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Recriutment process at lucas tvs

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  • 1. 1 CHAPTER-I INTRODUCTION
  • 2. 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 or function, undertaken by recruiters. It may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Either way it may involve advertising, commonly in the recruitment section of a newspaper or in a newspaper dedicated to job adverts. Employment agencies will often advertise jobs in their windows. Posts can also be advertised at a job centre if they are targeting the unemployed. Suitability for a job is typically assessed by looking for skills, e.g. communication skills, typing skills, computer skills. Evidence for skills required for a job may be provided in the form of qualifications (educational or professional), experience in a job requiring the relevant skills or the testimony of references. Employment agencies may also give computerized tests to assess an individual's off hand knowledge of software packages or typing skills. At a more basic level written tests may be given to assess numeric and literacy. A candidate may also be assessed on the basis of an interview. Sometimes candidates will be requested to provide a résumé (also known as a CV) or to complete an application form to provide this evidence.
  • 3. 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 approach 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, which 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.
  • 4. 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
  • 5. 5 1.1 NEED OF THE STUDY To get an idea about the Recruitment and Selection Procedure held by Lucas TVS 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 METHODOLOGY SETTING 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
  • 6. 6 DATA COLLECTION PROCEDURE The sources of recruitment are broadly divided into Internal Sources and Externals Sources. Internal Sources are the sources within organizational pursuits. The primary data is collected with direct interaction with candidates through questionnaire and personal interview. The questionnaire consists of closed ended and open-ended questions. Externals Sources are sources outside organizational pursuits. 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
  • 7. 7 CHAPTER-2 INDUSTRY PROFILE
  • 8. 8 INTRODUCTION TVS Group The TVS Group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India. The group produces auto electrical, diesel fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal components, radiator caps, two wheelers and computer peripherals. Backed by five service and distribution companies with an extensive network across the country, the group has the largest distribution network for automotive products in India. Lucas TVS is committed to achieving ever increasing levels of customer satisfaction through continuous improvements to the quality of the products and services. It will be the company's Endeavour to increase customer trust and confidence in the label 'Made in Lucas TVS'." TVS Group originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limited are 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.
  • 9. 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.
  • 10. 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.
  • 11. 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
  • 12. 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
  • 13. 13 CHAPTER-3 COMPANY PROFILE
  • 14. 14 Company Profile Basic 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.com Ownership & 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$1 Million Business Markets : North America South America Eastern Europe South East Asia West Europe
  • 15. 15 Factory Information Factory Size : Above 100,000 square meters Factory Location : Padi QA/QC : In House No. of Production Lines : Above 10 No. of R&D Staff : Above 50 People No. of QC Staff : Above 50 People Management Certification : ISO 9001:2000 QS-9000 ISO 14001:2004 ISO/TS 16949 OHSAS 18001 Products Exporting : Starter motor, alternator, headlamp, wiper motor, blower motor, fan motor, dynamo regulator, dynamo, ignition coil, auto components, pantograph wiping... Services : Service -auto electrical equipments, diesel fuel equipments PROFILE OF THE COMPANY Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc. UK and T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas Industries of the UK and the Varity Corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the worlds automotive, after market, diesel engine and aerospace industries. The combination of these two well-known groups has resulted in the establishment of a vibrant company, which has had a successful track record of sustained growth over the last three decades.TVS is one of India's twenty large industrial houses with twenty-five
  • 16. 16 manufacturing companies and a turnover in excess of US$ 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 emerged as one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, two-wheelers and off-highway vehicles as well as for stationary and marine applications. With the automobile industry in India currently undergoing phenomenal changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of tomorrow. BRANCHES: Lucas TVS has various auto electrical plants as following as: 1. AutoElectrical Plants-Chennai 2. AutoElectrical Plants-Rewari 3. AutoElectrical Plants-Pondicherry 4. AutoElectrical Plants-Puduchery( oldbranch- Nettapakkam) 5. AutoElectrical Plants-Chakan,Pune 6. AutoElectrical Plants-Uttarkhand 7. AutoElectrical plants-Indrad,Chennai MISSION: To be a respected supplier in the global auto industry, by developing innovative products and solutions of value to customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology. VISION Dominant supplier to all leading vehicle manufacturers in India. Strong presence in select NICHE market. Recognized supplier to Vehicle / Engine manufacturers in Europe for
  • 17. 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 pride will form the basis of all our activities. Recognized supplier to Vehicle / Engine manufacturers in Europe for Starters, Alternators and Small Motors. By 2015, reach Sales turnover of Rs.3500 Crs (USD 770 Million) with a third being export sales. Customer delight and stake-holders pride will form the basis of all our activities. PRODUCTS Lucas-TVS manufacture the most comprehensive range of auto electrical components in the country. A range which continues to set standards in the industry. The products are designed to meet the demands of vehicle manufacturers both in India and worldwide. With the emission standards in India becoming increasingly stringent, Lucas-TVS has ensured that each of its products is manufactured to meet global standards QUALITY ASSURANCE Quality is no longer an option but a basic requirement in today's world. At Lucas TVS, quality in inbuilt in every phase of manufacture. The company's quality assurance measures stand on the foundation of a solid belief - which quality begins and ends with the customer. This commitment forms the backbone of its approach to Quality Assurance. Lucas TVS has adopted a prevention-oriented quality policy though ingrained with the traditional ideas of quality control. Everyone from the highest levels of the organization to the lowest practice quality control both as an individual and as a team. An effective Quality Control System has resulted in the recognition of the company's outstanding achievements in the various fields. Lucas-TVS was awarded the ISO 9001 certified by BVQI in December 1993. The company reached a further milestone when it recently received a certificate of recognition from BVQI for QS 9000 for Auto Electricals.
  • 18. 18 LIST OF PRODUCTS MANUFACTURED Lucas-TVS Product Range for Indian Market Lucas-TVS Product Range for US/European Market Starter Motor Starter Motor Alternator Alternator Headlamp Small Motor 14W Wiper Motor Windshield Wiper Motor (GM Range) LRW Products Small Motor Wiper Motor Blower Motor Fan Motor Dynamo Regulator Dynamo Regulator Dynamo Dynamo Auto Electricals Ignition Coil Distributor Diesel fuel injection
  • 19. 19 CLIENTS CUSTOMER INTERNATIONAL COLLABORATOR Cars Maruti Udyog Suzuki, Japan Hindustan Motors Isuzu, Japan. Mitsubishi, Japan TATA Engineering and Locomotive Company General Motors, India General Motors, USA Ford India Ford, UK Daewoo Motors Co., India Daewoo, Korea Ind Auto Fiat, Italy Hyundai Motors, India Hyundai Motors, Korea Tractors Mahindra & Mahindra International Harvestor Corporation, UK Tractors and Farm Equipments (TAFE) Massey Ferguson, UK Escorts Ursus, Poland. Ford, UK HMT Zetor, Czechoslovakia Eicher Tractors Good Earth, Germany Punjab Tractors Gujarat Tractors Zetor, Czechoslovakia L&T Tractors Johndeer, USA Greaves Tractors Same, Italy
  • 20. 20 DIVISIONS Lucas TVS has grown hand in hand with the automobile industry in the country. The company's policies have recognized the need to respond effectively to changing customer needs, helping to propel it to a position of leadership. The company has raised its standards on 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 Application Award for the year 2004. This was announced by the Deming Prize Committee of Japanese Union of Scientists and Engineers (JUSE). Lucas-TVS, believes that quality begins and ends with the customer. This means identifying customer needs and comprehensively meeting them. For the company, quality is not just conformance 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)
  • 21. 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.
  • 22. 22  Award 2 - For the largest display area at Auto Expo 2010 (in the vehicle component category).  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-TVS during vendor conference at Singapore on 4h May 2011.The award has been received by Mr T K Balaji / Managing Director and Mr Arvind Balaji - Joint Managing Director.  Mahindra & Mahindra Limited - Auto & Farm Equipment Sectors presented the ANNUAL COMMODITY AWARD to Lucas-TVS during the Vendor Conference at Seoul - Korea in May 2011. Mr Arvind Balaji - Joint Managing Director, received the Award.
  • 23. 23 CHAPTER-IV LITERATURE REVIEW ON RECRUITMENT & SELECTION PROCESS
  • 24. 24 INTRODUCTION According to Edwin B. Flippo, “Recruitment in the process of searching the candidates for employment and stimulating them to apply for jobs in the organization”. 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.
  • 25. 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.
  • 26. 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 for the organization.  Determine present and future requirements of the organization in conjunction with 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 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.  Meet the organizations legal and social obligations the composition of its workforce.  Begin identifying and preparing potential job applicants who be appropriate candidates.  Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants.
  • 27. 27 PURPOSES AND IMPORTANCE The general purpose of recruitment is to provide a pool of potentially qualified job candidates. 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 potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it. A well-planned and well-managed recruiting effort will result in high quality applicants, whereas, a haphazard and piecemeal effort will result in mediocre ones. High-quality employees cannot be selected when better candidates do not know of job openings, are not interested in working for the company and do not apply. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants
  • 28. 28 can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions. The negative consequences of a poor recruitment process speak volumes about its role in an organization. The failure to generate an adequate number of reasonably qualified applicants can prove costly in several ways. It can greatly complicate the selection process and may result in lowering of selection standards. The poor quality of selection means extra cost on training and supervision. Furthermore, when recruitment fails to meet the organizational needs for talent, a typical response is to raise entry-level pay scales. This can distort traditional wage and salary relationships in the organization, resulting in avoidable consequences. Thus, the effectiveness of a recruitment process can play a major role in determining the resources that must be expended on other HR activities and their ultimate success. SUB-SYSTEMS OF RECRUITMENT The 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 so that 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 selection is somewhat negative as it selects the suitable candidates in which process; the unsuitable candidates are automatically eliminated. Though, the function of recruitment seems to be easy, a number of factors make performance of recruitment a complex one.
  • 29. 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’s examine these. Internal Sources:- Persons who are already working in an organization constitute the ‘internal sources’. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. Whenever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted. External Sources:- External sources lie outside an organization. Here the organization can have the services of : (a) Employees working in other organizations; (b) Jobs aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d) Candidates referredby unions, friends, relatives and existing employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates responding to the advertisements, issued by the organization; and (g) Unsolicited applications/ walk-ins. METHODS OF RECRUITMENT The following are the most commonly used methods of recruiting people. INTERNAL METHODS: 1. Promotions and Transfers This is a method of filling vacancies from within through transfers and Promotions. A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion, on the other hand, involves movement of employee from a lower level position to a higher level position accompanied by (usually) changes in duties, responsibilities, status and value. Organizations generally prepare badli lists or a central pool of persons from which vacancies can be filled for manual jobs. Such persons are usually passed on to various departments, depending on internal requirements. If a person remains on such rolls for 240 days or more, he gets the status of a permanent employee as per the Industrial Disputes Act and is therefore entitled to all relevant benefits, including provident fund, gratuity, retrenchment compensation.
  • 30. 30 2. Job Posting Job posting is another way of hiring people from within. In this method, the organization publicizes job opening on bulletin boards, electronic method and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company to look for growth opportunities within the company without looking for greener pastures outside. 3. Employee Referrals Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that “it takes one to know one”. Employees working in the organization, 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, this has become a popular way of recruiting people in the highly competitive Information Technology industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted – after the routine screening and examining process is over – and job offers extended to the suggested candidates. As a goodwill gestures, companies also consider the names recommended by unions from time to time. External (direct) Methods Campus Recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centers. Here the recruiters visit reputed educational institutions such as IITs, IIMs, colleges and universities with a view to pick up job aspirants having requisite technical or professional skills. Job seekers are provided information about the jobs and the recruiters, in turn, get a snapshot of job seekers through constant interchange of information with respective institutions. A preliminary screening is done within the campus and the short listed students are then subjected to the remainder of the selection process. In view of the growing demand for young managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor & Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs regularly and even sponsor certain popular campus activities with a view to earn goodwill in the job market. Advantages of this method include: the placement centre helps 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 lower salary expectations. On the negative front, campus recruiting means hiring people with little or no work experience. The organizations will have to offer some kind of training to the applicants, almost immediately after hiring. It demands careful advance planning, looking into the placement weeks of various institutions in different parts of
  • 31. 31 the country. Further, campus recruiting can be costly for organizations situated in another city (airfare, boarding and lodging expenses of recruiters, site visit of applicants if allowed, etc.). If campus recruitment is used, steps should be taken by human resource department to ensure that recruiters are knowledgeable concerning the jobs that are to be filled and the organizations and understand and employ effective interviewing skills.
  • 32. 32 Factors Affecting Recruitment The recruitment function of the organizations is affected and governed by mix of various internal and external forces. The internal forces of factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization. The internal and external forces affecting recruitment function of an organization are: FACTORS AFFECTING RECRUITMENT EXTERNAL FACTORS  Recruitment policy  Human resource planning  Size of the firm  Cost of recruitment  Growthand expansion EXTERNAL FACTORS  Supply and demand  Labour market  Image/Goodwill  Political-Social-Legal Environment  Unemployment rate  Competitors
  • 33. 33 Recruitment relationships with other activities: Job analysis Personal Planning RECRUITMENT POOLOF QUALIFIED APPLICANTS NATURE AND REQUIREMENT OF SPECIFIC JOBS NO.OF SPECIFIC JOBS TO BE FILLED CONTRAINS 1. POOR IMAGE 2. GOVERNMENT POLICY 3. UNATTRACTIVE JOBS INDUCEMENT 1. COMPENSATION 2. IMAGE 3. REPUTATION 4. CARREER OPPURTUNITIES SELECTION
  • 34. 34 INDUCEMENTS: Organizational inducements are all the positive features and benefits offered by an organization that serves to attract job applicants to the organization. Three inducements need specific mention here, they are:- • Compensation: Starting salaries, frequency of pay increases, incentives and fringe benefits can all serve as inducements to potential employees. • Career Opportunities: These help the present employees to grow personally and professionally and also attract good people to the organization. The feeling that the company takes care of employee career aspirations serves as a powerful inducements to potential employees. • Image or Reputation: Factors that affect an organization’s reputation include its general treatment of employees, the nature and quality of its products and services and its participation in worthwhile social endeavors. CONSTRAINTS If a firm has a poor image in the market, many of the prospective candidates may 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 a qualified pool of applicants. Recruiting efforts require money. Sometimes because of limited resources, organizations may not like to carry on the recruiting efforts for long periods of time, this can, ultimately, constrain a recruiter’s effort to attract the best person for the job. Government policies often come in the way of recruiting people as per 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 up vacancies in government corporations, departmental undertakings, local bodies, quasi- government organizations, etc.
  • 35. 35 IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES Recruitment policies are mostly drawn from personnel policies of the organization. According to Dale Yoder and Paul D. Standohar, general personnel policies provide a wide variety of guidelines to be spelt out in recruitment policy. After formulation of the recruitment policies, the management has to decide whether to centralize or decentralize the recruitment function. CENTRALISED V/s DECENTRALISED RECRUITMENT Recruitment practices vary from one organization to another. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian Railway resort to decentralized recruitment practices. Personnel department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel departments at unit level/ zone level perform all the functions 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.
  • 36. 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.
  • 37. 37 Recruitment Policy of a Company In today’s rapidly changing business environment, a will defined recruitment policy is necessary 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 the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process. It specifies the objectives of recruitment programme. It may involve organizational system to be developed for Implementing recruitment and procedures by filling up vacancies for implementing recruitment programmers 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.
  • 38. 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 implications Recruitment Management System Recruitment management system is the comprehensive tool to manage the entire recruitment processes of an organization. It is one of the technological tools facilitated by the information management system to the HR of organizations. Just like performance management system helps to contour the recruitment processes and effectively managing the ROL on recruitment. The features, functions and major benefits of the recruitment management system are explained 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.
  • 39. 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 information system tool which helps to save time and costs of the recruiters and improving the recruitment processes. RECRUITMENT STRATEGIES: Recruitment of the most crucial roles of the human resource professionals. The level of performance of an organization depends on the effectiveness of its recruitment function. Organizations have developed to follow recruitment strategies to hire the best talent for their organization and to utilize their resources optimally. A successful recruitment strategy should be well planned and practical to attract more and good talent to apply in the organization. For formulating an effective and successful recruitment strategy, the strategy should cover the following element: (1) Identifying and prioritizing jobs requirements keep arising at various levels in every origination: it is amount a never – ending process. It is impossible to fill all the positions immediately. Therefore, there is a need to identify the positions requiring immediate attention and action. To maintain the quality of the recruitment activities, it is useful to prioritize the vacancies whether to focus on all vacancies equally or focusing on key jobs first. (2) Candidates to target the recruitment process can be effective only if the organization completely understands the requirements of the type of candidates that
  • 40. 40 are required and will be beneficial for the organization. This covers the following parameters as well: A. performance level required: Different strategies are required for focusing on hiring high performers and average performers. b. Experience level required: the strategy should be clear as to what is the experience level required by the organization. The candidate’s experience can range from being a fresher to experienced senior professionals. C. Category of the candidate: the strategy should clearly define the target candidate. He/ She can be from the same industry, different industry, unemployed, top performers of the industry etc. (3)Sources of recruitment the strategy should define various sources (external and internal) or recruitment. Which are the sources to be used and focused for the recruitment purposes for various positions? Employee referrer is one of the most effective sources of recruitment. (4) Trained recruiters the recruitment professionals conducting the interviews and the other recruitment activities should be well trained and experienced conducting the activities. 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 them i.e. the entire recruitment process should be planned in advance. Like the rounds of technical interviews, HR interviews, return tests, psychometric tests, etc.
  • 41. 41 HR Challenges in Recruitment Recruitment is a function that requires business perspective, expertise, ability to find and match the best potential candidate for the organization, diplomacy, and marketing skills (has to sell the position to the candidates) and wisdom to align the recruitment process for the benefit of the organization. The HR professional handling the recruitment function of the organization are constantly facing new challenges. The biggest challenge for such professionals is to source or recruited the best people or potential candidates for the organization. In the last few years, the job market has undergone some fundamental changes in terms of technology, sources of recruitment, competition in the market, etc. in an already saturated job market, where the practices like poaching and raiding or gaining momentum, HR professionals are constantly facing new challenges in one of their most important function recruitment they have to face and conquer various challenges to 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.
  • 42. 42 SELECTION Introduction The size of the labour market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection. Definition To select mean to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Purpose The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organization best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organization a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate ‘hot news’ and juicy bits of negative information about the company, causing incalculable harm to the company in the long run. Effective election, therefore, demands constant monitoring of the ‘fit’ between people the job.
  • 43. 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
  • 44. 44 Factors affecting selection decisions The goal of selection is to short out or eliminate those judged unqualified to meet the job and organisation requirements, where as the goal of recruitment is to create a large cool of persons available and willing to work. Thus, it is said that recruitment tends to be positive while selection tends to be somewhat negative. A number of factors affect the selection decisions of candidates. The important among 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 (who are known) is taken in advance. The scores secured by these known candidates in various tests are taken as a standard to decide the success or failure of other candidates at each stage. Normally the decisions about the known candidates is taken at interview stage. Possible care is also taken to match the candidates’ bio data with the jobs specifications. (ii) Organizational and social environment: some candidates, who are eminently suitable for the job, may fail as successful employees due to varying organisation and social environment. Hence candidate’s specifications must match with not only job specifications but also with organizational social environmental requirements. (iii) Successive hurdles: In this method hurdles are created at every stage of selection process therefore, applicants must successfully pass each and every screening device in case of successive hurdles as shown in figure 5.1 (iv) Multiple correlations: Multiple correlations is based on the assumptions that a deficiency in one factor can be counter balanced by an excess amount of another. A candidate is routed through all the selection steps before a decision is made. The composite test score index is taken into accounting the selection tests. Hence, for
  • 45. 45 broader line cases multiple correlation method is useful and for other successive hurdles method is useful. Selection Procedure There is no standard selection process that can be followed by all the companies in all the areas. Companies may follow different selection techniques or methods depending upon the size of company, nature of the business, kind and number of persons to be employed, government regulation to be followed etc. Thus, each company may follow anyone or the possible combinations of methods of selection in the order convenient or suitable to it. Following are the selection methods generally followed by the companies. Selection procedure employs several methods of collecting information about the candidate's qualifications, experience, physical and mental ability, nature and behavior, knowledge, aptitude and the like for judging whether a given applicant is or is not suitable for the job. Therefore, the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step, facts may come to light which are useful for comparison with the job requirement and employee specifications. (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.
  • 46. 46 CHAPTER-5 HUMAN RESOURCE MANAGEMENT AT LUCAS TVS History of Human Resource Management
  • 47. 47 The History of Human Resource Management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. Human resource management has its roots in the late and early 1900's. When there are less labour then there are more working with machinery. The scientific management movement began. This movement was started by Frederick Taylor when he wrote about it a book titled ‘The Principles of Scientific Management’. The book stated, "The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee.” Taylor believed that the management should use the techniques used by scientist to research and test work skills to improve the efficiency of the workforce. Also around the same time came the industrial welfare movement. This was usually a voluntary effort by employers to improve the conditions in their factories. The effort also extended into the employee’s life outside of the work place. The employer would try to provide assistance to employees to purchase a home, medical care, or assistance for education. The human relations movement is the major influence of the modern human resource management. The movement focused on how employees group behaviour and how employee 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
  • 48. 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 • Reward PEOPLE Human resource is an asset never disclosed in a company's balance sheet. We at Lucas-TVS strongly believe that an organization's most valued assets are its people who individually and collectively contribute to the achievement of the objectives of the business. Keeping this in mind, Lucas-TVS's management style lays great emphasis on employee involvement and actively encourages participation and commitment through Small Group Activities (SGA), Suggestion Schemes, Voluntary Work Teams and the like. MANAGEMENT Management of almost all the companies is by family members. Most of the group companies maintain a low profile and follow a conservative management style.
  • 49. 49 CULTURE A highly visible culture of Commitment, backed up by Discipline & Positive Attitude prevails 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 and externally. Openness and transparency are seen in leadership styles meetings. Internal customer- Supplier equations are extremely strong. SOP (Standard Operating Procedure-shop floor) & SWP (Standard Work Procedure-office areas) are base points of DRM in line and staff functional departments. TEI (Total Employee Involvement) is the foundation of the organization. Learning culture prevails at all times and all places in the company. 5S is the first 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 driver of growth. Systems and procedures are always put in place in reality to recognize an orderly workflow. 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 our employees and they in turn take care of our customers. HR POLICY To build a strong corporate constitution (HR) in the organization by constitution improving skill and morale of the employees and ensuring climate for total employee involvement 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
  • 50. 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 tomorrow's LIS. c. Reward and activate all intellectual business contributions for the growth of the company. Responsibility of HR department in organization Position Job Responsibilities HR Executive committee, organization planning, HR planning & policy, Organization development Manager, recruitment & employment Recruiting, Interviewing, Testing, Placement & Termination Manager , compensation & benefits Job analysis and evaluation, surveys, Performance appraisal, compensation administration, bonus, Profit sharing plans, Employee benefits. Manager, Training & Development Orientation, Training, Management development, Career Planning & development Manager, Employee relations EEO relations, contract compliance, staff assistance programs, Employee counselling. Table : Responsibility of HR department
  • 51. 51 RECRIUTMENT PROCESS AT LUCAS TVS In Lucas-TVS recruitment and selection process is done by a specific process and which is very much modern. Its starts with the manpower requisition and end with an appointment. And after than Lucas TVS arrange various types of training and development program for the employees to develop their skill. In true sense Lucas TVS follow a developed recruitment process for selecting right people in right place. The internal communication system of Lucas Tvs called “Indha Maadha Seitni” Which was conducted every month at every Departments and every quarterly by which the manpower requirements of various departments are identified well in advance. Recently, the Lucas TVS have recruitment in this year for the post of Software Engineer, Recruitment for Engineer and Diploma Trainees by way of advertisements in various Employment News and other job related papers. The Lucas TVS has a WEBSITE called http://www.lucas-tvs.com/lucastvs/opportunities. In which all recruitment portals are kept. The details of the candidates applied and their related date was maintained in a confidential way. Role of Human Resourcesin Recruitment and SelectionProcess: In recruitment and selection process the main role is played by HR division. The process Is start with manpower requisition and end with appointment? When there is a need of manpower, the required departments send the manpower requisition to HR consist the approval of MD. Then HR starts the process. The process include some step or task that done by a sequential order. First step is manpower requisition. It comes from the division who has vacancies. It can be replacement or for the new candidates. In the second step the requisition comes to HR department the particular officer of HR takes approval from the CHRO. Then the third step starts, HR give advertisement for the job, it can be external or internal. After collecting CVs HR starts sorting suitable CVs for that post. After sorting of CV the forth step starts. The forth step is written exam. Written exam has two parts, one is the HR parts and another is the particular department’s parts. The candidates must have passed HR part. When a candidate passed the written exam then he or she gets call for interview. It is the fifth step
  • 52. 52 of the process. Generally, the candidates have to face one Interview but sometimes they have to face two interviews. After interview a candidate is selected by the interviewers. Then the selected candidate has to go for medical checkup. It is sixth step. Then comes reference check step. Lastly selected candidates fill up joining forms and then he/she gets the appointment letter. This is the procedure that Lucas TVS HR follow to recruit people. Actually in Lucas TVS the Recruitment and selection is totally control by HR divisions. HR division makes the policy for recruitment and selection and also taken decision sometimes that a department required manpower. When the requisition come HR starts the process. HR also supervise that Recruitment and Selection are not simply mechanisms for filling vacancies rather they are viewed as the key factor for suitable placements. For a better recruitment and selection process HR arrange done some tasks like  Collecting suitable and better CV  Arranging written exam  Arranging interviews  Ensure medical tests  Appointment letter and others BASIC RULE OF RECRUITMENT IN LUCAS TVS: For recruitment Lucas TVS HR follow some rules. These rules are set by HR for better 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.
  • 53. 53 Recruitment & Selection Process at Lucas TVS: The Process of recruitment and selection at Lucas TVS is consisting of number of sequential steps. The following picture can show the process very clearly: ACCEPTANCE OF OFFER LETTER AND JOINING PROCEDURE REFERENCE CHECK Figure: Recruitment & Selection Process at Lucas TVS MANPOWER REQUISITION COLLECTING CV FROM SOURCES: 1. INTERNALSOURCES 2. EXTERNAL SOURCES i. CAMPUS RECRUITMENT ii. RECRUITMENT AGENCIES iii. JOB PORTAL SORTING CV THAT ARE SUITABLE FOR JOBOFFER LETTER WRITTEN EXAM GROUP DISCUSSIONFINAL SELECTION PERSONAL INTERVIEW (THERE MAY BE TWO INTERVIEW) MEDICAL CHECK
  • 54. 54 HUMAN RESOURCE PLANNING Recruitment and Selection are not simply mechanisms for filling vacancies rather they are viewed as the key factor for suitable placements. With a view towards placing the right person at the position in Lucas TVS following procedures in Recruitment and Selection will be practiced: Lucas TVS Human Resource planning will start at the beginning of the year in accordance with the approved business Plan and budget provisions. Each Division will submit their month wise recruitment plan to HR for the whole year and on the basis of such requirement HR Division will prepare the upcoming recruitment plan of each Division/Department. MANPOWER REQUISITION: Based on the HR Planning respective Division/Department Head will inform HR on personnel requirement through Manpower Requisition form, after obtaining necessary approvals from the Managing Director. Employment Requisition Form must contain a JTOR (Job Terms of Reference), comprising Job Description and Job Specifications / Requirements of the position. Requisition form contain some information like  Name of the position  Status of the employment  Job description  Job specification  Approval of the MD When the approval comes to HR, the process begins by collecting suitable candidates from sources.
  • 55. 55 RECRUITMENT SOURCES First and foremost step of recruitment is collecting CVs from sources. There are two sources of recruitment:  Internal source (within the organization)  The external job market. INTERNAL SOURCES For encouraging the internal candidate, job vacancies in Lucas TVS may be advertised through internal notices to all Lucas TVS Ltd employees. Recruitment from the internal source may be through Promotion or delegating individuals with new assignments. In the case of internal sourcing, HR along with the concerned Division/Department will identify prospective candidates on the basis of Individual Capability matching with Competency/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  Internship Contractual 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 for job. EXTERNAL SOURCES In short, external sources mean collecting CVs from outside. Lucas TVS collect a lot of CVs from outside. Recruitment from external sources will be through  Executive search – for Senior Managers and Above Positions.  Advertisements - for managers and below positions.
  • 56. 56 The CVs are collect by following ways:  Advertisement  Job portal  Employee Reference  Campus Interview  Recruitment Agency ADVERTISEMENT: Advertisement is a well known and worldwide accepted source of recruitment. Like other company Lucas TVS also have a career website from where applicants can fill up an application forms. When the job requirement is matched with the applicant’s CV then HR selects these applications for recruitment. JOB PORTAL Job Portals are the most popular and widely used tool by companies and recruitment teams to facilitate the smooth flow of recruitment process in the competitive world. Job Portals provide a platform for the employers to meet the prospective employees. The job aspirants can register in job Portals by creating a user ID. Job Portals allow users to submit and edit their resumes and apply for specific jobs at companies of their choice. Once registered, job aspirants get e-mail job alerts and can respond to job related questions from the employer companies. The companies have the choice to search for their ideal candidate from 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. Ever there is lots of job website and company can send advertisement over there. Lucas TVS has a career portal and gives advertisement in www.naukri.com. The interested candidates whose profiles match with the requirements can apply for job over the net. By this way Lucas TVS gets many CVs.
  • 57. 57 EMPLOYEE REFERENCE Employee Referrals may be collected through circulation of advertisement to all employees. Lucas TVS consider employees reference because it got some advantage, the internal employees know how to do the work so he can easily understand who can do the Work. If an employee refer someone that means he knows about him better and that helpful for the company because Lucas TVS believes employees cannot be harmful for company. CAMPUS INTERVIEW: Campus placement or campus interview is the program conducted within educational institutes or in a common place to provide jobs to students pursuing or in the stage of completing the programme. In this programme, Lucas TVS visit the colleges to select qualified students. Recently, Lucas TVS done Campus Interview from following colleges that’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 the agency by employers. Many agencies specialise in certain types of work, within certain sectors or in particular geographical areas. The employers pay the agency to assist them in filling a particular job. You should not be asked to pay the agency for finding you work - although there will normally be a charge for additional services such as personality testing or preparing a CV. On filling the post, the employer will pay the agency a fee (normally a percentage of the first year's 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 a fee 12 to 15% of the first year’s salary to agency. Mostly, Lucas TVS done their recruitment with recruitment agencies out off 80%. OTHER SOURCES: Depending on the circumstances professional employment agencies, notice boards of technical universities and polytechnics. Lucas TVS should have recruited from TV Sundram polytechnics.
  • 58. 58 SCREENING OF CANDIDATES Following publication of Job Vacancy, concerned Divisional/ Department Head and HR Division will scrutinize the applications and short list candidates for inviting to oral interviews 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 written exam is must for each and every candidate. The written exam is called “General Ability”. It contain  General Ability In this section, the general ability of the candidate has been checked. This is the way of written exam that taken by Lucas TVS for job. It is a very important and useful way to find our good candidate from the all kind of candidate.
  • 59. 59 ORAL INTERVIEW For the oral interview, competency based structured interview will be conducted. The standard Interview Assessment Form along with probing questions will be supplied by HR Division. Position specific structured interview with necessary Proving Questions and Assessment form can also be developed/ used. The oral interview may take place in different phases according to the decision of HR Division and concerned Division/ Department and on the basis of Position: GROUP DISCUSSION PRELIMINARY INTERVIEW Conducted by the respective immediate Manager and another member from cross functional area. SECOND INTERVIEW OR FINAL INTERVIEW Conducted by the particular department’s next level managers along with the respective Divisional/ Departmental Heads. INTERVIEW OF KEY POSITION: If the recruitment is for any key position/ AGM or above level a final interview must be conducted with the Managing Director. Sometimes one interview makes the final result and sometimes there are two interviews. Interviews are arranged by HR. HR arrange interview for every post even for a tea boy and for a driver. Generally these interviews are held 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 there must be an HR person in that interview. In interview the interviewer find out the fact candidate behaviour as well as the ability of the candidate. Interviews also test the intelligence and smartness of the candidate.
  • 60. 60 FINAL SELECTION From the interview some suitable candidates comes out. Once the final incumbent is selected, HR Division (Compensation & Benefit) will initiate the compensation Plan and will make offer/ process the appointment formalities. This time HR discuss about few things like:  Terms and condition of company  Salary and benefit  Joining FINAL APPROVAL Like the requisition for appointing candidate the approval of MD is needed. This time HR sends the approval to MD that these candidates are selected in interview for this position and 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 a medical check up. The candidates have to collect a letter for medical from HR and go for the medical test. The selected candidate must undergo a medical check up and subject to satisfactory 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 checked by HR. Reference check may be conducted by HR Division upon acceptance of offer. Subject to satisfactory response joining will be accepted
  • 61. 61 APPOINTMENT OR OFFER LETTER At last the after the medical test and reference checked, the offer letter for the candidate has been issued. After that the candidate gets the call that he or she has been appointed 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 have accept 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  Declaration When all this formalities are over the candidate will become one of the member of Lucas TVS and start working as an employee of Lucas TVS. RECRUITMENT CYCLE Lucas TVS Human Resources Division will take maximum 15 days to complete a recruitment 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
  • 62. 62 RECRUITMENT OF CONTRACTUAL & OTHERS This policy governs the appointment of individuals on Contract/Causal basis and through Third Party service providers. Prior to process the employment on the above category, the Division/ Department concerned must obtain approval from the Managing Director. The manpower requisition must contain the job specification with justification of the need along with the period. CONTRACT APPOINTMENT Jobs which are temporary in nature and is likely to be for a limited period or need is for a long term but cannot be hired on a permanent basis due to headcount restrictions. The period 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 of the employing department with reasons (performance/ redundancy) or without assigning any cause. A termination clause (with notice period/pay in lieu of) must be incorporated in the contract. The division/ department concerned will initiate the recruitment in concert with HR. Upon finalizing the selection; HR will issue the formal appointment letter. Employees hired on contract must go for pre-employment medical test and subject to satisfactory results (fit for work) the incumbent will be allowed to join. Standard terms and conditions similar to permanent employee especially adherence of code of business ethics, confidentiality and full time engagement clauses must be included. If a contract employee is made permanent (based on performance/capability/ headcount) the service length of that individual will be counted from the first day of the joining provided the contract period was continuous/uninterrupted. Salary and benefits will be fixed based on the incumbents’ educational and professional background. A contract employee will be entitled to same level of salary and benefits if he/she is hired in a position that already exist in the permanent payroll.
  • 63. 63 A contract employee will not be eligible for end service benefits or loan facilities from the company. A contract appointment should be for a fixed period and will become void automatically on the end date unless the contract is shortened or extended in writing prior to the expiration date. RECRUITMENT FOR APPRENTICES In India, the Apprentices Act was enacted in 1961. It regulates the programme of training of apprentices in the industry so as to conform to the syllabi, period of training etc. as laid down by the Central Apprenticeship Council and to utilise fully the facilities available in industry for imparting practical training with a view to meeting the requirements of skilled manpower for industry. The Apprentices Act enacted in 1961 and was implemented effectively in 1962. Initially the Act envisaged training of trade apprentices. The Act was amended in 1973 to include training of graduate and diploma engineers as "Graduate" & "Technician" Apprentices. The Act was further amended in 1986 to bring within its purview the training of the 10+2 vocational stream 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 Act in respect of Trade Apprentices in the Central Govt. Undertakings & Departments. This is done through six Regional Directorates of Apprenticeship Training located at Chennai. State Apprenticeship Advisers are responsible for implementation of the Act in respect of Trade Apprentices in State Government Undertakings/ Departments and Private Establishments. Department of Education in the Ministry of HRD is responsible for implementation 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 apprentice candidates should pass out 10th class examination under 10+2 system of education or diploma or ITI. Lucas TVS contacted Interview on every week of Tuesday. After, a selected candidate should register the CRC form its contract registration under the control of board apprentices training centre. The period of contract is 1(one) to 2(two) years. Then, Lucas TVS provided the Dress Code and C.C.No, Breakfast Coupon and Snacks Coupon. Lucas
  • 64. 64 TVS contact a training program for apprentice at every 4 month that is Apprentice Development Programme and Computer Numerical Control Programme. Lucas TVS have a Boat Communication which interacts with apprentice. Ratio of apprentices to workers other than: 1:2 RECRUITMENT FOR INTERNSHIP Internship is one of the parts of graduation for student. In case of Bachelor of Business Administration and Master of Business Administration, MSW, Engineering students, it is an obligatory. Recruitment of the internship is a contractual based. The candidates have recommendation from Lucas TVS employee. Then only they will appoint as intern. Generally for 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 need internship. GRADING SYSTEM Lucas TVS have a grading system which is grading among employees. It’s an easy system to allotting a salaries and responsibilities of the employee. Lucas TVS taken their graduation and work experience for grading an employee. Lucas TVS follows this grading system and they fix the job title and salaries based upon this grading system. Some of grade I have mentioned below as follow as: Grade Designation T13 Technician 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
  • 65. 65 Communication 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 Programme This are the communication Lucas TVS currently using and make an interaction between management and employee more effective. T21 GET S06 Technician Assistant W03 Cell Support Operator T22 Permanent employee
  • 66. 66
  • 67. 67 FINDINGS Findings 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 recommended www.naukri.com. 2. In recruitment process, Lucas TVS followed three stages in interview thus, personal interview, written test, group discussion, etc., 3. Lucas TVS followed different recruitment process for different grades of employee. They are 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 company within 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 recruitment process 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 recruited through 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 with them. 10. Employee does not satisfied with salary packages.
  • 68. 68 SUGGESTION 1. Manpower requirement for each department in the company is identified well in advance. 2. Perfect manpower consultants should avoid dealing with low profile requirements (like recruiting office assistants, front office executives or were the salary package is less than Rs 8000). Because time and energy (work force) used to fulfil the low profile requirement can be used in a better else were to generate more revenues. 3. Though consultancy has already owned a good reputation, but it always need some type of publicity as a reminder to the young stars approaching to the jobs. This might help in accumulating 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 or fresher can know about the job vacancies at Lucas TVS.
  • 69. 69 CONCLUSION This presents the summary of the study and survey done in relation to the Recruitment and Selection in Lucas TVS. The conclusion is drawn from the study and survey of the company regarding the Recruitment and Selection process carried out there. The recruitment process at Lucas TVS to some extent is not done objectively and therefore lot of bias hampers the future of the employees. That is why the search or headhunt of people should be of those whose skill fits into the company’s values. Selection process is good but it should also be modified according to the requirements and should job profile so that main objective of selecting the candidate could be achieved.
  • 70. 70 BIBLOGRAPHY WEBSITES: 1. www.lucas-tvs.org 2. www.google.com 3. www.citehr.com 4. www.managementstudyguide.com 5. www.scribd.com 6. www.wikipedia.com