Recruitment and selection is a multifaceted concept.

The relevance of recruitment and

selection is to determine the number of personnel required. The HR proceeds with the
identification of sources of recruitment and finding suitable candidates for
employment. Both internal and external sources of manpower are used depending
upon the types of personnel needed.
In the present business environment, organizations are faced with the pressure to
produce maximum with less recruitment. An employee, on whom an organization’s
profitability depends, comprises the largest fixed cost that an organization incurs.
individual used to work with one or two organization during their entire working life
Hence, organizations have to evolve methods not only to only improve productivity
but to also keep the cost down.
On the HR front, productivity can be improved by ensuring that the organization
attracts the best talent at the lowest possible cost. This objective translates in to the
adoption of the best recruitment and selection methods and instituting measures to
retain and develop them. Further, a quantitative measurement or recruitment and
selection effectiveness has to be conducted to prove one’s point with respect to
qualitative measure to improve HR effectiveness, the field in still in its nascent stage.
The objective of this study is to measure the Recruitment and Selection practices and
strategies in ALLIED NIPPON LTD. The primary objective is to analyze how the
overall recruitment and selection is done in the company during the year.
The primary objective is well supported by a secondary objective which aims at the
in-depth study of those procedures which affects the Recruitment and Selection
practices.

1
Through this acknowledgement, I express my sincere gratitude towards
all those people who have helped me in the preparation of this project,
which has been learning experience.

I appreciate the co-operation by the management and staff of ‘ Allied

Nippon Ltd ’ for having given me the opportunity for making a research

report from times of time.

I would like to thanks the Ms. Deepshikha, the faculty, the librarian and
the administrative staff of Department of Business Administration,
Mewar Girls Business School Ghaziabad.

Soni Yadav

1. Executive summary

2
 Overview of industry
 Introduction
1. Company profile
 Vision
 Mission
 History
2. Research methodology
3. Objectives
4. Significance of the study
5. Scope and limitations of the study
6. Theoretical framework
 Factors affecting recruitment
 Recruitment policy
 Perquisites of a good recruitment policy
 Methods of recruitment
 Selection procedure
7. Existing procedure
8. Data analysis and interpretations
9. Recommendations
10. Conclusion
11. Annexure

12. Bibliography

3
 EXECUTIVE SUMMARY

Today’s tight labor market is making it more difficult to find, recruit and select
talented people for an organization. The competition for talent is intensifying as there
are fewer qualified applicants available. This shortage of applicants makes it all the

4
more important for organizations to be able to effectively attract, select, and retain
quality candidates.

With many organizations offering a number of job opportunities, candidates can

afford to be choosy when searching for their ideal job. Thus, the best searching
procedure should be adopted by an organization. Once the organization has
successfully recruited candidates, it must select the best one for the position under
consideration. Organization uses various tools to help them select an individual. The
selection tool is designed to obtain behavioral and motivational information about the
candidates for effective selection system. For example, behavioral interviewing is a
popular selection activity in highly effective selection system. In the future even more
organizations plan to use this and other similar tools more intensively to select
employees. Organizations realize that having an effective legally sound system in
place is crucial to helping them select the right people for the right job. Finally better
recruitment and selection strategies result in improved organizational outcomes. The
more effectively organization recruit and select candidates, the more likely they are to
hire and retain satisfied employees.

In this project the different techniques adopted by the company towards this effect
have been identified. Allied Nippon Ltd, which is multinational company, has been
chosen for studying their methods of recruitment and selection function because it has
the probability of achieving more than 50% of the people to be placed for the right
job, which reflects some of the unique ways for recruiting the candidates to fill up
various vacancies.

5
6
 OVERVIEW
OF
INDUSTRY

The recruitment and selection procedure of the company determines the level of
achieving organizational goals in the long run. As per definition it is all about
selecting right person for the right job at the right time at the best possible position.

7
Although it sounds quite simple but it is also not an easier job to evaluate a person
with his knowledge, skills and abilities that may satisfy the core competency for the
job so that his degree of willingness to pursue a job becomes positive. From job
seeker’s perspective it is the core competency which matters much for a job. So it is
the effective recruitment and selection procedure which determines not only the right
candidate for a job but also a long-term accomplishment of organizational goals.

In this project the different techniques adopted by the company towards this effect
have been identified. Allied Nippon, which is multinational company, has been
chosen for studying their methods of recruitment and selection function because it has
the probability of achieving more than 50% of the people to be placed for the right
job, which reflects some of the unique ways for recruiting the candidates to fill up
various vacancies.
The aim of the company is to achieve overall organizational goal not only by way of
fulfilling the targeted top line but also employee satisfaction towards various position
of job to the maximum level.

Allied Nippon Ltd (ANL) is a front runner in the production of the quality friction
materials. The company manufacturing and market a wide range of friction products
including disc brake pads brake linings and brake shoes for various automotive
and non automotive brake application such as, passenger cars,commerecial
vehicles, railways and off-the road (ORT) vehicles.

8
 ANL is a major supplier to brake systems manufacturers and
original equipment manufacturers (OEM)s ANL has a joint venture collobaration with
Japan brake industrial company limited (JBI), a Hitachi group company and also a
technical collobaration with NABTESCO Japan.

With an exhaustive distribution network, ANL has office ware

houses and customer support centers across the globe ANL’s International operation
are equipped to handle technical queries of customers contact through superior service
ANL’s international offices are located international the UK, RUSSIA, CROATIA
and AUSTRALIA. The various certifications such as ISO 9002 QS 9000,ISO 1400
1 and 16949 Awarded to Allied Nippon are the testament to the company’s
commitment to quality excellence and environmental concern.

Product Range Disc Brake Pads

Allied Nippon produces over 1200 different disc brake pads applications with more
than 1000 of those pads having E- mark certifications.The range covers the original
equipments and after market requirements for Japanese, European, Korean,
America and Australia vehicles. As a result, ANL has one of the largest new range
development programs amongst any friction material manufacturing where at least 20
new references are added every month.

9
 Using JIB’s and it’s in house extensive research proven
technology, process methods and original equipment formulation , ANL’s Disc brake
pads can be classified into 2 major categories non Abestos semi metallic and range of
special purpose pads these includes sports line and heavy duty brake pads these
superior pads are used as OEM compounds to renowned segment manufactures
including Honda Volvo and Suzuki. ANL exports its pads to over 41 Countries
across the globe.

Brake Lining And Shoes

ANL Braking range also consists of brake linings and shoes.These products are
supplied extensively to manufactures of passengers cars, SUV’s, LCVs, Tractors,
two Wheelers and four Wheelers.

Again in the unbeatable performance of ANL brake Shoes and

Lining makes it a chief supplier to several OEM’s Honda, Piaggio and Kawasaki
are some of our extrembly satis fied customers.

Railway Brake Blocks:

ANL is a pionner in the development and manufacturing of composition brake blocks
and pads for the Railways it has acquired the lattest and most cost effective
technology. From NABTESCO Japan a world leader in its field safety beings of
paramount importance ANL brake blocks and pads are manufactured under the most
stringent quality checks.
ANL brakes blocks are used in the Indian railways
Frieght and couching range and the company. Is classified a ‘A’ category approved

10
supplier of the Indian railways only four other companies have been granted this
prestigious status ANL is now ready to enter the market of railways pads in a big
way-we are currently developing pads to supply several major metro system in
Europe and the United States. As a Tier-1 OEM and Space parts supplier. We are the
first Indian company in the friction material industry to do so.

Research & Development

Besides using advanced Japanese technology. ANL has built and developed its own
center for in house research and development activities there by providing it with a
solid foundation.
To conduct and complete in house testing for newly development
products (ranging from two wheeler to HCVs) ANLs R&D center approved by the
Government of India is equipped with a dynamometer and the Krauss testing machine
ANL’s, R&D center also conducts rigorous tests to ensure that the highest standard

11
are maintained in raw material selection mix quality and the entire manufacturing
process.

Quality Assurance
ANL friction materials go through systematically defined quality Assurance testing
procedures and programs every batch producedis meticulously subjected to special
test to verify their Thermal analysis & conductivity. Ultimate shear, thermal
expansion range slippage in friction compressive strength and disc drum scoring.
Our products consistently gllanatee the combination of safety
strength, endurance, dependability &cost effective performance. all critical and
special characteristics are statistically measured and controlled, equipped in house
quality control meets the calibration and inspection requirements per international
OEM standards, AN has the following quality certification.

. TS - 16949
. ISO - 14001

Technology Used By Company:

R-90 APPROVE NON- ASBESTOS SEMI METALLIC
 Medium co-efficient of friction.

 Extemebly consistent when used for routine city driving.

 General purpose passenger vehicle of small to mid segment.

 Good pedal feel and consistent stopping power.

12
 Features
Exceptionally consistent
medium-high co-efficient of
friction.
Low wear and squeal resistant.
ALLIED NIPPON LTD.
Vision:
Benefits
Allows flexibility and variety in use
for routine driving condition like
general purpose city driving
prevents excusive heat
accumulation and temperature rise
consistent stopping power.
Good mileage and noise
free.
13
 We want to maintain our leadership passion in our chosen area of business in
India and to area establish it globally we will endeavour to create new opportunities
for

growth in our strategic business.

MISION:
a. Foresight enterprise, Determinatoin and commitment.

b. Forging ahead with modern technologies.

c. Reaching out to the global market.

d. Progressing with the team work.

e. Displaying firm commitment and area by action in our operation.

History

The Allied Nippon limited was started in 1982 .

1982

Technical collaboration with Japan Brake Industrial Company for brake linings.

1983

Manufacturing unit for brake linings, brake shoes, clutch Facings and brake block
stablished.

1988

14
 Second technical collaboration with Japan brake industrial company , Tokyo.

1991

Joint venture partnership with JBI.

1994

Technical collaboration with JBI for disc brake pads.

1997

Certified for QS9000.

Dual ended inertia brake dynamometer commissioned at allied Nippon.

1999

Research and development center approved by department of scientific and

industrial research under ministry of science and technology,
Government of India.

2000

Commissioned a dual ended inertia for brake dynamometer for testing products
ranging from two wheelers to railways.

2002

Started production for railway brake blocks in technical collaboration with

NABTESCO, Japan.

2003

Commencement of supply in indigenously produced railway brake blocks to Indian

railways.
Certified for ISO14001.
Recommended for certification for ISO/TS 16949.

2005

Setup a facility for production of commercial vehicle and two wheelers disc pads.

15
2008
Two additional dynamometers commissioned: 1NVH dynamometer and 1intertia
brake dynamometer . The first friction material company in india with an NVH facility.

RESEARCH
METHODOLOGY

16
The purpose of the methodology is to describe the research procedure. This includes
overall research design, the sampling procedure, the data collection method, and the
analysis procedures and methods.
In this study of recruitment and selection practices of ALLIED NIPPON Ltd.
descriptive type of research has been done for collecting the primary data. It includes
surveys and fact finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affair as it exists at present. Moreover the
researcher has no control over the variables under study; he can only report what is
happening or what has happened.

METHODOLOGY:
Study design:
Primary data, which has been collected by descriptive research, was based on the
structured questionnaires filled up by the sample employees. For secondary data
collection method the help of various reference books have been taken which are
mentioned in bibliography and also by way of surfing through the company website.
Sample size:
Out of total universe, 36 respondents have been taken for convenience. Here,
employees are selected randomly and interviewed. An in-depth interview is also
conducted with the Human Resource Head.

17
Sampling design:
We would use the Probability Sampling method in designing of sample. This is
simple random line of sampling. Any one of the lot can be chosen. Here, everyone has
a fair and equal chance of being selected.
In probability sampling, the randomly selected people were given a questionnaire for
filling the desired information.

18
OBJECTIVES

19
Recruitment and selection is a multifaceted concept. The relevance of recruitment and
selection is to determine the number of personnel required. The HR proceeds with the
identification of sources of recruitment and finding suitable candidates for
employment. Both internal and external sources of manpower are used depending
upon the types of personnel needed.
The aim of the selection policy is the selection of suitable candidate for a suitable job.
The selection procedure starts only when the recruitments are done, that is, the
various suitable candidate pool is made available. The selections are done from this
pool.

This project has the following aims:

 To understand the nature of recruitment and selection policy for acquiring
suitable personnel.
 To understand the variables of recruitment and selection in ALLIED
NIPPON Ltd.
 To identify the sources of manpower supply with a view to acquire the
best possible candidate.
 To understand the procedure of recruitment and selection in ALLIED
NIPPON Ltd.
 To understand the procedure of Recruitment and Selection in ALLIED
NIPPON Ltd.
 Finally to bring out the challenges ahead with respect to recruitment and
selection of advisors.

20
 The primary objective of recruitment and selection policy is to find and
acquire the suitable candidates.

 The objective of this study is to measure the importance or relevance of

recruitment and selection in ALLIED NIPPON Ltd.

 The primary objective measures the overall perception and importance of

recruitment and selection in the organization. The domain of this study
will include the selection of financial advisors of the company only.

 The questionnaire has been framed to determine the importance and

effectiveness of recruitment and selection procedure as perceived by the
employees of the company.

21
SIGNIFICANCE
OF THE STUDY

A JUSTIFICATION

22
Considering the importance and relevance of the subject, selection of this topic is very
obvious. Basically recruiting is the discovering of potential candidates for actual or
anticipated organizational vacancies. It also can be said in another way that it refers to
bringing together those with jobs to fill and those seeking jobs.

It is important to study Recruitment and Selection because through it we can identify

our human resource needs. We can know what kind of people must be selected to fill
up the specified vacancies. The ideal recruitment effort will attract a large number of
qualified applicants who will take the job if it is offered. It should also provide
information so that unqualified applicants can self select them out of job candidacy,
that is, a good recruiting program should attract the qualified and not attract the
unqualified.
In this project, study is done on recruitment and selection process of ALLIED
NIPPON LTD. To find out actual recruitment and selection process of the company is
my main objective of study. Earlier, various studies were made in automobiles
industries, pharmaceuticals industries and others. But this time, the insurance industry
has been chosen by the researcher to understand the image of the organization,
attractiveness of the job, internal policies, about the union (if any), Govt. requirement
recruiting budgets etc.

Through this kind of survey we are able to identify the real recruitment program of
the company where for all kinds of operations technical level qualification is needed.
The various selection costs of the company are also identified. It is very interesting to
study recruitment and selection process as it will give light when the researcher will
work in HR department in his future corporate life.

23
 Selection is a
critical process these days because it requires a heavy investment of money to get
right types of people. If the right types of people are not chosen, it will lead to huge
loss of the company in terms of time, effort and money. Therefore, it is essential to
devise a suitable selection procedure. Each step in the selection procedure should help

24
in getting more and more information about the applicants to facilitate decision
making in the area of selection.
Scientific selection and placement of personnel will go a long way towards building
up a stable work force. It will keep the rates of absenteeism and labor turnover low
and will increase the morale of the employees. This will also enable the organization
to achieve its objectives effectively.

Managerial usefulness of the study:

By studying this crucial topic the managerial level of employees can get various
useful information like:

 By finding the key result areas of employees, the skilled and potential
employees can be recruited.

 To find the best match between job and employees so that best recruitment
can be achieved with respect to position.

 To find the best candidate or employee for decreasing the rate of accidents
in the places of various jobs.

 To build a contended workforce for the organization by giving employee

jobs they are capable of doing.

25
SCOPE AND LIMITATION

The scope of this study is to observe the degree of satisfaction levels of the employer
as well as the employees towards the Recruitment and Selection Techniques adopted
by the company.
The deviations if any, towards this effect have also been studied. Apart from getting
an idea of the techniques and methods in the recruitment procedures a close look will
be taken at the insight of corporate culture prevailing out there in the organization.

26
This would not only help to be familiar with the corporate environment but it would
also enable the researcher to get a close look at the various levels authority
responsibility relationship prevailing in the organization.
This study also focuses on studying the various techniques adopted by the
organization to retain the new recruits.
The stipulated time for the project is insufficient to undergo an exhaustive study about
the topic assigned. Moreover the scope of the topic (Recruitment and Selection) is
wide enough, so it is difficult to cover the entire topic within the stipulated time, but
still whatever could be done towards this effect has been done.

Analyzing the recruitment and selection procedure of an organization takes a lot of

time.
The organization hesitates in sharing the sensitive information about its employees.
Hence the survey would not give the real image of recruitment and selection policy of
the company.
Although serious efforts were made to collect the authentic and maximum
information from respondents, even then this study is subject to various limitations:

 First of all, the scope of sample size was confined to one department only,
which would have other wise made the study and observations more effective.

27
 Secondly, all the results and conclusions are drawn on the basis of whatever
information has been provided by the manager and other employees working
in ALLIED NIPPON LTD. so there are chances of individual biasness as well.
 Thirdly, the stipulated time for the project is insufficient to undergo an
exhaustive study about the topic assigned and moreover the scope of the topic
(Recruitment and Selection) is wide enough, so it is difficult to cover all the
topics within the stipulated time.
 The researcher had to visit a number of times to all the managers and other
working staff for collecting the information. The managers were not able to
give all the data at one particular time.

THEORETICAL
FRAMEWORK

28
INTRODUCTION:

Recruiting is the discovering of potential applicants for actual or anticipated

organizational vacancies. In other words, it is a ‘linking activity’ bringing together
those with job and those seeking jobs.
As Yodel and others point out: “Recruitment is a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to employ effective
measures for attracting that manpower in adequate numbers to facilitate effective
selection of an efficient working force.”
Recruitment has been regarded as the most important function of personnel
administration, because unless the right type of people are hired, even the best plans,
organization charts and control systems would not do much goods.
Edwin B. Flippo views recruitment and selection as ‘positive’ and ‘negative’ activities
respectively. He says: “Recruitment is a process of searching for prospective

29
employees and stimulating and encouraging them to apply for jobs in an
organization.”
It is often termed positive in that it stimulates people to apply for jobs to increase the
‘hiring ration’, i.e., the number of applicants for a job. Selection, on the other hand
tends to be negative because it rejects a good member of those who apply, leaving
only the best to be hired”.
Thus’ recruitment is the development and maintenance of adequate manpower
resources. It involves creation of a pool of available labor upon whom the
organization can draw when it needs additional employees.

FACTORS AFFECTING RECRUITMENT

Most of the organizations, whether large or small, do engage in recruiting activity,

though not to the same extent. This differs with:

 The size of the organization;

 The employment conditions in the community where the organization is

located;

 The effects of past recruiting efforts which show the organization’s ability to
locate and keep good performing people;

 Working conditions and salary and benefit packages offered by the

organization – which may influence turnover and necessitate future recruiting;

 The rate of growth of organization;

 The level of seasonally of operations and future expansion and production

programs;
 Cultural, economic and legal factors, etc.

30
Factors governing recruitment may broadly be divided as internal and external factors.
The internal factors include:

 Recruiting policy of the organization;

 Human resource planning strategy of the company;

 Size of the organization and the number of employees employed;

 Cost involved in recruiting employees, and finally;

 Growth and expansion plans of the organization.

The external factors include:

 Supply and demand of specific skills in the labor market;

 Political and legal considerations such as reservation of jobs for SCs, STs, etc.
 Company’s image-perception of the job seekers about the company.

31
A recruitment policy asserts the objectives of the recruitment and provides a
framework of implementation of the recruitment program of an organization in the
form of procedures. As Yoder and others observe:
“Such a policy may involve a commitment to broad principles such as filling
vacancies with the best qualified individuals. It may embrace several issues such as
extent of promotion from within, attitudes of enterprise in recruiting its old
employees, handicaps, minority groups, women employees, part-time employees,
friends and relatives of present employees. It may also involve the organization
system to be developed for implementing recruitment program and procedures to the
employed.”
Therefore, a well considered and pre-planned recruitment policy based on corporate
goals, study of environment and the corporate needs need to be developed which may
avoid hasty or ill-defined procedure and may go a long way to cater the organization
with the right type of personnel.
A good recruitment policy must contain these elements:

32
  Organization’s objectives - both in the short-term and long-term -must be
taken into consideration as a basic parameter for recruitment decisions and
needs of the personnel -area-wise, job-family-wise.

 Identification of the recruitment needs to take decisions regarding the balance

of the qualitative dimensions of the would be recruits, i.e., the recruiters
should prepare profiles for each category of workers and accordingly work out
the main specifications, decide the sections, departments or branches where
they should be placed and identify the particular responsibilities which may be
immediately assigned to them.

 Preferred sources of recruitment, which would be tapped by the organization,

e.g., for skilled or semi-skilled manual workers, internal sources and
employment exchanges may be preferred; for highly specialized categories
and managerial personnel, other sources besides the former, may be utilized.

 Criteria of selection and preferences: These should be based on conscious

thought and serious deliberations. In some cases trade unions may be
consulted in working out the recruitment policy. In others, management may
take the unilateral decision.

 The cost of recruitment and financial implications of the same.

A recruitment policy, in its broadest sense, involves a commitment by the employer to

such general principles as:

 To find and employ the best qualified persons for each job;

 To retain the best and most promising of those hired;

 To offer promising opportunities for life-time working careers; and

 To provide programs and facilities for personal growth on the job.”

33
According to Yoder, “the recruitment policy is concerned with quality and
qualifications (viz., and Q1 and Q2) of manpower.” It establishes broad guidelines for
the staffing process. Generally, the following factors are involved in a recruitment
policy.

 To carefully observe the letter and spirit of the relevant public policy on
hiring, and, on the whole, employment relationship;

 To provide individual employees with the maximum of employment security,

avoiding, frequent lay-off or lost time;

 To provide each employee with an open road and encouragement in the

continuing development of his talents and skills;

 To assure each employee of the organization interest in his personal goals and
employment objectives;

 To assure employees of fairness in all employment relationships, including

promotions and transfers;

 To avoid cliques which may develop when several members of the same
household or community are employed in the organization;

 To encourage one or more strong, effective, responsible trade unions among

the employees.

34
The recruitment policy of an organization must satisfy the following conditions:

 It should be in conformity with its general personnel policies;

 It should be flexible enough to meet the changing needs of an organization;

 It should be so designed as to ensure employment opportunities for its

employees on a long-term basis so that the goals of the organization should be
achievable; and it should develop the potentialities of employees;

 It should match the qualities of employees with the requirements of the work
for which they are employed; and

 It should highlight the necessity of establishing job analysis.

35
Dunn and Stephens summarize the possible recruiting methods into three categories:

 Direct,

 Indirect and

 Third party.

DIRECT METHODS
These include sending traveling recruiters to educational and professional institutions,
employees’ contacts with public and manned exhibits. One of the widely used direct
methods is campus selection which involves sending of recruiters to colleges and
technical schools. Most college recruiting is done in co-operation with the placement
committee of a college.
The placement committee usually provides help in attracting students, arranging
interviews, furnishing space, and providing student resumes. For managerial,
professional and sales personnel, campus recruiting is an extensive operation. For this
purpose, carefully prepared brochures, describing the organization and the jobs it
offers, are distributed among students, before the interviewer arrives.

36
Sometimes, firms directly solicit information from the concerned professors about
students with an outstanding record. Many companies have found employees' contact
with the public a very effective method. Other direct methods include sending
recruiters to conventions and seminars, setting up exhibits at fairs, and using mobile
offices to go to the desired centers.

INDIRECT METHODS

Indirect methods involve mostly advertising in newspaper, on the radio, in trade, and
professional journals, technical magazines and brochures.
Advertising in newspapers and/or trade journals and magazines is the most frequently
used method, when qualified or experienced personnel are not available from other
sources.
Senior posts are largely filled by such methods when they cannot be filled by
promotion from within. Advertising is very useful for recruiting blue-collar and
hourly workers, as well as scientific, professional, and technical employees. Local
newspaper can be a good source of blue-collar workers, clerical employees, and
lower-level administrative employees.
The main point is that the higher the position is in the organization, or the more
specialized the skills sought, the more widely dispersed advertisement is likely to be.
The search for top executive might include advertisements in a national periodical;
while the advertisement of blue-collar jobs is usually confined to the daily newspaper
or regional trade journals.

37
 THIRD PARTY METHODS (TPMs)

The best management policy regarding recruitment is to look first within the
organization. If that source fails, external recruitment must be tackled.
These include the use of commercial or private employment agencies, state agencies,
recruiting firms, management consulting firms and recommendations or referrals by
friends and relatives.
Private employment agencies are widely used. They charge a small fee from an
applicant. They specialize in specific occupations: general office help, salesmen,
technical workers, accountants, computer staff, engineers and executives. These
private agencies are brokers who bring employers and employees together.
State or public employment agencies also known as Employment or Labor
Exchanges are the main agencies of public employment. They provide a clearing
house for jobs and job information.
Employers inform them of their personnel requirements, while job-seekers get
information for them about the types of jobs that are referred to by employers.
These agencies provide a wide range of services -counseling, assistance in getting
jobs, information about the labor market, labor and wage rates.

38
 Friends and relatives of present employees are also a good source from which
employees may be drawn. When the labor market is very tight, large employers
frequently offer their employees bonuses or prizes for any referrals that are hired and
stay with the company for a specific length of time.
Some companies maintain a register of former employees whose record was good to
contact them when there are new job openings for which they are qualified.
This method of recruitment, however, suffers from a serious defect that it encourages
nepotism, i.e., persons of one's community are employed that may or may not be fit
for the job.

39
Selection involves a series of steps by which the candidates are screened for choosing
the most suitable person for vacant posts. The process of selection leads to
employment of persons who possess the ability and qualifications to perform the jobs
which have fallen vacant in an organization.

The selection procedure is concerned with securing relevant information about an

applicant. “The objective of selection process is to

determine whether an applicant meets the

qualifications for a specific job and to choose the
applicant who is most likely to perform well in that
job.”.

Selection is a long process, commencing from the preliminary interview of those

applicants and ending with the contract of employment. The hiring procedure is not a
single act but it is essentially a series of methods or steps or stages by which
additional information is secured about the applicant.

At each stage, facts may come to light, which may lead to the rejection to the
applicant. A procedure may be compared to a series of successive hurdles or barriers,

40
which an applicant must cross. These are intended as screens, and they are designed to
eliminate an unqualified applicant at any point in the process.
This technique is known as the successive hurdles technique. Not all selection
processes include all these hurdles.

The complexity of a process usually increases with the level and responsibility of the
position to be filled.

According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges.
Candidates are screened by the application of these tools. Qualified applications
go on to the next hurdle, while the unqualified are eliminated.”

Thus, an effective selection program is a non-random process because those selected

have been chosen on the basis of the assumption that they are more likely to be
“better” employees than those who have been rejected.

Selection processes or activities typically follow a standard pattern, beginning with an

initial screening interview and concluding with the final employment decision.

The traditional selection process includes: preliminary screening interview;

completion of application form; employment tests; comprehensive interview;
background investigations, physical examination and final employment decision to
hire.

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\

There is no shortcut to an accurate evaluation of a candidate. The hiring procedures

are, therefore, generally long and complicated. Many employers make use of such
techniques and pseudo-sciences as phrenology, physiognomy, astrology, graphology
etc., while coming to hiring decisions. However, in modern times, these are
considered to be unreliable measures.
The following is a popular procedure though it may be modified to suit individual
situation:

 Preliminary interview: It is generally brief and does the job of eliminating the
totally unsuitable candidates. It offers advantages not only to the organization but
also to the applicant.

 Receiving applications: Application form is useful for several reasons. It gives a

preliminary idea about the candidate to the interviewer and helps him in
formulating questions to have more information about the candidate.

 Screening of applications: After receiving the applications they are screened by a

screening committee and a list is proposed of the candidates to be interviewed.

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 Employment tests: Before deciding upon the job or jobs suitable for a particular
individual, one should know the level of his ability and knowledge. This will
require the use of employment tests.

 The employment test areas are as follows:

• Intelligence tests

• Aptitude tests

• Personality tests

• Interest tests

• Proficiency tests

 Employment interview: The several purposes of an employment interview are:

• To find out suitability of the candidate

• To seek more information about the candidate

• To give him an accurate picture of the job with details of terms and conditions
and some idea of the organization as well.

 Physical examination: The pre employment physical examination or medical test

of a candidate is an important step in selection procedure. It discloses the physical
abilities of a candidate.

 Checking references: Prior to the final selection, the prospective employer

normally makes an investigation on the reference provided by the applicant and
undertakes more or less a research through searching into candidate’s past
employment, education, personal, reputation, etc..

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PHYSICALLY UNFIT PERSONALLY OBJECTIONABLE OR UNFACOURABLE

 Final selection: After a candidate has cleared all the hurdles in the selection
procedure, he is formally appointed by issuing him an appointment letter by
concluding with him a service agreement.
GENERAL IMPRESSION

RECEPTION OF APPLICATIONS
UNFAVORABLE SECOND IMPRESSION

PRELIMINARY INTERVIEW
UNFAVORABLE PERSONNEL DATA

APPLICATION BLANK
UNFAVORABLE TEST SCORE

EMPLOYMENT TESTS
UNFAVORABLE PREVIOUS

INTERVIEW

REFERENCE CHECK
(BACKGROUND INVESTIGATION) WAITING
History

LIST OF
DESIRABLE
FINAL SELECTION APPLICANTS
BY INTERVIEWERS
PHYSICALLY

PHYSICAL EXAMINATION
UNFIT

44
NEGATIVE DECISION PLACEMENT
Fig.1. Steps in selection procedure

EXISTING PROCEDURES

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ALLIED NIPPON Ltd is a huge company; around 1500 employees are working in
this company. The company has a well established recruitment and selection policy.
The policy asserts the objectives of the recruitment and provides a framework of
implementation of their recruitment program in the form of procedures. This policy
involves filling vacancies with the best qualified individuals. There is no special
occasion or time for recruitment in ALLIED NIPPON Ltd . They are recruiting
continuously, it means, every day is a recruitment day for them. Whenever the
company identifies recruitment needs,” the recruiters prepare profile for each
category of workers and accordingly work out the main specification,” decide the
sections and department where they should be placed and identify the particular job
responsibility which may be assigned to them. The company follows various sources
of recruitment. These are:-

1. Campus recruitment
 For this the company goes to the various colleges across the country and
they recruit fresh candidates from there.
2. Media

46
  The company also recruits through media. For this the company uses
sources like newspapers, magazines etc. They prefer this media basically
when large volume of people is required.
3. Web- based recruitment
 The company also gives recruitment notice in the web and they recruit
through the web.

4. Employee reference
 The company also recruits from friends and relatives of present
employees.
5. Consultancy
 Whenever necessary the company takes the help of the consultancy for
recruiting candidates. This is also an important source for them.

Preferred sources of recruitment

Although there are various sources of employment, followed by the company, i.e.
external and internal sources but the company mostly prefers the external source for
recruiting the candidate.
Costs involved in recruitment

Costs play an important role in recruitment. The company incurs various types of
costs. These are:-
 Travel cost ------ Cost incurred for traveling
 Constancy cost ------- Cost paid to the constancy firm
 Publication cost ------- Cost incurred for giving recruitment notice in
newspapers and magazines.

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  Re- location cost ------ Cost incurred for transferring employees in other
departments and branches.

Reservation of jobs for SCs, STs, etc.

The company does not follow any reservation policy for SCs and STs etc for
recruiting the candidates. They only look for the eligible candidates.

Criteria for the candidate

Mainly the criteria are role dependent. It depends on the job of the candidate. But the
candidates require highly personal and technical skills.
The company looks for both freshers and experienced candidates. But in case of
experienced candidates, minimum two years of experience is required.

Employees turnover ratio

Employees turnover ratio in the Allied Nippon Ltd is 16%, where as in other
Company it is only 8%. So, it is reasonably less compare to others.

Steps taken by the company to reduce employee turnover ratio

The company has taken various steps to reduce employee turnover ratio. Such as
 Encouraging job satisfaction
 Building organization culture/ working environment, so that the employees
can be retained.
 Career growth opportunity

Selection procedures followed in the company

 Candidates are recruited on the basis of written test and interviews.
Candidates must have good analytical reasoning ability and logical power.

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  Candidate has to go through three interviews in the selection process.
Among them two technical interviews and one Human resource interview
is conducted. The company looks for technical and job specification both
in the candidate.

Job specification and Job description

The company follows both Job specification and job description. For job description,
document for the next job is available to all the employees of the company. By this,
the employees can already be aware about the next jobs they have to perform and it
creates the delta between the current role and the new role of the employees. By this
the employees can upgrade or prepares themselves for their new job.

Faulty selection
According to the interview with the H.R. manager, it can be inferred that the company
has rarely suffered from any faulty selection procedure. The recruitment and selection
procedure in Allied Nippon Ltd is dynamic in the past years. That means it keeps on
changing every year and it always remains updated.

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Every year there are some changes take place in recruitment and selection process for
better result and production. It is such an industry where in every moment some
innovation takes place. So the company needs some new skills to achieve the required
fulfillment.
For the last couple of years the company is focusing more on campus interview to
give more chances to the fresher.
This reflects the company’s recruitment policy, the company’s needs for greater
committed employee and also motive behind concentrating more on freshers, as it is
the belief from company’s perspective to be working smartly with full enthusiasm.
They are also updated with the current concepts, which are required in company
industry.

The company is dealing in making, developing and maintaining the packages. The
companies target audience is foreign market. Most of the customers come from
abroad. For these very reasons employees have to conduct project in foreign
countries. That’s why freshers are targeted to fill up the vacancies.

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 EFFECT OF CHANGES
OF RECRUITMENT AND SELECTION PROCEDURE TOWARDS
GRATITUDE OF EMPLOYEES

As most of the candidates comprise the group of freshers, so it is quite obvious that
the degree of commitment towards the organization will automatically be more from
their side as compared to the experienced ones.

It is also felt that unlike the experienced candidate, the freshers find it difficult to get a
job easily. As it is obvious from the fact that the experienced candidates demand high
value in the market for employment opportunity, the changes during the past few
years will give an idea of how they get themselves updated with the needs of the
industry.

It also gives an idea of any third party intervention in the recruitment and selection
procedure of the organization. It depends upon the market demands of the particular
industry as to how the candidates would be available for service in the prospective
sectors.

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Since compensation is the basic factor of motivation of employees so it decreased the
commitment, gratitude, dedication of employees towards the organization.

DATA ANALYSIS
AND
INTERPRETATION

52
 ANALYSIS OF QUESTIONNAIRE FROM
EMPLOYEES’ PERSPECTIVE ABOUT
RECRUITMENT AND SELECTION PROCEDURE
OF ICICI PRUDENTIAL
WORKING PERIOD OF EMPLOYEES IN THE COMPANY

WORKING PERIOD OF EMPLOYEES IN THE

COMPANY

8%

19% 37%
<1
1-2 YRS
2-3 YRS
3-5 YRS

36%

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The above chart depicts that most of the employees are doing service. As per the
survey of 36 employees most of the employees are young in the organizations, they
don’t have the past experience of any change in recruitment and selection.
On a survey of 36 employees done, it has been shown that employees completed 1
year of service comprised 37%. Similarly employees 1-2 years of service comprise
36%. But there is only less number of employees there about between 2-3 years
comprised 19%. The rest i.e. 8% comprised of the group of people who have been in
the organization for 3-5 year . .

1. CANDIDATES’ WILLINGNESS TO JOIN THE COMPANY

Most of the Indian candidate looks in for the salary package and job security before
joining a company for job. All other things such as Reputation of the company,
working environment, job prospects, location of the company, career growth
opportunity, are seen either in isolation or in combination to each other as a whole as
shown in the graph below:

Factors for joining ALLIED NIPPON Ltd

Reputation of the
33% 6% company
3% Working environment

Salary package

22% Job prospects

11% Location of the
company
Career growth
25%

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 From the data provided by the sample, it follows that out of 36 employees 9 joined the
company due to its reputation while 12 were attracted by its salary package. 8
employees emphasize on the career growth in the company while 4 were impressed
by the working environment. Most of the employees are least concerned with the
location of the company.

2. RECRUITMENT PROCEDURE FOR CANDIDATES

Selection procedure

others

Written exam,
GD, Interview
Series1
Written exam
& interview

Written exam

0 5 10 15 20

From the chart it is quiet clear that the company adopts various processes for recruiting
the right candidate. Actual recruitment procedure followed by the company is by
conducting written examination followed by a group discussion and then a final
interview which comprised 47% of sample survey of 36 employees.

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But still some candidates are also chosen through written exam & interview and
comprise 31%. 17% are selected through written only and others comprising only 5%.
These ‘others’ include the reference of the existing employees within the organization
itself.
As it is private company most of recruitment is done through campus selection, the
candidates are selected by way of testing their knowledge and technical skills in their
prospective fields. For that very reason written test followed by a group discussion and
a personal interview is given most priority.

3. ELIGIBILITY CRITERIA FOR RECRUITMENT

Qualification requirement

Post Graduate
freshers

Post graduates
with experience

Graduates

Under Graduates

0 2 4 6 8 10 12 14
No. of candidates

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The above chart depicts that the minimum qualification required to be an advisor is
graduation. Preference is given to candidates having a post graduation degree with
experience. From the responses given by the employees its clear that equal preference
is given to candidates who are having a post graduation degree with experience.
Fewer graduates are hired but those who hired must have experience in the same
industry. Post graduate freshers are also preferred .

4. SRATEGIES FOR RETAINING EMPLOYEES

4 options were given to the employees to know what the organization is doing to
reduce employee turnover ratio. These are: -

 Better salary package

 More benefits

 Changing / Improving working conditions

 Better promotion / Career Development Opportunity

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 Better salary package
6%
19%
11%
More benefits

Better promotion /
14% Career Development
Opportunity
Improving working
conditions

50% Can’t say

After summarizing the entire 36 respondents’ the following analysis can be given:

 Better salary package (7)

 More benefits (5)

 Changing / Improving working conditions (4)

 Better promotion / Career Development Opportunity (18)

 Can’t say (2)

 From the analysis it is clear that more than 91% of the employees are
working in the company, for a period of less than 3 years. Only 8.33% of
the employees are working in the company having completed more than 3
years. So it is evident that the employees of the Allied Nippon Ltd are

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 much younger. It indicates the recent trend of recruiting fresh candidates
by the organization.

 Most of the employees (28%) have mentioned the salary package as a

reason for joining the organization. 16% of the employees have mentioned
or pointed it out the working environment as the reason for joining the
organization. 17% talked about the reputation of company and 23%
mentioned about career growth opportunity. So it can be said that the
salary package and career growth opportunity are the more attractive to the
employees.

 Almost every respondent said that they had got specified job offered to
them. So it can be concluded that the organization follows job
specification in case of recruiting the candidates.

 Every employee is satisfied about recruitment and selection procedure

prevailing out there. They also think the process as fair enough. It also
shows the credit of the company. The organization has developed such a
policy of which every one is satisfied.

 The company has no trade union. So all the employees have either directly
contact the management for sorting their individual problems or through a
particular channel of span of control. It develops a better relationship
between the employees and management which is the main criteria of
effective working environment.

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  For the last couple of years company is going more for Campus
Recruitment which indicates that the company prefers more fresh
candidates who are much more enthusiastic and dedicated to their job.

 People don’t want to choose this profession because of distributing the

commission with the clients and also because of their busy schedule.

 People are sometimes rude and unapproachable that makes difficult to

communicate with them.

 Training and test centers are limited so it’s difficult for people to commute
.
.

60
RECOMMENDATIONS

 After looking at and analyzing all the criteria, it’s found that the company
lacks little bit in job security. The employees also not very much satisfied

61
 with job security. So to gain the confidence of the employees the company
should improve job security.

 Training and test centers are limited so it is difficult for people who stay
away from these places to commute, so the company should open new
training centers located centrally accessible by people from all location.

 Company should go more for Campus Recruitment as the company will

have more fresh candidates who are more enthusiastic and dedicated to
their job.

62
 CONCLUSION

 In today’s scenario there is a lot of potential for the growth of automobile

sector as people are becoming more and more concerned about the safety
and security of themselves and their loved ones.

63
 This increasing awareness and concern about the need for good braking
system requires the presence of expert people who can guide and advise
people about braking system and suggest them the products that fit their
needs perfectly.

64
 ANNEXURES

QUESTIONNAIRE

1. How candidates are recruited in the company? (Tick any one)

(i) Written exam
(ii) Written exam and interview
(iii) Written exam, GD and interview
(iv) References

65
2. What is the working period of employees in the company? (Tick any one)
(i) Within 1 year
(ii) Between 1-2 years
(iii) Between 2-3 years
(iv) Between 3-5 years

3. What are the reasons for the candidate to join the company? (Tick all that apply)
(i) Reputation of the company
(ii) Salary package
(iii) Working environment
(iv) Job prospects
(v) Location of the company
(vi) Career growth opportunity

4. Did you get the same job specification as offered during the interview?
 Yes
 No

5. What are the eligibility criteria for recruitment?

 Graduation

 Post graduation (freshers)

 Chartered Accountant
 Post graduation(with minimum 2years of experience)

6. Which method is used for bulk recruitments?

 Advertisement
 Campus recruitments
 Govt. agency
 References

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7. Is the organization doing anything to reduce the employee turnover ratio? (Tick all
that apply)
 Better salary package
More benefits
 Changing / Improving working conditions
 Better promotion / Career Development Opportunity

8. Are you satisfied with the salary and job security provided by the company?
 Yes
 No

9. Is your company providing better career prospects for its employees?

 Yes

 No

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 BIBLIOGRAPHY

REFERENCES

68
 DeCenzo, David A and Robbins, Stephen P,: “Human resource Management”
Prentice Hall India Private Limited (2000)
 Chabbra, T.N, “Human Resource Management (2004)”; pp 161-191

 Mamoria, C.B and Gankar, S.V: “Personnel Management- Text and Cases”
Himalaya Publishing House,
 ALLIED NIPPON company manual
 http://www.alliednippon.com/

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