A STUDY ON RECRUITMENT AND SELECTION

PROCEDURE

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (CAM)

To
Guru Gobind Singh Indraprastha University, Delhi

Guide:
Ms. Shilpa Arora
Asst. Professor

Submitted by:
Das R.B Gurbaksh Kapoor
Roll No.:03790301912

Institute of Innovation in Technology & Management,

New Delhi 110058
Batch (2012 -2015)

Certificate
I, Mr Das R.B Gurbaksh Kapoor, Roll No. 03790301912 certify that the Project
Report/Dissertation BBA-313) entitled A STUDY ON RECRUITMENT AND
SELECTION PROCEDURE is done by me and it is an authentic work carried out by
me at BHARAT ELECTRONICS, GHAZIABAD The matter embodied in this project
work has not been submitted earlier for the award of any degree or diploma to the best of
my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation (BBA-313) entitled A STUDY

ON RECRUITMENT AND SELECTION PROCEDURE done by Mr Das
R.B Gurbaksh Kapoor , Roll No. 03790301912, is completed under my guidance

Signature of the Guide

Name of the Guide:
Designation:
Date:

ACKNOWLEDGEMENT

I consider as a great privilege to thank all those people who helped me to complete this
project work. I express my sincere thanks to the Institute of Innovation in Technology &
Management. For giving me this opportunity to undertake the project work.

I am gratified to my project guide Ms Shilpa Arora (Asst. Professor ), without her

guidance and encouragement at all levels , the study wouldnt have been completed.

I express my profound thanks to, Ms. Shilpa Arora (Asst. Professor)for giving an
opportunity to help me complete my project & giving me valuableadvice and guidance and
sparing valuable time in clarifying various doubts raised by me.

Executive Summary
Bharat Electronics Limited (Company), a Navratna Public Sector Undertaking under the
administrative control of range of electronic equipment/components for defence services and
other government departments. The company has 9 production units located at Bangalore,
Chennai, Ghaziabad, Hyderabad, Kotdwara, Machilipatnamthe Ministry of Defence (MoD),
Government of India, is engaged in designing, developing & manufacturing wide, Navi Mumbai,
Panchkula and Pune. In addition, two overseas offices have been established at New York &
Singapore as technological windows of the company for importing material / components.
Bharat Electronics Limited (BEL) is a multi-product company engaged in manufacturing and
supplying of electronic products. The company principally offers its products to the Indian
defense services and other Indian government organizations. BEL offers its products in three
categories namely, defence, non-defence and systems and turnkey solutions. Under the defence
category, the company offers electronic welfare systems, naval systems, onto electronics,
communications, radars, tank electronics and simulators. Similarly, the non defence division
offers television and broadcast, direct to home (DTH), telecom, simputer, switching equipment,
electronic voting machine and electronic components.It also offers systems and turnkey solutions
such as, satellite communications (SATCOM), vessel traffic management system (VTMS) as
well as command, control, communications, computers and intelligence solutions. Further, the
company has diversified into civilian areas offering contract based design & manufacturing,
semiconductor device packaging, software development, and quality assurance services for
domestic and international customers.Regional offices are Delhi, Mumbai, Cochin,
Vishakhapatnam and Kolkata and Liaison Offices are Agra, New York City& Singapore.

Chapter 1
Introduction

1. COMPANY PROFILE
BEL Ghaziabad (BEL GBD), the second Unit of BEL was inaugurated in 1974 by the then
Prime Minister of India, Mrs. Indira, Air Force, Navy, Police, Para Military Forces, erstwhile
Depts. of Telecom (DOT) and various civil customers. Owing to changing business scenario,
BEL GAD is leveraging its strength to Aero Space products also. The products are manufactured
to meet the stringent Defence, Aero Space and Civil requirements. Gandhi. It was established to
manufacture and supply High Power Radars (in technical Collaboration with M/s Thomson-CSF,
France) and Static Troposcatter Communication Equipment to the Indian Air Force under Plan
ADGES (Air Defence Ground Environment System). Later on, the product range was diversified
as per the requirements of customers like Army,

1.1 INTRODUCTION
Bharat Electronics Limited (BEL) was established at Bangalore, India, by the Government of
India under the Ministry of Defence in 1954 to meet the specialized electronic needs of the
Indian defence services. Over the years, it has grown into a multi-product, multi-technology,
multi-unit company servicing the needs of customers in diverse fields in India and abroad. BEL
is among an elite group of public sector undertakings which have been conferred the Navratna
status by the Government of India. The growth and diversification of BEL over the years mirrors
the advances in the electronics technology, with which BEL has kept pace. Starting with the
manufacture of a few communication equipment in 1956, BEL went on to produce Receiving
Valves in 1961, Germanium Semiconductors in 1962 and Radio Transmitters for AIR in 1964.In
1966, BEL set up a Radar manufacturing facility for the Army and in-house R&D, which has
been nurtured over the years. Manufacture of Transmitting Tubes, Silicon Devices and Integrated
Circuits started in 1967. The PCB manufacturing facility was established in 1968.
In TV 1970, manufacture of Black & White Picture Tube, X-ray Tube and Microwave Tubes
started. The following year, facilities for manufacture of Integrated Circuits and Hybrid Micro
Circuits were set up. 1972 saw BEL manufacturing TV Transmitters for Doordarshan. The
following year, manufacture of Frigate Radars for the Navy began.

Under the government's policy of decentralization and due to strategic reasons, BEL ventured to
set up new Units at various places. The second Unit of BEL was set up at Ghaziabad in 1974 to
manufacture Radars and Tropo communication equipment for the Indian Air Force. The third
Unit was established at Pune in 1979 to manufacture Image Converter and Image Intensifier
Tubes. BEL Units obtained ISO 9000 certification in 1993-94. The second disinvestment
(4.14%) took place in 1994. In 1996, BEL achieved Rs 1000 crores turnover
In 1997, GE BEL, the Joint Venture Company with M/s GE, USA, was formed. In 1998, BEL set
up its second overseas office at Singapore to source components from South East Asia.
The year 2000 saw the Bangalore Unit, which had grown very large, being reorganized into
Strategic Business Units (SBUs). There are seven SBUs in Bangalore Unit. The same year, BEL
shares were listed in the National Stock Exchange. In 2002, BEL became the first defence PSU
to get operational Mini Ratna Category I status. In June 2007, BEL was conferred the prestigious
Navratna status based on its consistent performance. During 2012-13, BEL recorded a turnover
of Rs 6103.81 crores.

2. Objectives of Study
The main objectives of the study were as follows:

To understand about the recruitment &selection process of the company.

To search the company performance and their talent pool requisition
To indicate the true efficiency.
To understand the employees thinking towards the present recruitment policies of
company.

the

3. Scope of the Study

Recruitment & Selection plays a vital role in the growth of the organization. Recruitment
process needs to be followed to ensure that the right person reaches the right place. Recruiting
the wrong kind of people can become a serious issue for any company.
This study proposes a group decision support system (GDSS), with multiple criteria to
assist in recruitment and selection (R&S) processes of human resources. A two-phase decisionmaking procedure is first suggested; various techniques involving multiple criteria and group
participation are then defined corresponding to each step in the procedure.
A wide scope of personnel characteristics is evaluated, and the concept of consensus is enhanced.
The procedure recommended herein is expected to be more effective than traditional approaches.
VISION

To be a world class enterprise in professional electronics

MISSION

To be a customer focussed, globally competitive company in defence electronics and in

other chosen areas of professional electronics, through quality, technology and
innovation.

S.W.O.T Analysis
Competitive Strengths

In this area, you want to see just what you are up against by taking a look at your competitors
stronger suits. Here are a couple of questions to research:
What stands out about the competitor?

o
-

Freelance Assignment/Professional Platform specifically for Recruitment

Purely a Membership based Recruitment portal connecting Employers & HR Consultants
to other HR Consultants & Freelance Recruiters.
Free Membership Available
Assignment Based Credit System So no long term contracts
Company Profile/Consultant Profile Available as an attachment Know your partner
before you start working
Online Agreement for Assignment

What types of benefits are offered?

o
-

Business Deals for Recruitment

Recruitment Tracking System
Vendor Sourcing for Recruitment
Total Flexibility in term of Assignment Creation and costing structure of the same
For Example:
If a company has advertised in Times of India and
o Looking for Resume Database Management in a particular system or say in
Excel.they can generate an Assignment on our portal and can decide the cost
of the same.
o They can go for Interview Coordination (Telephonic)
o Reference Check
o Total Recruitment Assignment
Is there opportunity for work-life balance?

o
-

What is the measure of growth per year?

o
o

This platform connects those Recruitment Professionals who are in the early stage of
starting their own business.
Decision to enter into business deals are totally of Freelance Recruitment
Professionals; on the basis of their Work-Life Priorities.
Even our Contracts/Membership Plans support this.

No of Corporate Members Joined

No of Freelance Recruitment Professionals Joined
No of Assignments listed on the portal
No of Assignments completed
Total Payment Made
Minimum Disputes raised and Maximum out of them solved
Is there a specialty or unique focus?

-We are merging Applicant Tracking System and a Job Portal to support our services and bringing
transparency to the Business Transactions.
-Even Planning for International Recruitment Projects.

Weakness Overview
-

Readymade Script used so we need to compromise initially.

Split Recruitment is not so known in the Industry
In India corporate doesnt trust Freelance Professionals so easily.
Trust Environment for HR consultant to be created.

Exploring Opportunities.
-

New in Indian Recruitment Industry

Concentrating USA/UK RPO Industry

Considering the Threats.

-

Budget Crisis
SEO & Online Marketing

METHODOLOGY OF THE STUDY

The survey plays an important role in disseminating the information and facilitating the process
of recruiting but the methodology that we have employed for the Sree Rayalaseema Sugars &
Energetic Pvt ltd., Nandyal Kurnool Dist. is questionnaire for the employee with open and close
ended questions in order to know their expectations.

In determining the sample design, specific parameters, which are of interest to our survey, have
to be mentioned. Examples of Parameters are the positions we will focus on for our survey and
the number of employees we will interview from each position

Chapter 2
Research
Methodology

RESEARCH METHODOLOGY
INTRODUCTION
The information provided in this project has been collected from various sources. These include
major informations downloaded from various articles through the Internet. And the matter was
also acquired from the book Human Resource and Personal Management- 3 edition written by
K. Aswathappa.
The information collected has been diluted and presented in a very simple and lucid manner. This
was done with an objective that even a layman should be able to understand the topics that I have
dealt with.
Research is the process of systematic and in-depth study or search for any particular topic,
subject or area of investigation, backed by collection, compilation, presentation and
interpretation of relevant details or data. Research methodology is a way to systematically solve
the research problem. It may be understood as a science of studying how research is
donescientifically.Research may develop hypothesis and test it. In it we study the various steps
that are generally adopted by the researcher in studying his research problem along with the logic
behind them
. Research must be based on fact observable data forms a sound basis for researchinductive
investigation lead better support to research finding for analysing facts a scientificmethodology
of analysis must be developed and result interpreted logically.It is necessary for the researcher to
know not only the research method or techniques but also the methodology. Thus, when we talk
of research methodology we not only talk of theresearch methods but also consider the logic
behind the methods we use in the context of our research study and explain why we are using a

particular method or technique and why we arenot using others so that research results are
capable of being evaluated either by the researcher himself or by others.Research problems
would result in certain conclusions by means of logical analysiswhich the decision-maker may
use for his action or solution.
Research design:
A research design is purely and simply the frame work plan for a study that guides thecollection
and analysis of a data. In this study the researcher has adopted descriptive researchdesign.
Descriptive research design:
It includes surveys and fact finding enquires of different kinds. It simply describes
somethingsuch as a demographic of employees. It deals with description of the state of offers as
it is andthe researchers have no influence on the respondents.
Data collection:
Data collection is one of the most important aspects of research. For the success of any project
accurate data is very important and necessary. The information collected throughresearch
methodology must be accurate and relevant.

Methods of data collection:

Primary Data
Secondary Data
Primary Data:
Data collected by a researcher is known as primary data. It is collected by a person for his own
use obtained from findings. This is considered as firsthandinformation. This is that data which is
collected by us to meet our own specific purpose.The data is collected by the means of
questionnaire filled in by the employees at different posts of Nagpur area office. This method of
data collection is very popular particularly in big organizations.
Secondary Data:
Secondary data means data that are already available i.e., they refer to data whichhas already
been collected and analyzed by someone else. This type of data informationcan also be used by
the researcher for his use as second hand information sources throughwhich secondary data can
be collected. Secondary data may either be published data or unpublished data.
The research approach:
Survey Method
The research instrument:
Questionnaire
The respondents:

The employees of the organization.

Sampling:
It is the process of selecting representative subset of a total population for obtaining datafor the
study of the whole population the subset is known as sample. The sample size is selectedfor the
study 100 employees. The techniques of sampling unit in this study are conveniencesampling.
Convenience sampling:
In this method the sample units are chosen primarily on the basis of the convenience tothe
researcher.
Statistical tools used:
A.Simple percentage analysis
B.Chi-square
C. Likert Scale Analysis
A. Simple percentage analysis:
Simple percentage can also be used to compare the relationship distribution of two or more
items. For calculations the simple percentage the following formula used.Percentage of the
respondents = Number of respondents/Total respondents*100

B. Chi-square analysis:

Chi-square is anon parametric test. The chi-square method is the application of testing the
significance different between observed and expected values.For calculating the value of chisquare test, the following formula used:
=
[(0-E) /E]E=Row total*column to/Grant totalDegree of freedom=(R-1) (C-1)
Where as
O-observed frequency
E-Expected frequency
P-Number of rows
C-Number of columns

C. Likert Scale Analysis

A

Likert

scaleis

apsychometricscale

commonly

involved

in

research

that

employsquestionnaires.It is the most widely used approach to scaling responses in survey

research, suchthat the term is often used interchangeably withrating scale,or more accurately the
Likert-typescale, even though the two are not synonymous. The scale is named after its inventor,
psychologistRensis Likert.
Likert distinguished between a scale proper, which emerges from collective responses toa set of
items (usually eight or more), and the format in which responses are scored along arange.
Technically speaking, a Likert scale refers only to the former. The difference between these two
concepts has to do with the distinction Likert made between the underlying phenomenon being
investigated and the means of capturing variation that points to theunderlying phenomenon.

When responding to a Likert questionnaire item, respondents specify their level of agreement or
disagreement on a symmetric agree-disagree scale for a series of statements. Thus, the range
captures the intensity of their feelings for a given item, while theresults of analysis of multiple
items (if the items are developed appropriately) reveals a patternthat has scaled properties of the
kind Likert identified
.The format of a typical five-level Likert item is:
1.Strongly disagree
2.Disagree
3.Neither agree nor disagree
4.Agree
Questionnaire:
The questionnaire is prepared in such a way that is correct the comprehensive objectivesof the
study. Open end, multiple choice of questionnaire adopted in this research.
Period of study:
The time period of the study is 45 days.

2 Theoretical Description
HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is the strategic and coherent approach to the of
management an organization's most valued assets - the people working there who individually
and collectively contribute to the achievement of the objectives of the business. The terms
"human resource management" and "human resources" (HR) have largely replaced the term
"personnel management" as a description of the processes involved in managing people in
organizations. Human Resource management is evolving rapidly. Human resource management
is both an academic theory and a business practice that addresses the theoretical and practical
techniques of managing a workforce.
The Human Resources Management (HRM) function includes a variety of activities, and key
among them is deciding what staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and training the best employees,
ensuring they are high performers, dealing with performance issues, and ensuring your personnel
and management practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel policies.
Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they should always ensure that
employees have -- and are aware of -- personnel policies which conform to current regulations.
These policies are often in the form of employee manuals, which all employees have.
Employee Retention
Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and

practices in place that address their diverse needs. A strong retention strategy becomes a
powerful recruitment tool.
Retention of key employees is critical to the long-term health and success of any organization. It
is a known fact that retaining your best employees ensures customer satisfaction, increased
product sales, satisfied colleagues and reporting staff, effective succession planning and deeply
imbedded organizational knowledge and learning.
Employee retention matters as organizational issues such as training time and investment; lost
knowledge; insecure employees and a costly candidate search are involved. Hence failing to
retain a key employee is a costly proposition for an organization. Various estimates suggest that
losing a middle manager in most organizations costs up to five times of his salary.
Intelligent employers always realise the importance of retaining the best talent. Retaining talent
has never been so important in the Indian scenario; however, things have changed in recent
years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the
business, or even for the second or the third best. Retention of key employees and treating
attrition troubles has never been so important to companies.
KEis EMPLOYEE RETENTION WHEEL
The first step to improving your employee retention is to understand why employees stay with
their current employer. Many "experts" dwell on the reasons employees leave, which is not as
important or revealing as the reasons they stay. Companies have tried many different programs
and perks to hold onto good employees. However, studies show that these efforts are not enough
to retain good employees when the support that is needed to achieve job success is not adequate.

Don't Waste Your Money on Things That Don't Make a Difference...

Among the countless inducements offered, only those identified in the center of KEi's Employee
Retention Wheel are truly what give employees a consistent reason for saying "no thank you"
when tempted with a "sweeter offer." After years of study and experience, KEi has determined,
and presented in the Retention Wheel, what factors do have the greatest impact on keeping
employees.
KEi has used this information to give employers the tools to meet the core needs that keep
employees successful at their jobs, thus reducing the high costs associated with unwanted
employee turnover.
The Importance of Retaining Employee
The challenge of keeping employees: Its changing face has stumped managers and business
owners alike. How do you manage this challenge? How do you build a workplace that employees
want to remain with and outsiders want to be hired into? Successful managers and business
owners ask themselves these and other questions becausesimply putemployee retention
matters: High turnover often leaves customers and employees in the lurch; departing employees
take a great deal of knowledge with them. This lack of continuity makes it hard to meet your
organizations goals and serve customers well. Replacing employees costs money. The cost of
replacing an employee is estimated as up to twice the individuals annual salary (or higher for
some positions, such as middle management), and this doesnt even include the cost of lost
knowledge. Recruiting employees consumes a great deal of time and effort, much of it futile.
Youre not the only one out there vying for qualified employees, and job searchers make
decisions based on more than the sum of salary and benefits. Bringing employees up to speed

takes even more time. And when ,youre short-staffed, you often need to put in extra time to get
the work done.

Significance of Human Resource

Management in Corporate World
HR has always been seen as the cost centre of an organization. However studies reveal that in
todays business world, HR practices does churn revenues. Its all about how you invest in your
human capital.
Studies suggest that not only is Human resource the most valued asset of a company, but there
also proof that investing in HR does produce returns.
Employee-involvement practices such as information sharing, skills training rewards programs,
and empowerment efforts -- all of which fall squarely into Hrs domain -- show a significant
bottom-line return.
Companies who have followed the employee-involvement practices have produced a 13 percent
higher return on equity.
Thus its obvious that employees form an integral part. How do you select and retain talented
people? How can you create an environment, which helps people thrive at work? Many such
questions form an integral part of a companys HR policy. Increased global competitiveness has

given way to uncertainty, which is impacting the environment within an organization. This is
where the role of a HR manager is becoming even more crucial.
Traditionally the HR department has played dual rolesan operational function (such as
recruitment, personnel and performance management, employee relations and statutory
compliances) and a human developmental role (comprising people development, culture and
organization building). Both these functions have always been considered soft roles.
Today the equation has changed. The HR department plays a key role in the companys overall
business strategy. HR managers have a clear understanding of the business, the organization, its
vision, mission, values and are given ample freedom to bring processes in place to get people
aligned to these values and goals.
The focus of HR today is to create an agile organization, which can innovate rapidly and exceed
client expectations constantly, rather than just managing people.
The basic trait required in an efficient HR manager is his ability to gauge the strengths of his
employees and put them to best use. Be a supportive manager and create an environment where
employees feel assured that they can fall back for support in difficult situations. He should be
able to delegate responsibility, while always retaining the accountability. Lastly, personal touch
plays an important factor for creating a sense of belonging with the company. The person should
be very effective at understanding people, their skill sets and emotional intelligence which will
help in goal setting and finally achieving the desired results.
Some key points to remember

The organization has to ensure that communication is timely and open to retain employee trust.
This also means that there is continuous feedback from employees, which helps in better
productivity.
There has to be a common theme built relating to vision, participation, control, measurement of
work processes, communication and commitment. Experts point out that if you create an
environment where people truly participate. You dont need control. The employees do what
needs to be done.
Employee Turnover
Measuring employee turnover
Most organizations simply track their crude turnover rates on a month by month or year by year
basis. The formula is simply:
Total number of leavers over period

x 100

Average total number employed over period

The total figure includes all leavers, even people who left involuntarily due to dismissal,
redundancy or retirement. It also makes no distinction between functional (i.e.-beneficial)
turnover and that, which is dysfunctional.
Crude turnover figures are used by all the major surveys of employee turnover. So they are
necessary for effective benchmarking purposes. However, it is also useful to calculate a separate
figure for voluntary turnover and to consider some of the more complex employee turnover
indices, which take account of characteristics such as seniority and experience.

Costing employee turnover

Estimating the cost of employee turnover is a useful starting point when seeking to persuade line
managers and Finance Directors that money needs to be invested in order to improve retention
rates. At present surprisingly few (7%) HR departments calculate the costs of turnover.
It is possible to compute a not less than figure very easily by working out what it costs on
average to replace a leaver with a new starter in each of the major employment categories. This
figure can then be multiplied by the crude turnover rate for that staff group to calculate the total
annual cost of turnover.
The major categories of costs to take account of are:
Administration of the resignation
Recruitment costs
Selection costs
Cost of covering during the period in which there is a vacancy
Administration of the recruitment and selection process
Induction training for the new employee.
Many of these costs consist of management or administrative staffs time (opportunity costs) but
direct costs can also be substantial where advertisements, agencies or assessment centers are
used in the recruitment process.

More complex approaches to turnover costing give a more accurate and invariably higher
estimate of total costs. A widely quoted method involves estimating the relative productivity of
new employees during their first weeks or months in a role and that of resigns during the period
that they are working their notice
Why Do People Leave Organizations?
Employees resign for many different reasons.

Sometimes it is the attraction of a new job or

The prospect of a period outside the workforce which pulls them, on other occasions

they are pushed due to dissatisfaction in their present jobs to seek alternative employment.

Sometimes it is mixtures of both pull and push factors.

For a fourth group reasons for leaving are entirely explained by domestic circumstances

outside the control of any employer, as is the case when someone relocates with their spouse or
partner.
Recent research strongly suggests that push factors are a great deal more significant in most
resignations than most managers appreciate. It is relatively rare for people to leave jobs in which
they are happy, even when offered higher pay elsewhere. Most staff has a preference for stability.
It is important to appreciate that the reason people give for their resignations are frequently
untrue or only partially true. The use of exit interviews is widespread yet they are notoriously
unreliable, particularly when conducted by someone who may later be asked to write a reference
for the departing employee. They are reluctant to voice criticism of their managers, colleagues or
the organization generally, preferring to give some less contentious reason for their departure.

Recent research highlights the importance of front line managers and how their behaviour relates
directly to the levels of commitment, motivation and satisfaction reported by employees.
A poor relationship with a line manger can be an important reason for individuals leaving their
organization, but its significance can be masked as a result of the difficulties associated with exit
interviews mentioned above. A lack of training and developmental opportunities is also major
reason voluntary turnover. On an average, 44% of respondents cited promotion outside the
organization as a main cause of labour turnover, 40/o highlighted change of career and 37%
lack of career of developmental opportunities.
Early leaving
In the high turnover industries in particular, a great deal of employee turnover consists of people
resigning or being dismissed in the first few months employment. Research shows that during
2003, 2O% of leavers left between 0 and 6 months service. Even when people stay for a year or
more is often the case that the decision to leave sooner rather than later is effectively taken in the
first weeks of employment. Poor recruitment and selection decisions, both on the part of the
employee and employer, are usually to blame, along with poorly designed or non-existent
induction programs.

Expectations are often raised too high during the recruitment process leading people to compete
for and subsequently to accept jobs for which they are in truth unsuited. Organizations do this in
order to ensure that they fill their vacancies with sufficient numbers of well-qualified people as
quickly as possible. However, over the longer term the practice is counter-productive as it leads
to costly, avoidable turnover and the development of a poor reputation in local labour markets.

When Does Employee Turnover Become Problematic?

There is no set level of employee turnover above which effects on the employing organization
becomes damaging. Everything depends on the type of labour markets in which the company
competes. Where it is relatively easy to find and train new employees quickly and at relatively
little cost (i.e. where the labour market is loose), it is possible to sustain high quality levels of
service provision despite having a high turnover rate. By contrast, where skills are relatively
scarce, where recruitment is costly or where it takes several weeks to fill a vacancy, turnover is
likely to be problematic from a management point of view. This is especially true of situations in
which you are losing staff to direct competitors or where customers have developed relationships
with individual employees as is the case in many professional services organizations.
Some employee turnover positively benefits organizations. This happens whenever a more
effective employee replaces a poor performer, and can happen when a senior retirement allows
the promotion or acquisition of welcome fresh blood. Moderate levels of staff turnover can also
help to reduce staff costs in organizations where business levels are unpredictable month on
month. In such situations when business is slack it is straightforward to hold off filling recently
created vacancies for some weeks.
Recruitment, Selection & Induction
The human resources are the most important assets of an organization. The success or failure of
an organization is largely dependent on the caliber of the people working therein. Without
positive and creative contributions from people, organizations cannot progress and prosper. In
order to achieve the goals or the activities of an organization, therefore, they need to recruit

people with requisite skills, qualifications and experience. While doing so, they have to keep the
present as well as the future requirements of the organization in mind.
Recruitment is distinct from Employment and Selection. Once the required number and kind of
human resources are determined, the management has to find the places where the required
human resources are/will be available and also find the means of attracting them towards the
organization before selecting suitable candidates for jobs. All this process is generally known as
recruitment. Some people use the term Recruitment for employment. These two are not one
and the same. Recruitment is only one of the steps in the entire employment process. Some
others use the term recruitment for selection. These are not the same either. Technically speaking,
the function of recruitment precedes the selection function and it includes only finding,
developing the sources of prospective employees and attracting them to apply for jobs in an
organization, whereas the selection is the process of finding out the most suitable candidate to
the job out of the candidates attracted (i.e., recruited).
Recruiting Smart
Finding and recruiting good people can be a challenge for any company Therefore, its crucial to
have a recruiting strategy in place.
Why are some recruitments successful while others are disastrous failures? The mount of time,
effort and money spent in the hiring process very often comes to naught because hiring managers
make some inevitable mistakes. Yes, the recruitment process is more complex than meets the
eye, and it is this inability to understand the subtle factors of the system that leads to hiring the
wrong person, which often becomes a calamitous situation for the company. Why is it necessary
for the recruitment process to be very focused? Finding out whether the person is the right fit

in the organization culturally is as important as Testing his/her skill sets. Failure to identify the
exact company needs is one of the reasons that lead to wrong hiring. Adding to this is the
inability to test the exact skills of the candidate. At times organizations hire out of desperation
and consequently land up paying the price of inducting a candidate who is not suitably qualified
or skilled to take care of the responsibilities. Blindly promoting from within and hiring because a
friend referred the candidate are the other mistakes that are often repeated.
The CV of a person is in fact the most common blind spot as it often exaggerates the truth and
can be misleading in the selection process. Furthermore, often it is the good communication
skills of the candidate that help him/her succeed in the interview without the necessary domain
knowledge or skill.
Rushed hiring can lead to overlooking of many factors. One has to check where The candidate
comes fromfrom the perspective of suitability to work in the new culture, which could be
different from the earlier organization: and from the perspective of ability to work in teams,
customer-facing skills, ability to work under pressure, etc, Cost effectiveness plays an important
part too.
Selection
Steps in Selection
The purpose of selection programme & technique is to choose the most suitable candidate for a
given job from among the prospective employees. Selection procedures which employees
systematic & scientific methods that are reliable & valid can achieve this objective & can also
save cost. In order to achieve organizational objectives effectively & efficiently, it is important to
place the right man on the right job at the right time at the right place. In order to avoid the

pitfalls of wrong selection & placement, it is necessary to adopt the principal of scientific
selection. The use of science & systematic procedure in selection is essential for finding the right
man for the right job. A wrong man on a wrong job will mar the development & progress of the
organization, whereas the right man on right job will contribute to organizational growth.
A sound selection system based on scientific methods can go a long way in establishing
an image of impartiality & thus can help to attract & retain the most qualified candidates for
in/towards the organization.
Induction
Introducing the new employee who is designated as a probationer to the job, job location,
surroundings, organization, organizational surroundings, and various employees is the final step
of employment process. This process gains more significance as the rate of turnover is high
among new employees compared to that among senior employees. This is mainly because of the
problem of adjustment & adaptability to the new surroundings & environment. Further absence
of information, lack of knowledge about the new environment, cultural gap, behavioural
variations, different levels of technology, variations in the requirements of the job & the
organization also disturb the new employee. Further induction is essential as the newcomer may
feel insecure, shy, nervousness & disturbing. This situation leads to instability & turnover.
Hence, induction plays pivotal role in acquainting the new employee to the new environment,
company rules & regulations.
Remuneration Negotiation
Salary negotiations are a critical step in the hiring process and also attach a huge significance in
retention of the employees. Candidates with in-demand skill sets may already be evaluating other

opportunities by the time you make an offer, so its important to handle this stage effectively.
Following are some tips for successful salary negotiations.
Act Quickly
Once youve selected the prospective hire, make the offer as soon as possible. A delay can cause
you to lose the best applicant.
Cautiously Evaluate the Employment Offer
Enter negotiations with a strong understanding of compensation trends. The offer should be fair
to the candidate and in line with current standards in the industry and at your firm. Businesses
that cant provide high starting salaries should consider offering other incentives such as stock
options, profit sharing or extra time off.
Elucidate the Details
If possible, make the offer in person. This allows you to explain all aspects of the salary and
benefits package, and provides an opportunity for the candidate to ask questions.
Provide Encouragement
When presenting an offer, be sure to highlight the reasons someone would want to work at your
company. Prospective employees are interested in hearing about staff recognition and bonus
programs, advancement possibilities and unique aspects of the corporate culture.
Set a Time Frame
Give entry-level professionals a few days to consider the offer, and more senior level candidates
up to a week. Applicants who will need to relocate may require additional time.

Know When to End Negotiations

When faced with a candidate whos reluctant to accept an offer, try to discover the source of the
hesitation. Consider the potential impact of any changes required to address these concerns or
issues. For example, providing a salary that exceeds someones potential contributions can
ultimately affect your firms overall compensation scale. Likewise, persuading an applicant with
serious reservations can backfire if that individual has second thoughts after joining your
organization.
Maintain Communication
Its important to stay in touch with the candidate after the offer is accepted. Send relevant
brochures about your company and employment forms. Also, call the individual to make sure he
or she has all of the information needed for a successful start at your firm.

Work Environment
The top career concern of employees today involves balancing family and work demands
even above earning a competitive salary according to a research study commissioned by our
company. Increasingly, employees are asking for corporate programs that reflect a more flexible
business environment. The challenge for businesses is responding to these concerns without
sacrificing productivity.

Following are some strategies followed by companies for creating a friendly working
environment.

Building a Worker-Friendly Reputation

Encourage staff to participate in developing solutions for enhancing your companys work
environment. Solicit feedback from employees by periodically conducting anonymous
satisfaction surveys. Ask not only for improvements they would like to see but also practical
ways of implementing these suggestions

Publicizing Programs

Accentuating out those aspects of your business that most

Appeal to job candidates. Look for areas in which your company excels and emphasize them
when you interview applicants. For example, if your firm is small, you may have more flexibility
than larger companies when it comes to offering nontraditional benefits, relaxed business attire
or a faster track to career advancement

Empowering the Employees

Most people work harder and do a better job if they feel the company values their opinions; the
management trusts them to be responsible and empower them to make their own decisions.

Hire for the Long Term

The way a company hires, trains and rewards employees reveal a great deal about its values.
Hiring for aptitude and then training for career advancement goes a long way toward building

loyalty and increasing retention rates. Companies with worker-friendly management practices are
at a distinct advantage when it comes to hiring qualified talent. These programs help create a
productive, satisfying workplace where employee turnover, as well as recruitment and training
costs, is kept to a minimum.
Significance of Training and Development
Does training increase employee retention?
IN MORE WAYS THAN ONE, employee turnover is an important consideration for managers
and employers alike. For starters, the monetary cost of hiring a new worker is significantly high.
It is estimated that the cost of replacing an employee could average as much as 1 years salary
for that position. The estimate may be low. A pharmaceutical company recently put the cost of a
single employee turnover at 1.5 times the persons annual salary.
In addition to financial considerations, turnover takes its toll in other ways as well. It lowers staff
morale, safety, Productivity, interdepartmental cooperation, and--most significantly--customer
service.

Where training fits in, many employers believe that training boosts morale, enhances motivation,
and improves personnel retention. Marriott hotels found, for example, that effective training of
its entry-level workers had a profound effect on keeping these employees

Lack of training to promote career development encourages ambitious employees to find

new employers who will provide such educational opportunities.

Inadequate training for multicultural staff results not only in hostility and increased

turnover of minority groups but also in fewer applications from members of these groups. The
same holds true for women when the employers fail to provide training about sexual harassment.
The following statements support the belief that training is, indeed, likely to improve worker
retention.

Employees are trained to do things that are applicable only to jobs found in their own

organizations. Someone, therefore, skilled in a highly specialized technique in forensic

pathology, for instance, might have difficulty finding a similar job elsewhere (unless that skill
were in short supply, in which case the worker would be highly sought after by other employers).

Effective, comprehensive training provides experiences that allow workers to realize

success early on in their careers, resulting in increased morale and, as a result, improved
employee retention. Note: The most successful training will be that which is given during the
orientation of new employees since this is when workers are most receptive to learning new
things.

Training in participative management, empowerment, and self-directed teams produces

significantly increased job satisfaction. People who become members of semi-autonomous work
teams are more resistant to turnover. (Keep in mind, however, that when such programs are first
introduced, turnover may increase for a short time since some employees thrive only in
paternalistic organizations and therefore will be unwilling or unable to accept more
responsibility.)

Now lets look at the other side of the coin, since some people would argue that training can
actually work against employers, encouraging turnover.

Many employers discover--unfortunately, too late--that they have trained their people for

other employers, often the competition. Case in point:

Hospital A trains student nurses. Hospital B uses the money that it has saved by not supporting a
training school to entice Hospital A graduates into joining Bs staff.

Bank managers are constantly complaining that they train their employees in computer
operations, only to lose them as soon as they become proficient.

Many people accept positions in organizations that provide high quality education or

highly specialized training, knowing full well they will leave as soon as they complete that
training. This is especially true in the military. In fact, judging from the recruiting messages of
the armed services, this practice is actually encouraged.

If training is involuntary or must be paid for by the trainee, morale may plummet. If

training programs cause hardship, for example, by being offered only after work hours or at
another inconvenient time, employees may not be able to synchronize their participation with
personal obligations. Any of these instances spur workers to look for a new job.

Employees become upset when they believe that their training agenda is inappropriate or

that the quality of the training sessions leaves much to be desired. Technologists will surely
become frustrated if they are taught things contrary to what they have learned in the laboratory,

or if they are unable to apply what they were taught in the classroom to their work back at the
bench. Hence, employee retention is once again threatened.

A bigger question. Perhaps rather than pondering over whether training helps to retain

employees, we should ask ourselves this question: Does training improve service? The answer
is a resounding YES! The right kind of training, given to the right employees, by the light
trainers, at the right time, and reinforced by their managers back on the job can have a
significantly beneficial effect on customer service, productivity, safety, turnaround time, and
morale.
Performance Appraisal
Performance appraisal may be defined as a structured formal interaction between a subordinate
& supervisor, that usually takes the form of a periodic interview (annual or semi - annual), in
which the work performance of the subordinate is examined & discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement & skill
development.

In many organizations but not all appraisals results are used, either directly or in
directly, to help determine reward outcomes. That is, he appraisal results are used to identify the
better performing employees who should get the majority of available merit pay increase,
bonuses & promotions.
Employee Viewpoint
From the employee view point the purpose of appraisal is four fold :

1)

Tell me what you want me to do

2)

Tell me how well I have done it

3)

Help me to improve my performance

4)

Reward me for doing well

Organizational Viewpoint
From the organizations point of view, one of the most important reasons for having a system of
performance appraisal is to establish & uphold the principle of accountability
Before performance appraisal one must keep the following things in mind:-

Encourage Discussion Research studies show that employees are likely to feel more

satisfied with their appraisal result if they have a chance to talk freely & discuss their
performance. It is also more likely that such employees will be better able to meet future
performance goals.

Constructive Intention It is very important that employees recognize that negative

appraisal feedback is provided with a constructive intention, i.e. to help them overcome present
difficulties & to improve their future performance. Employees will be less anxious about
criticism, & more likely to find it useful, when they believe that the appraisers intentions are
helpful & constructive.

Set Performance Goals it has been shown in numerous studies that goal setting is an

important element in employee motivation. Goals can stimulate employee effort, focus attention,
increase persistence, & encourage employees to find new & better ways to work.

Appraiser Credibility it is important that the appraiser be well informed & credible.

Appraiser should feel comfortable with the techniques of appraisal & should be knowledgeable
about the employees job & performance.
When these conditions exist, employees are more likely to view the appraisal process as accurate
& fair. They also express more acceptance of the appraisers feedback & a greater willingness to
change.

Motivation, Satisfaction & Retention

Performance appraisal can have profound effect on levels of employee motivation & satisfaction.
Performance appraisal provides employees with recognition for their work efforts it also offers
opportunity to focus on work activities & goals, to identify & correct existing problems, & to
encourage better future performance. Thus, the performance of the whole organization is
enhanced. The power of social recognition as an incentive has been long noted. In fact, there is

evidence that human beings will even prefer negative recognition in preference of no recognition
at all.

If nothing else, the existence of an appraisal program indicates to an employee that the
organization is genuinely interested in their individual performance & development. This alone
can have a positive influence on the individuals sense of worth, commitment & belonging.

The strength & prevalence of this natural human desire for individual recognition should not be
overlooked. Absenteeism & turnover rates in some organizations might be greatly reduced if
more attention were paid to it. Regular performance appraisal, at least, is a good start
Compensation Management & Reward
Compensation considers why organizations pay people the way they how various pay strategies
influence the success of organizations. Compensation management basically starts with job
analysis, job descriptions, job evaluation, salary surveys, salary ranges, and customized
performance evaluations
Compensation could be briefly classified into categories namely

Monetary compensations

Non monetary compensations

Benefits are any form of compensation that arent part of an employees basic pay and arent tied
directly to job requirements or performance levels. Specific employee benefits today take a
multitude of forms from the basics that you find in every benefits package (Social Security,
workers compensation and unemployment insurance) to highly specialized offerings such as
tuition reimbursement, child- or elder-care assistance and in-house concierge services. Precisely
which benefits the company offers and what portion of its payroll expense goes to pay for these
services will depend on the companys financial health, the competition for talent within the
industry and the strategic business plan.

Case Study
Every month Sandeep Mahajan and Ramesh Boridkar eagerly wait for one thing the pay
cheque. Sandeep is the director and Ramesh the office boy in the same company. Like them
millions await their pay cheques every month. The pay has become a symbol of someones worth

in the organization vis-a-vis the of the work being performed by the person. Figuring out how
much any one is really worth has been never easy.
Recently we hired a very senior executive for an IT client. After pro deliberations we offered Rs
40 lakh per annum. We thought we had done a pretty good job because the pay was equivalent to
that of the managing director. Six months later the executive started raising the very issue of his
perceived worth and claimed that he should be drawing Rs 50 Iakh. The managing director and
other directors had never had any salary hike for the past three years. The former had in fact
brought the organization from its inception to the current level. The new executive had agreed on
performance target of $2 million and failed to deliver. Yet, he argued that his compensation was
unfair and was not reflecting his worth.

The traditional Pay Cheque

Traditional pay scales in companies reflect job characteristics like importance of the work,
decision/responsibility level. The salary has been and will continue to represent the positional
level in the organization. Even in companies, which attempted merit pay, the quantum was so
small it failed to register any impact on the performance.
Pay hikes are similarly linked to promotions. Employees expect not a jump but a big leap in pay
but would not agree or even discuss how much they performance would go up in the elevated
position.
The HR community also spends considerable time in collecting market and industry data.

The market ultimately decides pay levels, but it also assumes that people occupying similar
positions in organizations, or having similar experience or skills, must be on the same salary
irrespective of contributions.
The pay levels for positions go up or down, based on supply and demand levels (We have
witnessed pay rates going up over $100 per hour during the Y2K crunch). The issue therefore is
should we allow the market to dictate pay, or the position or hierarchy to drive the pay, or
should a good portion of the pay come from performance and contribution?

The traditional pay scale models are not viable any more. Hence, it is time for organizations to
re-engineer their salary system. The meaning of pay has to change just like the economic and
social orders have undergone a change. IT organizations are already on the road to change the
meaning of compensation. Comparable worth is a complicated issue and hence very many
organizations are defining the meaning of worth itself. The basis to determine pay is gradually
shifting from position to performance, status to contribution. This will have some revolutionary
consequences. Companies are working on the theory of doing more with less. They are driven
hard to conserve precious human as well as financial capital. The route therefore is not far away
from performance and pay cheque linkage. The new mantra must be, get paid only if there s
contribution. That is remuneration according to the expected level of contribution. The
guaranteed pay syndrome must now end.
The new order
Having said all the above it is worthwhile to look at merit pay system also. Merit pay is the first
logical step to link performance to pay. Pay the base salary as per the job ranks, and then do

annual or semi-annual raises based on performance (this is still conservative in my view). It still
protects the traditional hierarchy based system.
Quite often this contradicts the view that the organizations performance s team work, as pay
raises here come only for individual performance.
Many would agree that pay raises should come only through performance, but which
performance? That of the individual or the organization?
Individual performance as a determinant of pay increase has been identified as the most
important internal equity. Companies must then lean towards systems wherein the better
performers at least will see the linkage of raises to their contributions.

Evidence shows that there is positive association between organization performance and
compensation. There is a universal agreement among lower level people that managers receive
unfairly excessive amounts. The question of getting more by paying less will be answered if
there is a system of thin guaranteed pay and fat variable pay that depends on the companys
performance. The fixed wage cost thus can be brought down.
As the compensation mode moves away from status or position price to contribution and
performance, the work culture also undergoes change. Work cultures are no more authoritarian
and encourage constant innovation, risk taking, quick problem solving, the status as basis for pay
also must vanish soon. In conclusion we can say that there is considerable merit in linking
compensation to corporate and individual performance. Successful introduction will depend on
striking balance between the two.

Thus aspects to be considered while formulating the compensation plan

Develop compensation strategies and policies in line with legislation and the

organizations business strategy.

Attach meaningful monetary values to posts in the organization ensuring that the

organizations compensation is in line with market forces (this maybe cy means of traditional job
evaluation or other methods such as skill or competency based pay).

Develop appropriate compensation systems for the organization.

Manage overall labour costs.

Reward = Retention
Recruiting and retaining the staff who can deliver the strategic objectives of an organization are
fundamental responsibilities of any manager. Whilst selecting individuals who match the ethos
and culture is crucial, they will not join the organization if the pay and benefits package is not
attractive.

Defining Total Rewards and a Rewards Strategy

Designing a reward strategy begins with the broadest view and understanding of the concept of
Total Rewards. This term includes all types of rewards indirect as well direct and intrinsic as
well as extrinsic. From an employees perspective, it is everything the employee takes away from
his or her relationship with an employer. The operative word here is everything! Yet this

definition is inconsistent with how reward plan design is generally practiced; very few
companies take such a holistic view.
Total Rewards
TR begins with base cash the fixed and recurring wage. Building on base cash is any short-term
variable pay. Short-term variable pay is compensation that s paid for the result of work measured
in increments of a year or less; it typically varies from one period to the next.

Non-cash Rewards
In addition to the elements of Total Remuneration, organizations offer employees rewards in
various forms that, while measurable, may or may not have a dollar value. As the dynamics of
the labor market shift, these other non- cash rewards take on greater significance for several
reasons.
Non cash rewards are the components of the employment compact, or employer/employee
relationship that matter most to todays workforce, People do not leave jobs for money they leave
jobs for opportunity.

Assessing the companies assets all too often, the power of the individual a company is neglected
or underrated. The fact is, without a team of individuals that are fighting with the company and
for the company the company going to be in five years time? The company may have given them
training, support, advice and guidance, but what about the package the pay and benefits? If the
company relies on their teams knowledge and talents success, have they assessed the impact

their reward system might have on their employees? After all, the companies dont want their
Einstein s running off to their competitors!

It doesnt take a genius to determine the fundamentals for retaining key staff, just common sense.
Good remuneration packages benefits and staff perks, However, the difficulty arises in knowing
how to effectively implement and assess it. Setting salary benefits packages to attract and retain
staff is all about managing reward, and managing reward is doing the things that needs to done to
implement the reward strategy. The reward strategy is the means of using pay and, or other
forms of reward, to assist the organization to achieve its corporate goals.

Stopping employees from leaving begins before they are recruited and continues even after they
have left. It costs money to keep staff, but then recruitment can cost up to 150 per cent of the
advertised posts salary and failing to deal with staff retention can potentially affect financial
performance It is not a simple issue, but if the company wants to keep their best staff then they
need to take action.

Typical staff rewards cover pay, benefits, training and the working environment. Getting the
basic pay structure in place is of prior importance. First of all, which type of job evaluation are
the companies going to use to structure their pay package? Analytical where they create the
job first and then put the people in place? Non-analytical where the whole job evaluation is
based on a ranking scheme? Or using pay comparisons?

The salary structure should depend on the size, type and nature of the organization, and should
provide the flexibility to cope with market and skills pressures. It should also have the scope to
reward high achievers and solid performers, and form the basis for career planning.
In order to maintain a happy working environment, it is important for employers to identify
whats important to the people that make up its workforce. For example, parents, graduates, older
workers, women and specialist staff, The pay ranges can then be set in relation to age, Service,
qualifications, performance and marketability.
Research shows that paying extortionate rates to attract and retain talent is not necessarily the
answer. Compensation becomes the weak link during uncertainty or downturns.

Salary levels have been taken to unrealistic level. Today the ratio of 1.5 : 1.0 can be seen
between salary levels for similar positions between IT and non - IT sectors. This has resulted in
low withstanding capacity of companies.

Other motivating factors, which attract and retain staff, are interest in the job, prospects in the
organization and working conditions. Is it a nice place to work? What do the employees like
about it? Whats lacking Benefits could be categorized into salary (fixed and variable), asset
building, long term security, medical needs, social / family needs, education / learning of
employee and family, long term association and specific superior performance awards.

If the company doesnt know, why not ask their staff. Send a survey around the office; ask for
feedback in appraisals, reviews, or in exit interviews. Make the staff feel valued show them
that their input counts now rather than leaving it too late!

The top three reason people leave jobs all involve opportunities the opportunity to grow and
develop, to learn new skills, and to be in an environment where they are appreciated. On a list of
the top eight reasons why people leave jobs, pay rants at number eight. People seek the
opportunity to contribute, and they want to feel their contribution is appreciated. At the same
time, chief executive officers rank customer satisfaction and employee retention as the top two
measurements of value creation. Customer service is a proven by-product o employee
satisfaction, which in turn is directly linked to rewards and recognition.
In addition, non cash rewards are the only real way to differentiate your employment offerings.
Cash is a commodity, so it cannot different one companys employment compact from another; it
is the intangibles that distinguish. Besides, when it comes to money, someone will always pay
more.

It is by broadly defining Total Rewards to include other non-cash rewards that employers truly
distinguish themselves in the labor market from the competition and earn employee commitment.
It is a matter of focusing the employment compact on the rewards that matter to the workforce
you are trying to create, not on the cash elements traditionally measured by companies.

Organizations spend a lot of time measuring Total Remuneration. But what matters to employees
is the total package the Total Rewards.

It is never advisable to wait for the inevitable to come along losing staff could have
repercussions on the business, and clients could begin to doubt the ability of the company.
Although some staff will eventually move on, it is important to identify the needs of the
individual what benefits are attractive and how will these produce results?
A strategic reward system - pay, benefits, continual training and investment can provide an
excellent grounding for a successful, adept team. Spend the money, invest in your staff. If you
get your strategy correct, youll be rewarded with more than ten times the amount of money
invested.

DATA
ANALYSIS
AND ITS
INTERPRET
ATION 3

Q1. Did you satisfied with the present recruitment process adopt by the company?
Figure 5.1 Satisfied with recruitment process
Response
Yes
No

No. of respondents
50
30

Cant Say

20

Figure 5.1 Satisfied with recruitment process.

No. of Respondents
50
40
30
20
10
0

No. of Respondents

ANALYSIS AND INTERPRETATION

From the above table and figure it is quite clear that 50% of the respondents
are satisfied with the present recruitment process adopt by the company, 30%
of the respondents are not satisfied with the present recruitment process
adopt by the company while remaining 20% of the respondents could not say
anything.

Q2. How did you recruited in this company?

Table 5.2 Recruited in this company

Recruitment Process
Internally
By test and interview

No. of Response
20
45

On the reference
On gate

20
15

Figure 5.2 Recruited in this company

No. of Respondents
50
40
30
20
10
0

No. of Respondents

ANALYSIS AND INTERPRETATION

From the above table and figure it is quite clear that 20% of the respondents are
recuited internally in this company, 45% of the respondents are recuited by test and
interview, 20% of the respondents are recuited on the reference and remaiing 15%
of the respondents are recuited on gate.

Q3. In whole recruitment process which part you feel very interesting?

Table 5.3 Part of the recruitment process you feel interesting.

No. of Respondents

Written Test

20

GD

40

Interview

20

All

20

Figure 5.3 Part of the recruitment process you feel interesting.

No. of Respondents
45
40
35
30
25
20
15
10
5
0

No. of Respondents

Written test

GD

Interview

All

ANALYSIS AND INTERPRETATIO From the above table and figure it is clear that 40 % of
the employees feel GD a very interesting in the recruitment process part and remaining 20%
each feel written test, interview and all the above process the interesting part of recruitment
process.

Q4. In recruitment process which part you feel lenghty?

Table 5.4 Part you feel lenghty.

Recruitment Process

No. of Respondents

Written Test

40

GD

40

Interview

20

All

20

Figure 5.4 Part you feel lenghty.

No. of Respondents
45
40
35
30
25
20
15
10
5
0

No. of Respondents

Written test

GD

Interview

All

ANALYSIS AND INTERPRETATION

From the above table and figure it is clear that 40 % of the employees feel that
written is the lenghty in the recruitment process and remaining 20% each feel Gd,
interview and all the above process is the lenghty part in recruitment process.

Q5. Test question asked in test are level to the post offer?

Table 5.5 Question asked are level to the post offer.

Response

No. of respondents

Yes
No

50
30

Cant Say

20

Table 5.5 Question asked are level to the post offer

No. of Respondents
60
50
40

No. of Respondents

30
20
10
0
yes

no

can't say

ANALYSIS AND INTERPRETATION

From the above table and figure it is quite clear that 50% of the respondents are
agree that the question asked in the test are level to the post offer, 30% of the
respondents are not are agree that the question asked in the test are level to the
post offer while remaining 20% of the respondents could not say anything.

Q6. The post offer and the salary are equal to the employement notice?

Table 5.6 The post offer and the salary are equal to the employement notice

Response
Yes
No

No. of respondents
70
30

Figure 5.6 The post offer and the salary are equal to the employement notice

No. of Respondents
80
70
60
50

No. of Respondents

40
30
20
10
0
yes

no

ANALYSIS AND INTERPRETATION

From the above table and figure it is quite clear that majority of the respondents are
agree that the post offer and salary are equal to the employement notice and
remaining 30% of the respondents are not agree that the post offer and salary are
equal to the employement notice.

Q7. What is your experience about the company at the time of joining?

Table 5.7 Experience about the company at the time of joining

Response
Good
Fair

No. of respondents
25
40

Best
Not Good

15
20

Figure 5.7 Experience about the company at the time of joining

No. of Respondents
45
40
35
30
25
20
15
10
5
0

No. of Respondents

Good

Fair

Best

Not Good

ANALYSIS AND INTERPRETATION

From the above table and figure it is quite clear that 25% of the employees are
having a good experience about the company at the time of joining, 40% of the
employees are having a fair experience, 15% of the employees employees are
having a best experience and remaining 20% employees are not having a good
experience about the company at the time of joining.

Chapter 4
Summary
&Conclusion

Limitations:
1. The findings of the study are subjected to bias and prejudice of therespondents.
2. Area of the study is confined to the employees in Chennai only.
3. Time factor can be considered as a main limitation.
4. The findings of the study are solely based on the information provided by therespondents.
5. The accuracy of findings is limited by the accuracy of statistical tools usedfor analysis.
6. Findings of the research may change due to area, demography, age conditionof economy etc.
4.3 Suggestions:
Retaining key personnel is critical to long term success of an organization. A RetentionStrategy
has become essential if your organization is to be productive over time and can becomean
important part of your hiring strategy by attracting the best candidates. In fact, somecompanies
do not have to recruit because they receive so many qualified unsolicited submissionsdue to their
history of excellence in employee retention. How do you get your employees to "fallin Love"
with your organization? This is a great question. Some of the suggestions for this can be
summarized as follows:
The company should provide better motivations to the employees. So that improves
thesatisfaction of the employees.
The company should maintain a good relationship with the employees that help toimprove
their production.

The company want to change their work schedule and policies of their organisation
The company should also develop their infrastructure facility of their organisation.
The company want to reduce their employee retention problem and provide promotionoffers to
their employees
The company should provide job security and statutory benefits to their employees.
The company should provide training programs for their employees
The company should provide career opportunities to the employees.
The company should provide proper incentives to the employees
The company should maintain proper work timings for the employees and should main a
proper attendance of the employees.
CONCLUSION
Critical human resource acts that need to be introduced and altered for effective management of
employees turnover ratio.
1) Employees change job for a variety of reasons
According to a research paper by an IIT - Mumbai professor, there is a significant gap between HR
managers perception of why employees change jobs and the real reasons as cited by the employees
themselves.The papers research findings show that people leave for different reasons depending on
the stage in their career. For example employees new to the workforce tend to leave for more
money, to work with new technology and to move from small to large companies. More senior level
employees leave when the work is not challenging and when they are unhappy with the company
vision.One solution presented is for companies to be careful in their hiring & selection process to
find employees with the right cultural fit with the company. Employers should also avoid
presenting too rosy a picture of the company without including a realistic look at the job and the
work requirements

2) Perks that work

Job satisfaction may be at an all time low but not for many companies that have found a way to
successfully incorporate perks into their workplace culture. While some experts stress that perks are
less important than interesting & challenging work organizations finding that benefits do make a
difference in employee retention.
3) Employees first days are critical for retention success
Studies have shown that an employees experiences during his or her first few weeks on a new job
are critical in the employees later decision whether to stay or leave. Lasting impressions about the
companys standards, the workload, growth opportunity, the work ethic of colleagues and
communication from upper management are all formed during this early time period
The following are some tips to ensure that new employees get off to a good start with your company
or organization:
a) Anticipate the first day. The new employee will have lots of questions buzzing around in his
mind as his first day approaches. Anticipate those questions and put the answers in a letter or
handout for each employee. Questions might include things like
-What is the dress code?
-Where should you park?
-Where do workers eat lunch?

b) Provide a warm welcome. The new employee should be welcomed on her first day by a friendly
face. This can be someone assigned to greet the new employee or a friendly person whom the new
employee met during interview process. Remind staff to say hello and if you want to go all out place fresh flowers on the new employees desk.

c) Assign a friend. To help the new employee feel welcome during the first week or more assign a
friend who can meet the employee for breaks and lunch and answer any questions that one might
hesitate to ask the boss.

d) Provide a schedule. List tasks and/or meetings that the new employee will be working on and
attending during his or her first few weeks.

e) Teach the job. Be prepared with training to help the new employee successfully learn the
specifics of the job. Make sure files and equipment are available if necessary & consider providing a
colleague tutor who can assist with learning.

f) Touch base. During the first week, be sure to check in daily with the new employee to find out
how things are going. This should continue at least weekly for the first month or two.

g) Provide hope for the future. Explain the organizational structure to the new employee & let him
see how his job fits in with the companys mission. If advancement opportunities are available,
explain how the process works and the steps for growth & training.
References/Bibliography
Reference books:
1. Kothari.C.R,Research Methodology methods and Techniques,Wishwa prakashan.
2. Prof.Memoriya,Personnel management, Narayan Publications.
3. RAO VSP,Human Resource Management, Anurag Jain.
4. Tripathi.P.C,Human Resource Development,Sultan Chand and Sons.
5. Taylor Stephen, The Employee Retention Handbook,The Cromwell Press.
Reference Articles:
1.Biswas.S.N,Indian Journal of individuals,Institute of Management, Volume-5, Issue-2, and
February 1994.
2. Manikandan.P,HRM Review,The ICFAI University, Volume-3, Issue-5, and March2007.

3.Venkat.R.K,Management and Labour Studies,Institute of Management, Volume-3,Issue-2, and

July 1997.
4.Philips J. J,Managing Employee Retention- A Strategic Accountability Approach,Elsevier
Butterworth Hethemann Publications, Volume-5, Issue-2, and 1998.
5.Arthur,Effects

of

human

resource

systems

on

manufacturing

andturnover,Academy of Management Journal, Volume-2, Issue-3, and June 2005.

Webliography
The following Websites have been used for reference:
www.retentionsystems.com
www.Careermosaicindia.com
www.hrfolks.com
www.expressitpeople.com
www.thecallcentersschool.com

performance