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STUDY ON RECUIRMENT AND SELECTION PROCESS IN IZON TECHNOLOGIES

AT COIMBATORE

CHAPTER I

INTRODUCTION
Acquiring and retaining high-quality talent is critical to an organization’s success. As the
job market becomes increasingly competitive and the available skills grow more diverse,
recruiters need to be more selective in their choices, since poor recruiting decisions can produce
long-term negative effects, among them high training and development costs to minimize the
incidence of poor performance and high turnover which, in turn, impact staff morale, the
production of high quality goods and services and the retention of organizational memory. At
worst, the organization can fail to achieve its objectives thereby losing its competitive edge and
its share of the market.
Human resource department plays a crucial role in this process. The backbone of any
successful company is the HR department, and without a talented group of people to hire,
culture, and inform employees, the company is doomed for failure.
Human resource is most valuable assets in the organization. Profitability of the
organization depends on its utilization. If there utilization is done properly will make profit
otherwise it will make loss. To procure right man at right place in right time, some information
regarding job and job doer is highly essential. This information is obtained through job analysis,
job description and job specification. Without these recruitment will be unsuccessful.
A well planned and well managed recruitment will result in high quality applicants for
the company. The recruitment process should inform qualified individuals about employment
opportunities, create a positive image of the company, provide enough information of the jobs so
that applicants can make comparison with their qualifications and interests and generate
enthusiasm among the best candidates so that they will apply for vacant positions.
What distinguishes a successful company from unsuccessful one is the quality of
manpower. The role of management is to optimize the use of resource available to it. The role of
HR is to incorporate the planning and control of manpower resource into the corporate level
plans so that all resources are used together in the best possible combination.
Managing people at work and control of human activities in employment is a function
that must be performed in all societies. It is essential in every type of employment for every
occupation and every type of employed manpower. Manpower management is essential in
government as well as private employment under socialism or communication in small business
and in large.
Recruitment, as a human resource management function, is one of the activities that
impact most critically on the performance of an organization. While it is understood and
accepted that poor recruitment decisions continue to affect organizational performance and limit
goal achievement, it is taking a long time for public service agencies in many jurisdictions to
identify and implement new, effective hiring strategies.

Recruitment is a process which provides the organization with a pool of potentially qualified
job candidates from which judicious selection can be made to fill vacancies. Successful
recruitment begins with proper employment planning and forecasting. In this phase of the
staffing process, an organization formulates plans to fill or eliminate future job openings based
on an analysis of future needs, the talent available within and outside of the organization, and
the current and anticipated resources that can be expended to attract and retain such talent.

Selection is a process of hiring the best among the pool of candidates available.

‘Right person for the right job’ is the basic principle in recruitment and selection. Every
organization should give attention to the selection of its manpower, especially its managers. The
operative manpower is equally important and essential for the orderly working of an enterprise.
Every business organization/unit needs manpower for carrying different business activities
smoothly and efficiently and for this recruitment and selection of suitable candidates is
essential. Human resource management in an organization will not be possible if unsuitable
persons are selected and employment in a business unit.

Recruitment forms the first in the process, which continues with selection and ceases
with the placement of the candidate. It is the next step in the procurement function, the first
being the manpower planning, Recruitment makes it possible to acquit the number and types of
people necessary to ensure the continued operation of the organization.” Recruitment is the
discovering of potential applicants for actual or anticipated organizational vacancies”.
Recruitment has been regarded as the most important function of personnel
administration, because unless the right type of people is hired, even the best plans, organization
charts and control systems would not do much good.

Definition:

“Recruitment is a process to discover the sources of manpower to meet the requirement


of the staffing schedule and to employ effective measures for attracting that manpower in
adequate number to facilitate effective selection of an efficient working force”.

- Dale Yoder

“Recruitment is the process of searching the candidates for employment and stimulating
them to apply for job in the organizations recruitment is the activity that links the employers and
the job seekers”.

- Edwin B. Flippo

The present study is made an attempt to identify Job Satisfaction facilities and
employee’s level about Job Satisfaction facilities adopted. To achieve the aforesaid objective
data is gathered from 110 employees of the organization with random sampling technique. It is
found that most of the respondents are aware about the legislative and non - legislative
employee Job Satisfaction facilities provided at the Company, Job Satisfaction facilities like
medical, canteen, working environment, safety measures etc., are provided by the company.
And most of the employees are satisfied with the Job Satisfaction facilities adopted by the
company towards the employee’s Job Satisfaction

Every individual has certain needs and motives which want to fulfill. Any job which
fulfils their needs and motives. There are some situational factors responsible for job
satisfaction. The important causes of job satisfaction are wage incentive systems, the work
environment, length of working hours, behavior of the supervisor, security, scope for promotion
and recognition of merit. Besides proper evaluation of work, impartial behavior and social
relationship with co-workers etc. are also contributory factors.

The term Job Satisfaction proposes many ideas, meanings and connotations, such as the state of
well-being, health, happiness, prosperity and the development of human resources. As a total
concept of Job Satisfaction, it is a desirable state of existence involving physical, mental, moral
and emotional well-being.

The social concept of Job Satisfaction implies the Job Satisfaction of man, his family, and his
community. Job Satisfaction is called a relative concept, for it is related to time and space.
Changes in it have an impact on the system of Job Satisfaction as well. Job Satisfaction is also a
positive concept. In order to establish a minimum level of Job Satisfaction, it demands certain
minimum acceptable conditions of existence, biologically and socially.

The employee Job Satisfaction schemes can be classified into two categories viz. statutory and
non-statutory Job Satisfaction schemes. The statutory schemes are those schemes that are
compulsory to provide by an organization as compliance to the laws governing employee health
and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock
Workers Act (safety, health and Job Satisfaction) 1986, Mines Act 1962. The non–statutory
schemes differ from organization to organization and from industry to industry.

It is a comprehensive term including various services, benefits and facilities offered to


employees by the employer. Through such generous fringe benefits, the employer makes life
worth living for employees. The Job Satisfaction amenities are extended by in addition to
normal wages and other economic rewards available to the employees as per legal provisions.
The significance of Job Satisfaction were accepted as early as 1931 when the Royal
Commission on Labor stated, the benefits are of great importance to the worker which he is
unable to secure by himself. The schemes of labor Job Satisfaction may be regarded as a wise
investment because these would bring a profitable return in form of greater efficiency.

PURPOSES AND IMPORTANCE:


Determine the present and future requirements
Increase the pool of job candidates at minimum cost
Reduce the probability of employee turn over
Increase the success rate of the selection process
Increase organizational and individual’s effectiveness

EFFECTS:

POSITIVE RECRUITMENT PROCESS


 Attract highly qualified and competent people
 Ensure that the selected candidates stay longer with the company
 Make sure that there is match between cost and benefit
 Help the firm create more culturally diverse work-force

NEGATIVE RECRUITMENT PROCESS


 Failure to generate qualified applicants
 There is no match between cost and benefit
 Extra cost on training and supervision
 Increases the entry level pay scales

EXTERNAL INTERNAL
FACTORS FACTORS
 Supply and RECRUITMENT  Recruitment
demand Policy

 Unemployment  HRP
rate
 Cost
 Labor market
 Size of the firm
 Sons of soil
 Growth and
 Image expansion

RECRUITMENT PROCESS:
• Planning
• Strategy development
• Searching
• Screening
• Evaluation and control
OBJECTIVES OF RECRUITMENT:

 To attract people with multi-dimensional skills and experiences those suit the
present and future organizational strategies so as to obtain a pool of suitable
candidates for vacant posts.
 To induct outsiders with a new perspective to lead the company
 To infuse fresh blood at all levels of the organization.
 To develop organizational culture that attracts competent people to the company.
 To use a fair process.
 To ensure that all recruitment activities contribute to company goals.
 To search for talent globally and not just within the company.
 To conduct recruitment activities in an efficient and cost effective manner.

EMPLOYEE RECRUITMENT:

 In the working place is essential to a company’s long term success. By hiring correctly,
an organization adds the talent it needs and can enjoy the benefits in increased
productivity and morale. However this process is not simple and if the careful process of
selection is not followed: you can be mired with poorly skilled, unmotivated and un-
loyal labor force which can impact future profits as well as other employee behaviour.
 Recruitment, Quite often this word stands alone when some gaming companies develop
a human resources management strategy. An organization cannot develop a recruitment
strategy without simultaneously for mulcting an employee retention plan. Simply stated,
it is one thing to attract workers, but quite another to retain them.

FACTORS EFFECTING RECRUITMENT:

All organizations whether small or large, do engage in recruiting activity, though not to the
same extent. This differs with

 The size of the organization.


 The employment conditions in the community where the organization is located.
 Working conditions, salary and benefit packages offered by the organization.
 The rate of growth of the organization.
 Future expansion program of the organization. And
 Cultural and legal issues.
 Organization’s ability to find and retain good performing people.

FACTORS AND SOURCES

INTERNAL FACTORS:

Employees from within the organization are hired to fill a job vacancy.

It is normally used for higher level jobs.

The internal factors are:


 Company’s pay packages
 Quality of work life
 Organization culture
 Career planning and growth
 Company’s size
 Company’s products/services
 Geographical spread of the company’s operations
 Company’s growth rate
 Role of trade unions
 Cost of recruitment
 Company’s name and fame.

EXTERNAL FACTORES:

The external factors are:-


 Socio-economic factors
 Supply and demand factors
 Employment rate
 Labour market conditions.
 Political, legal and governmental factors like reservations for SC/ST/BC and sons of soil.
 Information systems like employment exchanges /Tele-recruitment like internet.

ADVANTAGES:
 Benefits of new skills, new talents and new experiences to organization
 Compliance with reservation policy is easy
 Scope for resentment, jealousies and heartburn are avoided

DISADVANTAGES:
 Better morale and motivation associated with internal recruiting is denied to
the organization
 It is costly
 Chances of creeping in false positive and fake negative errors
 Adjustment of new employees to the organizational culture takes longer time.

EVALUATION & CONTROL:


 Salaries for Recruiters
 Management & professional time spent on preparing job description, job
specification advertisements, liaison etc.,
 Cost of advertisement
 Cost of producing supporting literature
 Recruitment overheads & administrative expenses
 Cost of overtime & outsourcing

PHILOSOPHIES OF RECRUITING:
 Traditional philosophy – to get as many people to apply for a job as possible
 Waiting in queues
 Job dissatisfaction & employee turnover
 Emphasis is on matching the needs of the organization to the needs of the
applicants
 Minimize employee turnover & enhance satisfaction.

REALISTIC JOB PREVIEWS:


 Provides complete job related information to the applicants so that they can make
right decision before taking up jobs
 Lower rate of employee turnover
 High level of job satisfaction & performance
 Beneficial for organizations hiring at the entry level

JOB COMPATIBILITY QUESTIONNAIRE:


o To determine applicants preference for work match the characteristics of the job
o Greater the compatibility of applicants preferences & characteristics of the job
greater the probability of employee effectiveness & longer the tenure
o 400 item instrument
o Measures job factor related to performance, satisfaction turnover and absenteeism

SOURCES OF RECRUITMENT:

The various sources of external recruitment are:

o Advertising
o Employment agencies
o Employee referrals
o Schools, colleges and professional institutions
o Labour unions
o Casual applicants
o Professional organizations or recruiting firms or executive recruiters
o Indoctrination seminars for college professors
o Unconsolidated applications
o Nepotism
o Leasing
o Voluntary organizations
o Computer data banks

RECRUITMENT POLICIES

A recruitment policy is concerned with quantity and qualifications of manpower. A well


considered and pre-planned recruitment policy, based in corporate goals, study of environment
and the corporate needs may avoid hasty of ill-considered decisions and may go a long way to
man the organization with the tight type of personnel.

The most commonly adopted practice in an organization is to centralize the recruitment and
selection function.

A “recruitment policy” in its broadest sense involves a commitment by the employer to such
general principles as:-
1. To find and employ the best qualified persons for each job.
2. To retain the best and most promising to those hired.
3. To offer promising opportunities for the life-time working careers.
4. To provide programs and facilitates for personal growth on the job.

The following factors should be taken into considerations in formulating recruitment policy.
They are

o Government policies
o Personnel policies of other competing organization
o Organization personnel policies
o Recruitment sources
o Recruitment need
o Recruitment costs
o Selection criteria and preferences etc.
METHODS OF RECRUITMENT

Recruitment can be broadly categorized under three heads. Namely, Direct method, indirect
method and Third method.

DIRECT METHOD:-

One of the widely used direct methods is that of sending of recruiters to colleges and technical
schools. Most college recruiting is done in co-operation with the placement office of a college.

The placement office usually provides help in attraction students, arranging interviews,
furnishing space, and providing student resumes. For managerial professional, and sales
professional, campus recruiting is an extensive operation. Persons reading for MBA or other
technical diplomas are picked up in this manner. Many companies have found employees
contact with the public a very effective method. Other direct methods include sending recruiters
to conventions and seminars, setting up exhibits at fairs, and using mobile offices to go to the
desired centers.

INDIRECT METHOD:-

Indirect method usually involves advertising in news papers, on the radio, in trade and
professional journals, technical magazines and broachers. Advertising in newspapers and
magazines, is the most frequently used methods, when qualified or experienced personnel are
not available from other sources. Senior posts are largely filled by such methods when they
cannot be filled by promotion from within.

Advertising is very useful for recruiting blue-collars and hourly workers as well as scientific,
professional, and technical employees. Local newspapers can be a good source of blue-collar
workers, clerical employees, and lower level administrative employees.

THIRD PARTY METHOD:-

These include the use of commercial of private employment agencies, placement offices of
schools colleges and professional associations, recruiting firms, management consulting firms,
indoctrination seminars for college for college professors and friends and relatives.
PRIVATE EMPLOYMENT AGENCIES:-

They are the brokers who bring employers and employees together. The specialization of
these agencies enhances their capacities to interpret the needs of their client, to seek out
particular types of persons, and to develop proficiency in recognizing the talent of specialized
personnel.

STATE PUBLIC EMPLOYMENT AGENCIES:-

Also known as labor exchanges, they are the main agencies of public employment. They
provide a clearing housing for jobs and job information. These agencies provide a wide range of
services counseling, assistance in getting jobs information about labor market, labor and wage
rates.

PROFESSIONAL ORGANIZATION OR RECRUITMENT FIRMS:-

They maintain complete information records about employed executives. These firms
are looked up on as ‘head hunters’, ‘raiders’ and pirates by organizations which loose personnel
through their efforts. However, these same organizations may employ “executive search firms”
to help them find executive talent. These consulting firms recommend persons of high caliber
for managerial, marketing and production engineer’s posts.

TRADE UNIONS:-

Also provide manual and skilled workers in sufficient numbers.

MODERN SOURCES AND TECHNIQUES OF RECURITMENT

A number of modern recruitment sources and techniques are being used by the corporate in
addition to traditional sources and techniques. These sources and techniques include walk-in and
consult–in, head-hunting, body-shopping, business alliances, and tele-recruitment.
 Walk-In
 Consult-In
 Head-Hunting
 Body-Shopping
 Business Alliances
TELE-RECRUITMENT:

The technological revolution in telecommunication helped the organization to use


internet as a source of recruitment. Organization advertises the job vacancies through the World
Wide Web (WWW) internet. The job seekers send their applications through email or internet.
Alternatively, job seekers place their CV’S in the world wide web/internet, which can be drawn
by the perspective employers depending upon their requirements.

ALTERNATIVES TO RECRUITMENT:

OVERTIME

• When demand for product peaks


• Additional income for employee
• It results in Fatigue, increased accidents & more absenteeism
• Need to pay double wages

EMPLOYEE LEASING

• Often called Staff outsourcing


• Useful to small & medium sized firms

TEMPORARY EMPLOYMENT

o Low labour costs


o Easy access to experienced labour
o Flexibility in future

DISADVANTAGE-

Do not know the work culture of the firm

REFERENCE CHECK:

o The reference of the person should be checked before making a final decision.
o Check through a personal visit or a phone call directly to the applicant’s
immediate former supervision, if possible.
o Verify that the information given to you is correct.
o Consider, with judgment, any negative comments you hear and what is not said.
o Checking references can bring to light significant information which may save
you money and future inconvenience.

RECRUITMENT STRATEGIES:

FINDINGS OVERVIEW

Organizations were asked what strategies they use to recruit both


managerial/professional and non management candidates. For recruiting
managerial/professional candidates, the Internet is the most popular advertising medium, used
by 76 percent of the organizations surveyed. Organizations regularly utilize internal resources
(e.g., internal job postings and employee referrals) when recruiting both internal and external
candidates. Different kinds of agencies are used to recruit for positions at different levels. —
Temporary and government agencies are used mainly to recruit non-management candidates. —
Employment agencies, colleges, and professional organizations are used more often to recruit
managerial/professional candidates.

Organizational Offerings
 The quality of an organization’s offerings affects its ability to attract job candidates.
 Organizations believe they offer candidates a strong company reputation (69 percent) and
high-quality benefits packages (65 percent) and learning opportunities (55 percent).
 Many organizations do not offer stock options (37 percent) or child care options (36
percent).

BEST PRACTICES

Organizations with the most effective recruiting strategies were 15 to 19 percent more likely to
offer candidates high-quality options such as:

o Potential for advancement.


o Company reputation.
o Stocks.
o Benefits package.
o Corporate culture.
o Salary scale.

Organizations offering candidates and employees a positive culture (e.g., innovative, diverse,
potential to advance) and learning environment have more satisfied employees and more
successful at retaining them.

BARRIERS TO EFFECTIVE RECRUITMENT AND SELECTION:

Findings Overview the surveyed organizations report that the top barriers to effective
recruitment of candidates are:

o Shortage of qualified applicants (62 percent).


o Competition for the same applicants (62 percent).
o Difficulty in finding and identifying applicants (48 percent).

SELECTION

The aim of selection is to find a person who accepts the position and who gives
satisfactory service and performance in the long term. The system approach starts from the
position of well defined job and clearly analyzes person’s specifications.

Selection is not just a question of interviewing, although it is most popular device in use.
Selection is very much a process of deselecting that is gradually eliminating candidates until
finally one is left on the list for a vacancy. Some methods are more reliable than other but, to
large extent. Selection is about trying to minimize risk and maximizing certainty of making of
the right decision.

Starting from the position where the recruitment process as produced a no of applicants,
the important steps as follows:
 Short listing the candidates for the next stage.
 Setting up tests for the short listed candidate some times in the form of an assessment.
 Interviewing the candidates and allowing the candidates to interview the selectors.
 Choosing the successful candidates.
 Obtaining references.
 Offering the position, confirming in writing and gaining acceptance.
 Organizing the induction process.
 Evaluating the results.
Personality Tests

A selection procedure measures the personality characteristics of applicants that are


related to future job performance. Personality tests typically measure one or more of five
personality dimensions: extroversion, emotional stability, agreeableness, conscientiousness, and
openness to experience.

The methods of a personnel selection include


 Interviews
 Personality tests
 Biographical data
 Cognitive ability tests
 Work sample tests
 Physical abilities tests
 Self assessments
 Assessment centers

NEED OF THE STUDY


To get an idea about the Recruitment and Selection Procedure held by IZON
TECHNOLOGIES AT COIMBATORE

SCOPE OF THE STUDY

 The study is limited to the information given by the employees.

 Meeting some of the top management associates in the senior cadre was difficult.

 The study has been limited due to time constraint.

 The study is limited based on the rules and regulations of the organizations
OBJECTIVES OF THE STUDY
 To study about the recruitment and selection process followed by IZON
TECHNOLOGIES AT COIMBATORE
 To Identified different methods in selection process
 To know the selection process of employees and its impact on job satisfaction
 To know the job satisfaction levels of the employees of recruited
 To know the recruitment policy followed by IZON TECHNOLOGIES AT
COIMBATORE

CHAPTER II

REVIEW OF LITERATURE

REVIEW OF LITERATURE
1. Anupama Gupta (2010) described the challenges faced by Human resource manager in
context of new economic scenario. This paper emphasized that these challenges should
seriously taken care of. Main challenge is the shortage of skilled manpower. This paper
examined the role of human resource department to tackle the problem. It was the duty of
HR department to design a possible career path to retain talent. It was suggested that HR
manager should be ready to handle the challenges, but the role of other stakeholders
should also be included in order to ensure healthy survival of the organization.
2. Saini R.R. (2010) in his article ―Human resource development in case study of the
Human Resources Development policies and practices. This study identified the process
and problems in designing and implementing Human Resources Development Systems.
This study was analytical in nature and consist a sample of 100 respondents to analyze
their opinion about HRD Policies and Practices. The Important findings of this study
were, qualification was the most important factor of recruitment at all level of managers
and employees.
3. Kundu. Subhash C., Divya Malhan (2009) in their article on "HRM Practices in
Insurance Companies: A Study of Indian and Multinational Companies" opined that
Competitive advantage of a company can be generated from human resources (HR) and
company performance is influenced by a set of effective HRM practices. The results of
this study indicated that both multinational companies and Indian companies have to
significantly improve their practices regarding performance appraisal, training and
financial benefits, and hr planning and recruitment. Service sector is human resource
intensive business. To gain competitive advantage, service organizations should
emphasize on human resource management practices, as has been indicated in the results.
4. Tripathy (2008) observed that an organization can have competitive advantage by
utilizing its human resources. This can be achieved through sound HRD Practices.
According to him HRD include three C‘s- Competencies, commitment and culture. An
optimum level of progressive climate is essential for facilitating HRD in an organization.
It was resulted that good HRD Practices can influence financial and other performance
indicators in the organization.
5. Singh S.K (2008) in his research entitled ― HRD Climate: Interventions and challenge
examined that survival of the organizations in dynamic and complex environment require
60 employee involvement, productivity and this can be achieved with the help of quality
targets, quality circles, training and development & suitable method of performance
appraisal etc. Above these HRD interventions/practices should be implemented in a
suitable way and HRD Climate should be conductive so that cooperation of employees
can be achieved and conflicts can be sorted out which in turn increase the effectiveness of
the organization.
6. Patil, Kallinath S. (2007) in his study opined that, the service sector plays a vital role in
the development of the country. LIC has grown into a living saga. This transformation
has not come about overnight. A breakthrough has been achieved on the strong
foundation laid by the people of this great institution, which provided confidence and
inner strength to explore new frontiers through the program of massive decentralization,
development, expansion and diversification undertaken in recent years. The organization
is today on the threshold of new vistas, striving and straining for reaching new heights
and surging ahead in quest of excellence.
7. Hemant Rao (2007) emphasized the changing role of HR. There was dramatic change in
HR during past five years. This study shows the significant role of human resource
managers in various areas like Empowerment of workers, Business process Reenergizing,
Total Quality management, Humanization of work, and Quality of work life. It was the
challenge of HRM to balance the impact of liberalization and globalization on
productivity. Earlier the role of Personnel department was to give advice or support when
asked but the changing professional employment scenario emphasized the role of HR
professional while dealing with employees of different regions, caste, language and social
backgrounds.
8. Sharma and jyoti (2006) in an article on "job satisfaction" concluded that job
satisfaction is an effective reaction to an individual's work situation, and has been
described as a positive emotional response resulting from appraisal of one's job. One of
the aspects that can lead to 61 Dissatisfaction is one's attitude towards one's job. job
attitude can be defined as an overall feeling about one's job or career or in terms of
specific facet of the job or career and can be related to specific outcomes, such as
productivity.
9. Subramanian, V. (2005) expressing his views regarding recruitment and selection of
employees stated that any organization which gives a fair share of attention to the
recruitment and selection of its people is bound to get good returns. Recruitment and
selection should be viewed in the wider context of the organizational future. What are the
strategic objects and hence what capabilities will the enterprise need in the future? Must
be the questions the organization should always address itself to. Therefore, an important
strategic issue to consider is how the recruitment and selection activity can contribute to
long term business goals.
10. G.V.Chalam and L. Srinivas (2005) in this paper made an attempt to explore the basic
gender disagreement with respect to HRD Climate. Findings of the study showed that
women employees have much more concern on HRD climate than men. They come up
with high level of satisfaction in respect of HRD Practices. Female Employees had higher
degree of pleasure toward HRD Climate. It was also revealed that women respondents
closely observed and followed the Human Resource development climate of the Bank
and were also very loyal toward bank regarding their commitment toward work.
11. Maitin, T.P. (2003) In his article "Dynamic Human Resources" stated that, out of wide
variety of resources which participated in the process of organizational growth, human
resources are the most dynamic element of efficiency and productivity. In the context of
modern information age, manpower owns the responsibility of information mobilization
and their profitable utilization, which increases performance of organization. The role of
human resource as great intellectual assets in management is too valuable to accelerate
the rate of economic progress
12. Malik and sur (2003) in their study on "Human Resource Accounting in India" observed
that the progress of any organization is absolutely dependent on the skillful utilization of
its human resources. Even in the modern world, an organization may own adequate
financial resources and acquire physical resources with latest technology as it needs, it
would find difficult to manage its affairs, if the human organization of the concern is not
strong enough. However, the strange irony is that in India most of the organizations do
not recognize it properly.
13. Vidya A. Salokhe (2002) conducted a study on HRD, observes that "Human Resource
Development (HRD)" signifies an effort aimed at qualitative improvement of human
beings in their specific role as assets of an organization. HRD intrinsically recognizes
that, "People" are the organizations singularly important and valuable resources and that
they need to be developed in terms of their knowledge, skill and attitude for achieving
their personal as well as organizational goals. Because only dynamic people can built
dynamic organizations, only competent and motivated people enable an organization
achieve its goals.
14. Mishra and Bhardwaj (2002) in their research entitled ―HRD climate: An empirical
study among private sector managers‖ examined the nature and extent of HRD climate
over the hieratical levels in large private sector organizations located in eastern parts of
India. A sample of 107 managers at senior, middle, and lower levels is taken. The
standardized questionnaire on HRD climate developed by Rao and Abraham (1990) was
used consisting of a 5-point scale to measure the three categories i.e. general climate,
OCTAPAC culture and HRD mechanisms. For analyzing results mean scores and
percentage scores of each item was calculated, and t-test was applied to verify the results.
15. T.V. Rao (1999) in his book entitled ―HRD audit‖ describe the framework and
methodology of HRD audit. This is landmark work which makes corporations to conduct
an internal audit of their human resource functions. HRD score card has been developed
and tested by Dr. Rao. HRD dimensions are very essential for the contribution toward
organizational performance, HRD systems maturity, HRD competencies, HRD culture
and values, and HRD linkages to business goals. Many corporations have started
investing in HRD. They have started new human resource development, given top level
positions to human resource persons, created reasonable budgets and expect the HR
function to give a strategic advantage to their corporations..
16. Udai pareek &T.V. rao (1999) in ―designing & managing human resource system‖
depicts the fluctuating trends in designing & managing human resource system.
Recognize the importance of HRD and the limitations of personnel department. Many
organizations have established new HRD department. This book treats human resource
system. This work includes some new additions namely career planning & development,
induction training, socialization, mentoring etc. This also gives information about
professional bodies and academic institutions active in the field of HRD.
17. Venkateswaran (1997) conducted a study entitled ―A note on HRD Climate‖ revealed
that early identification of human resource potential and development of their skill are the
main tasks of the HRD department. The study based on the response of 132 executives of
large public sector unit of engineering organization. The study proves the existence of
favourable HRD climate in the organization. The results of the study revealed that the
HRD dimensions increases the employee interest in the work place thereby eliciting a
higher level of performance.
18. Mathur et. al (1996) in a study on work culture try to differentiate the internal work
culture of public and private sector organizations in India. He examined the how the
external socio- 64 cultural environment and enterprise variables influence the internal
work culture, which in turn has an impact on human resource management practices. He
resulted that as compared to public sector organizations, the internal work culture of
private enterprises put greater stress on internal locus of control, future orientation of
planning, and employee participation in management and thereby result in better
performance. It was further point out that HRM Practices in private sector utilized more
effective motivational techniques like feedback, performance based reward, supervisory
control, autonomy etc as compared to public sector.
19. Rajan gupta (1990) in his book entitled ―implementing human resource development
dealt with the implementation part of HRD. The work gives an insight to improve the
implementation process and develop theoretical understanding about HRD
implementation. In this book attention is given to different aspects and issues involved in
HRD like manpower planning, education and training, impact of liberalization and
globalization, total quality management and human resource accounting and HR
dimensions of the new economic policy.
20. Rao and Abraham (1986) stated in their research paper entitled ―HRD Climate in
Indian Organization that human resource is essential for making an organization dynamic
and growth oriented. The top-level executives have ultimate responsibility in creating a
healthy climate and providing adequate training, which is essential for the overall
development of employees. They hold the view that holds the view that existence of
development climate is a pre-requisite for facilitating HRD system in the organization.
21. Benjamin Akinyemi(2011) in their research paper entitled ―An Assessment of Human
Resource Development Climate in Rwanda Private Sector Organizations‖ assesses the
impact Human resource development climate in two leading Rwanda based
telecommunication and insurance companies. This research studied the differences
between the Telecommunication industry and the Insurance industry with respect to their
prevailing Developmental Climate along with three dimensions of HRDC. Primary data
is collected from respondents in both the companies through a structured, self
administered 38-item Human Resource Development Climate (HRDC) questionnaire
developed by Rao and Abraham (1986).
22. Kalyani tanvir(2008) in the research ―Challenges of Human Resource Development to
pace with Globalization. The study was aimed at identifying the variables related to
human resource development in teacher educators‘. Researcher studied the effect of
human resource development climate, performance appraisal, induction in-service
education and training needs of teacher educator with impact of gender, experience, age,
organizational difference, working in unisex or co-education, service stature difference.
23. M.A. Sahaf and M.A. Siddiqui (2007) examined the effectiveness of training in the
Educational organizations. The focus of the paper is various components of training and
development like induction training, training needs, training inputs, management attitude
towards training. Findings of the study revealed that teachers were not satisfied with the
prevalent training and development programs. In the study a number of recommendations
were made like induction training of the fresher should be given, Feedback may be
obtained from the students about their teachers, separate training programs may be
organized to train faculty in handling teaching aid equipment like computer, lab
equipment, overhead projector, internet etc.
24. Hassan (2007) reviewed HRD practices with organizational values and measured the
employees‘ perspective. It was observed in research that HRD practices namely potential
appraisal and promotion, learning/ training, performance guidance and development were
positively correlated with organizational values like collaboration, creativity, quality,
delegation and human treatment but the performance appraisal, career planning and
contextual analysis variables were negatively associated with Trust and creativity.
25. Hassan et al (2006) investigated whether ISO certification contribute toward
improvement in HRD system and also examined the role of HRD Practices on employees
development and quality orientation in the organization. Results indicated that ISO
certified companies, as compared to others, obtained higher means on some HRD
Variables. It was identified that organizations with better learning, training and
development, reward and recognition, and HRIS (Human resource information system)
promote HRD climate in the organization. Quality orientation was estimated by career
planning, performance guidance and development, role efficacy, and reward and
recognition system.
26. S. Husain Ashraf (2007) brought out the fact that Human development is the core of all
development efforts. It was explained that Human resource is very dynamic and essential
resource for producing goods and services and welfare of the society. Human
development at micro (Institutional) level involved selection, manpower planning,
training, performance appraisal, potential appraisal, development, compensation etc. At
macro (National) level it involved illiteracy, poor health, eradication of poverty. Human
development included sustainable development, human rights, security, productivity and
development, empowerment, equity and opportunity. In fact to achieve higher standards
of human development positive approach was necessary which include higher growth
rate, larger expenditure on social sector, an efficient utilization of funds etc.
27. Wan et al. (2002) describe the pattern of relationship between HRM practices and firm
performance. HRM practices were creating a positive impact on organizational targets.
Results achieved through regression analysis suggested that facilitating and implementing
68 important HRM practices increased organizational performance. The performance
appraisal is the most important practices of HRD to increase financial performance. The
companies of Singapore interested in enhancing HR performance emphasized the need
for empowerment and training.
28. Sangeeta Trehan and Karan Setia(2014), in their research entitled ―Human Resource
Management Practices and Organizational Performance: An Indian Perspective‖ give a
better understanding of the role of human resource practices in creating and sustaining
organizational performance, specifically in the Indian context. They discuss a framework
that indicates how external and internal factors affect HRM practices which in turn
generate core benefits for the organization and ultimately lead to overall corporate
performance.
29. Ansari A & W. Fola (2014) in their research article entitled ―Financial soundness and
performance of life insurance companies in India‖ examine those factors which determine
the profitability of life insurers operating in India taking return on asset as dependent
variable. They consider all the 23 Indian life insurers (including 1 public and 22 private)
as the sample for this study and the data for 3 financial years, viz., 2008-09, 2009-10 and
2010-11 are taken into consideration. For this purpose, firm specific characteristics such
as leverage, size, premium growth, liquidity, underwriting risk and equity capital are
taken and 69 regression is applied to estimate the Return on Assets.
30. Sumnider kaur Bawa and Samiya chattha (2013) in their research entitled ―Financial
performance of life insurers in Indian life insurance industry‖ made an attempt to examine
the financial performance of Indian life insurers on the basis of various parameters like
various financial ratios related to liquidity, solvency, profitability and leverage.
Generally, performance can be estimated by measuring the profitability of firm.
31. . Beulah Viji Christiana. M; V. Mahalakshmi (2012) in their research paper entitled
―Influence Of Employee Perception Towards Human Resource Practices And
Organizational Support On Their Citizenship Behavior In Private sector banks - An
Indian Perspectiv studied whether the HR practices like performance appraisal, training
and career development in the private sector banks are positively associated to
organizational commitment of employees which help them to become responsible
organizational citizens .
32. . Santosh singh Bais (2011), conducted research entitled ―Human Resource
Development (HRD) in Insurance sector- A study with special reference to life Insurance
corporation Of India. As per the findings of the study it can be interpreted that the real
strength of a country lies in the development of the human mind and body. The growth
and development of any country depends on its people. Empirical studies have indicated
that labor and capital were largely responsible for the development of advanced
countries. This was done by way of investment in education and training of the labor
forces. Thus human beings are considered as the most valuable resource.
33. Solkhe and Chaudhary (2010) in their research on HRD gathered the responses from 71
junior and middle level executives from various departments of a public sector
undertaking finds the existence of good HRD. According to the results, the managers
showed a favourable attitude towards HRD Policies and practices of the organization.
They were satisfied with the developmental policies of the top management.
34. Solkhe and Chaudhary (2011) conducted another empirical investigation examining the
three components of HRDC. In this study they analyze and determine the relationship,
further the impact of HRD Climate, OCTAPACE Culture on Job Satisfaction as an
Organizational Performance measure in the selected public sector enterprise. The study is
based on the responses sought from executives from various departments and different
hierarchical levels of a public sector undertaking located in North India. The findings
indicate that HRD Climate has a definite impact on Job Satisfaction which in turn leads
to the increased organizational performance. The analysis showed that there exists a
positive relationship between different components of HRD Climate and Job satisfaction.
35. Jain Ravindra and R. premkumar (2010) in his article on ―Management styles,
Productivity and adaptability of human resource: An Empirical study‖ explained the
relationship between management styles and productivity of Human resources. This
study explained the extent to which management style are practiced in Indian
organizations across public sector and private sector enterprises. The author had
measured the impact of management style on HR productivity and HR Adaptability. This
study is exploratory in nature. He had collected primary data through administering the
relevant questionnaires to three hundred executives belonging to both public sector and
private sector. This study comes to the conclusion that both productivity and adaptability
of the human resources were found to have positive correlation with the selected four
management styles.
36. Subramony (2009) in his study on "A Meta-Analytical Investigation of the Relationship
between HRM Bundles and Firm Performance", resulted after studying the meta-analysis
of 239 effect sizes derived from 65 studies that HRM bundles have larger effects than
their constituent individual practices. HRM Bundle is positively related to business
outcomes. These findings reaffirm the case of firm level investments in synergetic HRM
combinations and highlight the importance of investing innovative practices.
37. Som (2008) studied the role of innovative HRM practices and their impact on enhanced
corporate performance during the change process. The results found that innovative
recruitment and compensation practices have positive significant relationship with firm
performance. It was also observed that HR department seems to be the most important
factor for enhancing corporate performance in the context of economic liberalization.
38. Bjorkman and Budhwar (2007) in his research entitled ―Human resource management
and the performance of foreign firms operating in India‖ reviewed the relationship of
HRM and the performance of foreign firm operating I India by taking 76 subsidiaries of
overseas firms operating in India. The results highlighted that introduction of HRM
practices form foreign patent organizations is negatively associated with performance and
local adoption results in positive association with the performance of foreign firms
operating in India. The findings asserts that HRM practices do improve the organizational
performance in Indian subsidiaries of foreign firms if localization of HRM implemented
as people belong to local areas are more sensitive toward their culture and environment.
39. S. Biswas, Kailash, B.L. Srivastava and Vijai N. Giri (2007) in their study of Indian
organizations described the linkages between a firm‘s human resource management
practices, their effect on individual organizational member‘s behavior and enhancement
of organizational efficiency. Extra role behavior of the employees was shaped by the
management policies and practices. The findings of the study confirmed that the extra
role activities of an individual increased his attachment to the job, organizational
citizenship behavior had a significant influence on employees‘ level of job involvement
and there existed favorable association between job involvement and organizational
effectiveness. Lastly, it was found that satisfied employees will contribute towards, the
effectiveness of an organization.
40. S.Ramaya, (2007) explained about the responsibility of the organization to utilize human
resource in the best manner for the achievement of business results. The concept of
balanced score card make organization to achieve objectives through HRD. The findings
of the study shows cause and effect linkage between investment in training and
development and an organizations business goal. Balanced score card provided a number
of benefits to human resource and increase their efficiency. Individual employees‘
performance was evaluated in a structured manner. Balanced score card was an effective
tool to measure the performance of the human resource which was responsible for the
firm‘s performance.
41. Chand & Katou (2007) have conducted a study on Indian hotel industry covering 439
hotels and resulted that Hotel performance is positively associated with HRM system of
recruitment and selection, manpower planning, job design, training and development,
quality circles and pay system and also related with hotel category (chain or individual
hotel). They affirmed that Hotels who belong to chain category and focus on best HRM
practices achieve higher performance as compared to other category.
42. D.K.Pandey (2007) described that in the changing scenario the role of HR in the
organization must be align with organizational goals. This can be achieved through best
HR practices. This paper provided diverse HRM reforms and suggesting best HRM
practices. Quality of life for workers and positive organizational climate would be the
greatest contributor for the retention of workers and for their high morale. It was
suggested that performance appraisal technique should be tailored according to the job. It
was further 74 suggested that trade union should work for wage increase and other
concessions that can increase the productivity and performance of Human Resource.
These new HRM Practices and Reforms are imperative.
43. Sami A. Khan (2007), outlined the fact that Human resource management function had
to play important role in adding value to the business activities in the organization. This
paper explains that HR function should be strategic and should align with the business
strategy that would result into superior efficiency, quality, innovation and customer
responsiveness. The challenges before the human resource managers were related to new
issues like managing new learning, knowledge and skill of human factor, sustainable
competitive advantages. It is the responsibility of the HR managers to work for the
shaping of organizations in new business scenario.
44. Shahnawaz, M.G. and Rakesh C. Juyal (2006) in their research paper" Human
Resource Management Practices and Organizational Commitment in Different
Organizations" concluded that HRM refers to the overall philosophy about the
organization and how people should be managed and is not merely limited to certain
specific functions. HRM focuses on congruence and commitment instead of compliance
and control. This study suggested that there is a need to develop industry specific HRM
policy and practices to remain competitive and to develop committed workforce.

CHAPTER III

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

The study will be conducted to achieve the aforesaid objectives including both exploratory and
descriptive in nature and involve personal interviews that will be based on the questionnaire
format. A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives determined for
carrying out the research study.

The research process that will be adopted in the present study consists of the following stages:-

RESEARCH DESIGN:

EXPLORATORY RESEARCH
A research design is the specification of methods and procedures for acquiring the information
needed to structure or solve the problem. It is the overall operational pattern or framework of the
project that stimulates what information is to be collected from which source and by what
procedure. On the basis of major purpose of our investigation the EXPLORATORY
RESEARCH was found to be most suitable. This kind of research has the primary objective of
development of insights into the problem. It studies the main area where the problem lies and
also tries to evaluate some appropriate courses of action.

DATA COLLECTION SOURCES:


PRIMARY SOURCES-

 The data required for the study has been collected from questionnaire survey among the
official’s employees
 Personal interviews with the company representatives regarding Recruitment and
Selection.
SECONDARY SOURCES-

The secondary data has been collected from:


 Internet, websites
 Organizational Reports
 Case Studies
 Business magazines
 Books
 Journals on e-learning Industry.

SAMPLING METHOD

Survey was done by random sampling method.

SAMPLE SIZE

Sample size can be 130 or as per project sampling requirement.

SAMPLE AREA
IZON TECHNOLOGIES AT COIMBATORE
STATISTICAL TOOLS APPLIED
 Percentage Analysis
 Weighted Average
 One-way ANOVA
 CHI-square test

STATISTICAL TECHNIQUES

This phase consists of the data analysis of the data collected based on the stratified
simple random probabilistic sampling technique. The data collected were analyzed using the
following methods.

PERCENTAGE ANALYSIS

The number of responses of each category is summarized to percentage format for the
convenience to use other statistical tools namely pie chart and bar diagrams.

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentage analysis test is done to find out the
percentage of the response of the respondents. In these tool various percentage are presented by
the way of Bar-diagram, Pie charts in order to have better understanding of the analysis.

FORMULA:

Number of respondents

Percentage = ------------------------------------------------ × 100

Total number of respondent


WEIGHTED AVERAGE:

Mean in which each item being averaged is multiplied by a number (weight) based on the
item's relative importance. The result is summed and the total is divided by the sum of the
weights. Weighted averages are used extensively in descriptive statistical analysis such as index
numbers. Also called weighted mean.

FORMULA:
WEIGHTED AVERAGE = ΣWXi / ΣWi

ΣWXi = The sum of weights (let x1, x2, x3… xn)

ΣXi = occur with weights (w1, w2, w3…wn)

ONE-WAY ANOVA:

Under the one-way ANOVA, we consider only one factor and then observe that the reason for
said factor to be important is that several possible types of samples can occur within that factor .

Analysis of varience table for one-way ANOVA

SOURCES OF SUM OF DEGREES OF MEAN F-RATIO


VARIATION SQUARES FREEDOM SQUARE

BETWEEN n1 (X1-X)2 (k-1) SS BETWEEN MS BETWEEN


SAMPLES +…+
(k-1) MS WITHIN
nk(Xk-X)2

WITHIN ∑(Xij-X)2+….+ (n-k) SS WITHIN


SAMPLES
∑(Xki-Xk)2 (n-k)

TOTAL ∑(Xij-X)2

(n-1)

i=1,2,…

j=1,2..
This ratio is used to judge whether the difference among several means is significant or is just a
matter of sampling fluctuations.

Statistical tools

Chi-square test

This test allows us to determine whether two attributes are independent of each other.
In this study chi-square has been used to test if there is an association between various variables
and the overall level of satisfaction of safety and welfare measures.

X2 = Σ {(Oi – Ei) 2 / Ei }

Applying Yates’s correction:

X2 = Σ {(|Oi – Ei |- 0.5) 2 / Ei }

Phi Coefficient

Chi-square test tells us about the significance of relation between variables; it provides
no answer regarding the magnitude of the relation between the two variables. This can be
achieved by computing the Phi coefficient which is a non-parametric measure of coefficient of
correlation. It gives the magnitude of the relation or the degree of association between the two
variables.

ϕ= [ X2 / n ]

LIMITATION OF THE STUDY:


 Collecting data properly from employees become difficulty due to the time constraint.
 Busy schedule of the employees also effected to some extent.
 There is a chance for bias in the information given by the respondents.
 The study was based on sample hence results were not fully absolute.