Chapter 1 - introduction

1.1 Introduction
In todays competitive world, sharp increase in the growth of automobile industry results in rapid changes. These rapid changes in the automobile industry is witnessed by changes in styles of management, leadership, work processes and in fact everything that is related to work. The interest in human resource management as a means of securing successful strategic performance as a source of sustainable competitive advantage continues more strongly than ever. The people are recognised as the strategic resources for achieving competitive advantage, thus effective recruitment and selection is becoming the major concern for all organisations (Zanko and Ngui, 2002). Theoretically this research relates to some of the concepts of human resource management (HRM). This research investigates important & relevant aspects of recruitment & selection by consulting a range of text books, periodicals and other relevant literature. According to Pamela et al (2007), a great company cant be built without great people, and that requires attention and commitment to the recruitment process. According to Keenan (2004), recruitment is the process in which the pool of qualified candidates is generated which is sufficient for the organisation to meet strategic goal. The process of selection involves choosing the right candidate from the pool of candidates generated in the recruitment process who possess the skills, abilities which are necessary as per the job specification (Boddy, 2008). The aim of the research is to examine the recruitment and selection process in Maruti Suzuki India Limited and how the company achieves its organisational goals by recruiting and selecting skilled and efficient people. The study will incorporate the effectiveness of the recruitment and selection process in achieving organisational goals and will try to recognise where company needs to improve. This has eventually help in understanding whether the employees of MSIL believe that companys HR is able to attract skilled and efficient candidates. In this piece of research the issues which are preventing the organisation from achieving strategic goals and gaining competitive advantage will be highlighted.

1.2 Background
Human resource management practises are believed to result in more productive, satisfied, motivated, and loyal employees who are willing to work towards achieving organisational goals. HRM comprises of the policies and systems that influence the 1

employees mind-set, performance and aptitude which have an effect on the operation of an organization (Crompton et al, 2009). Recruitment and selection is a crucial element of HRM in all organisations, irrespective of their size, structure or sector, and getting right person in the right job at the right time is the vital part of any HR managers job (Storey, 1989). According to Singla (2009), the most important function of human resource management is recruiting and selecting human resource. Appointing the right person for the right job is the main purpose of the process of recruitment and selection. The more effectively organisations recruit and select candidates, the more likely they are to hire and retain satisfied candidates. Recruitment and selection are the key processes, which have the impact to potentiate the composition & culture of the organisation. Recruitment is always a two way process in which company looks for potential employees and vice versa. It is essential that recruiting process should be well planned and well managed in order to attract high quality applicants. Successful recruitment depends upon finding people with necessary skills, expertise and qualifications to deliver the organisations objective, and with the ability to make a positive contribution to the values and aims of the organisation (Crompton et al, 2007). Elearn (2005) stated that, a successful and effective programme for recruiting the personnel requires the well-defined recruitment policies, proper organisational structure, and procedures for locating sources of manpower resources, suitable methods and techniques for utilising manpower sources and also constant assessment and consequent improvement. The aim of the selection process is to evaluate the suitability of the applicants by predicting the level to which they will be able to carry out the role effectively. This process focuses on making sure what the organisation is exactly looking for both in terms of job specification and the candidates abilities. It is important to match the abilities of the applicant to the requirements of the job; if there is any mismatch in this regard then the organisation has to deal with the loss in terms of money and time. It is very important to perform the selection process under legal environmental constraints and it should address the future interest of the organisation as well as of individual (Cartwright, 2002). Marchington & Wilkinson (2008) states that, selection is about choosing between job candidates. It is about how to make a fair and accurate assessment of strengths and weaknesses of applicants and how to identify the candidate who is most likely to perform well in the job 2

1.3 History of the Organisation

Maruti Suzuki India Ltd (MSIL) is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. It is a leading four-wheeler automaker manufacturer in South Asia over two decades. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars and is largely credited for having brought in an automobile revolution to India. The company was established in February 1981, but the company started its production with the first product Maruti 800 in 1983. The company has the facility to produce one million units per annum. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. With 2767 workshops in 1314 cities, the company has been ranked 1st in customer satisfaction according to the JD power CSI survey for 9 consecutive years. The manufacturing units Maruti Suzuki India limited (MSIL) is located at two places in south Delhi i.e. Gurgaon and Manesar. The company is listed on the National Stock Exchange (NSE) as well as Bombay Stock Exchange (BSE) in India. It has been surveyed that half of the cars that are sold in India are Maruti cars.

(www.articlesnatch.com) The process of Recruitment and Selection in Maruti Suzuki India Limited is done by keeping the organisational goals of the company in consideration. MSIL gives direct employment opportunities to more than 7000 people. The company believes that employees are at the core of companys growth and thus is always willing to acquire best talent which can prove to be a key element in bringing success to the organisation and can help them to maintain market leadership. The company hiring provides equal opportunities to everyone.

(www.marutisuzuki.com)

1.4 Justification of the study

It is believed that people are the most valuable assets for every organisation and no organisation can work without the people. Thus to achieve organisational goals and to gain core competencies, it is very important for every organisation that they should recruit and select their human resource very carefully and tactfully. Maruti Suzuki India limited (MSIL) has been selected for purpose of this research. MSIL is 3

the leading automobile manufacturer in India and gives direct employment to around 7000 people. This research has examine the recruitment & selection of MSIL, however the recruitment & selection process of MSIL may potentially create difficulties to applicants as the company does not use technological advancements in their process. This may also reduce the efficacy of the recruitment & selection process of the company. This particular research seeks to understand the process of recruitment and selection in the MSIL and tries to find the insights of recruitment and selection which if the company adopt, can help them in first attracting and then selecting the most appropriate applicants as per the job specification, thus helping company in improving overall performance.

1.5 Research methods and source of data

The research uses methods which review the literature on recruitment and selection from journals and books. In this research, primary sources have been used in order to collect the data. Survey questionnaires have been distributed among the employees of the Maruti Suzuki India Ltd and one human resources manager has been interviewed.

1.6 Research aim and objectives

The aim of the research is to examine the recruitment and selection process in Maruti Suzuki India Limited Kashmir and how the company achieves its organisational goals by recruiting and selecting skilled and efficient people. Objectives 1) 2) 3) To analyse the process followed to recruitment & selection. To critically asses the process & its outcome. To analyse the impact of internet recruitment.

1.7 Research question

How does the process of recruitment and selection influences Maruti Suzuki India Ltd in achieving the organizational goal and what are the issues related to Recruitment and Selection which the organization confront ?

1.8 Dissertation structure

The 1st chapter contains the introduction of the research paper. In this chapter the background of the study is given and it also contains the history of the organisation as well as research objective.

The chapter 2nd explains the relevant theories in the literature review. In this chapter the process of recruitment and selection has discussed. In this chapter wide range of books and journals are consulted in order to make recruitment and selection process more understandable. The chapter 3rd is research methodology. In this chapter different methods and concepts which were useful for the research have discussed. It also includes discussion about the data collection procedures used in the research. The chapter 4th explains the research findings and outlines the result from the research in the form of tables and histograms. The chapter 5th includes discussion and interpretation of the research findings. In this chapter main research questions have been discussed with relation to the literature. The chapter 6th contains conclusion and recommendation based on the research done. This chapter also contains limitation of the study with the further area of research.