -1.43115 Std. Error Difference .51304

Sig. .212

1.573

-2.918 114.98 5

.004

-1.43115

.49040

Interpretation The Group statistics table shows, there exist a difference between contentment of Male and Female. It can be observed from the table that Female employees have a higher mean of 20.85 than the male employees whose mean score is 19.42. In order to find out that difference of contentment among male and female are significant, a T Test is conducted and the results are shown in table 5.8. The table shows that f value is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the level contentment among male and female does not change with their gender.

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Influence of Experience of employees on the Contentment Factor Table No: 5.23. Distribution of Influence of Experience of Employees on the Contentment Factor Group Statistics Experience N Mean Std. Deviation Std. Error less than 5 years 6 -10 years 11 - 15 years 16- 20 years more than 20 years Total
Source: Analysis of Survey Data

45 19 25 17 14 120

19.9111 19.9474 20.2400 19.6471 20.7857 20.0500

3.24613 1.80966 2.48797 3.92016 1.96815 2.86928

.48390 .41516 .49759 .95078 .52601 .26193

Table No: 5.24.Showing Anova for Influence of Experience of Employees on the Contentment Factor Contentment Sum of Squares Between Groups Within Groups Total 12.309 967.391 979.700 df 4 115 119 Mean Square 3.077 8.412 F .366 Sig. .833

Source: Analysis of Survey Data

Interpretation The Group statistics table shows, there exist a difference between contentment with regard to experience. It can be inferred from the table that, employees having experience more than 20 years have highest mean score of 20.79 with a standard deviation of 1.97. Employees having experience of 16 20 years have the least mean score of 19.65 with standard deviation 3.92. In order to find out that difference of contentment in regard with the experience of employees are significant, anova Test is conducted and the results are shown in table 5.10. The table shows that f value is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the level contentment in regard with experience of employees is similar.

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Influence of Cadre wise Distribution of Employees at HAL

Table No 5.25. Distribution of Influence of Cadre of Employees on the Contentment Factor Group Statistics Cadres Top Executive Senior Executive Executive Total
Source: Analysis of Survey Data

N 40 40 40 120

Mean 19.6250 20.9500 19.5750 20.0500

Std. Deviation 2.90612 2.29771 3.18560 2.86928

Std. Error .45950 .36330 .50369 .26193

Table No 5.26. Showing Anova for Influence of Cadre of employees on the Contentment Factor Contentment Sum of Squares Between Groups Within Groups Total Interpretation: The Group statistics table shows, there exist a difference between contentment with different cadres. It was found that the Senior Executive Cadre have highest mean score of 20.95 with standard deviation 2.30, employees in the Top Executive Cadre with a mean score of 19.63 with standard deviation of 2.91 and employees in the Executive Cadre with the least mean score of 19.58 with standard deviation 3.19. In order to find out the difference of contentment of different cadres are significant, anova Test is conducted and the results are shown in table 5.12. The table shows a significant at 95% confident level. Thus it was inferred that the difference in mean is significant. Thus the study proved that the employees perception on level contentment changes among different cadres of employees. 48.650 931.050 979.700 Df 2 117 119 Mean Square 24.325 7.958 F 3.057 Sig. .050

Source: Analysis of Survey Data

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Influence of Age wise Distribution of Employees at HAL Table No: 5.27. Distribution of Influence of Age Group of Employees on the Contentment Factor Group Statistics Age less than 30 31 to 40 41 to 50 51 to 60 above 60 years Total
Source: Analysis of Survey Data

N 12 48 34 25 1 120

Mean 20.0833 20.1042 20.4412 19.3200 22.0000 20.0500

Std. Deviation 1.88092 3.21724 2.40191 3.17175 . 2.86928

Std. Error .54298 .46437 .41192 .63435 . .26193

Table No: 5.28. Showing Anova for Influence of Age Group of Employees on the Contentment Factor Contentment Sum of Squares Between Groups Within Groups Total 22.482 957.218 979.700 Df 4 115 119 Mean Square 5.620 8.324 F .675 Sig. .610

Source: Analysis of Survey Data

Interpretation: The Group statistics table shows, there exist a difference between contentment among different age groups. It can be observed from the table that employees within the age group of 60 years have highest mean score of 22 and employees within the age group of 50 to 60 have the least mean score of 19.32 a standard deviation of 3.17 In order to find out the contentment among different group are significant, anova Test is conducted and the results are shown in table 5.14. The table shows the mean value is 0.610 which is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the level of contentment among different age group is similar.

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Influence of Grade wise Distribution of Employees at HAL Table No 5.29. Distribution of Influence of Grade of Employees on Contentment Factor Group Statistics N grade 1 & 2 grade 3 & 4 5 and above Total
Source: Analysis of Survey Data

Mean 19.5750 20.9500 19.6250 20.0500

Std. Deviation 3.18560 2.29771 2.90612 2.86928

Std. Error .50369 .36330 .45950 .26193

40 40 40 120

Table No: 5.30. Showing Anova for Influence of Grade of Employees on Contentment Factor Contentment Sum of Squares Between Groups Within Groups Total 48.650 931.050 979.700 Df 2 117 119 Mean Square 24.325 7.958 F 3.057 Sig. .050

Source: Analysis of Survey Data

Interpretation: The Group statistics table shows, there exist a difference between contentment with different grades of employees. Among them, employees in the Grade 3 and 4 have highest mean score of 20.95 with standard deviation 2.30. And employees in the grade 1 and 2 with the least mean score of 19.58 with standard deviation 3.19. In order to find out the contentment of different grades are significant, anova Test is conducted and the results are shown in table 5.16. The table shows a significant value at 95% confident level. Thus it was inferred that the difference in mean is significant. Thus the study proved that the employees perception about the level contentment changes with different grades.

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The researcher then tried to assess the influence of respondents characteristics on process clarity. Now let us discuss in detail about Process Clarity. Process Clarity factor of Recruitment Process

Table No: 5. 31.Computations Based on the Tested Value of Process Clarity factor of Recruitment Process One-Sample Statistics N Process Clarity
Source: Analysis of Survey Data

Mean 120 16.6333

Std. Deviation 1.99972

Std. Error Mean .18255

One sample test is done to know about the Process Clarity factor of recruitment process and it was found that the mean value is 16.63 with a standard deviation of 1.99.

Table No: 5.32. One Sample Test for Process clarity factor of Recruitment Process One-Sample Test Test Value = 16 Sig. (2tailed) .001 Mean Difference .63333 95% Confidence Interval of the Difference Lower .2719 Upper .9948

t Process Clarity 3.469

Df 119

Source: Analysis of Survey Data

Here the tested value of factor is 16 i.e. 80% of maximum score given in the opinion. The difference in the tested value and mean value of respondents are statistically significant at 95% confidence interval. So the respondents have good opinion regarding Process clarity factor. Thus it is concluded that the employees has got clarity about the recruitment process at HAL.

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Influence of Gender wise Distribution of Employees at HAL Table No 5.33. Distribution of Influence of Gender of employees on Process Clarity Factor Group Statistics Gender Male Female N 67 53 Mean 16.0746 17.3396 Std. Deviation 2.02495 1.74249

Source: Analysis of Survey Data

Table No: 5.34. Showing T-Test for Influence of Grade of employees on Process Clarity Factor Levene's Test for Equality of Variances F Equal variances assumed Equal variances not assumed
Source: Analysis of Survey Data

Process Clarity

t-test for Equality of Means Sig. (2Mean tailed) Difference .000 .000 -1.26500 -1.26500 Std. Error Difference .35031 .34422

Sig.

Df 118

.226

.635 -3.611

-3.675 117.129

Interpretation: The Group statistics table shows, there exist a difference between Process Clarity of Male and Female. It can be observed from the table that Female employees have a higher mean score of 16.07 with standard deviation 2.02 and female employees have lowest mean score 17.34 with standard deviation 1.74. In order to find out the Process Clarity among male and female are significant, a T Test is conducted and the results are shown in table 5.18. The table shows that f value is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. The study proved that the level Process Clarity among male and female are similar.

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Influence of Experience of employees wise Distribution of Employees at HAL Table No: 5.35. Distribution of Influence of Experience of employees on the Process Clarity Factor Group Statistics Experience less than 6 years 6 -10 years 11 - 15 years 16- 20 years more than 20 years Total
Source: Analysis of Survey Data

N 45 19 25 17 14 120

Mean 16.5778 16.8421 16.4400 16.4706 17.0714 16.6333

Std. Deviation 2.08336 1.60773 2.27450 2.47784 .91687 1.99972

Std. Error .31057 .36884 .45490 .60097 .24505 .18255

Table No. 5.36. Showing Anova for Influence of Experience of Employees on the Process Clarity Factor. Process Clarity Sum of Squares Between Groups Within Groups Total Interpretation The Group statistics table shows, there exist a difference between process clarity with regard to experience. It is inferred from the table that, employees having experience more than 20 years has highest mean score of 17.07 with standard deviation .92 and employees having experience between 11 and 15 years have the least mean score of 16.44 with standard deviation 2.27 In order to find out that difference of process clarity in regard with the experience of employees are significant, anova Test is conducted and the results are shown in table 5.20. The table shows a value which is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the level process clarity in regard with experience of employees is similar 5.039 470.828 475.867 df 4 115 119 Mean Square 1.260 4.094 F .308 Sig. .872

Source: Analysis of Survey Data

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Influence of Cadre wise Distribution of Employees at HAL Table No: 5.37.Distribution of Influence of Cadre of employees on the Process Clarity Factor Group Statistics Cadres Top Executive Senior Executive Executive Total
Source: Analysis of Survey Data

N 40 40 40 120

Mean 16.6500 16.6250 16.6250 16.6333

Std. Deviation 2.05751 1.93069 2.05922 1.99972

Std. Error .32532 .30527 .32559 .18255

Table No: 5.38. Showing anova for Influence of Cadre of employees on the Process Clarity Factor Process Clarity Sum of Squares Between Groups Within Groups Total .017 475.850 475.867 Df 2 117 119 Mean Square .008 4.067 F .002 Sig. .998

Source: Analysis of Survey Data

Interpretation: The Group statistics table shows, there does not exist any difference between Process Clarity with different cadres. It was found that all the three cadres have the same mean value of 16.65. The above table also makes it clear that 95% confident level is not significant. Thus the study proved that the Process Clarity among different cadres of employees are similar.

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Influence of Age wise Distribution of Employees at HAL Table No 5.39.Distribution of Influence of Age group of employees on the Process Clarity Factor Group Statistics Age N less than 30 31 to 40 41 to 50 51 to 60 above 60 years Total
Source: Analysis of Survey Data

Mean 17.4167 16.6042 16.5882 16.4000 16.0000 16.6333

Std. Deviation 1.37895 2.08071 2.03183 2.10159 . 1.99972

Std. Error .39807 .30032 .34846 .42032 . .18255

12 48 34 25 1 120

Table No: 5.40. Showing Anova for Influence of age groups and factor Process Clarity Process Clarity Sum of Squares Between Groups Within Groups Total Interpretation: The Group statistics table shows, there exist a difference between process clarity among different age groups. It can be observed from the table that employees with in the age group less than 30 have highest mean score of 17.42 with a standard deviation of 1.38. Employees above the age group of 60 have the least mean score of 16.0 with .0 standard deviation. In order to find out the process clarity of different age group are significant, anova Test is conducted and the results are shown in table 5.24. The table shows the mean value is 0.686 which is not significant at 95% confident level. Thus it was inferred that the difference in mean is not significant. Thus the study proved that the level of Process Clarity of employees with different age groups is similar
93

Df 4 115 119

Mean Square 2.309 4.058

F .569

Sig. .686

9.236 466.631 475.867

Source: Analysis of Survey Data

Influence of Grade wise Distribution of Employees at HAL Table No: 5.41. Distribution of Influence of Grade of employees on the Process Clarity Factor Group Statistics Process Clarity N Mean Std. Deviation Std. Error grade 1 & 2 grade 3 & 4 5 and above Total
Source: Analysis of Survey Data

40 40 40 120

16.6250 16.6250 16.6500 16.6333

2.05922 1.93069 2.05751 1.99972

.32559 .30527 .32532 .18255

Table No: 5.42. Showing Anova for Influence of Grade of employees on the Process Clarity Factor Process Clarity Sum of Squares Between Groups Within Groups Total .017 475.850 475.867 df 2 117 119 Mean Square .008 4.067 F .002 Sig. .998

Source: Analysis of Survey Data

Interpretation: The Group statistics table shows, there does not exist any difference in Process Clarity with different grades of employees. The table showed similar mean value for all the grades with a score of 16.63. The above table makes it clear that the mean value is not significant at 95% confidence level. Thus the study proved that the level Process Clarity among different grades of employees is similar.

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CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSION

6.1 Findings The Study at Hindustan Aeronautics Ltd, Bangalore Complex (HAL-BC) found that employees perception about recruitment process depends on two factors contentment and process clarity. The study was productive and could bring out the following findings. 1. The study proved that the employees are not happy with the Recruitment Process at HAL 2. The study proved that the perception about recruitment process among male and female are similar 3. The study revealed that the perception about recruitment process among the employees does not change with their experience. 4. It was inferred that the employees perception on recruitment process changes among different cadres of employees. 5. It was found that the perception about the recruitment process of employees among different age group is similar
6. Thus the study proved that the employees perception about recruitment process

changes with different grades 7. Thus the study proved that the employees are not content with their recruitment process at HAL 8. It was found that the level of contentment among male and female does not change with their gender. 9. According to the experience of employees the level of contentment does not changes. 10. It was found that the employees perception on level of contentment changes among different cadres of employees. The study proved that senior executives had poor opinion on content of the recruitment process compared to top executive and executive. 11. It was inferred that the level of contentment among different age group is the same.

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12. It was found that the employees perception about the level of contentment changes with different grades. The study proved that the employees in the Grade 3 and 4 had poor opinion on contentment of the recruitment process compared to other grades. 13. Thus it is concluded that the employees has got clarity about the recruitment process at HAL. 14. The study proved that the Process Clarity among male and female does not change according to gender. 15. According to the experience of employees the perception on process clarity among employees does not change. 16. It was inferred that the Process Clarity among different cadres of employees are similar. 17. Thus the study proved that the level of Process Clarity of employees with different age groups are similar 18. It was found that the Process Clarity among different grades of employees is similar.

6.2 Suggestions

1. Further study should be done to find out why the employees are not satisfied with the recruitment process. 2. Management should take necessary actions to improve the recruitment process 3. Further study can be done to find out why the employees in the Top Executive Cadre have very poor opinion regarding the contentment factor 4. Management should take necessary steps to make the employees feel that they are valuable to the organization 5. Compensation, Policies and Procedures should be made transparent at the time of recruitment process 6. Job profile should be clearly communicated to the candidates at the time of recruitment process. 7. Management should find out why the employees except 3rd and 4th cadre have poor opinion regarding recruitment process

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6.3 Conclusion

Recruiting is a process by which organization locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted, and to permit organizational growth. Recruiting can be quite an expensive process-Recruitment follows HR Planning and goes hand in hand with the selection process by which organizations evaluate the suitability of candidates for various jobs. Without accurate planning, organizations may recruit the wrong number or type of employees. Employees are the asset of an organization and right candidate should be selected at the right time. So it is very important to have a well-designed recruitment process.

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Webliography

1. http://www.citehr.com/417629-recruitment-process-pdf-books.html 2. http://www.humanresources.com 3. http://www.hal-india.com/sapling.asp 4. http://recruitment.naukrihub.com/recruitment-process.html 5. http://www.cne-siar.gov.uk/education/policiesprocedures/documents

/Recruitment%20Procedure.pdf

6. http://www.ppp.purdue.edu/Pubs/ppp-69.pdf

Bibliography 1. Organizational Dynamics, 19 (4), pp. 5-17Robbins, S. P. (1989), Organizational Behaviour: Concepts, Controversies, and Applications, New Jersey: Prentice Hall. 2. K. Aswathappa, Human Resource Management, Tata McGraw-Hill, 2008, pp. 399-401 3. P. Subba Rao , Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House, 2007, pp. 657-663. 4. C. R. Kothari (2001) Research Methodology of Wishwa Prakashan Publishing, Chennai 17, Edition 5. L.M Prasad, Organizational Behaviour, Sultan Chand & Sons, 2008, pp. 225-228.

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