A Study of Recruitment Policy and Its Effectiveness in The Indorama Synthetic (I) Limited Butibori Nagpur

A STUDY OF RECRUITMENT POLICY AND ITS EFFECTIVENESS IN THE INDORAMA
SYNTHETIC (I) LIMITED BUTIBORI NAGPUR.
Introduction
The art of choosing men is not nearly as difficult as the art of
enabling those one has chosen to attain their full worth. .
Recruitment helps in developing a reservoir or a pool of competent and
eligible candidates by tapping multifarious sources.
Here one small case is discussed which put a light on the problem
arise, during the recruitment of competent workforce.
On July 24, 2008, two Muslim women filed a lawsuit against
the world's largest fast food restaurant chain, McDonald's, its
management company at Dearborn, Michigan, USA, and one of its
managers, alleging that they had been discriminated against during
their job interviews because they were wearing the hijab. In the
lawsuit filed in Wayne County Circuit Court, Michigan, the women
claimed that the discrimination had been going on for years and
demanded
US$10
million
as
compensation.
The two women Toi Whitfield (Whitfield) of Detroit, and

Quiana Pugh (Pugh) of Dearborn alleged that the manager had told
them that they would not be considered for employment unless they
removed their hijab.
This case shows a sensitive and crucial nature of the Recruitment processes.
Recruiter need to tackle an every aspect of process in a careful manner to get
competent workforce.
Department of Management Technology and Research, N.M.D.College

Page 1

Recruitment is the process by which organizations locate and attract

individuals to fill job vacancies. Most organizations have a continuing
need to recruit new employees to replace those who leave or are
promoted in order to acquire new skills and promote organizational
growth.
Recruitment is the process of searching for prospective

employees and stimulation or encouraging them to apply for
jobs in the organization
-By Edwin Flippo

Recruitment is the process to discover the sources of
manpower to meet the recruitments of the staffing schedule
and
to
employ
effective
measures
for
attracting
that
manpower in adequate numbers to facilitate efficient selection

of an efficient workforce.
-By Dale Yoder
The recruitment is, thus a balancing process between job evaluation

and merit rating in respect of the vacancies arising in the organization
whereby the capable and competent candidates who can fulfill the
given job needs are stimulated and attracted towards the organization
to apply.

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RECUITMENT PROCESS
Recruiting begins when a vacancy occurs and the recruiter receives

authorization to fill it. The next step is careful examination of the job
and enumeration of skills, abilities and experience needed to perform
the job successfully. Other steps follow:
Creating an applicant pool using internal or external

methods.
Evaluate candidates via selection.
Convince the candidate.

Page 3

And finally make an offer.
INDORAMA SYNTHETIC INDIA LTD, BUTIBORI, NAGPUR.

INTRODUCTION:
Indo Rama Synthetics (India) Limited was established in India in 1989
with a commitment to quality and customer satisfaction. Its exposure
to international operations gives it a competitive edge in adherence to
global standards. The company boasts of covering diverse fields of
Polyester (staple fibre filament yarn, and FDY, DTY and textile grade
yarn.)
In 1995 the Integrated Polyester Complex at Butibori, near Nagpur in
Maharashtra in technical collaboration with DuPont of USA was set up
for polymer production and partially oriented yarn (POY) and Toyobo of
Japan Polyester Staple fibre (PSF)
Indo Rama Synthetics (India) Limited is the countrys largest dedicated
polyester manufacturer (at a single location), with an Integrated
Manufacturing Complex at Butibori, near Nagpur in Maharashtra
producing Polyester Staple Fibre (PSF), Polyester Filament Yarn (PFY
POY/DTY), draw textured Yarn (DTY) and textile grade chips.
As part of the expansion process, the Butibori plant has now doubled
its capacity of both PSF and PFY. The expansion has been executed in
alliance with Zimmer AG, a leading technology provider from Germany.
Today, the Butibori plant produces 6, 00,000 metric tones of PSF, POY,

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FDY, DTY and fibre grade chips. The expansion was complete with the
project cost of Rs. 900 crores in the periods of 2.5 years.
During December 07, Indo Rama Petrochemicals Ltd is merged with
Indo Rama Synthetics (India) Ltd. With this merger, Power business has
now become a separate revenue segment of the company. Excess
power after captive consumption being sold.
Indo Rama has in place ISO-9001 (2000) for highest standard of Quality
Management System (QMS), ISO-14001 (2004) for Environment
Management System (EMS) and OEKO Tex certificate to meet Human
Ecological
requirements.
Implementation
of
OSHAS-18001
(Occupational Safety & Health) was taken up in financial year of 200607.

Forbes
magazine
has
recognized
the
group-
Indo
Rama
Synthetic (India) Ltd and associates companies based in SouthEast Asia-as one of the 100 Best small companies in the
Emerging market.
Indo Rama Synthetics (India) Limited, in agreement with Pegasus
Global Limited of Thailand established a Joint Venture (JV) in the USA.
The JV, under the name of Star Pet Inc., acquired an operational
Integrated Bottle-Grade Pet Resin manufacturing facility with an
installed capacity of manufacture of around 70,000 tones (150 million
pounds) per annum (tpa) of Polyester from Tippet International Ltd. of
North Carolina, USA. The acquisition was, structured by Management
Consultants KPMG Atlanta on financial aspects and cad alder Ny on
legal and environmental issue.

Page 5

Indo Rama has a dynamic workforce of about 3,000 employees. The

organization puts forth the growth of its employees in terms of their
welfare.
Continuous
programmers
for
its
staff
in
training
and
healthcare are provided at regular intervene built for its employees at

Nagpur. A school at Butibori imparts quality education both for the
employees
children
as
well
as
the
citizens
of
Nagpur.
Every step that the company takes helps it get closer to its objective of
building an organization, which is customer-focused, innovative and
where
quality
is
the
bottom-line.
Mr. OP Lohia is heading the Board of Directors and the organization as

Chairman and Managing Director.

Page 6

OBJECTIVES OF THE STUDY

Before starting any piece of project, there is a need of predefined
objective. It will helpful in detecting appropriate path for the study, and
also control its deviation from main stream. Without any objective a
task is rendered meaningless. The main objectives for undertaking this
project are:
To understand the Internal Recruitment process in general and at

Indorama Synthetics (India) Ltd .Nagpur.
To identify areas where there can be scope for improvement in

the recruitment Process.
To give suitable recommendation to streamline the hiring

process.
To study the impact of recruitment policy of organization on its

employees.

Page 7

HYPOTHESIS OF THE STUDY

A hypothesis in a research is a speculation or a guess. In
simple word, it is a prediction regarding the possible outcomes of a
study.
One way of solving a research problem is by identifying
possible solutions or explanations and then gathering information to
see if they are correct.
We
can
therefore
define
hypothesis
as
tentative
explanations of factual information. You then collect information to

prove or disprove a hypothesis.
H1
Recruitment process is a systematic and definite procedure
in every
Organization.
H2
Transparency is maintained in the recruitment policy of
Indorama
Synthetic (India) ltd.

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H3
Recruitment process is unbiased in of Indorama

Synthetic (India)
Ltd.
PROBLEMS:
An organization may not be able to recruit freely even
though it offers better salaries and other amenities. A number of
constraints may be faced in recruitment such as image of organization,
unattractive jobs, organizational policies, union requirements, and
government policies.
As in March 2006, some leading IT service
companies in India such as Wipro Technologies (Wipro) and
IBM India dismissed several employees when they discovered
that the information provided in the employees curriculum
vitaes (CVs) was false.
The companies also blamed some of the recruitment
agencies which had recruited the dismissed employees, for
helping them fake their CVs. Police complaints were lodged
against some of these recruitment agencies and they were
even
asked
to
refund
the
expenditure
incurred
by
the
companies in hiring the dismissed employees.

Page 9

This is a case of fraudulent; short listing of CVs is the first step

of recruitment, while the recruitment agency is also a popular source of
recruitment. Even though such kind of cases come into picture which
make recruitment more complex.
Some of the common problems related to recruitment

are discussed below:
ERROR OF JUDGEMENT:
While selecting a competing employee recruiter face a problem of
judgment, some time error of judgment due to the limited source of
recruiters information.
BIASNESS:
Biasness is the most popular problem has been seen in the recruitment
process. Discrimination on the basis of relatives, castes, sex, color, etc
is takes place in recruitment process.
INBREEDING PROBLEM:
Generally organizations prefer internal source of recruitment, which
creates a problem of inbreeding in the human resource of organization.

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RESISTANCE OCCURS:
Sometimes existing workforce generates a resistance against new
recruitees, this is also a problem of recruitment process.
SON OF THE SOIL:
It is a peculiar issue in recruitment where employment preference is
given to the candidate who belongs to the same region or state rather
than the skill part.
RESEARCH METHODOLOGY
Research is a systematized effort to gain new knowledge. For
carrying out a research or study different methodologies are applied
which have their own pros and cons. Methodology is the systematic
procedure to reach to the conclusion part of the study.
Research design: Descriptive research design has used.
Sampling method: simple random sampling has used.
Data is collected by two sources;
Primary data
Secondary data
PRIMARY DATA COLLECTION: The primary data is collected by
employees of the company. The methods of primary data collection are

given below;

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Selection of sample size

Questionnaire preparation
Distribution of questionnaire
Collection of filled questionnaire
Interview of an employees
Analysis of responses
conclusion
SECONDARY DATA COLLECTION:
Paper Based Sources:

In paper based sources books, journals and magazines,
company documents (recruitees forms and applications) were
included.
Electronic Based Sources:

In electronic based sources internet surfing was done,
including Google search, Indorama.com, hrcite.com etc.

Page 12

FINDINGS
To make project more supportive and reliable
questionnaire has been prepared, which is filled by the middle level
employees of an organization. It is analysis on the basis of options
provided for questions. This questionnaire is complete combo of issues
related to recruitment process.
In this chapter, we will discuss about each question one by one and
analysis it accordingly.

Page 13

1. The recruitment in INDORAMA SYNTHETIC (I) LTD. is done
mainly through

Page 14

Analysis: Major part of the recruitment is takes place through

consultancy and referrals. According to responses walk-ins
interviews are negligible in an organization.
2. Organization inclination is more toward internal

recruitment

Page 15

Analysis: study shows that Indorama is strongly favors internal

source of recruitment for maintaining workforce.
3. Blood relation policy plays a major role during

recruitment
rather than the talent of the employee.

Page 16

Analysis:
On the basis of responses, the above pie chart
clarifying it that blood relation is not much preferred as

compare to talent of employee during recruitment.
4. The recruitees are mostly:

Page 17

Analysis:
Organization
consist
most
of
the
employees
experienced below 10 years.
5. Stress interview

Page 18

Analysis: stress interview is not a frequent procedure of

organization; it is taken place as per the condition and only for
higher post.
6. The recruitees are lured by:

Page 19

Analysis: As Indorama is one of big Industry in Vidharbh

region, company image and pay packages are important factor
for pulling employees.
7. Struggling point of the interviewee during interview

Page 20

Analysis: 50% of respondents answered that struggling part of

an interviewee during the time of interview is salary
negotiation, and some times answering subject questions is
also a matter of struggle.
8. Clarification of job roles during the interview

Page 21

Analysis: 65% respondents are agreeing with statement

that their job roles were clearly defined during the
interview.
9. Skills match with job profiles of employees.

Page 22

Analysis: Maximum numbers of employees are happy with

their job profile which is suitable for their skills set.

Page 23

10. Employees skills utilization in an organization.
Analysis: More than half of the respondents (60%) are

opinioned that their skills are utilizing in an optimized
way by organization.
11. Employees satisfaction about salary structure

Page 24

Analysis: 70% of total respondents are partially satisfied

with their salary structure, according to them some
corrective opportunities are still their.
12. Competency of current recruitment process

Page 25

Analysis: 60% of employees are saying that current

recruitment policy of an organization is very competent,
while 10% are not agree with them.
13. Employees satisfied with the recruitment process

Page 26

Analysis: 55% of employees are satisfied with recruitment

process partially while 45% of them are completely satisfied
with it.
14. Recession has affected on the recruitment policy of the organization

Page 27

Analysis: 25% of respondents say recession affects recruitment

policy strongly in an organization, while according to 65 % of
respondents it affects only to some extent and not strongly.
15. General opinion with regard to the recruitment policy of

Indorama Synthetics (India) Ltd.
An open ended question was included in a questionnaire which has
provided following general opinions of respondents.
Page 28

Transparency needs to maintain in an organization while

doing recruitment.
More specialized professional need to recruit for
specialized jobs.
In general recruitment policy of Indorama is good, it will
be better, if company not only focus on the recruitment of
competent employee but also on retaining them in an
organization.
CONCLUSIONS:
From the above analysis following are the conclusions:

Page 29

Transparency needs to maintain in an organization while doing

recruitment. Hence we conclude that statement H02 is not
getting retained.
Organization consists mainly an experienced workforce; during
the time of recruitment experienced candidates get preferences.
Recruitment process in Indorama is un-biased, blood relation

dose not play important role at a time of recruitment. Thus, here
statement H03 gets retained.
Page 30

Because of one and only one multi-national company in

VIDHARBH region, Company image and pay packages plays vital
role in attracting recruitees toward an organization.
Organization utilized its human resource skills in an optimized
way.
Current recruitment policy of an organization is competent with
the existent scenario of corporate.
Skills of employees in organization matches according to their
job profile.
Recession has also affect the recruitment policy of Indorama
Synthetic (I) Ltd. up to some extent; they also downsized their
workforce for the sack of cost cutting.
A flowchart is prepared in an organization, according to which
recruitment process follows systematically in Indorama. And
hence here statement H01 is getting retained.
SUGGESTIONS:
Organization needs to recruit more female employees in HR
department as it will make work environment sounder.

Page 31

Organization must give an opportunity for freshers during

recruitment process which will increase enthusiasm and create
more energetic workforce.
Salary structures of employees need to modified, because
monetary factor is always helpful for motivating employees.
As 50% of the employees are struggling in part of salary
negotiation at a time of interview, thus interviewer needs to be
trained to tackle the situation and avid negotiation.
Indorama is highly inclined toward internal source of
recruitment , thus it need to divert toward external source of
recruitment for sack of avoiding inbreeding problem in talent
resource.
LIMITATIONS OF STUDY
Whosoever prepares a thesis or report, some percent of error found in
every study. This error is considered as limitations of study.et we focus
on some limitation of this project.
Page 32

This study is limited to a particular organization Indorama

Synthetic India Limited, Butibori Nagpur, thus conclusion
on report may not be universally accepted.
Response error: Response error may easily found during
collecting a response. This error occurs due to the
hesitated or exaggerated responses of respondent.
Interviewer error: Error may occur during interpretation
of data and responses which collected on the basis of
open ended question.
APPENDIX A
QUESTIONNAIRE
Q1. The recruitments are mostly done through:
A) Campus interviews
B) Walk ins
Page 33

C) Referrals
D) Consultants
Q2. Is the organization inclined more towards internal recruitment?
A) Yes
B) No
Q3. Does the blood relation policy play a major role during the
recruitment rather than the talent of recruitee?
A) Always
B) Sometimes
C) Rarely
D) Never
Q4. Are the recruitees mostly:
A) Fresher
B) Experienced 0-5 years
C) Experienced 5-10 years
D) Experienced above 10 years
Q5. Are stress interviews taken?

A) Always
B) Sometimes
C) Rarely
D) Never
Q6. The recruitees are lured by:
Page 34

A) Company image
B) Pay packages
C) Working environments (convenience)
D) Other reasons (Please specify)
Q7. At what point of the interview does the interviewee mostly
struggle?
A) During salary negotiations
B) During answering subject related questions
C) During welfare programmes negotiations
D) Others (Please specify)
Q8. Were your job roles clearly defined during the interview?
A) Yes
B) No
Q9. Do your skills properly match with your job profile?
A) Yes
B) No
Q10. Are your skills utilized to their fullest in this organization?

A) Yes
B) No
Q11. Are you satisfied with the salary structure?
A) Completely satisfied
B) Partially satisfied
Page 35

C) Completely dissatisfied
Q12. Is the current recruitment process competent for the
organization?
A) Yes
B) No
C) For some jobs (Please specify)
Q13. Are you satisfied with the recruitment process?
A) Completely satisfied
B) Partially satisfied
C) Completely dissatisfied
Q14. Do you think recession has affected the recruitment policy of the
organization?
A) Strongly
B) To some extent
C) Not at all
Q15. Please give your opinion with regard to the recruitment policy of
Indorama Synthetics (India) Ltd.
APPENDIX B
RECRUITMENT PROCESS OF INDORAMA

Page 36

Manpower
requisition (for
stae/workers)
Receive manpower
requisition form
Verification of requisition
and submission to AVPHR and ADMIN/ sr. VP
for their recommendation
Sanctioned
strength
Submission to Corp- HR
Approv
ed by
CorpHR
Recruitm
ent above
AGM
level
file
Intimation to corp-HR
Refer data bank for AGM and below
Availabl
e
Advertisement

Page 37

A
Organize Interview
Personal data
Form (staff)
Personal data
form (workers)
Interview
assessment
form (staff)
Medical check
up
Interview
assessment form
(workers)
Selecte
d
Interview
assessment form
(trainees)
Fi
le
Medical
examination
Fit
Given offer letter
Fi
le

Page 38

Offer letter
(Staff)
Offer letter
(workers)
Completion joining
formalities
Personal data
form
Joining report
Personal data
(workers)
Induction
Peers
Below
deputy
manage
r
Probation and on job
training
Report to
concern
department
for further
instruction

Page 39

C
Appraisal at the end of
probation and training
Probation appraisal
form staff officer and
above
Trainee appraisal/
probation form (staff
assistant officer
belo )
Trainee appraisal/
probation form
(workers)
Review appraisal
Meet
expectati
on
Fi
le
Extension of
training/probation
Confirmation/
Absorption
Absorption
letter (staff)
Absorption
letter
(workers)
Confirmation
letter (staff)
Confirmation
letter (workers)
File and retain all

recruitment records
Fi
le

Page 40

BIBLOGRAPHY:
INTERNET SITES
www.Google.com
www.Indorama.com
www.bing
BOOKS/JOURNALS
Human Resource Management: K.R.Dixit
Research Methodology: Dr. Vijay Upagade

Dr. Arvind Shende
Human Resources Management: C.V.Mammoria

Page 41

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A STUDY OF RECRUITMENT POLICY AND ITS EFFECTIVENESS IN THE INDORAMA

SYNTHETIC (I) LIMITED BUTIBORI NAGPUR.

The two women Toi Whitfield (Whitfield) of Detroit, and

Department of Management Technology and Research, N.M.D.College