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A project report on recruitment
and performance appraisal at air
india ltd.
CONTENTS
 Acknowledgement
 Preface
 Executive summary
 Mission statement of Air India
Chapter- 1: introduction of Air India
History ,infrastructure and network
Salient features
Corporate objectives
Problems of Air India and future challenges
Designation and grades in Air India
S.W.OT. analysis
 Chapter – 2 : objectives and methodology
Significance and managerial usefulness of study
Objectives and methodology
Scope
 Chapter – 3 : conceptual analysis
Chapter – 4 : questionnaire and data analysis
Chapter – 5 : findings and recommendations
Bibliography
ACKNOWLEDGEMENT
I would like to thank and owe my gratitude to AIR INDIA to allow me
to undergo an internship program, for a period of 2 months, assigned by
my institute. For giving me an opportunity to work on this project titled,
“RECRUITMENT AND PERFORMANCE APPRAISAL
(TRAINEE DEVELOPMENT) and for her assistance and suggestion,
which resulted in successful completion of this project.
I want to thanks those people to whom whenever I approached for help
they have given me their valuable time.
Any shortcomings in the work are attributable solely to my
inadequacies.
However my most sincere thanks and regards are due to all the
employees of the personnel department who provided me all the
essentials information and assistance that I needed throughout the period
of my internship.
PREFACE
The recruitment and promotion rules of air India were framed in
exercise of the power conferred by rule and trend with 8 to 15 air
india ( flying crew ) service rule air India ( aircraft engg. Deptt. )
sse4rvice rule and the air India employees other than flying crew
and aircraft engg deptt service rules. The air corporation act. 1953
has been repeated by air corporation (transfer of undertaking and
repeal ) act, 1994 and air India become public ltd. Company.
Over the years, recruitment and promotion rules have been
amended from time to time. These studies contain the recruitment
and promotion rules in corporating such amendment. Consequent
to the reorganization of various departments, the designations have
undergone change. The mode of filling up of vacancies have also
undergone with various unions.
Administrative instructions have been issued regarding as
recruitment and promotional rules from time to time.
Mode of appointment, size of panels, validity of panels, zone of
consideration, distribution of marks, provision of outstanding, the
bar considered for higher post, intimation regarding interview, etc.
EXECUTIVE SUMMARY
National aviation company of India limited (NACIL) Was incorporated
on march 30 2007 under the scheme of amalgamation of air India
limited and Indian Airlines limited .
My summer training at NACIL has been a period of great experience
and learning. It helped me gain an insight into the functioning of the
personnel department .
My study had special emphasis on understanding the scope of
procurement department, RTI department, grievance cell, welfare
department at NACIL.
I also had a chance to do a live project on the satisfaction of the
employees with the recruitment & training programs and performance
appraisal methods adopted by them.
An attempt was also made to highlight the IR related issues faced by the
employees in the post merger scenario.
The experience of the study will definitely help me in future endeavors.
MISSION STATEMENT OF AIR INDIA
“ TO BECOME A WORLD CLASS AIRLINE
AND
TO PROVIDE THE FINEST SERVICE IN THE
OPERATIONS”
HUMAN RESOURCE
The company has been following Government’s directives with regard
to representation of scheduled castes/tribes.
As on march 31st
2001, the strength of staff was 21173 of which 1176
were scheduled tribes.
MARKETING
The company strives to improve its product on an ongoing basis and
constantly endeavors to adopt aggressive marketing strategies and
innovating pricing policies to achieve a better market and improvement
in revenue realization.
Jet airways hold an edge over AIR INDIA as far as in-flight services are
concerned due to superior quality of services.
Price is no longer a DIFFERENTIATING factor as it is seen that “y-
class” fares of jet airways and Air India are same but jet airways charges
a slightly higher fare.
SECURITY PROCEDURES
To ensure the security of aircraft and passengers, security regulations
have been made stringent than before.
Some of the security procedures are listed below:
Your ticket is checked at the time of entering at terminal building.
At major airports, the baggage is passed through x-ray machines
Persons are checked through hand-held metal detectors
In case of red –alert, a secondary security check is also carried out
Checked baggage is to be personally identified by the passengers
before it is loaded on the aircraft.
AIRPORT MANAGEMENT
The airport authority of India manages most of the airports.
Air India pays various charges like landing ,parking and route navigation
fee etc. to the airport controlling agencies for using the airport.
WELFARE ACTIVITIES
The company provides various welfare activities to its employees such
as medical facilities, subsidized canteens, educational scholarships,
festival schemes etc.
USE OF HINDI
The main motive of the company is to promote Hindi as the official
language in order to fulfill its overall objectives and is continuing its
efforts in accordance with official implementation programs.
Chapter 1
Introduction
Company profile
COMPANY PROFILE
National Aviation Company of India Limited
The National Aviation Company of India Limited (NACIL) was
incorporated under the Companies Act 1956 on 30 March 2007 and is
owned by the Government of India based at the Air India Building in
Nariman Point, Mumbai. The Company was created to facilitate the
merger of the two main state-owned airlines in India: Air India, with its
subsidiary Air-India Express and Indian Airlines, together with its
subsidiary Alliance Air.
Whilst the merger and integration process has started, and a few routes
have been rationalised, a lot remains to be done before the various units
start functioning as a cohesive airline.
The current structure is:
National Aviation Company of India Limited
o Air India
 Air-India Express
 Air India Cargo
o Indian Airlines
 Air India Regional (formerly Alliance Air)
Upon completion of the merger, there will be one primary airline, Air
India, with two subsidiary carriers providing regional and low-cost,
point-to-point services and a third subsidiary for cargo operations:
Air India
o Air India Express
o Air India Regional
o Air India Cargo
Type Government-owned
Industry
Airlines & Aviation
Airline Catering &
Foodservice
Hotels &
Hospitality
Founded 30 March 2007
Headquarters
Air India Building,
Nariman Point, Mumbai,
India
Key people
Arvind Jadhav, Chairman
& Managing Director
Products
Airline
Ground Handling
Services
Hotels
Services
Revenue
Rs 15257.47 Crores
($3.31 billion)
(2007-08)
Net income
Rs 1619.12 Crores
($351.98
million)(07-08)
Employees 32,000 (2009)
Subsidiaries
Hotel Corporation
of India Limited
Air India Air
Transport Services
Limited
Air India
Engineering
Services Limited
Air India Charters
Limited
IAL Airport
Services Limited
Airline Allied
Services Limited
Website www.airindia.in
Founder – Air India
J.R.D.TATA
Air India is India's national flag carrier. Although air transport was born
in India on February 18, 1911 when Henri Piquet, flying a Humber bi-
plane, carried mail from Allahabad to Naini Junction, some six miles
away, the scheduled services in India, in the real sense, began on
October 15, 1932. It was on this day that J.R.D. Tata, the father of Civil
Aviation in India and founder of Air India, took off from Drigh Road
Airport, Karachi, in a tiny, light single-engined de Havilland Puss Moth
on his flight to Mumbai (then known as Bombay) via Ahmedabad.
He landed with his precious load of mail on a grass strip at Juhu. At
Mumbai, Neville Vintcent, a former RAF pilot who had come to India
from Britain three years earlier on a barn-storming tour, during which he
had surveyed a number of possible air routes, took over from J.R.D.Tata
and flew the Puss Moth to Chennai (then Madras) via Bellary.
Products
Fleet position
Aircraft number of aircraft seats
(As on 31.03.2004)
Airbus A-300 04 33+215
Airbus A-320 41 20+125
Boeing 737 11** 119
Dornier 3
Total 59
* Including two A-300 B4 on lease and two aircraft VT-
EWD and VT-ELW withdraw from services for disposal.
* One aircraft (VT-EGD) crashed at Patna on 31st
march 2004.
MAJOR PROBLEMS AHEAD OF AIR INDIA
Despite announcing walk-in interviews and fresh tie-ups with ground
handling agencies, the chaos of Air India entered into its 15th day and
likely to continue in coming days. The problem for Air India started
from October 31,2010 when they decided to shift arrival of 11 of its
domestic to the newly built Terminal 3.
The limited airline staff had to manage five terminals: domestic arrival
and departure at Terminal 1, international arrival and departure at T3
and domestic arrival at T3. The staff was staggered leading to shortage
of hands.
Unmindful of the staff shortage problem, Air India also went ahead and
started 15 non-stop flights for international destination from eight cities.
From 486 flights in a week from Delhi, Air India has gone up to 770
flights a week.
“The flights were increased as we wanted to make Delhi our hub. Now
since there is staff shortage, we have taken interviews of experienced
crew so they can be immediately pressed into service after
hiring. Till then the problem
will remain,” an Air India official said.
In the last 15 days, Air India has operated nearly 1,500 flights from
Delhi, of which over 1,000 failed to take off or land on
time. The shortage of ground staff led to chaos as passengers found it
difficult to trace their baggage.
“Air India SATS used to handle ground operation for us. Once we
announced new flights, the company started facing staff shortage and
failed to recruit more staff.
OTHER AREAS OF PROBLEM ARE:
Despite the company earned net profits from 1997 to
2000,but now it is operating in heavy losses.
After hijack in December 1999, there is a slowdown in the
volume of passengers.
The government of India has announced the disinvest of the
shares of the company
AIR INDIA was forced to maintain network throughout the
country, out of which 70% of the routes were loss making.
After the merger of Vayudhoot with Air India, it had to bear
its losses, while absorbing 1000 of its employees.
The frequent strikes of Air India employees have resulted in
heavy losses.
Organization Chart of Air India Limited
SWOT ANALYSIS
For a country of continental size like India, a strong reliable and
efficient civil aviation sector goes a long way in promoting and
sustaining tourism. Air India being the undoubted leader in this industry
cannot operate in a vacuum.
It needs to keep its eyes and ears open to survive in the liberalized
economy of our country, which has paved a way for any private airlines
to operate along with it.
The internal and external environment contained various strengths,
weakness, opportunities and threats which need to be identified well in
advance to take care of various situations that arise out of them.
STRENGTHS
The major strength of Air India is its vast infrastructure build over last
four decades.
VAST COMPUTERISED NETWORK
LARGEST NETWORK
NET PROFITS AFTER A GAP OF 7 YEARS
CREATION OF PROFIT CENTERS
WEAKNESSES
LACK OF PERSONALISED AND CUSTIMER FRIENDLY
SERVICES
OVERSTAFFING IN PREVIOUS YEARS
UNDER UTILISATION OF HUMAN RESOURCES
STRINGENT RULES
PROPOSED DISINVESTMENT
OPPORTUNITIES
GROWTH OF AVIATION INDUSTRY-The recession in
the west, the gulf war and Surat outbreak war, all these
slowed tourist growth and consequently affected the airline’s
revenue.
Aviation industry is growing at the rate of 10% per annum.
There is no doubt a good sign and Air India must exploit it.
CLOSING DOWN OF VARIOUS PRIVATE
AIRLINES-Private airlines started operation with great zeal
and enthusiasm after the revival of open sky policy but only
after few years we are seeing a slowdown. Air India should
take it as an opportunity and try to fill this space by
expanding its market share.
CLEARENCE BY THE GOVERNMENT TO OPERATE
ON INTERNATIONAL ROUTES-Earlier Air India was
not allowed to operate on international sectors.
With the liberalization of Indian economy, Government of
India gave Air India a great signal to operate on long routes.
This is a massive opportunity for Air India.
THREATS
COMPETITION ITSELF
INSTABILITY IN THE POLITICS OF INDIA
CHAPTER 2
OBJECTIVES
AND
METHODOLOGY
 RESEARCH METHODOLOGY OF THE
STUDY
Research is composed of two syllables, a prefix re and a verb search? Re
means again, anew over again. Search means to examine closely and
carefully. The two words form a noun to describe a careful and systematic
study in some field of knowledge, undertaken to establish facts. Thus
research may be defined as a search for knowledge or as any
systematic investigation with an open mind, to establish novel facts.
In this project we have use Primary data. The Primary data has been
collected from various sources like Air India website, investigation,
through questionnaires etc.
 Secondary data: - Secondary data is data that has been collected by
others for another purpose. It is important to us because it can save
considerable time and efforts in solving the research problem at
hand.
1.) Secondary data is economy. As data are already available at low
cost.
2.) It can be obtained quickly.
 Primary data: - It is the fresh type of data under which the
data is collected by the researcher own it is used for a specific
purpose. It is more time consuming but more accurate and
reliable. Information that is obtained directly from first-hand
sources by means of surveys, observation or experimentation or
the information collected specifically for the purpose of the
investigation at hand is known as primary data.
We gave customers to fill up the response sheets.
Research methodology is the procedures used in making systematic
observation or otherwise obtaining data, evidence or information as part
of a research project or study. It is the market way of collecting data
under the research methodology sample size, which data is used all such
considered. But my
There are two source of data collection
Primary data Secondary data
 RESEARCH APPROACH
This research follows the inferential quantitative approach. The
questionnaires circulated to collect the relevant information have been
analyzed on the basis of rating given to each question and then,
aggregate of rating of all questions of a group has been taken to find
out percentage of each response to that group.
SAMPLING
For the purpose of conducting the survey, Stratified plan was deemed
optimum. A sample size of 50 was decided upon in agreement with the
industry guide. The sampling was done as below:
Category Population (Regional
Office)
Sample Size(50)
(II) 3/6-9 Grade 1500 approx 25
(III) 9A-18 Grade 700 approx 25
The survey covered 4 departments viz. Personnel, Commercial, Finance
and Material Management. The population was divided into 2 strata acc
to their grades in the organization:
Category II- 3/6-9 Grade and
Category III- 9A-18 Grade
Questionnaire and data collection
Research Instrument- Questionnaire
No. of questions- 18
 Primary data is collected Directly from the staff of different
profile with questionnaire
 Secondary data used in the study collected from the companies
document records, further from the in- depth interviews with
employees.
OBJECTIVES
For the two months internship tenure, NACIL allowed me to study the
functions and processes of the Personnel Department of the PSU; the
project objective is to study training needs of Air India limited. The
project will broaden the knowledge about effectiveness of training
programs in Air India limited.
 Our major objective is to see the- what procedures they are used
for recruitment of employees in their department (say technical or
non-technical, internal or external recruitment).
 To study the awareness and satisfaction level among employees.
 The procedure used by the company at the death of the employee
during service provides appointment to his spouse is they satisfied
with these rules and regulation.
 Study the major functions and processes of the Personnel
Department. This could serve as a manual to introduce the
workings of the Personnel Department to the Management
Trainees etc.
 To study training needs of Air India limited. The project will
broaden the knowledge about effectiveness of training programs in
Air India limited. Through this project it has estimated that how
effective are training programs in NACIL (I). After analyzing the
training programs, the shortcomings in the training programs have
found out and corrective measures have been suggested to improve
upon those shortcomings.
 To find out the present recruitment and selection policies, if any
provide appropriate recommendation.
 Managerial Usefulness of the study
 The main study is to find out the strategies for recruitment
efficiency, which will definitely help the management in
designing the recruitment policies.
 The study will provide the management the required
information about recruiting right person at right place.
SCOPE
For the purpose of this study, the training needs of the following
departments were undertaken
1. Personnel Department
2. Commercial Department
3. Material and Management Department
4. Finance Department
 For the purpose of this study, the scope was limited to the
personal department of the northern regional office.
 The population universe for the awareness survey was
limited to the primarily 4 department based in the vicinity –
personnel, commercial, operations and finance. Due to easy
accessibility and entrance allowed in these departments.
 The study helps us to know the Human Resource Policies.
 This study also helps us to learn work culture in an
organization.
RESEARCH METHODOLOGY OF THE
STUDY
Research methods which are adopted are as follows:-
 Identifying the marketing problem
 Developing Marketing Research plan
 Designing Marketing Research plan
 Designing marketing research strategy
 Collection of Data
 Analysis of Collected Data
 Preparation of Research Report
RESEARCH DESIGN
Research design or model indicates a plan of action to be carried out in
connection with a proposed research work. It provides only a guideline for the
researcher to enable him to keep track of his actions and to know that he is
moving in the right direction in order to achieve his goal. The design may be
specific presentation of the various steps in the process of research.
The type of research design adopted is Descriptive Research. The research
objectives in this type of research are generally describing the characteristics
of consumer segment, via, demographic, socio-economic, geographic,
psychographic and benefits sought. Descriptive studies can also portray buyer
perceptions of brands; audience profiles for media types, via, TV, radio,
newspaper, journals and magazines, etc. they can also portray buying power
of consumers, availability of distributors, product consumption patterns, price
sensitivity of consumers, market share, etc.
Descriptive research often makes use of survey research design which consists
of a cross-sectional research design that is, collecting data on few factors from
a number of cases at one point of time. This is the most popular type of
research design and is useful in describing the characteristics of consumers
and determining the frequency of marketing phenomenon. Consumer research
design adopted is quantitative.
CHAPTER 3
CONCEPTUAL ANALYSIS
AN OVERVIEW
The main focus of our project report is to find out:
The training patterns that are being employed in Air India
The sources of recruitment that are being searched for hiring
employees
Are the employees happy with training techniques
The performance appraisal patterns employed in Air India
Are the employees getting motivated with these performance
appraisal methods
Amount of harmony in the organization
Psyche of employees working in the organization
To give suggestions on the bases of the study
Organization structures of Nacil
Northern region Southern region Western region East region
REGIONAL DIRECTOR
General Manager General Manager General Manager General Manager
(Personnel) (Finance) (Commercial) (Medical)
Organizational structure of the personnel department of the Nacil (Northern
Region)
Q1-What is recruitment?
Ans- Recruitments are an important part of a business human resource
planning. In all business, people are vital resources and they need to be
managed as such. The overall aim of the recruitment and selection
process is to be obtaining the number and quality of employees that
are required in order for the business to achieve objectives.
Q2- What is internal recruitment?
Ans- This refers to the felling of job vacancies from within the
businesses employees are selected rather than employing some one
from outside. A business might decide that it already has the right
The Recruitment policy is concerned with
quantity and quality of manpower, it establish
broad guidelines for Staffing
process……………………………………..DALE YODER
Recruitment is a process of searching for
perspective employee and stimulating them to
apply for
jobs……………………………………………………..FLIPPO
people with the right skill to do the job, particularly if its training and
development programmes have been effective.
Q3- How it is done?
Ans- Internal vacancies are usually advertised with in the business via a
variety of media:
1. Staff notice board
2. Internets
3. In house magazines/news letter
4. Staff meetings
Q3-Advantages of recruitment?
Ans- 1. Gives existing employees greater opportunity to advance their
carriers in their business.
2. May help to retains staff that might otherwise leave.
3. Require a short induction training period.
4. Employer should know more about the internal candidate’s
There are three main stages in recruitment.
Identify and define the requirements
Attract potential employees
Select employees
Identify and define the requirements. This involves the
preparation of job description, job specification and person
specification.
Attract potential employees. There are various methods for doing
this which are described in a separate revision note.
Select employee. The appropriate people from the job
applications it is important to appreciate that recruitment is staff
departures(e.g. Retirements, sacking, resignation)
Changes in business requirements (e.g. new
product)
Changes in business location relocation often
trigger the need for substantial recruitments.
Promotions, Recruitments is becoming more and
more important in business. In particularly, this
reflects the increasing need for a well motivated
and flexible work that requires less management
supervision.
Q3- What is external Recruitment?
Ans-This refers to the feeling of job vacancies from at side the
business. Most business engages in external recruitment fairly
frequently, particularly those that are growing strongly or that
operates in industries with staff turnover.
Q4-How is it done?
Ans-There are several ways of looking for staff outside the
business:
Employment/Recruitment agencies: - These businesses
specialize in recruitment for specific sectors (e.g. finance,
travel, secretarial). They usually provide a shortlist of
candidate based on the people registered with the agency.
They also supply temporary or interim
employees. The main advantages with using the agencies
are the specialist skill they bring and the agencies are the
specialist skill they bring and the speed with which they
normally provide candidate. They also reduced the
administrative burden of recruitment. The cost is the high
agency fees charged often up to 30% of the first year of any
one employed.
Recruitment consultancies:-“Up market” Recruitment agent
who provide a more specialized approach to the recruitment
of key employees and senior management. They tend to
approach individual with a good reputation rather than
Rely on long list of registered applicants often using privileged
industry contact to drawn up a sort list. The cost of using a
head hunter or recruitment consultant is high.
Disadvantages of internal recruitments:-
 Limits the number of potential for a job.
 External candidate might be better
suited/qualified for the job.
 Another vacancy will be created that has to be
filled.
 Existing staff may feel they have the automated
right to be promoted, whether or not they are
competent.
 Basic step of employee’s recruitment:-
 Complete application packages must be submitted
prior to the advertised closing date and time to be
considered otherwise they will be excluded from
consideration. Acknowledgement is sent to all
applicants within a week of closing date of the
application-filling period. This will be the only
notification for candidate not moving forward to
the testing/interview phase of the recruitment.
 If a position a part of union bargaining unit,
internal applicant who meets minimum
requirements will be interviewed first. External
application will be screened to ensure they meet
the requirements for applicable position. The most
qualified will be invited to participate in the
interview phase of the recruitment. Notification of
the time and location of a test and interview will
occur three to seven working days in advance by
the phone, e-mail or regular mail.
 Reference check will be conducted after the
testing and interviewing for the final candidates.
 When the candidate is recommended for
selection, approval from management must be
obtained before a job offer is made.
 Background/security checks and approvals from
management must be obtained before a job offer
is made.
 Candidate that participate in the testing/interview
phase that are not selected are notified upon the
conclusion of the recruitment.
 Advantages of external recruitment:-
These are mainly the opposite the disadvantages of
internal recruitment. The main one being that a wider
audience can be reached which increases the chance that
the business will be able to recruit the skills it need.
Promotion to selection grade will be on the basis of
rigorous selection on merit from amongst the employees
in grades or interlink grades below the grades concerned
and shall be limited to the number of posts declared as
such on the cadres according to the sectioned strength
from time to time.
All cases of difference of opinion between the competent
authority empowered to make appointments to the
Promotion Boards shall be referred to the next higher
authority is a sitting member of Promotion Board in
which case the recommendation of the Promotion board
shall be final.
Compensation based Recruitments:-
At the death of the employee during service, the
provision to provide appointment to his
spouse/children under the rules and regulations of
the company. A certain procedure is followed to
appoint the candidate as such circumstances.
APA Rating for employee in grade 3/9 being
considered under 30% selection vacancies. The
value of APA marks are as followed:-
 Outstanding APA = 10 marks/year
 Very Good APA = 08 marks/year
 Good APA = 06 marks/year
 Average APA = 10 marks/year
 Poor APA = 00 marks/year
WHAT IS “PERFORMANCE APPRAISAL”?
Performance Appraisal is defined as the process of assessing the
performance and progress of an employee or a group of employees on a
given job and his / their potential for future development. It consists of
all formal procedures used in working organizations and potential of
employees. According to Flippo, “Performance Appraisal is the
systematic, periodic and an important rating of an employee’s excellence
in matters pertaining to his present job and potential for a better job.”
CHARACTERISTICS
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and weakness of
an employee in terms of his job.
3. It is scientific and objective study. Formal procedures are used in
the study.
4. It is an ongoing and continuous process wherein the evaluations
are arranged periodically according to a definite plan.
5. The main purpose of Performance Appraisal is to secure
information necessary for making objective and correct decision
an employee.
PROCESS
The process of performance appraisal:
1. Establishing performance standards
2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6.Taking Corrective Action
LIMITATIONS
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
METHODS OF PERFORMANCE APPRAISAL
The foregoing list of major program pitfalls represents a formidable
challenge, even considering the available battery of appraisal techniques.
But attempting to avoid these pitfalls by doing away with appraisals
themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that
are (a) most likely to achieve a particular objective and (b) least
vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of performance
appraisal stated at the outset of the article, I shall briefly review each,
taking them more or less in an order of increasing complexity.
The best-known techniques will be treated most briefly.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or
more covering an individual's strengths, weaknesses, potential, and so
on. In most selection situations, particularly those involving
professional, sales, or managerial positions, essay appraisals from
former employers, teachers, or associates carry significant weight.
.
GRAPHIC RATING SCALE
This technique may not yield the depth of an essay appraisal, but it is
more consistent and reliable. Typically, a graphic scale assesses a person
on the quality and quantity of his work (is he outstanding, above
average, average, or unsatisfactory?) and on a variety of other factors
that vary with the job but usually include personal traits like reliability
and cooperation. It may also include specific performance items like oral
and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member
of the personnel or central administrative staff meets with small groups
of raters from each supervisory unit and goes over each employee's
rating with them to (a) identify areas of inter-rater disagreement, (b) help
the group arrive at a consensus, and (c) determine that each rater
conceives the standards similarly. .
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and
establish objective standards of comparison between individuals, but it
does not involve the intervention of a third party.
MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by
unfairly high standards, employees in some organizations are being
asked to set - or help set - their own performance goals. Within the past
five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare
people who work for different supervisors, individual statements,
ratings, or appraisal forms are not particularly useful. Instead, it is
necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must
somehow be added. There is no single form or way to do this.
The best approach appears to be a ranking technique involving pooled
judgment.
ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What
about the assessment of future performance or potential? In any
placement decision and even more so in promotion decisions, some
prediction of future performance is necessary. How can this kind of
prediction be made most validly and most fairly?
360 DEGREE FEEDBACK
Many firms have expanded the idea of upward feedback into what the
call 360-degree feedback. The feedback is generally used for training
and development, rather than for pay increases.
Most 360 Degree Feedback system contains several common features.
Appropriate parties – peers, supervisors, subordinates and customers, for
instance – complete survey, questionnaires on an individual. 360 degree
feedback is also known as the multi-rater feedback, whereby ratings are
not given just by the next manager up in the organizational hierarchy,
but also by peers and subordinates. Appropriates customer ratings are
also included, along with the element of self appraisal. Once gathered in,
the assessment from the various quarters are compared with one another
and the results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course,
MBO. Like the critical incident method, it focuses on actual behavior
and actual results, which can be discussed objectively and
constructively, with little or no need for a supervisor to "play God."
CHAPTER 4
QUESTIONAIRE AND DATA
ANALYSIS
QUESTIONNAIRE
Q.1 Potential candidates in your organization are generated through the following ex
(tick and rank them based on the number and quality of candidates generated also rou
i) Direct consultants
ii) Job portals
iii) Employee referral
iv) Through temporary staffing
v) Head hurting
vi) Body shopping
vii) Any other sources, please specify
Q.2) Are technical and professional interviews conducted separately in the organiza
i) yes
ii) no
Q.3.a) Do you conduct background checks?
i) yes
ii) no
b) If yes, is it for all levels of employees or only for senior position?c) Is a backgroun
Q.4) Do you bear any expenses of the SC/ST for the final interview? If yes please sp
a) yes
b) no
Q5) Do you also bear the transfer expenses of the outstation candidate( with in India
a) yes
b) no
Q6) If yes, which of the following expenses are covered of the outstation candidate,
a) travel
b) transportation of household goods
c) accommodations
d) all of the above
Q.7) What are the monetary limits for the followingexpenses?
a) travel
b) transportation of household goods
c) accommodations
Q.8) Ideally, how much time does the hiring process take i.e, right from the test/ inte
stage?.............................................................................................................................
Q.9) Do you get an employment agreement signed by the freshers? If yes what is the
agreement?.....................................................................................................................
Q.10) The durations of the probationary period for a new joinee in your organization
a)6 months
b)1 year
c)2 years
Q.11) the performance appraisal method followed in the organization is
a) balanced scorecard method
b) MBO
c) any other method , please specify
Q12)An individual employee is evaluated on the basis of his/her
a) technical
b) behaviour
c) adaptability in the organization
d) any other , please specify
Q.13) The appraisal is conducted
a)once in 6 months
b)once in a year
Q.14)Is the appraisal feedback communicated to the respective employee?
a)Yes
b)no
Q.15)is the post appraisal feedback viewed seriously to the employee?
a)yes
b)no
Q.16)are the employees satisfied with the appraisal system adopted currently?
a)yes
b)no
Q.17) Are the employees satisfied with the appraisal system adopted currently?
a)yes
b)no
Q.18)how often does your performance assessment match to your expectations?
a)never b)rarely c)sometimes d)often e)everytime
Q.19)according to you how often should the performance review take place?
a)once in a week
b)once in amonth
c)every 3 months
d)every 6 months
e)once in a year
DATA ANALYSIS
Ques 1. Potential candidates in your organization are generated through the follow
(tick and rank them based on the number and quality of candidates generated)
Ques 2. Are technical and professional interviews conducted separately?
recruitment
employment
exchanges
newspaper
internal hiring
other sources
yes
no
Ques 3. A) Do you conduct background checks?
B) If yes, is it for all levels of employees or only for senior position? Whether backgr
Ans. Yes background checks are for all levels of employees including senior position
Ques 4. Do you bear any expenses of the SC/ST for the final interview? If yes please
yes
no
Yes, travel expenses are paid.
Ques 5. Do you also bear the transfer expenses of the outstation candidate( with in
Ques 6. If yes, which of the following expenses are covered of the outstation candid
Ans. Not applicable
1st Qtr
2nd Qtr
Transfer Expenses
yes
no
Ques 7. What are the monetary limits for the followingexpenses?
Ans. a) travel
Busfare , second class train fare are provided
b) accommodations
Housing colonies are provided
Ques 8. Ideally, how much time does the hiring process take i.e, right from the test
Ans. Less than a week for test/interviews/offer letter
But otherwise upto a month
Ques 9. Do you get an employment agreement signed by the freshers? If yes what i
Ans. It differs from categoru to category.It is called SERVICE BOND
Ques 10. The durations of the probationary period for a new joinee in your organiza
Probationary period is generally between 3 to 9 months .
Ques 11. The performance appraisal method followed in the organization is:
Any other include TWO TIER System.
Probationary period
6 months
1 year
2 year
Appraisal Method
balanced scorecard method
MBO
any other
Ques 12. An individual employee is evaluated on the basis of his/her
Ans. Parameters are laid down in the appraisal form covers technical and behaviora
technical
behaviour
adaptibility
any other
Ques 13. The appraisal is conducted:
Ans:
Ques 14. Is the appraisal feedback communicated to the respective employee?
Ans. The feedback is only communicated if and only if there is an adverse entity in w
the appraisal is shown and discussed with the individual.
annually
6 months
Ques 15. Is the post appraisal feedback viewed seriously to the employee?
yes
no
Ques 16. Are the employees satisfied with appraisal system adopted currently?
yes
no
Ques 17. How often does your performance assessment match to your expectation
Sales
never
rarely
sometimes
often
everytime
Ques 18. According to you how often should the performance review take place?
Sales
once a week
once in a month
every 3 months
every 6 months
annually
 recruitment and performance appraisal at air india ltd
 recruitment and performance appraisal at air india ltd

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recruitment and performance appraisal at air india ltd

  • 1. A project report on recruitment and performance appraisal at air india ltd.
  • 2. CONTENTS  Acknowledgement  Preface  Executive summary  Mission statement of Air India Chapter- 1: introduction of Air India History ,infrastructure and network Salient features Corporate objectives Problems of Air India and future challenges Designation and grades in Air India S.W.OT. analysis  Chapter – 2 : objectives and methodology Significance and managerial usefulness of study Objectives and methodology Scope  Chapter – 3 : conceptual analysis Chapter – 4 : questionnaire and data analysis Chapter – 5 : findings and recommendations Bibliography
  • 3. ACKNOWLEDGEMENT I would like to thank and owe my gratitude to AIR INDIA to allow me to undergo an internship program, for a period of 2 months, assigned by my institute. For giving me an opportunity to work on this project titled, “RECRUITMENT AND PERFORMANCE APPRAISAL (TRAINEE DEVELOPMENT) and for her assistance and suggestion, which resulted in successful completion of this project. I want to thanks those people to whom whenever I approached for help they have given me their valuable time. Any shortcomings in the work are attributable solely to my inadequacies. However my most sincere thanks and regards are due to all the employees of the personnel department who provided me all the essentials information and assistance that I needed throughout the period of my internship.
  • 4. PREFACE The recruitment and promotion rules of air India were framed in exercise of the power conferred by rule and trend with 8 to 15 air india ( flying crew ) service rule air India ( aircraft engg. Deptt. ) sse4rvice rule and the air India employees other than flying crew and aircraft engg deptt service rules. The air corporation act. 1953 has been repeated by air corporation (transfer of undertaking and repeal ) act, 1994 and air India become public ltd. Company. Over the years, recruitment and promotion rules have been amended from time to time. These studies contain the recruitment and promotion rules in corporating such amendment. Consequent to the reorganization of various departments, the designations have undergone change. The mode of filling up of vacancies have also undergone with various unions. Administrative instructions have been issued regarding as recruitment and promotional rules from time to time. Mode of appointment, size of panels, validity of panels, zone of consideration, distribution of marks, provision of outstanding, the bar considered for higher post, intimation regarding interview, etc.
  • 5. EXECUTIVE SUMMARY National aviation company of India limited (NACIL) Was incorporated on march 30 2007 under the scheme of amalgamation of air India limited and Indian Airlines limited . My summer training at NACIL has been a period of great experience and learning. It helped me gain an insight into the functioning of the personnel department . My study had special emphasis on understanding the scope of procurement department, RTI department, grievance cell, welfare department at NACIL. I also had a chance to do a live project on the satisfaction of the employees with the recruitment & training programs and performance appraisal methods adopted by them. An attempt was also made to highlight the IR related issues faced by the employees in the post merger scenario. The experience of the study will definitely help me in future endeavors.
  • 6. MISSION STATEMENT OF AIR INDIA “ TO BECOME A WORLD CLASS AIRLINE AND TO PROVIDE THE FINEST SERVICE IN THE OPERATIONS” HUMAN RESOURCE The company has been following Government’s directives with regard to representation of scheduled castes/tribes. As on march 31st 2001, the strength of staff was 21173 of which 1176 were scheduled tribes. MARKETING The company strives to improve its product on an ongoing basis and constantly endeavors to adopt aggressive marketing strategies and innovating pricing policies to achieve a better market and improvement in revenue realization. Jet airways hold an edge over AIR INDIA as far as in-flight services are concerned due to superior quality of services. Price is no longer a DIFFERENTIATING factor as it is seen that “y- class” fares of jet airways and Air India are same but jet airways charges a slightly higher fare.
  • 7. SECURITY PROCEDURES To ensure the security of aircraft and passengers, security regulations have been made stringent than before. Some of the security procedures are listed below: Your ticket is checked at the time of entering at terminal building. At major airports, the baggage is passed through x-ray machines Persons are checked through hand-held metal detectors In case of red –alert, a secondary security check is also carried out Checked baggage is to be personally identified by the passengers before it is loaded on the aircraft. AIRPORT MANAGEMENT The airport authority of India manages most of the airports. Air India pays various charges like landing ,parking and route navigation fee etc. to the airport controlling agencies for using the airport. WELFARE ACTIVITIES The company provides various welfare activities to its employees such as medical facilities, subsidized canteens, educational scholarships, festival schemes etc. USE OF HINDI The main motive of the company is to promote Hindi as the official language in order to fulfill its overall objectives and is continuing its efforts in accordance with official implementation programs.
  • 9. COMPANY PROFILE National Aviation Company of India Limited The National Aviation Company of India Limited (NACIL) was incorporated under the Companies Act 1956 on 30 March 2007 and is owned by the Government of India based at the Air India Building in Nariman Point, Mumbai. The Company was created to facilitate the merger of the two main state-owned airlines in India: Air India, with its subsidiary Air-India Express and Indian Airlines, together with its subsidiary Alliance Air. Whilst the merger and integration process has started, and a few routes have been rationalised, a lot remains to be done before the various units start functioning as a cohesive airline. The current structure is: National Aviation Company of India Limited o Air India  Air-India Express  Air India Cargo o Indian Airlines  Air India Regional (formerly Alliance Air) Upon completion of the merger, there will be one primary airline, Air India, with two subsidiary carriers providing regional and low-cost, point-to-point services and a third subsidiary for cargo operations: Air India o Air India Express o Air India Regional o Air India Cargo Type Government-owned
  • 10. Industry Airlines & Aviation Airline Catering & Foodservice Hotels & Hospitality Founded 30 March 2007 Headquarters Air India Building, Nariman Point, Mumbai, India Key people Arvind Jadhav, Chairman & Managing Director Products Airline Ground Handling Services Hotels Services Revenue Rs 15257.47 Crores ($3.31 billion) (2007-08) Net income Rs 1619.12 Crores ($351.98 million)(07-08) Employees 32,000 (2009) Subsidiaries Hotel Corporation of India Limited Air India Air Transport Services Limited
  • 11. Air India Engineering Services Limited Air India Charters Limited IAL Airport Services Limited Airline Allied Services Limited Website www.airindia.in
  • 12. Founder – Air India J.R.D.TATA Air India is India's national flag carrier. Although air transport was born in India on February 18, 1911 when Henri Piquet, flying a Humber bi- plane, carried mail from Allahabad to Naini Junction, some six miles away, the scheduled services in India, in the real sense, began on October 15, 1932. It was on this day that J.R.D. Tata, the father of Civil Aviation in India and founder of Air India, took off from Drigh Road Airport, Karachi, in a tiny, light single-engined de Havilland Puss Moth on his flight to Mumbai (then known as Bombay) via Ahmedabad. He landed with his precious load of mail on a grass strip at Juhu. At Mumbai, Neville Vintcent, a former RAF pilot who had come to India from Britain three years earlier on a barn-storming tour, during which he had surveyed a number of possible air routes, took over from J.R.D.Tata and flew the Puss Moth to Chennai (then Madras) via Bellary.
  • 13. Products Fleet position Aircraft number of aircraft seats (As on 31.03.2004) Airbus A-300 04 33+215 Airbus A-320 41 20+125 Boeing 737 11** 119 Dornier 3 Total 59 * Including two A-300 B4 on lease and two aircraft VT- EWD and VT-ELW withdraw from services for disposal. * One aircraft (VT-EGD) crashed at Patna on 31st march 2004.
  • 14. MAJOR PROBLEMS AHEAD OF AIR INDIA Despite announcing walk-in interviews and fresh tie-ups with ground handling agencies, the chaos of Air India entered into its 15th day and likely to continue in coming days. The problem for Air India started from October 31,2010 when they decided to shift arrival of 11 of its domestic to the newly built Terminal 3. The limited airline staff had to manage five terminals: domestic arrival and departure at Terminal 1, international arrival and departure at T3 and domestic arrival at T3. The staff was staggered leading to shortage of hands. Unmindful of the staff shortage problem, Air India also went ahead and started 15 non-stop flights for international destination from eight cities. From 486 flights in a week from Delhi, Air India has gone up to 770 flights a week. “The flights were increased as we wanted to make Delhi our hub. Now since there is staff shortage, we have taken interviews of experienced crew so they can be immediately pressed into service after hiring. Till then the problem will remain,” an Air India official said. In the last 15 days, Air India has operated nearly 1,500 flights from Delhi, of which over 1,000 failed to take off or land on time. The shortage of ground staff led to chaos as passengers found it difficult to trace their baggage. “Air India SATS used to handle ground operation for us. Once we announced new flights, the company started facing staff shortage and failed to recruit more staff.
  • 15. OTHER AREAS OF PROBLEM ARE: Despite the company earned net profits from 1997 to 2000,but now it is operating in heavy losses. After hijack in December 1999, there is a slowdown in the volume of passengers. The government of India has announced the disinvest of the shares of the company AIR INDIA was forced to maintain network throughout the country, out of which 70% of the routes were loss making. After the merger of Vayudhoot with Air India, it had to bear its losses, while absorbing 1000 of its employees. The frequent strikes of Air India employees have resulted in heavy losses.
  • 16. Organization Chart of Air India Limited
  • 17. SWOT ANALYSIS For a country of continental size like India, a strong reliable and efficient civil aviation sector goes a long way in promoting and sustaining tourism. Air India being the undoubted leader in this industry cannot operate in a vacuum. It needs to keep its eyes and ears open to survive in the liberalized economy of our country, which has paved a way for any private airlines to operate along with it. The internal and external environment contained various strengths, weakness, opportunities and threats which need to be identified well in advance to take care of various situations that arise out of them. STRENGTHS The major strength of Air India is its vast infrastructure build over last four decades. VAST COMPUTERISED NETWORK LARGEST NETWORK NET PROFITS AFTER A GAP OF 7 YEARS CREATION OF PROFIT CENTERS WEAKNESSES LACK OF PERSONALISED AND CUSTIMER FRIENDLY SERVICES OVERSTAFFING IN PREVIOUS YEARS UNDER UTILISATION OF HUMAN RESOURCES STRINGENT RULES PROPOSED DISINVESTMENT
  • 18. OPPORTUNITIES GROWTH OF AVIATION INDUSTRY-The recession in the west, the gulf war and Surat outbreak war, all these slowed tourist growth and consequently affected the airline’s revenue. Aviation industry is growing at the rate of 10% per annum. There is no doubt a good sign and Air India must exploit it. CLOSING DOWN OF VARIOUS PRIVATE AIRLINES-Private airlines started operation with great zeal and enthusiasm after the revival of open sky policy but only after few years we are seeing a slowdown. Air India should take it as an opportunity and try to fill this space by expanding its market share. CLEARENCE BY THE GOVERNMENT TO OPERATE ON INTERNATIONAL ROUTES-Earlier Air India was not allowed to operate on international sectors. With the liberalization of Indian economy, Government of India gave Air India a great signal to operate on long routes. This is a massive opportunity for Air India. THREATS COMPETITION ITSELF INSTABILITY IN THE POLITICS OF INDIA
  • 20.  RESEARCH METHODOLOGY OF THE STUDY Research is composed of two syllables, a prefix re and a verb search? Re means again, anew over again. Search means to examine closely and carefully. The two words form a noun to describe a careful and systematic study in some field of knowledge, undertaken to establish facts. Thus research may be defined as a search for knowledge or as any systematic investigation with an open mind, to establish novel facts. In this project we have use Primary data. The Primary data has been collected from various sources like Air India website, investigation, through questionnaires etc.  Secondary data: - Secondary data is data that has been collected by others for another purpose. It is important to us because it can save considerable time and efforts in solving the research problem at hand. 1.) Secondary data is economy. As data are already available at low cost. 2.) It can be obtained quickly.
  • 21.  Primary data: - It is the fresh type of data under which the data is collected by the researcher own it is used for a specific purpose. It is more time consuming but more accurate and reliable. Information that is obtained directly from first-hand sources by means of surveys, observation or experimentation or the information collected specifically for the purpose of the investigation at hand is known as primary data. We gave customers to fill up the response sheets. Research methodology is the procedures used in making systematic observation or otherwise obtaining data, evidence or information as part of a research project or study. It is the market way of collecting data under the research methodology sample size, which data is used all such considered. But my There are two source of data collection Primary data Secondary data
  • 22.  RESEARCH APPROACH This research follows the inferential quantitative approach. The questionnaires circulated to collect the relevant information have been analyzed on the basis of rating given to each question and then, aggregate of rating of all questions of a group has been taken to find out percentage of each response to that group. SAMPLING For the purpose of conducting the survey, Stratified plan was deemed optimum. A sample size of 50 was decided upon in agreement with the industry guide. The sampling was done as below: Category Population (Regional Office) Sample Size(50) (II) 3/6-9 Grade 1500 approx 25 (III) 9A-18 Grade 700 approx 25 The survey covered 4 departments viz. Personnel, Commercial, Finance and Material Management. The population was divided into 2 strata acc to their grades in the organization:
  • 23. Category II- 3/6-9 Grade and Category III- 9A-18 Grade Questionnaire and data collection Research Instrument- Questionnaire No. of questions- 18  Primary data is collected Directly from the staff of different profile with questionnaire  Secondary data used in the study collected from the companies document records, further from the in- depth interviews with employees.
  • 24. OBJECTIVES For the two months internship tenure, NACIL allowed me to study the functions and processes of the Personnel Department of the PSU; the project objective is to study training needs of Air India limited. The project will broaden the knowledge about effectiveness of training programs in Air India limited.  Our major objective is to see the- what procedures they are used for recruitment of employees in their department (say technical or non-technical, internal or external recruitment).  To study the awareness and satisfaction level among employees.  The procedure used by the company at the death of the employee during service provides appointment to his spouse is they satisfied with these rules and regulation.  Study the major functions and processes of the Personnel Department. This could serve as a manual to introduce the workings of the Personnel Department to the Management Trainees etc.  To study training needs of Air India limited. The project will broaden the knowledge about effectiveness of training programs in Air India limited. Through this project it has estimated that how effective are training programs in NACIL (I). After analyzing the training programs, the shortcomings in the training programs have found out and corrective measures have been suggested to improve upon those shortcomings.  To find out the present recruitment and selection policies, if any provide appropriate recommendation.
  • 25.  Managerial Usefulness of the study  The main study is to find out the strategies for recruitment efficiency, which will definitely help the management in designing the recruitment policies.  The study will provide the management the required information about recruiting right person at right place.
  • 26. SCOPE For the purpose of this study, the training needs of the following departments were undertaken 1. Personnel Department 2. Commercial Department 3. Material and Management Department 4. Finance Department  For the purpose of this study, the scope was limited to the personal department of the northern regional office.  The population universe for the awareness survey was limited to the primarily 4 department based in the vicinity – personnel, commercial, operations and finance. Due to easy accessibility and entrance allowed in these departments.  The study helps us to know the Human Resource Policies.  This study also helps us to learn work culture in an organization.
  • 27. RESEARCH METHODOLOGY OF THE STUDY Research methods which are adopted are as follows:-  Identifying the marketing problem  Developing Marketing Research plan  Designing Marketing Research plan  Designing marketing research strategy  Collection of Data  Analysis of Collected Data  Preparation of Research Report
  • 28. RESEARCH DESIGN Research design or model indicates a plan of action to be carried out in connection with a proposed research work. It provides only a guideline for the researcher to enable him to keep track of his actions and to know that he is moving in the right direction in order to achieve his goal. The design may be specific presentation of the various steps in the process of research. The type of research design adopted is Descriptive Research. The research objectives in this type of research are generally describing the characteristics of consumer segment, via, demographic, socio-economic, geographic, psychographic and benefits sought. Descriptive studies can also portray buyer perceptions of brands; audience profiles for media types, via, TV, radio, newspaper, journals and magazines, etc. they can also portray buying power of consumers, availability of distributors, product consumption patterns, price sensitivity of consumers, market share, etc. Descriptive research often makes use of survey research design which consists of a cross-sectional research design that is, collecting data on few factors from a number of cases at one point of time. This is the most popular type of research design and is useful in describing the characteristics of consumers and determining the frequency of marketing phenomenon. Consumer research design adopted is quantitative.
  • 30. AN OVERVIEW The main focus of our project report is to find out: The training patterns that are being employed in Air India The sources of recruitment that are being searched for hiring employees Are the employees happy with training techniques The performance appraisal patterns employed in Air India Are the employees getting motivated with these performance appraisal methods Amount of harmony in the organization Psyche of employees working in the organization To give suggestions on the bases of the study
  • 31. Organization structures of Nacil Northern region Southern region Western region East region REGIONAL DIRECTOR General Manager General Manager General Manager General Manager (Personnel) (Finance) (Commercial) (Medical) Organizational structure of the personnel department of the Nacil (Northern Region)
  • 32. Q1-What is recruitment? Ans- Recruitments are an important part of a business human resource planning. In all business, people are vital resources and they need to be managed as such. The overall aim of the recruitment and selection process is to be obtaining the number and quality of employees that are required in order for the business to achieve objectives. Q2- What is internal recruitment? Ans- This refers to the felling of job vacancies from within the businesses employees are selected rather than employing some one from outside. A business might decide that it already has the right The Recruitment policy is concerned with quantity and quality of manpower, it establish broad guidelines for Staffing process……………………………………..DALE YODER Recruitment is a process of searching for perspective employee and stimulating them to apply for jobs……………………………………………………..FLIPPO
  • 33. people with the right skill to do the job, particularly if its training and development programmes have been effective. Q3- How it is done? Ans- Internal vacancies are usually advertised with in the business via a variety of media: 1. Staff notice board 2. Internets 3. In house magazines/news letter 4. Staff meetings Q3-Advantages of recruitment? Ans- 1. Gives existing employees greater opportunity to advance their carriers in their business. 2. May help to retains staff that might otherwise leave. 3. Require a short induction training period. 4. Employer should know more about the internal candidate’s There are three main stages in recruitment.
  • 34. Identify and define the requirements Attract potential employees Select employees Identify and define the requirements. This involves the preparation of job description, job specification and person specification. Attract potential employees. There are various methods for doing this which are described in a separate revision note. Select employee. The appropriate people from the job applications it is important to appreciate that recruitment is staff departures(e.g. Retirements, sacking, resignation) Changes in business requirements (e.g. new product)
  • 35. Changes in business location relocation often trigger the need for substantial recruitments. Promotions, Recruitments is becoming more and more important in business. In particularly, this reflects the increasing need for a well motivated and flexible work that requires less management supervision. Q3- What is external Recruitment? Ans-This refers to the feeling of job vacancies from at side the business. Most business engages in external recruitment fairly frequently, particularly those that are growing strongly or that operates in industries with staff turnover. Q4-How is it done? Ans-There are several ways of looking for staff outside the business: Employment/Recruitment agencies: - These businesses specialize in recruitment for specific sectors (e.g. finance, travel, secretarial). They usually provide a shortlist of candidate based on the people registered with the agency. They also supply temporary or interim employees. The main advantages with using the agencies are the specialist skill they bring and the agencies are the specialist skill they bring and the speed with which they
  • 36. normally provide candidate. They also reduced the administrative burden of recruitment. The cost is the high agency fees charged often up to 30% of the first year of any one employed. Recruitment consultancies:-“Up market” Recruitment agent who provide a more specialized approach to the recruitment of key employees and senior management. They tend to approach individual with a good reputation rather than Rely on long list of registered applicants often using privileged industry contact to drawn up a sort list. The cost of using a head hunter or recruitment consultant is high.
  • 37. Disadvantages of internal recruitments:-  Limits the number of potential for a job.  External candidate might be better suited/qualified for the job.  Another vacancy will be created that has to be filled.  Existing staff may feel they have the automated right to be promoted, whether or not they are competent.  Basic step of employee’s recruitment:-  Complete application packages must be submitted prior to the advertised closing date and time to be considered otherwise they will be excluded from consideration. Acknowledgement is sent to all applicants within a week of closing date of the application-filling period. This will be the only notification for candidate not moving forward to the testing/interview phase of the recruitment.  If a position a part of union bargaining unit, internal applicant who meets minimum requirements will be interviewed first. External application will be screened to ensure they meet the requirements for applicable position. The most
  • 38. qualified will be invited to participate in the interview phase of the recruitment. Notification of the time and location of a test and interview will occur three to seven working days in advance by the phone, e-mail or regular mail.  Reference check will be conducted after the testing and interviewing for the final candidates.  When the candidate is recommended for selection, approval from management must be obtained before a job offer is made.  Background/security checks and approvals from management must be obtained before a job offer is made.  Candidate that participate in the testing/interview phase that are not selected are notified upon the conclusion of the recruitment.  Advantages of external recruitment:- These are mainly the opposite the disadvantages of internal recruitment. The main one being that a wider audience can be reached which increases the chance that the business will be able to recruit the skills it need. Promotion to selection grade will be on the basis of rigorous selection on merit from amongst the employees in grades or interlink grades below the grades concerned and shall be limited to the number of posts declared as
  • 39. such on the cadres according to the sectioned strength from time to time. All cases of difference of opinion between the competent authority empowered to make appointments to the Promotion Boards shall be referred to the next higher authority is a sitting member of Promotion Board in which case the recommendation of the Promotion board shall be final. Compensation based Recruitments:- At the death of the employee during service, the provision to provide appointment to his spouse/children under the rules and regulations of the company. A certain procedure is followed to appoint the candidate as such circumstances. APA Rating for employee in grade 3/9 being considered under 30% selection vacancies. The value of APA marks are as followed:-  Outstanding APA = 10 marks/year  Very Good APA = 08 marks/year  Good APA = 06 marks/year  Average APA = 10 marks/year  Poor APA = 00 marks/year
  • 40. WHAT IS “PERFORMANCE APPRAISAL”? Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining to his present job and potential for a better job.” CHARACTERISTICS 1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.
  • 41. PROCESS The process of performance appraisal: 1. Establishing performance standards 2. Communicating the Standards 3. Measuring Performance 4. Comparing the actual with the standards 5. Discussing the appraisal 6.Taking Corrective Action LIMITATIONS 1. Errors in Rating 2. Lack of reliability 3. Negative approach 4. Multiple objectives 5. Lack of knowledge
  • 42. METHODS OF PERFORMANCE APPRAISAL The foregoing list of major program pitfalls represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly. ESSAY APPRAISAL In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight. .
  • 43. GRAPHIC RATING SCALE This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication. FIELD REVIEW The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. . FORCED-CHOICE RATING Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party.
  • 44. MANAGEMENT BY OBJECTIVES To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here. RANKING METHODS For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. The best approach appears to be a ranking technique involving pooled judgment. ASSESSMENT CENTERS So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some
  • 45. prediction of future performance is necessary. How can this kind of prediction be made most validly and most fairly? 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties – peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God."
  • 46. CHAPTER 4 QUESTIONAIRE AND DATA ANALYSIS
  • 47. QUESTIONNAIRE Q.1 Potential candidates in your organization are generated through the following ex (tick and rank them based on the number and quality of candidates generated also rou i) Direct consultants ii) Job portals iii) Employee referral iv) Through temporary staffing v) Head hurting vi) Body shopping vii) Any other sources, please specify Q.2) Are technical and professional interviews conducted separately in the organiza i) yes ii) no Q.3.a) Do you conduct background checks? i) yes ii) no b) If yes, is it for all levels of employees or only for senior position?c) Is a backgroun Q.4) Do you bear any expenses of the SC/ST for the final interview? If yes please sp a) yes
  • 48. b) no Q5) Do you also bear the transfer expenses of the outstation candidate( with in India a) yes b) no Q6) If yes, which of the following expenses are covered of the outstation candidate, a) travel b) transportation of household goods c) accommodations d) all of the above Q.7) What are the monetary limits for the followingexpenses? a) travel b) transportation of household goods c) accommodations Q.8) Ideally, how much time does the hiring process take i.e, right from the test/ inte stage?............................................................................................................................. Q.9) Do you get an employment agreement signed by the freshers? If yes what is the agreement?.....................................................................................................................
  • 49. Q.10) The durations of the probationary period for a new joinee in your organization a)6 months b)1 year c)2 years Q.11) the performance appraisal method followed in the organization is a) balanced scorecard method b) MBO c) any other method , please specify Q12)An individual employee is evaluated on the basis of his/her a) technical b) behaviour c) adaptability in the organization d) any other , please specify Q.13) The appraisal is conducted a)once in 6 months b)once in a year Q.14)Is the appraisal feedback communicated to the respective employee? a)Yes b)no
  • 50. Q.15)is the post appraisal feedback viewed seriously to the employee? a)yes b)no Q.16)are the employees satisfied with the appraisal system adopted currently? a)yes b)no Q.17) Are the employees satisfied with the appraisal system adopted currently? a)yes b)no Q.18)how often does your performance assessment match to your expectations? a)never b)rarely c)sometimes d)often e)everytime Q.19)according to you how often should the performance review take place? a)once in a week b)once in amonth c)every 3 months d)every 6 months e)once in a year
  • 51. DATA ANALYSIS Ques 1. Potential candidates in your organization are generated through the follow (tick and rank them based on the number and quality of candidates generated) Ques 2. Are technical and professional interviews conducted separately? recruitment employment exchanges newspaper internal hiring other sources yes no
  • 52. Ques 3. A) Do you conduct background checks? B) If yes, is it for all levels of employees or only for senior position? Whether backgr Ans. Yes background checks are for all levels of employees including senior position Ques 4. Do you bear any expenses of the SC/ST for the final interview? If yes please yes no
  • 53. Yes, travel expenses are paid. Ques 5. Do you also bear the transfer expenses of the outstation candidate( with in Ques 6. If yes, which of the following expenses are covered of the outstation candid Ans. Not applicable 1st Qtr 2nd Qtr Transfer Expenses yes no
  • 54. Ques 7. What are the monetary limits for the followingexpenses? Ans. a) travel Busfare , second class train fare are provided b) accommodations Housing colonies are provided Ques 8. Ideally, how much time does the hiring process take i.e, right from the test Ans. Less than a week for test/interviews/offer letter But otherwise upto a month Ques 9. Do you get an employment agreement signed by the freshers? If yes what i Ans. It differs from categoru to category.It is called SERVICE BOND Ques 10. The durations of the probationary period for a new joinee in your organiza
  • 55. Probationary period is generally between 3 to 9 months . Ques 11. The performance appraisal method followed in the organization is: Any other include TWO TIER System. Probationary period 6 months 1 year 2 year Appraisal Method balanced scorecard method MBO any other
  • 56. Ques 12. An individual employee is evaluated on the basis of his/her Ans. Parameters are laid down in the appraisal form covers technical and behaviora technical behaviour adaptibility any other
  • 57. Ques 13. The appraisal is conducted: Ans: Ques 14. Is the appraisal feedback communicated to the respective employee? Ans. The feedback is only communicated if and only if there is an adverse entity in w the appraisal is shown and discussed with the individual. annually 6 months
  • 58. Ques 15. Is the post appraisal feedback viewed seriously to the employee? yes no
  • 59. Ques 16. Are the employees satisfied with appraisal system adopted currently? yes no
  • 60. Ques 17. How often does your performance assessment match to your expectation Sales never rarely sometimes often everytime
  • 61. Ques 18. According to you how often should the performance review take place? Sales once a week once in a month every 3 months every 6 months annually