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Recriutment process at lucas tvs

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  • 1. CHAPTER-IINTRODUCTION 1
  • 2. The project is titled as “A study on recruitment and selection process”.Recruitment Recruitment refers to the process of finding possible candidates for a job orfunction, undertaken by recruiters. It may be undertaken by an employment agencyor a member of staff at the business or organization looking for recruits. Either wayit may involve advertising, commonly in the recruitment section of a newspaper orin a newspaper dedicated to job adverts. Employment agencies will often advertisejobs in their windows. Posts can also be advertised at a job centre if they aretargeting the unemployed. Suitability for a job is typically assessed by looking for skills, e.g.communication skills, typing skills, computer skills. Evidence for skills requiredfor a job may be provided in the form of qualifications (educational orprofessional), experience in a job requiring the relevant skills or the testimony ofreferences. Employment agencies may also give computerized tests to assess anindividuals off hand knowledge of software packages or typing skills. At a morebasic level written tests may be given to assess numeric and literacy. A candidatemay also be assessed on the basis of an interview. Sometimes candidates will berequested to provide a résumé (also known as a CV) or to complete an applicationform to provide this evidence. 2
  • 3. 12 Elements of Recruitment Strategy 1. What are your primary goals? (Why hire?) 2. Prioritization of jobs 3. Performance level to target 4. Experience level to target 5. Category of candidate to target 6. When to begin searching for candidates 7. Where to look for candidates 8. Who does the recruiting? 9. Primary sourcing tools 10. What skills should you prioritize when selecting candidates? 11. How to assess candidates 12. Primary sales approachSelection The aim of selection is to find a person who accepts the position and whogives satisfactory service and performance in the long term. The system approachstarts from the position of well defined job and clearly analyzes person‟sspecifications. Selection is not just a question of interviewing, although it is most populardevice in use. Selection is very much a process of deselecting, which is graduallyeliminating candidates until finally one is left on the list for a vacancy. Somemethods are more reliable than other but, to large extent. Selection is about tryingto minimize risk and maximizing certainty of making of the right decision. Starting from the position where the recruitment process as produced a no ofapplicants, 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. 3
  • 4.  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.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 4
  • 5. 1.1 NEED OF THE STUDY To get an idea about the Recruitment and Selection Procedure held by LucasTVS ltd., Padi. 1.2 OBJECTIVES  To learn what is the process of recruitment and selection that should be followed.  To study the various sources of Recruitment followed by Lucas TVS.  To know the recruitment policy followed by Lucas TVS.  To search or headhunt people whose skill fits into the company‟s values? 1.3 LIMITATIONS  The main limitation of the study is the collection of information. Because most of the information are confidential. So they don‟t want to disclose them. And I am not able to show any forms which they use in the time of joining or we use to upgrade the files.  Taking appointment of the respondents became a little difficult. 1.4 MATERIAL AND METHODOLOGYSETTING Lucas TVS limited, Padi Plant, Padi.DURATION OF STUDY The study takes nearly 45 days from the period of 1-9-2011 to 14-10-2011.SAMPLING TECHNIQUE Simple Random Sampling 5
  • 6. DATA COLLECTION PROCEDURE The sources of recruitment are broadly divided into Internal Sources andExternals Sources. Internal Sources are the sources within organizational pursuits.The primary data is collected with direct interaction with candidates throughquestionnaire and personal interview. The questionnaire consists of closed endedand open-ended questions. Externals Sources are sources outside organizationalpursuits. 1. Internal Sources  Promotions  Transfer  Response of employees to notified vacancy 2. Externals Sources  Advertisements  Employment Exchange  Campus Recruitment  Unsolicited applicant  Labor Contracts  Employee Referrals  Field Trips 6
  • 7. CHAPTER-2INDUSTRY PROFILE 7
  • 8. INTRODUCTIONTVS Group The TVS Group, with a turnover of over one billion dollars, is the largestmanufacturer of automotive components in India. The group produces auto electrical, dieselfuel injection systems, braking systems, automotive wheels and axle fasteners, powder metalcomponents, radiator caps, two wheelers and computer peripherals. Backed by five serviceand distribution companies with an extensive network across the country, the group has thelargest distribution network for automotive products in India.Lucas TVS is committed to achieving ever increasing levels of customer satisfaction throughcontinuous improvements to the quality of the products and services. It will be the companysEndeavour to increase customer trust and confidence in the label Made in Lucas TVS." TVSGroup originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limitedare the parent and holding company of the TVS Group.TV Sundram Iyengar and Sons Limited have the following three divisions:  TVS and Sons: TVS and Sons is the largest automobile distribution company in India. It distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The company is also one of the leading logistics solution providers and has set up state-of-the-art warehouses all over the country. TVS and Sons have also diversified into distributing a range of Garage equipments.  Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial Vehicles, Cars, and auto spare parts for several leading manufacturers. The company is also the dealer for Ashok Leyland, Honda, Fiat, Ford and Mercedes Benz.  Madras Auto Service: Madras Auto Service distributes automotive spare parts for all leading manufacture. 8
  • 9. OTHER MAJOR COMPANIES OF TVS GROUP: 1. TVS - Motor Company Limited: TVS Motor Company Limited is one of the largest two-wheeler manufacturers in India. It manufactures Motorcycles, Mopeds, Scooterettes and Scooters. 2. TVS Electronics Limited: TVS Electronics was incorporated in 1986 in collaboration with Citizen Watch Co. of Japan. The company manufactures a complete range of computer peripherals. 3. Axles India Limited: Axles India was promoted by Sundaram Finance, Wheels India and Eaton Corporation for the manufacture of axles for medium and heavy duty commercial vehicles in India. 4. Brakes India Limited: Brakes India is a joint venture between TV Sundram Iyengar and Sons Ltd. and Lucas Industries Plc., UK. The company manufactures braking equipment for automotive and non-automotive applications. 5. Sundaram Polymers Division: Sundaram Polymers Division manufactures Engineering Plastic compounds for various applications. 6. Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS Group. It deals in retail finance, hire purchase, leasing and bill discounting. 7. Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS Group. It deals in retail finance, hire purchase, leasing and bill discounting. 8. India Motor Parts and Accessories Limited: It is engaged in the distribution of automobile spare parts. 9
  • 10. 9. India Nippon Electricals Limited: It is a joint venture between Lucas Indian Service and Kokusan Denki Co Ltd., Japan. The company manufactures Electronic Ignition Systems for two wheelers and portable gensets.10. IRIZAR TVS (P) Ltd: IRIZAR TVS (P) Ltd. is a joint venture between Sundaram Industries Ltd, Ashok Leyland Ltd and IRIZAR S. Coop of Spain. The company builds bus bodies for export and domestic market.11. Lakshmi Auto Components Limited: The Company is a subsidiary of TVS-Suzuki. It manufactures gears, crankshafts and connecting rods for TVS-Suzuki motorbikes and mopeds.12. Lucas Indian Service: Lucas Indian Service is a wholly owned subsidiary of Lucas- TVS Ltd., engaged in the sales and service of auto-electrical and fuel injection equipment.13. Lucas - TVS Limited: Lucas-TVS, a joint venture between Lucas Varity group, UK and TVS Group, are a leading manufacturer of auto electrical products and diesel fuel injection equipment in India.14. Sundaram Brake Linings Limited: Sundaram Brake Linings is the leading manufacturer of brake linings in India.15. Sundaram-Clayton Limited: Sundaram - Clayton Ltd manufactures complete range of air brake actuation system - compressors, actuators, valves, brake chambers, spring brakes, slack adjusters, couplings, hoses, switches and vacuum boosters for light/medium and heavy commercial vehicles and trailers. Foundry Division manufactures aluminum, gravity and pressure die-castings. 10
  • 11. 16. Turbo Energy Limited: Manufactures turbo chargers for diesel engines in collaboration with BorgWarner Turbo Systems, U.S.A. at its manufacturing facilities located at Pulivalam, around 100 km from Chennai.  Anusha Investments Limited, Chennai  Holding company : Sundaram-Clayton Limited, Chennai  Ultimate Holding Company : T V Sundaram Iyengar & Sons Limited, Madurai  Fellow subsidiaries : TVS Motor Company Limited, Chennai  Components Limited, Chennai  TVS Motor (Singapore) Pet Limited, Singapore  TVS Motor Company (Europe) B V, Amsterdam  PT.TVS Motor Company Indonesia, Indonesia  TVS Energy Limited, Chennai  TVS Investments Limited, Chennai  TVS Electronics Limited, Chennai  Tumkur Property Holdings Limited, Chennai  Prime Property Holdings Limited, Chennai  TVS-E Access (India) Limited, Chennai  TVS-E Service Tec Limited, Chennai  TVS Capital Funds Limited, Chennai  Savanna Properties Limited, Chennai  Southern Roadways Limited, Madurai  Sundaram Industries Limited, Madurai  The Associated Auto Parts Limited, Mumbai  TVS Interconnect Systems Limited, Madurai  TVS Logistics Services Limited, Madurai  Lucas-TVS Limited, Chennai  Sundaram Textiles Limited, Madurai  NSM Holdings Limited, Madurai  TVS Net Technologies Limited, Madurai  TOR Projects & Services Limited, Madurai  NK Telecom Products Limited, Madurai  NK Telesystems Limited, Madurai 11
  • 12.  TVS Automotive Europe Limited, UK TVS CJ Components Limited, UK TVS Logistics Iberia S.L., Spain TVS Logistics Siam Limited, Thailand TVS Autoserv GmbH, Germany TVS Logistics Investment UK Limited, UK YeleStre Holdings Limited, UK Multipart (Holdings) Limited, UK Multipart Solutions Limited, UK IH Crick Property Co Limited, UK Msys Software Solutions Limited, UK Globe Dynamics Limited, UK Globe Transport Products Limited, UK TVS Dynamic Global Freight Services Limited, Chennai TVS Commutation Solutions Limited, Madurai Lucas Indian Service Limited, Chennai TVS Automotive Systems Limited, Chennai Iranian Automotive Systems, Iran Associate company : Sundram Non-Conventional Energy Systems Limited, Chennai 12
  • 13. CHAPTER-3COMPANY PROFILE 13
  • 14. Company ProfileBasic Information Company Name : Lucas TVS Business Type : Manufacturer Product/Service (We Sell) : Alternator, Starter, Wiper, Relays, Ignition Product/Service (We Buy) : Area Service Representatives Address : Padi Number of Employees : Above 1000 People Company Website URL : http://lucas-tvs.comOwnership & Capital Year Established : 1962 Registered Capital : Above US$100 Million Ownership Type : Individual (Sole proprietorship)Trade & Market Total Annual Sales Volume : Above US$100 Million Export Percentage : 11% - 20% Total Annual Purchase Volume : Below US$1 Million Business Markets : North America South America Eastern Europe South East Asia West Europe 14
  • 15. Factory Information Factory Size : Above 100,000 square meters Factory Location : Padi QA/QC : In House No. of Production Lines : Above 10 No. of R&D Staff : Above 50 People No. of QC Staff : Above 50 People Management Certification : ISO 9001:2000 QS-9000 ISO 14001:2004 ISO/TS 16949 OHSAS 18001 Products Exporting : Starter motor, alternator, headlamp, wiper motor, blower motor, fan motor, dynamo regulator, dynamo, ignition coil, auto components, pantograph wiping... Services : Service -auto electrical equipments, diesel fuel equipmentsPROFILE OF THE COMPANY Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc. UK and TV Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems.One of the top ten automotive component suppliers in the world, Lucas Varity was formed bythe merger of the Lucas Industries of the UK and the Varity Corporation of the US inSeptember 1996. The company designs, manufactures and supplies advanced technologysystems, products and services to the worlds automotive, after market, diesel engine andaerospace industries. The combination of these two well-known groups has resulted in the establishment ofa vibrant company, which has had a successful track record of sustained growth over the lastthree decades.TVS is one of Indias twenty large industrial houses with twenty-five 15
  • 16. manufacturing companies and a turnover in excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233 million during 2003-2004. Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emergedas one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to allsegments of the automotive industry such as passenger cars, commercial vehicles, tractors,jeeps, two-wheelers and off-highway vehicles as well as for stationary and marineapplications. With the automobile industry in India currently undergoing phenomenalchanges, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges oftomorrow.BRANCHES:Lucas TVS has various auto electrical plants as following as: 1. Auto Electrical Plants-Chennai 2. Auto Electrical Plants-Rewari 3. Auto Electrical Plants-Pondicherry 4. Auto Electrical Plants-Puduchery ( old branch- Nettapakkam) 5. Auto Electrical Plants-Chakan, Pune 6. Auto Electrical Plants-Uttarkhand 7. Auto Electrical plants-Indrad, ChennaiMISSION: To be a respected supplier in the global auto industry, by developing innovativeproducts and solutions of value to customers through creative skills and involvement ofemployees, suppliers and dealers and use of contemporary technology.VISION Dominant supplier to all leading vehicle manufacturers in India. Strong presence inselect NICHE market. Recognized supplier to Vehicle / Engine manufacturers in Europe for 16
  • 17. Starters, Alternators and Small Motors. By 2015, reach Sales turnover of Rs.3500 Crores(USD 770 Million) with a third being export sales. Customer delight and stake-holders pridewill form the basis of all our activities. Recognized supplier to Vehicle / Enginemanufacturers in Europe for Starters, Alternators and Small Motors. By 2015, reach Salesturnover of Rs.3500 Crs (USD 770 Million) with a third being export sales. Customer delightand stake-holders pride will form the basis of all our activities.PRODUCTS Lucas-TVS manufacture the most comprehensive range of auto electrical componentsin the country. A range which continues to set standards in the industry. The products aredesigned to meet the demands of vehicle manufacturers both in India and worldwide. Withthe emission standards in India becoming increasingly stringent, Lucas-TVS has ensured thateach of its products is manufactured to meet global standardsQUALITY ASSURANCE Quality is no longer an option but a basic requirement in todays world. At LucasTVS, quality in inbuilt in every phase of manufacture. The companys quality assurancemeasures stand on the foundation of a solid belief - which quality begins and ends with thecustomer. This commitment forms the backbone of its approach to Quality Assurance.Lucas TVS has adopted a prevention-oriented quality policy though ingrained with thetraditional ideas of quality control. Everyone from the highest levels of the organization tothe lowest practice quality control both as an individual and as a team.An effective Quality Control System has resulted in the recognition of the companysoutstanding achievements in the various fields. Lucas-TVS was awarded the ISO 9001certified by BVQI in December 1993. The company reached a further milestone when itrecently received a certificate of recognition from BVQI for QS 9000 for Auto Electricals. 17
  • 18. LIST OF PRODUCTS MANUFACTURED Lucas-TVS Product Range for Indian Lucas-TVS Product Range for Market US/European Market Starter Motor Starter Motor Alternator Alternator Headlamp Small Motor 14W Wiper Motor Windshield Wiper Motor (GM Range) LRW Products Small Motor Dynamo Regulator Wiper Motor Blower Motor Fan Motor Dynamo Regulator Dynamo Dynamo Auto Electricals Ignition Coil Distributor Diesel fuel injection 18
  • 19. CLIENTS INTERNATIONAL CUSTOMER COLLABORATOR CarsMaruti Udyog Suzuki, JapanHindustan Motors Isuzu, Japan. Mitsubishi, JapanTATA Engineering andLocomotive CompanyGeneral Motors, India General Motors, USAFord India Ford, UKDaewoo Motors Co., India Daewoo, KoreaInd Auto Fiat, ItalyHyundai Motors, India Hyundai Motors, Korea Tractors Mahindra & Mahindra International Harvestor Corporation, UKTractors and Farm Equipments Massey Ferguson, UK(TAFE)Escorts Ursus, Poland. Ford, UKHMT Zetor, CzechoslovakiaEicher Tractors Good Earth, GermanyPunjab TractorsGujarat Tractors Zetor, CzechoslovakiaL&T Tractors Johndeer, USAGreaves Tractors Same, Italy 19
  • 20. DIVISIONS Lucas TVS has grown hand in hand with the automobile industry in the country. Thecompanys policies have recognized the need to respond effectively to changing customerneeds, helping to propel it to a position of leadership. The company has raised its standardson quality, productivity, reliability and flexibility by changeling its interests. At present,there are five divisions: 1. Auto Electricals L-TVS 2. Fuel Injection Equipment (FIE) - DTVS 3. Electronic Ignition Systems (INEL) 4. Automotive Lighting (IJL) 5. After Market Operations (LIS)ACHIEVEMENTS Lucas-TVS, a TVS group company, has bagged the prestigious Deming ApplicationAward for the year 2004. This was announced by the Deming Prize Committee of JapaneseUnion of Scientists and Engineers (JUSE).Lucas-TVS, believes that quality begins and ends with the customer. This means identifyingcustomer needs and comprehensively meeting them. For the company, quality is not justconformance to drawings or specifications but ensuring customer satisfaction.AWARDS: 1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS – 2008 Auto-motive sector, Ministry of Power, Govt. of India. 2. TATA CUMMINS Lucas-TVS is Awarded "OUTSTANDING SUPPLIER & EXCELLENCE PERFORMANCE during the year 2007 by CUMMINS INDIA LIMITED 3. FROST & SULLIVAN Platinum Award for Manufacturing Excellence (2005) 20
  • 21. 4. MMA Managerial Excellence in Manufacturing (2004-05) 5. AU-TVS (Anna University) 5 Star Award on 5S (2002) 6. QCC Awards Energy Conservation Award (2000 and 2001) 7. HONDA Best Supplier Award (2007) 8. BIS Rajiv Gandhi National Award (2006) 9. Deming Application prize JUSE, Japan 10. INTERNATIONAL RECOGNITION JIT Innovation Award from JIT Management Lab, Tokyo (2001 & 2004) JIT Grand Prix Award from JIT Management Lab, Tokyo (2002, 2005 & 2006) –3 Times, Deming Application Prize 2004 11. 100 PPM Award Hyundai motor India Overall Best Performance (2004) 100 PPM Award (2003)During 10th Auto Expo "TVS Group" has received awards for following categories: Award 1 - For continuous support at all ten editions of Auto Expo. 21
  • 22. Award 2 - For the largest display area at Auto Expo 2010 (in the vehicle componentcategory).Mr.Jyotiraditya Scindia - Union Minister of state for commerce and industry,distributed the awards.Maruti Suzuki Limited Tier 2 Vendor up gradation Shield presented to Lucas-TVSduring vendor conference at Singapore on 4h May 2011.The award has been receivedby Mr T K Balaji / Managing Director and Mr Arvind Balaji - Joint ManagingDirector.Mahindra & Mahindra Limited - Auto & Farm Equipment Sectors presented theANNUAL COMMODITY AWARD to Lucas-TVS during the Vendor Conference atSeoul - Korea in May 2011. Mr Arvind Balaji - Joint Managing Director, receivedthe Award. 22
  • 23. CHAPTER-IV LITERATURE REVIEW ONRECRUITMENT & SELECTION PROCESS 23
  • 24. INTRODUCTION According to Edwin B. Flippo, “Recruitment in the process of searching thecandidates for employment and stimulating them to apply for jobs in theorganization”. Recruitment is the activity that links the employers and the job seekers.A few definitions of recruitment are:  A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.  It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.  Recruitment of candidates in the function preceding the selection, which helps create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process. Recruitment is a continuous for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manager initiates an employee requisition for a specific Vacancy or an anticipated vacancy. 24
  • 25. RECRUITMENT NEEDS ARE OF THREE TYPES PLANNED The needs arising from changes in organization and retirement policy. ANTICIPATED Anticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment. UNEXPECTED Resignation, deaths, accidents, illness give rise to unexpected.Recruitment Vs Selection Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization whereas selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization whereas the basic of selection process is to choose the right candidate to fill various positions in the organization. 3. Recruitment is a positive process i.e. encouraging more employees to apply whereas selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources whereas selection is concerned with selecting the most suitable candidate through various interview and tests. 5. There is no contract of recruitment established in recruitment whereas selection results in contract of service between the employer and the selected employee. 25
  • 26. Attract and encourage more and more candidates to apply in the organization.Create a talent pool of candidates to enable the selection of best candidates forthe organization.Determine present and future requirements of the organization in conjunctionwith its personnel planning and job analysis activities.Recruitment in the process which links the employees with the employees.Increase the pool of job candidates at minimum cost.Help increase the success rate of selection process by decreasing number ofvisibly under qualified or overqualified job applicants.Help reduce the probability that job applicants once recruited and selected willleave the organization only after a short period of time.Meet the organizations legal and social obligations the composition of itsworkforce.Begin identifying and preparing potential job applicants who be appropriatecandidates.Increase organization and individual effectiveness of various recruitingtechniques and sources for all types of job applicants. 26
  • 27. PURPOSES AND IMPORTANCEThe general purpose of recruitment is to provide a pool of potentially qualified jobcandidates. Specifically, the purposes are to: Determine the present and future requirements of the organization in Conjunction with its personnel-planning and job-analysis activities. Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing the number of visibly, under qualified or overqualified job applicants. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time. Begin identifying and preparing potential job applicants who will be appropriate candidates. Induct outsiders with a new perspective to lead the company. Infuse fresh blood at all levels of the organization. Develop an organizational culture that attracts competent people to the company. Search or head hunt/head pouch people whose skills fit the company‟s values. Devise methodologies for assessing psychological traits. Search for talent globally and not just within the company. Design entry pay that competes on quality but not on quantum. Anticipate and find people for positions that do not exist yet. Increase organizational and individual effectiveness in the short term and long term. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. Recruitment represents the first contact that a company makes with potentialemployees. It is through recruitment that many individuals will come to know acompany, and eventually decide whether they wish to work for it. A well-planned andwell-managed recruiting effort will result in high quality applicants, whereas, ahaphazard and piecemeal effort will result in mediocre ones. High-quality employeescannot be selected when better candidates do not know of job openings, are notinterested in working for the company and do not apply. The recruitment processshould inform qualified individuals about employment opportunities, create a positiveimage of the company, provide enough information about the jobs so that applicants 27
  • 28. can make comparisons with their qualifications and interests, and generate enthusiasmamong the best candidates so that they will apply for the vacant positions. The negative consequences of a poor recruitment process speak volumes aboutits role in an organization. The failure to generate an adequate number of reasonablyqualified applicants can prove costly in several ways. It can greatly complicate theselection process and may result in lowering of selection standards. The poor qualityof selection means extra cost on training and supervision. Furthermore, whenrecruitment fails to meet the organizational needs for talent, a typical response is toraise entry-level pay scales. This can distort traditional wage and salary relationshipsin the organization, resulting in avoidable consequences. Thus, the effectiveness of arecruitment process can play a major role in determining the resources that must beexpended on other HR activities and their ultimate success.SUB-SYSTEMS OF RECRUITMENTThe recruitment process consists of the following four sub-functions:- Finding out and developing the sources where the required number and kind of employees will be available. Developing suitable techniques to attract the desirable candidates. Employing the techniques to attract candidates. Stimulating as many candidates as possible and asking them to apply for jobs irrespective of the number of candidates required.Management has to attract more candidates in order to increase the selection ratio sothat the most suitable candidate can be selected out of the total candidates available.Recruitment is positive as it aims at increasing the number of applicants and selectionis somewhat negative as it selects the suitable candidates in which process; theunsuitable candidates are automatically eliminated. Though, the function ofrecruitment seems to be easy, a number of factors make performance of recruitment acomplex one. 28
  • 29. SOURCES OF RECRUITMENT The sources of recruitment may be broadly divided into two categories:internal sources and external sources. Both have their own merits and demerits. Let‟sexamine these.Internal Sources:-Persons who are already working in an organization constitute the „internal sources‟.Retrenched employees, retired employees, dependents of deceased employees mayalso constitute the internal sources. Whenever any vacancy arises, someone fromwithin the organization is upgraded, transferred, promoted or even demoted.External Sources:-External sources lie outside an organization. Here the organization can have theservices of : (a) Employees working in other organizations; (b) Jobs aspirantsregistered with employment exchanges; (c) Students from reputed educationalinstitutions; (d) Candidates referred by unions, friends, relatives and existingemployees; (e) Candidates forwarded by search firms and contractors; (f) Candidatesresponding to the advertisements, issued by the organization; and (g) Unsolicitedapplications/ walk-ins.METHODS OF RECRUITMENTThe following are the most commonly used methods of recruiting people.INTERNAL METHODS: 1. Promotions and TransfersThis is a method of filling vacancies from within through transfers andPromotions. A transfer is a lateral movement within the same grade, from one job toanother. It may lead to changes in duties and responsibilities, working conditions, etc.,but not necessarily salary. Promotion, on the other hand, involves movement ofemployee from a lower level position to a higher level position accompanied by(usually) changes in duties, responsibilities, status and value. Organizations generallyprepare badli lists or a central pool of persons from which vacancies can be filled formanual jobs. Such persons are usually passed on to various departments, depending oninternal requirements. If a person remains on such rolls for 240 days or more, he getsthe status of a permanent employee as per the Industrial Disputes Act and is thereforeentitled to all relevant benefits, including provident fund, gratuity, retrenchmentcompensation. 29
  • 30. 2. Job Posting Job posting is another way of hiring people from within. In this method, theorganization publicizes job opening on bulletin boards, electronic method and similaroutlets. One of the important advantages of this method is that it offers a chance tohighly qualified applicants working within the company to look for growthopportunities within the company to look for growth opportunities within thecompany without looking for greener pastures outside. 3. Employee Referrals Employee referral means using personal contacts to locate job opportunities. Itis a recommendation from a current employee regarding a job applicant. The logicbehind employee referral is that “it takes one to know one”. Employees working in theorganization, in this case, are encouraged to recommend the names of their friends,working in other organizations for a possible vacancy in the near future. In fact, thishas become a popular way of recruiting people in the highly competitive InformationTechnology industry nowadays. Companies offer rich rewards also to employeeswhose recommendations are accepted – after the routine screening and examiningprocess is over – and job offers extended to the suggested candidates. As a goodwillgestures, companies also consider the names recommended by unions from time totime.External (direct) MethodsCampus RecruitmentIt is a method of recruiting by visiting and participating in college campuses and theirplacement centers. Here the recruiters visit reputed educational institutions such asIITs, IIMs, colleges and universities with a view to pick up job aspirants havingrequisite technical or professional skills. Job seekers are provided information aboutthe jobs and the recruiters, in turn, get a snapshot of job seekers through constantinterchange of information with respective institutions. A preliminary screening isdone within the campus and the short listed students are then subjected to theremainder of the selection process. In view of the growing demand for youngmanagers, most reputed organizations (such as Hindustan Lever Ltd., Proctor &Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs andIITs regularly and even sponsor certain popular campus activities with a view to earngoodwill in the job market. Advantages of this method include: the placement centrehelps locate applicants and provides resumes to organizations; applicants can be pre-screened; applicants will not have to be lured away from a current job and lowersalary expectations. On the negative front, campus recruiting means hiring peoplewith little or no work experience. The organizations will have to offer some kind oftraining to the applicants, almost immediately after hiring. It demands careful advanceplanning, looking into the placement weeks of various institutions in different parts of 30
  • 31. the country. Further, campus recruiting can be costly for organizations situated inanother city (airfare, boarding and lodging expenses of recruiters, site visit ofapplicants if allowed, etc.). If campus recruitment is used, steps should be taken byhuman resource department to ensure that recruiters are knowledgeable concerning thejobs that are to be filled and the organizations and understand and employ effectiveinterviewing skills. 31
  • 32. Factors Affecting Recruitment The recruitment function of the organizations is affected and governed by mixof various internal and external forces. The internal forces of factors are the factorsthat can be controlled by the organization. And the external factors are those factorswhich cannot be controlled by the organization. The internal and external forcesaffecting recruitment function of an organization are: FACTORS AFFECTING RECRUITMENTEXTERNAL FACTORS EXTERNAL FACTORS Supply and demand  Recruitment policy Labour market  Human resource Image/Goodwill planning  Size of the firm Political-Social-Legal  Cost of recruitment Environment  Growth and expansion Unemployment rate Competitors 32
  • 33. Recruitment relationships with other activities: Job analysis Personal Planning NATURE AND REQUIREMENT NO.OF SPECIFIC JOBS OF SPECIFIC JOBS TO BE FILLED RECRUITMENT CONTRAINS INDUCEMENT POOLOF 1. POOR IMAGE 1. COMPENSATION QUALIFIED 2. GOVERNMENT APPLICANTS 2. IMAGE POLICY 3. REPUTATION 3. UNATTRACTIVE 4. CARREER JOBS OPPURTUNITIES SELECTION 33
  • 34. INDUCEMENTS: Organizational inducements are all the positive features and benefits offered byan organization that serves to attract job applicants to the organization. Threeinducements need specific mention here, they are:-• Compensation: Starting salaries, frequency of pay increases, incentives and fringebenefits can all serve as inducements to potential employees.• Career Opportunities: These help the present employees to grow personally andprofessionally and also attract good people to the organization. The feeling that thecompany takes care of employee career aspirations serves as a powerful inducementsto potential employees.• Image or Reputation: Factors that affect an organization‟s reputation include itsgeneral treatment of employees, the nature and quality of its products and services andits participation in worthwhile social endeavors.CONSTRAINTS If a firm has a poor image in the market, many of the prospective candidatesmay not even apply for vacancies advertised by the firm. If the job is not attractive,qualified people may not even apply. Any job that is viewed as boring, hazardous,anxiety producing, low-paying, or lacking in promotion potential seldom will attract aqualified pool of applicants. Recruiting efforts require money. Sometimes because oflimited resources, organizations may not like to carry on the recruiting efforts for longperiods of time, this can, ultimately, constrain a recruiter‟s effort to attract the bestperson for the job. Government policies often come in the way of recruiting people asper the rules of the company or on the basis of merit/seniority, etc. For example, reservations to specific groups (such as scheduled castes,scheduled tribes, backward castes, physically handicapped and disabled persons, ex-servicemen, etc.) have to be observed as per constitutional provisions while filling upvacancies in government corporations, departmental undertakings, local bodies, quasi-government organizations, etc. 34
  • 35. IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIESRecruitment policies are mostly drawn from personnel policies of the organization.According to Dale Yoder and Paul D. Standohar, general personnel policies provide awide variety of guidelines to be spelt out in recruitment policy. After formulation ofthe recruitment policies, the management has to decide whether to centralize ordecentralize the recruitment function.CENTRALISED V/s DECENTRALISED RECRUITMENTRecruitment practices vary from one organization to another. Some organizations likecommercial banks resort to centralized recruitment while some organizations like theIndian Railway resort to decentralized recruitment practices. Personnel department atthe central office performs all the functions of recruitment in case of centralizedrecruitment and personnel departments at unit level/ zone level perform all thefunctions of recruitment concerning to the jobs of the respective unit or zone.MERITS OF CENTRALISED RECRUITMENT o Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. o It would have more expertise available to it. o It can ensure broad uniformity among human resources of various units/zones in respect of education, skill, knowledge, talent, etc. o It would generally be above malpractices, abuse of powers, favoritism, bias, etc. o It would facilitate inter changeability of staff among various units/zones. o It enables the line managers of various units and zones to concentrate on their operational activities by relieving them from the recruiting functions. o It enables the organization to have centralized selection procedure, promotional and transfer procedure, etc. o It ensures the most effective and suitable placement to candidates. o It enables centralized training programs which further brings uniformity and minimizes average cost of staff. 35
  • 36. MERITS OF DECENTRALISED RECRUITMENT o The unit concerned concentrates only on those sources/places wherein normally gets the suitable candidates. As such the cost of recruitment would be relatively less. o The unit gets most suitable candidates as it is well aware of the requirements of the job regarding culture, traditional, family background aspects, local factors, social factors, etc. o Units can recruit candidates as and when they are required without any delay. o The units would enjoy freedom in finding out, developing the sources, in selecting and employing the techniques to stimulate the candidates. o The unit would relatively enjoy advantage about the availability of information, control and feedback and various functions/processes of recruitment. o The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. Both the systems of recruitment would suffer from their own demerits. Hence, the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment. Alternatively management may decentralize the recruitment of certain categories of employees preferably middle and top level managerial personnel and centralize the recruitment of other categories of employee’s preferably lower level positions in view of the nature of the jobs and suitability of those systems for those categories of positions. The management has to find out and develop the sources of recruitment after deciding upon centralizing or decentralizing the recruitment function. 36
  • 37. Recruitment Policy of a CompanyIn today‟s rapidly changing business environment, a will defined recruitment policy isnecessary for organizations to respond to its human resource requirement in time.Therefore, it is important to have a clear and concise recruitment policy in place,which can be executed effectively to recruit the talent pool for the selection of theright candidate at the right place quickly. Creating a suitable recruitment policy is thefirst step in the efficient hiring process. A clear and concise recruitment policy helpsensure a sound recruitment process. It specifies the objectives of recruitmentprogramme. It may involve organizational system to be developed for Implementingrecruitment and procedures by filling up vacancies for implementing recruitmentprogrammers with best qualified people.COMPONENTS OF THE RECRUITMENT POLICY The general recruitment policies and terms of the organization Recruitment services of consultants Recruitment of temporary employees. Unique recruitment situations The selection process The job descriptions The terms and conditions of the employment A recruitment policy of an organization should be such that: It should focus on recruiting the best potential people. Top ensure that every applicant and employee is equally with dignity and respect Unbiased policy. To aid encourage employees in realizing their full potential. Transparent, task oriented and merit based selection. Weight age during selection given to factors that suit organization needs. Optimization of manpower oat the time of selection process. Defining the competent authority to approve each selection. 37
  • 38. Abides by relevant public policy legislation on hiring and employment relationship. Integrates employee needs with the organizational needs.FACTORS AFFECTING RECRUITMENT POLICY Organizational objectives Personnel policies of the organization and its competitors. Government policies on reservations. Preferred sources of recruitment. Need of the organization. Recruitment costs and financial implicationsRecruitment Management SystemRecruitment management system is the comprehensive tool to manage the entirerecruitment processes of an organization. It is one of the technological tools facilitatedby the information management system to the HR of organizations. Just likeperformance management system helps to contour the recruitment processes andeffectively managing the ROL on recruitment.The features, functions and major benefits of the recruitment management system areexplained below: o Structure and systematically organize the recruitment processes. o Recruitment management system facilitates faster, unbiased, accurate and reliable processing of applications from various applications. o Helps to reduce the time-per-hire and cost-per-hire. o Recruitment management system helps to incorporate and integrate the various links like the application system on the official website of the company, the unsolicited applications, outsourcing recruitment, the final decision marking to the main recruitment process. o Recruitment management system maintains an automated active database of the applicants facilitating the talent management and increasing the efficiency of the recruitment processes. 38
  • 39. o Recruitment management system provides and a flexible, automated and interactive interface between the online application system, the recruitment department of the company and the job seeker. o Offers tolls and support to enhance productivity, solutions and optimizing the recruitment processes to ensure improved ROI o Recruitment management system helps to communicate and create healthy relationship with the candidates through the entire recruitment process. The recruitment management system (RMS) is an innovative informationsystem tool which helps to save time and costs of the recruiters and improving therecruitment processes. RECRUITMENT STRATEGIES: Recruitment of the most crucial roles of the human resource professionals. Thelevel of performance of an organization depends on the effectiveness of its recruitmentfunction. Organizations have developed to follow recruitment strategies to hire thebest talent for their organization and to utilize their resources optimally. A successfulrecruitment strategy should be well planned and practical to attract more and goodtalent to apply in the organization. For formulating an effective and successful recruitment strategy, the strategy shouldcover the following element:(1) Identifying and prioritizing jobs requirements keep arising at various levels inevery origination: it is amount a never – ending process. It is impossible to fill all thepositions immediately. Therefore, there is a need to identify the positions requiringimmediate attention and action. To maintain the quality of the recruitment activities, itis useful to prioritize the vacancies whether to focus on all vacancies equally orfocusing on key jobs first.(2) Candidates to target the recruitment process can be effective only if theorganization completely understands the requirements of the type of candidates that 39
  • 40. are required and will be beneficial for the organization. This covers the followingparameters as well:A. performance level required: Different strategies are required for focusing onhiring high performers and average performers.b. Experience level required: the strategy should be clear as to what is theexperience level required by the organization. The candidate‟s experience can rangefrom being a fresher to experienced senior professionals.C. Category of the candidate: the strategy should clearly define the targetcandidate. He/ She can be from the same industry, different industry, unemployed, topperformers of the industry etc.(3)Sources of recruitment the strategy should define various sources (external andinternal) or recruitment. Which are the sources to be used and focused for therecruitment purposes for various positions? Employee referrer is one of the mosteffective sources of recruitment.(4) Trained recruiters the recruitment professionals conducting the interviews and theother recruitment activities should be well trained and experienced conducting theactivities. They should also be aware of the major parameters and skills (e.g.:behavioral, technical, etc) to focus while interview and selecting a candidate.(5) How to evaluate the candidates the various parameters and the ways to judge themi.e. the entire recruitment process should be planned in advance. Like the rounds oftechnical interviews, HR interviews, return tests, psychometric tests, etc. 40
  • 41. HR Challenges in Recruitment Recruitment is a function that requires business perspective, expertise, abilityto find and match the best potential candidate for the organization, diplomacy, andmarketing skills (has to sell the position to the candidates) and wisdom to align therecruitment process for the benefit of the organization. The HR professional handlingthe recruitment function of the organization are constantly facing new challenges. Thebiggest challenge for such professionals is to source or recruited the best people orpotential candidates for the organization. In the last few years, the job market has undergone some fundamental changesin terms of technology, sources of recruitment, competition in the market, etc. in analready saturated job market, where the practices like poaching and raiding or gainingmomentum, HR professionals are constantly facing new challenges in one of theirmost important function recruitment they have to face and conquer various challengesto find the best candidates for the organizations.The major challenges faced by the HR recruitment are: Adaptability to globalization –the HR professionals are expected and required to keep in tune with the changing times, i.e. the changes taking place across the globe HR should maintain the timeline of the process Lack of motivation – recruitment is considered to be a thankless job. Even if the organization is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers Process analysis – the immediacy and speed of the recruitment process are the main concerns of the HR recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective Strategic prioritization – the emerging new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing tasks to meet the changes in the market has become a challenge for the recruitment professionals. 41
  • 42. SELECTION Introduction The size of the labour market, the image of the company, the place ofposting, the nature of job, the compensation package and a host of other factorsinfluence the manner of aspirants are likely to respond to the recruiting efforts ofthe company. Through the process of recruitment the company tries to locateprospective employees and encourages them to apply for vacancies at variouslevels. Recruiting, thus, provides a pool of applicants for selection.Definition To select mean to choose. Selection is the process of picking individualswho have relevant qualifications to fill jobs in an organization. The basic purposeis to choose the individual who can most successfully perform the job from thepool of qualified candidates.PurposeThe purpose of selection is to pick up the most suitable candidate who would meetthe requirements of the job in an organization best, to find out which job applicantwill be successful, if hired. To meet this goal, the company obtains and assessesinformation about the applicants in terms of age, qualifications, skills, experience,etc. the needs of the job are matched with the profile of candidates. The mostsuitable person is then picked up after eliminating the unsuitable applicantsthrough successive stages of selection process. How well an employee is matchedto a job is very important because it is directly affects the amount and quality ofemployee‟s work. Any mismatched in this regard can cost an organization a greatdeal of money, time and trouble, especially, in terms of training and operatingcosts.In course of time, the employee may find the job distasteful and leave infrustration. He may even circulate „hot news‟ and juicy bits of negativeinformation about the company, causing incalculable harm to the company in thelong run. Effective election, therefore, demands constant monitoring of the „fit‟between people the job. 42
  • 43. The Process Selection is usually a series of hurdles or steps. Each one must be successfully cleared before the applicant proceeds to the next one. The time and emphasis place on each step will definitely vary from one organization to another and indeed, from job to job within the same organisation. The sequence of steps may also vary from job to job and organisation to organisation. For example some organizations may give more importance to testing while others give more emphasis to interviews and reference checks. Similarly a single brief selection interview might be enough for applicants for lower level positions, while applicants for managerial jobs might be interviewed by a number of people.Steps in Selecting Process: Hiring Decision Step-8 Reference Checks Step-7 Medical Checkups Step-6 Selection Interview Step-5 Selection Test Step-4 Application blank Step-3 Screening Interview Step-2 Reception Step-1 43
  • 44. Factors affecting selection decisionsThe goal of selection is to short out or eliminate those judged unqualified to meet thejob and organisation requirements, where as the goal of recruitment is to create a largecool of persons available and willing to work. Thus, it is said that recruitment tends tobe positive while selection tends to be somewhat negative. A number of factors affect the selection decisions of candidates. The importantamong them are: (I) Profile matching. (ii) Organizational and social environment. (iii) Successive hurdles. (iv)Multiple correlations.(i) Profile matching: Tentative decision regarding the selection of candidates (whoare known) is taken in advance. The scores secured by these known candidates invarious tests are taken as a standard to decide the success or failure of other candidatesat each stage. Normally the decisions about the known candidates is taken at interviewstage. Possible care is also taken to match the candidates‟ bio data with the jobsspecifications.(ii) Organizational and social environment: some candidates, who are eminentlysuitable for the job, may fail as successful employees due to varying organisation andsocial environment. Hence candidate‟s specifications must match with not only jobspecifications but also with organizational social environmental requirements.(iii) Successive hurdles: In this method hurdles are created at every stage of selectionprocess therefore, applicants must successfully pass each and every screening devicein case of successive hurdles as shown in figure 5.1(iv) Multiple correlations: Multiple correlations is based on the assumptions that adeficiency in one factor can be counter balanced by an excess amount of another. Acandidate is routed through all the selection steps before a decision is made. Thecomposite test score index is taken into accounting the selection tests. Hence, for 44
  • 45. broader line cases multiple correlation method is useful and for other successivehurdles method is useful.Selection ProcedureThere is no standard selection process that can be followed by all the companies in allthe areas. Companies may follow different selection techniques or methods dependingupon the size of company, nature of the business, kind and number of persons to beemployed, government regulation to be followed etc. Thus, each company may followanyone or the possible combinations of methods of selection in the order convenientor suitable to it. Following are the selection methods generally followed by thecompanies. Selection procedure employs several methods of collecting information aboutthe candidates qualifications, experience, physical and mental ability, nature andbehavior, knowledge, aptitude and the like for judging whether a given applicant is oris not suitable for the job. Therefore, the selection procedure is not a single act but isessentially a series of methods or stages by which different types of information canbe secured through various selection techniques. At each step, facts may come to lightwhich are useful for comparison with the job requirement and employeespecifications. (1) Job Analysis. (2) Recruitment. (3) Application Form. (4) Written Examination. (5) Preliminary Interview. (6) Business Games. (7) Tests. (8) Final Interview. (9) Medical Examination (10) Reference Checks. (11) Line Manager‟s Decision. (12) Employment. 45
  • 46. CHAPTER-5 HUMAN RESOURCE MANAGEMENT AT LUCAS TVSHistory of Human Resource Management 46
  • 47. The History of Human Resource Management is the strategic and coherent approachto the management of an organizations most valued assets - the people working there whoindividually and collectively contribute to the achievement of the objectives of the business.The terms "human resource management" and "human resources" (HR) have largely replacedthe term "personnel management" as a description of the processes involved in managingpeople in organizations. Human Resource management is evolving rapidly. Human resourcemanagement is both an academic theory and a business practice that addresses the theoreticaland practical techniques of managing a workforce. Human resource management has its roots in the late and early 1900s. When there areless labour then there are more working with machinery. The scientific managementmovement began. This movement was started by Frederick Taylor when he wrote about it abook titled „The Principles of Scientific Management‟. The book stated, "The principal objectof management should be to secure the maximum prosperity for the employer, coupled withthe maximum prosperity for each employee.” Taylor believed that the management shoulduse the techniques used by scientist to research and test work skills to improve the efficiencyof the workforce. Also around the same time came the industrial welfare movement. This wasusually a voluntary effort by employers to improve the conditions in their factories. Theeffort also extended into the employee‟s life outside of the work place. The employer wouldtry to provide assistance to employees to purchase a home, medical care, or assistance foreducation. The human relations movement is the major influence of the modern humanresource management. The movement focused on how employees group behaviour and howemployee feelings. This movement was influenced by the Hawthorne Studies.Functional area of HRM • Human resource auditing • Human resource strategic planning • Human resource planning • Manpower panning • Recruitment / selection • Induction • Orientation • Training 47
  • 48. • Management development • Compensation development • Performance appraisals • Performance management • Career planning / development • Coaching • Counselling‟s • Staff amenities planning • Event management • Succession planning • Talent management • Safety management • Staff communication • RewardPEOPLE Human resource is an asset never disclosed in a companys balance sheet. We atLucas-TVS strongly believe that an organizations most valued assets are its people whoindividually and collectively contribute to the achievement of the objectives of the business.Keeping this in mind, Lucas-TVSs management style lays great emphasis on employeeinvolvement and actively encourages participation and commitment through Small GroupActivities (SGA), Suggestion Schemes, Voluntary Work Teams and the like.MANAGEMENT Management of almost all the companies is by family members. Most of thegroup companies maintain a low profile and follow a conservative management style. 48
  • 49. CULTURE A highly visible culture of Commitment, backed up by Discipline & Positive Attitudeprevails across the organization. We believe in the following equation: Employee Performance = [Knowledge + skill] X [Will]Trust, Value, and Service are the key words and beliefs practiced always internally andexternally. Openness and transparency are seen in leadership styles meetings. Internalcustomer- Supplier equations are extremely strong. SOP (Standard Operating Procedure-shopfloor) & SWP (Standard Work Procedure-office areas) are base points of DRM in line andstaff functional departments. TEI (Total Employee Involvement) is the foundation of theorganization. Learning culture prevails at all times and all places in the company. 5S is thefirst step in every function. Approach and outlook of engineers / managers is always bi-focal(short term and long term). PDCA is the belief and the Continuous improvement is the driverof growth. Systems and procedures are always put in place in reality to recognize an orderlyworkflow. Performance culture is encouraged and visible results are rewarded. Customer,economy in operations and Gemba are the basics of business culture. We take care of ouremployees and they in turn take care of our customers.HR POLICY To build a strong corporate constitution (HR) in the organization by constitutionimproving skill and morale of the employees and ensuring climate for total employeeinvolvement in the organization in all facets of business.HR Philosophy We believe:  In people and their unlimited potential  In content and focus in problem solving  In teams for effective performance  In the intellect and its power 49
  • 50. HR Vision To be the foundation that integrates Culture, Vision and Values and creates an environment that facilitates the maximization of human potential. Our Endeavour a. To select, train and coach people to obtain higher and early responsibilities b. To nurture talent to build leaders of our tomorrows LIS. c. Reward and activate all intellectual business contributions for the growth of the company. Responsibility of HR department in organization Position Job ResponsibilitiesHR Executive committee, organization planning, HR planning & policy, Organization developmentManager, recruitment & Recruiting, Interviewing, Testing, Placement & TerminationemploymentManager , compensation & Job analysis and evaluation, surveys, Performance appraisal,benefits compensation administration, bonus, Profit sharing plans, Employee benefits.Manager, Training & Orientation, Training, Management development, Career Planning &Development developmentManager, Employee relations EEO relations, contract compliance, staff assistance programs, Employee counselling. Table : Responsibility of HR department 50
  • 51. RECRIUTMENT PROCESS AT LUCAS TVS In Lucas-TVS recruitment and selection process is done by a specific process andwhich is very much modern. Its starts with the manpower requisition and end with anappointment. And after than Lucas TVS arrange various types of training and developmentprogram for the employees to develop their skill. In true sense Lucas TVS follow a developedrecruitment process for selecting right people in right place.The internal communication system of Lucas Tvs called “Indha Maadha Seitni” Which wasconducted every month at every Departments and every quarterly by which the manpowerrequirements of various departments are identified well in advance. Recently, the Lucas TVS have recruitment in this year for the post of SoftwareEngineer, Recruitment for Engineer and Diploma Trainees by way of advertisements invarious Employment News and other job related papers. The Lucas TVS has a WEBSITEcalled http://www.lucas-tvs.com/lucastvs/opportunities. In which all recruitment portalsare kept. The details of the candidates applied and their related date was maintained in aconfidential way.Role of Human Resources in Recruitment and Selection Process: In recruitment and selection process the main role is played by HR division. TheprocessIs start with manpower requisition and end with appointment? When there is a need ofmanpower, the required departments send the manpower requisition to HR consist theapproval of MD. Then HR starts the process. The process include some step or task that doneby a sequential order. First step is manpower requisition. It comes from the division who hasvacancies. It can be replacement or for the new candidates. In the second step the requisitioncomes to HR department the particular officer of HR takes approval from the CHRO. Thenthe third step starts, HR give advertisement for the job, it can be external or internal. Aftercollecting CVs HR starts sorting suitable CVs for that post. After sorting of CV the forth stepstarts. The forth step is written exam. Written exam has two parts, one is the HR parts andanother is the particular department‟s parts. The candidates must have passed HR part. Whena candidate passed the written exam then he or she gets call for interview. It is the fifth step 51
  • 52. of the process. Generally, the candidates have to face one Interview but sometimes they haveto face two interviews. After interview a candidate is selected by the interviewers. Then theselected candidate has to go for medical checkup. It is sixth step. Then comes referencecheck step. Lastly selected candidates fill up joining forms and then he/she gets theappointment letter. This is the procedure that Lucas TVS HR follow to recruit people. Actually in LucasTVS the Recruitment and selection is totally control by HR divisions. HR division makes thepolicy for recruitment and selection and also taken decision sometimes that a departmentrequired manpower. When the requisition come HR starts the process. HR also supervise thatRecruitment and Selection are not simply mechanisms for filling vacancies rather they areviewed as the key factor for suitable placements. For a better recruitment and selectionprocess HR arrange done some tasks like  Collecting suitable and better CV  Arranging written exam  Arranging interviews  Ensure medical tests  Appointment letter and othersBASIC RULE OF RECRUITMENT IN LUCAS TVS: For recruitment Lucas TVS HR follow some rules. These rules are set by HR forbetter recruitment and selection. The rules are  Lucas TVS Recruitment is to hire the right kind of people at the right place selecting them through an effective process from a pool of candidates in the job market. Effective recruitment shall ensure the competency and high quality performance of the whole organisation.  No one who is below 18 years of age can be hired as an employee for Lucas TVS on regular, contract or temporary status.  Under no circumstances a regular or contract employee of any other organization is allowed to undertake regular or long term contract employment in Lucas TVS. 52
  • 53. Recruitment & Selection Process at Lucas TVS:The Process of recruitment and selection at Lucas TVS is consisting of number of sequentialsteps. The following picture can show the process very clearly: MANPOWER COLLECTING CV FROM REQUISITION SOURCES: 1. INTERNAL SOURCES 2. EXTERNAL SOURCES i. CAMPUS RECRUITMENT ii. RECRUITMENT AGENCIES iii. JOB PORTAL ACCEPTANCE OF OFFER LETTER AND JOINING PROCEDURE SORTING CV THAT ARE SUITABLE FOROFFER LETTER JOB REFERENCE CHECK WRITTEN EXAM GROUP FINAL SELECTION DISCUSSION PERSONALMEDICAL CHECK INTERVIEW (THERE MAY BE TWO INTERVIEW) Figure: Recruitment & Selection Process at Lucas TVS 53
  • 54. HUMAN RESOURCE PLANNING Recruitment and Selection are not simply mechanisms for filling vacancies rather theyare viewed as the key factor for suitable placements. With a view towards placing the rightperson at the position in Lucas TVS following procedures in Recruitment and Selection willbe practiced: Lucas TVS Human Resource planning will start at the beginning of the year inaccordance with the approved business Plan and budget provisions. Each Division will submit their month wise recruitment plan to HR for the wholeyear and on the basis of such requirement HR Division will prepare the upcoming recruitmentplan of each Division/Department.MANPOWER REQUISITION: Based on the HR Planning respective Division/Department Head will inform HR onpersonnel requirement through Manpower Requisition form, after obtaining necessaryapprovals from the Managing Director. Employment Requisition Form must contain a JTOR(Job Terms of Reference), comprising Job Description and Job Specifications / Requirementsof the position.Requisition form contain some information like  Name of the position  Status of the employment  Job description  Job specification  Approval of the MDWhen the approval comes to HR, the process begins by collecting suitable candidates fromsources. 54
  • 55. RECRUITMENT SOURCES First and foremost step of recruitment is collecting CVs from sources. There are twosources of recruitment:  Internal source (within the organization)  The external job market.INTERNAL SOURCES For encouraging the internal candidate, job vacancies in Lucas TVS may beadvertised through internal notices to all Lucas TVS Ltd employees. Recruitment from theinternal source may be through Promotion or delegating individuals with new assignments.In the case of internal sourcing, HR along with the concerned Division/Department willidentify prospective candidates on the basis of Individual Capability matching withCompetency/Role Profile and will conduct appropriate tests to select the most suited person.In internal source Lucas TVS consider mainly two types of employees:  Contractual  InternshipContractual employees are those who are working in a contact of six months or one year.Internship, after completing their internship and completing their graduation can apply forjob.EXTERNAL SOURCES In short, external sources mean collecting CVs from outside. Lucas TVS collect a lotof CVs from outside. Recruitment from external sources will be through  Executive search – for Senior Managers and Above Positions.  Advertisements - for managers and below positions. 55
  • 56. The CVs are collect by following ways:  Advertisement  Job portal  Employee Reference  Campus Interview  Recruitment AgencyADVERTISEMENT: Advertisement is a well known and worldwide accepted source of recruitment. Likeother company Lucas TVS also have a career website from where applicants can fill up anapplication forms. When the job requirement is matched with the applicant‟s CV then HRselects these applications for recruitment.JOB PORTAL Job Portals are the most popular and widely used tool by companies and recruitmentteams to facilitate the smooth flow of recruitment process in the competitive world. JobPortals provide a platform for the employers to meet the prospective employees. The jobaspirants can register in job Portals by creating a user ID. Job Portals allow users to submitand edit their resumes and apply for specific jobs at companies of their choice. Onceregistered, job aspirants get e-mail job alerts and can respond to job related questions fromthe employer companies. The companies have the choice to search for their ideal candidatefrom the resume database using various options and parameters available in the job Portals. Now a day every company has a website and they collect CVs by job portal. Everthere is lots of job website and company can send advertisement over there. Lucas TVS has acareer portal and gives advertisement in www.naukri.com. The interested candidates whoseprofiles match with the requirements can apply for job over the net. By this way Lucas TVSgets many CVs. 56
  • 57. EMPLOYEE REFERENCE Employee Referrals may be collected through circulation of advertisement to allemployees. Lucas TVS consider employees reference because it got some advantage, theinternal employees know how to do the work so he can easily understand who can do theWork. If an employee refer someone that means he knows about him better and that helpfulfor the company because Lucas TVS believes employees cannot be harmful for company.CAMPUS INTERVIEW: Campus placement or campus interview is the program conducted within educationalinstitutes or in a common place to provide jobs to students pursuing or in the stage ofcompleting the programme. In this programme, Lucas TVS visit the colleges to selectqualified students. Recently, Lucas TVS done Campus Interview from following collegesthat‟s SRM University, Dhivya Polytechnic college, Jayaram polytechnic college,etc.,RECRUITMENT AGENCY: A recruitment agency can help you by submitting you for vacancies notified to theagency by employers. Many agencies specialise in certain types of work, within certainsectors or in particular geographical areas. The employers pay the agency to assist them in filling a particular job. You shouldnot be asked to pay the agency for finding you work - although there will normally be acharge for additional services such as personality testing or preparing a CV. On filling thepost, the employer will pay the agency a fee (normally a percentage of the first years salary).Frequently, the advert will not name the employer. Lucas TVS pay the agency to assist them in filling a particular job. Lucas TVS pays afee 12 to 15% of the first year‟s salary to agency. Mostly, Lucas TVS done their recruitmentwith recruitment agencies out off 80%.OTHER SOURCES: Depending on the circumstances professional employment agencies, notice boards oftechnical universities and polytechnics. Lucas TVS should have recruited from TV Sundrampolytechnics. 57
  • 58. SCREENING OF CANDIDATES Following publication of Job Vacancy, concerned Divisional/ Department Head andHR Division will scrutinize the applications and short list candidates for inviting to oralinterviews or written tests where applicable.When screening the following criteria will be followed:  For the Executive position, candidate must be at Post graduate (from Lucas TVS preferred universities)  For Executive and above, candidate must have at First and at least second class in all academic level. However, in case of competent candidates with strong experience in the relevant field such educational qualification may be relaxed.  For Non-Executive permanent employees, minimum educational requirement is graduate or SSC.  For Non-Executive contractual employees, candidate must be of class eight pass.WRITTEN EXAM For every job Lucas TVS HR arrange a written exam for candidates. The writtenexam is must for each and every candidate.The written exam is called “General Ability”. It contain  General AbilityIn this section, the general ability of the candidate has been checked. This is the way ofwritten exam that taken by Lucas TVS for job. It is a very important and useful way to findour good candidate from the all kind of candidate. 58
  • 59. ORAL INTERVIEW For the oral interview, competency based structured interview will beconducted. The standard Interview Assessment Form along with probing questions will besupplied by HR Division. Position specific structured interview with necessary ProvingQuestions and Assessment form can also be developed/ used.The oral interview may take place in different phases according to the decision of HRDivision and concerned Division/ Department and on the basis of Position:GROUP DISCUSSIONPRELIMINARY INTERVIEW Conducted by the respective immediate Manager and another member from crossfunctional area.SECOND INTERVIEW OR FINAL INTERVIEW Conducted by the particular department‟s next level managers along with therespective Divisional/ Departmental Heads.INTERVIEW OF KEY POSITION: If the recruitment is for any key position/ AGM or above level a final interview mustbe conducted with the Managing Director. Sometimes one interview makes the final resultand sometimes there are two interviews. Interviews are arranged by HR. HR arrangeinterview for every post even for a tea boy and for a driver. Generally these interviews areheld in Personnel department floor of Lucas TVS. There is a separate room for interview. These interviews are generally taken by managers of the required division and theremust be an HR person in that interview. In interview the interviewer find out the factcandidate behaviour as well as the ability of the candidate. Interviews also test theintelligence and smartness of the candidate. 59
  • 60. FINAL SELECTION From the interview some suitable candidates comes out. Once the final incumbent isselected, HR Division (Compensation & Benefit) will initiate the compensation Plan and willmake offer/ process the appointment formalities. This time HR discuss about few things like:  Terms and condition of company  Salary and benefit  JoiningFINAL APPROVAL Like the requisition for appointing candidate the approval of MD is needed. This timeHR sends the approval to MD that these candidates are selected in interview for this positionand they are going to appoint these candidates for the post.MEDICAL TEST When the MD approved the appointment of the candidate HR call the candidate for amedical check up. The candidates have to collect a letter for medical from HR and go for themedical test. The selected candidate must undergo a medical check up and subject tosatisfactory medical report formal appointment letter will be issued.REFERENCE CHECKS When a candidate is selected for the job, his or her given reference has been checkedby HR. Reference check may be conducted by HR Division upon acceptance of offer. Subjectto satisfactory response joining will be accepted 60
  • 61. APPOINTMENT OR OFFER LETTER At last the after the medical test and reference checked, the offer letter for thecandidate has been issued. After that the candidate gets the call that he or she has beenappointed and he or she has to collect the letter from HR.ACCEPTANCE OF OFFER LETTER & JOINING PROCEDURE The joining also has some procedure. In time of joining at first the candidates haveaccept the offer letter by signing it. Then he or she has to fill up some forms like,  HRIS form  ID card form  Medical Reimbursement form  DeclarationWhen all this formalities are over the candidate will become one of the member of LucasTVS and start working as an employee of Lucas TVS.RECRUITMENT CYCLE Lucas TVS Human Resources Division will take maximum 15 days to complete arecruitment process. The breakdown of the 15 days as follows: Requisition = 1 days Advertisement = 7 days Short listing/Screening = 2days Written test = 1 days Compilation & Approval = 1 days Reference Check = 1 days Medical Check = 1 days Appointment letter = 1 day 61
  • 62. RECRUITMENT OF CONTRACTUAL & OTHERS This policy governs the appointment of individuals on Contract/Causal basis andthrough Third Party service providers. Prior to process the employment on the abovecategory, the Division/ Department concerned must obtain approval from the ManagingDirector. The manpower requisition must contain the job specification with justification ofthe need along with the period.CONTRACT APPOINTMENT Jobs which are temporary in nature and is likely to be for a limited period or need isfor a long term but cannot be hired on a permanent basis due to headcount restrictions. Theperiod of appointment will be of 6 (Six) months to maximum 1 (One) years. Person appointed on contract may be terminated during the tenure at the discretion ofthe employing department with reasons (performance/ redundancy) or without assigning anycause. A termination clause (with notice period/pay in lieu of) must be incorporated in thecontract. The division/ department concerned will initiate the recruitment in concert with HR.Upon finalizing the selection; HR will issue the formal appointment letter. Employees hiredon contract must go for pre-employment medical test and subject to satisfactory results (fitfor work) the incumbent will be allowed to join. Standard terms and conditions similar to permanent employee especially adherence ofcode of business ethics, confidentiality and full time engagement clauses must be included.If a contract employee is made permanent (based on performance/capability/ headcount) theservice length of that individual will be counted from the first day of the joining provided thecontract period was continuous/uninterrupted. Salary and benefits will be fixed based on the incumbents‟ educational andprofessional background. A contract employee will be entitled to same level of salary andbenefits if he/she is hired in a position that already exist in the permanent payroll. 62
  • 63. A contract employee will not be eligible for end service benefits or loan facilitiesfrom the company. A contract appointment should be for a fixed period and will becomevoid automatically on the end date unless the contract is shortened or extended in writingprior to the expiration date.RECRUITMENT FOR APPRENTICES In India, the Apprentices Act was enacted in 1961. It regulates the programme oftraining of apprentices in the industry so as to conform to the syllabi, period of training etc. aslaid down by the Central Apprenticeship Council and to utilise fully the facilities available inindustry for imparting practical training with a view to meeting the requirements of skilledmanpower for industry.The Apprentices Act enacted in 1961 and was implemented effectively in 1962. Initially theAct envisaged training of trade apprentices. The Act was amended in 1973 to include trainingof graduate and diploma engineers as "Graduate" & "Technician" Apprentices. The Act wasfurther amended in 1986 to bring within its purview the training of the 10+2 vocationalstream as "Technician (Vocational)" Apprentices.Overall responsibility is with the Directorate General of Employment & Training (DGE&T)in the Union Ministry of Labour. DGE&T is also responsible for implementation of the Actin respect of Trade Apprentices in the Central Govt. Undertakings & Departments. This isdone through six Regional Directorates of Apprenticeship Training located at Chennai.State Apprenticeship Advisers are responsible for implementation of the Act in respect ofTrade Apprentices in State Government Undertakings/ Departments and PrivateEstablishments. Department of Education in the Ministry of HRD is responsible forimplementation of the Act in respect of Graduate, Technician & Technician (Vocational)Apprentices. This is done through Boards of Apprenticeship Training located at Chennai. Lucas TVS have apprentice only for mechanical auto electronics. The apprenticecandidates should pass out 10th class examination under 10+2 system of education or diplomaor ITI. Lucas TVS contacted Interview on every week of Tuesday. After, a selectedcandidate should register the CRC form its contract registration under the control of boardapprentices training centre. The period of contract is 1(one) to 2(two) years. Then, LucasTVS provided the Dress Code and C.C.No, Breakfast Coupon and Snacks Coupon. Lucas 63
  • 64. TVS contact a training program for apprentice at every 4 month that is ApprenticeDevelopment Programme and Computer Numerical Control Programme. Lucas TVS have aBoat Communication which interacts with apprentice. Ratio of apprentices to workers otherthan: 1:2RECRUITMENT FOR INTERNSHIP Internship is one of the parts of graduation for student. In case of Bachelor ofBusiness Administration and Master of Business Administration, MSW, Engineeringstudents, it is an obligatory. Recruitment of the internship is a contractual based. The candidates haverecommendation from Lucas TVS employee. Then only they will appoint as intern. Generallyfor internship Lucas TVS ask for CVs to the reputed Universities like Anna University, SRM,Sathya Baba, and Madras University, reputed B-Schools. The requisition for interns is send by the departmental head or the employee who needinternship.GRADING SYSTEM Lucas TVS have a grading system which is grading among employees. It‟s aneasy system to allotting a salaries and responsibilities of the employee. Lucas TVS taken theirgraduation and work experience for grading an employee. Lucas TVS follows this gradingsystem and they fix the job title and salaries based upon this grading system. Some of grade Ihave mentioned below as follow as: Grade Designation Technician T13 Apprentices T05 Short Term Trainee T02 Act Apprentice A4 Senior Engineer T04 Progression Trainee W01-W107 Regular Workers S04-S07 Regular Stuff T12 DET T20 Govt Apprentices 64
  • 65. T21 GET S06 Technician Assistant Cell Support W03 Operator T22 Permanent employeeCommunication Styles in Lucas TVS: Lucas TVS has followed some communication system for Interacting employee,Trainee, and Contractual Employees. 1. Boot Communication 2. R1 Communication 3. Five Star ProgrammeThis are the communication Lucas TVS currently using and make an interaction betweenmanagement and employee more effective. 65
  • 66. 66
  • 67. FINDINGSFindings at Lucas TVS on Recruitment and Selection Process:1. Lucas TVS sourcing a candidates through the Recruitment Agencies, campus Interview,Job portal, and employee referral. Here, the Lucas TVS mostly recommendedwww.naukri.com.2. In recruitment process, Lucas TVS followed three stages in interview thus, personalinterview, written test, group discussion, etc.,3. Lucas TVS followed different recruitment process for different grades of employee. Theyare grading a employee and segment their position, salary, and bonus on the basis of grade.4. 5% of candidates back out after being offered, 20% of candidates leaves form a companywithin the less than 3-6 months,10% of candidates leave within the less than one year.5. Recently, Lucas TVS using the Video conference technological system in recruitmentprocess and they are aware from video resume and implementing that.6. In last fiscal years, Lucas TVS recruited more than 100 employees.7. 12-15% Lucas TVS paid to recruitment agency. 80% of candidates Lucas TVS recruitedthrough Recruitment agency.8. Line function support is a biggest challenge of Lucas TVS HR department at this process.9. 60% of employee would leave from job after the training. They would not continue withthem.10. Employee does not satisfied with salary packages. 67
  • 68. SUGGESTION1. Manpower requirement for each department in the company is identified well in advance.2. Perfect manpower consultants should avoid dealing with low profile requirements (likerecruiting office assistants, front office executives or were the salary package is less than Rs8000). Because time and energy (work force) used to fulfil the low profile requirement can beused in a better else were to generate more revenues.3. Though consultancy has already owned a good reputation, but it always need some type ofpublicity as a reminder to the young stars approaching to the jobs. This might help inaccumulating good data base.4. Every department employee should aware about the current recruitment process.5. Lucas TVS should give to advertisement for current job vacancy. Then the outsourcing orfresher can know about the job vacancies at Lucas TVS. 68
  • 69. CONCLUSIONThis presents the summary of the study and survey done in relation to the Recruitment andSelection in Lucas TVS. The conclusion is drawn from the study and survey of the companyregarding the Recruitment and Selection process carried out there.The recruitment process at Lucas TVS to some extent is not done objectively and therefore lot ofbias hampers the future of the employees. That is why the search or headhunt of people should beof those whose skill fits into the company‟s values.Selection process is good but it should also be modified according to the requirements andshould job profile so that main objective of selecting the candidate could be achieved. 69
  • 70. BIBLOGRAPHYWEBSITES:1. www.lucas-tvs.org2. www.google.com3. www.citehr.com4. www.managementstudyguide.com5. www.scribd.com6. www.wikipedia.com 70