The project report compares the recruitment and selection processes in the manufacturing sector, represented by Kudos Chemical Limited, and the services sector, represented by Virasat-E-Khalsa. It highlights how both companies utilize recruitment agencies, specifically Jobachievers, and details the systematic steps involved in recruiting, including job descriptions, candidate sourcing through job portals, and the final selection process. The report emphasizes the efficiency and advantages of using recruitment agencies for organizations, such as time savings and replacement policies.

1. Project Report
On
Recruitment and Selection Process: A Comparison
between a Manufacturing and Services sector.
Submitted in the partial fulfillment of the requirement for the award of degree of
Masters of Business Administration
In
Human Resources & Marketing
Under The Guidance of
Submitted by
Ms. Tejbir Kaur
Khushboo Sindhu (10800563)
Department of Business Administration
Lovely Professional University
Phagwara–140 401, Punjab (India)

2. CERTIFICATE
This is to certify that the project report entitled “Recruitment and Selection
Process: A Comparison between Manufacturing and Services sector”submitted
by Ms. Khushboo Sindhu is a bonafide piece of work conducted under my direct
supervision & guidance. No part of this work has been submitted for any other
degree of any other university. The data sources have been duly acknowledged. It
may be considered for evaluation in partial fulfilment of the requirement for the
award of degree of Master of Business Administration.
Date:
August 2012
Ms. Tejbir Kaur
Lecturer

3. ACKNOWLEDGEMENT
“Acknowledging the debt is not easy for us as we are indebted to so many
people”.
I take this opportunity in expressing the fact that this project report is the result
of incredible amount of encouragement, co-operation, and moral support that I
have received from others.
Words alone cannot express my deep sense of gratitude to Mr. Rajeev Bhatt ,
who provided me an opportunity to be a part of NFL for my training. Their
valuable guidance & support made this project work an enlightening
educational experience.
I would also like to express my gratitude from the core of my heart to my Mentor
Ms. Tejbir Kaur, who helped me in coordinating my entire project. Their
consistent support and cooperation showed the way towards the successful
completion of project.
I would like to express my deep sense of gratitude to all the members of
Jobachievers, who directly or indirectly helped me during my project work.
Khushboo Sindhu

4. RECRUITMENT AND SELECTION PROCESS:
CASE OF COMPARISON IN RECRUITMENT PROCESS OF KUDOS
CHEMICAL LIMITED(manufacturing) and VIRASAT-EKHALSA(services).
Abstract: In this research paper, a study hs been made on the recruitment and selection
processes between the two different sectors, i.e; Manufacturing sector and Services sector. The
study indicates various techniques used by the two companies, that is, Kudos Chemical Limited,
that is a manufacturing company and Virasat-e-Khalsa which belongs to the services sector. The
study made under observation comprises of the services and guidance of a recruitment agency
called Jobachievers, that is functioning from its office at Chandigarh, to provide job
opportunities to the dserving candidates, in mostly areas in Punjab.
Index Terms: Recruitment, Selection
1) INTRODUCTION
The two companies undertaken in the project study comprises of a manufacturing firm named
KUDOS CHEMICAL LIMITED and a servicing unit named VIRASAT-E-KHALSA. The
former is having a chemical base and is in the business of manufacturing “caffeine”.
The latter is a service unit, having the structure of a theme museum, in which the culture of
Punjab has been depicted in a versatile manner. Both of the companies need an adequate base of
employees, who can carry out the various functions int the firms. Due to the different nature of
the working aspects of these two firms, the recruitment and the selection process of both the
firms are entirely different.

5. The only area in which the recruitment process of these two firms concides is that both the firms
seeks out the help of recruitment agencies to find the appropriate and deserving candidates for
their firms. The project report, hereby, includes my work at such a recruitment agency named
“JOBACHIEVERS” under which I studied the recruitment and selection processes of various
firms and prepared my project report on the comparison between the recruitment and selection
process of a manufacturing firm and a service firm.
The process of recruitment begins with the sending of the “Job description” by the company. The
job description is comprising of the following requirements:
1) Position vacant
This very first point, clarifies to the recruiter, for which required position, the candidate is
needed. The recruiter then make use of the data that is available to him, or creates new data of
the candidates. Since I undergone the training in a job consultancy, there was pre-recorded data
already available. Thus, the recruiter can contact the person and can make him attend the
scheduled interview for the required post.
2) Examining the Job description
The Job description provided by the company tells the recruiter, the complete insight of the
position vacant and also provides the knowledge of what the company is seeking in the required
candidate. Understanding the complete JD (Job description) only can help the recruiter to move
to the next step. If the recruiter fails to understand the need of the company from the JD
provided, then all of the steps undertaken by the recruiter would turn out to be a failure.
3) Finding the required candidate
The major work of the recruiter begins here. The companies are loaded with many
responsibilities, due to which they put the pressure of the recruitment and selection of the
required candidates on a job consultancy firm. Since these firms basically, are into the business
of recruiting only, so they are having much broader aspect and determination for the access and
selection of the job seekers, plus the job providers.

6. Here, there are some major tools that a recruiter put to use to, in order to generate new data,
which comprises of the required candidates relevant to the given job description.
“JOB PORTALS”, usually called “PORTALS”, in midst of recruiters, are the major source of
providing the data required for the relative job description. The recruiter have the access to these
portals, by paying an amount to these portals. These portals contains the data of candidates from
almost every part of the world, ranging from a wider aspect of qualifications and experiences.
These job portals have some very famous names among them. “NAUKRI.COM”,
“SHINE.COM” and “MONSTER.COM” are some of the major job portals that are having the
bio-data of millions of candidates. The job-seeking candidates upload their resumes on these
portals, so as to open up their profiles to the recruiter and to update themselves by the latest and
the relevant opportunities in the market.
The job portals have a specific area called the “EMPLOYER’S ZONE” , through which the
recruiter can make his/her personal account and can post the relevant job and can send invites to
the desired and qualified candidates. The desired candidates can then reply to the message sent
by the recruiter, through his/her own message.
These job portals provides a very efficient method of posting the job by the employer or
recruiter. The recruiter can post the job through the “Search-Post” method or he /she can simply
search for the desired candidates through “advanced search” and can find out the resumes of
various candiadates. These portals have a special feature in which some of the portals give the
contact number of the candidate to the employer without charging any fee, and some portals do
not provide this offer to the employer.
4) Interviewing the candidate
After the candidates has been shortlisted by the recruiter, the candidates are called for the
interview. For this purpose, the recruiter prepare a logical approach to make the candidate,
understand the job for which the candidate is required and also interview him/her on the basis of
their qualification and experiences.
In some of the cases, the recruiter is the only one who conducts the interview by himself. An
another aspect when the recruitment process is handed over to a recruiting agency, the candidates

7. are called upon and interviewed by the agency people only. The company always would have
foretold the recruiter about the kind of candidates required, for a specific job.
5) Job Analysis
The next and the foremost part of the job procedure is “Job analysis”. When the recruiter finally
get the required candidate, then he/she has to prepare an analytic form of the work, the employee
has to do. This complete process is called “Job analysis”. Job analysis, basically, is the procedure
for determining the duties and skill requirements of a job and the kind of person who should be
hired from it.. (Reference: Human resource Management,11th edition,ch.4)
Job analysis further furthur produces information that is to be used for writing Job Descriptions.
Job analysis is furthur necessary to support several human resource management activities. In
case of recruitment and selection process, job analysis provides information about what the jobs
entails and what human characteristics are required to perform these activities. This information,
in the form of job descriptions and specifications, helps managers decide what sort of people to
recruit and hire.
Job description is again a product of job analysis. Jon description is a list of a job’s duties,
responsibilities, reporting relationships, working conditions and supervisory responsibilities. Job
description then furthur helps in training and development process, because it lists the job’s
specific duties and requisite skills.
Thus job analysis, is a a basic tool that is required bby the recruiter in making the candidate
understand the job carefully and properly. Certain other activities related to human resources like
Performance Appraisal, compensation and Legal compliances are also dependent on the Job
analysis procedure.
In this manner, the whole recruitment and selection process from the side of a recruitment
agency is done.

8. Now the question arises that if the whole recruitment process goes through such a
systematic, simplified and step-wise manner, then why do companies hire recruitment
agencies for this purpose?
The answer to this problem lies in several layers. The companies relies on the recruitment
agencies for a number of reasons, that they cn fulfill by simply hiring a recruitment agency,
rather doing it themselves. Some of the reasons for their hiring the recruiters are;
1) To save the time doing the recruitment.
Since the recruitment process is a very prolonged and time-constraint activity, that requires keen
observation and insight of the candidate’s perspective, qualification and approach towards the
job, so the company, by hiring a recruitment agency, save that time of theirs, to accomplish some
other task. The HR department of a company deals with a lot many activities related to legal
compliance of the company, the compensation methods and procedures for the employees etc. so
the time for hiring the new candidates become a tough job for the department, as such they have
to devote their time for a prolonged and a careful approach of finding the right candidate for the
vacant position in the organization. So the organization finds it easier to hire a recruitment
agency for the purpose of the recruitment and selection of the candidates.
The recruitment agency, having its due attention and business approach towards hiring the right
candidates for the right job, pay its full and foremost attention towards the hiring of the
candidates. Thus, by saving the time of the organization, they also provide the required
candidates for being the employees for the particular organization.
2) Convenience of coordination
When it comes to the convenience of coordination within the organization and the recruitment
agency, it becomes much more easier to coordinate with each other regarding the Job
descriptions, the interview handling and the final selection of the candidates. The company finds
it easier to connect with the recruiters to discuss only a few important points on the recruitment
process and not on the entire selection process. Thus, it becomes easier for the organization to
coordinate with the agency, rather than handling the prolonged process of selection themselves.

9. Also, the organization can keep a check on the activities of the recruitment agency by employing
an individual to maintain and record the progress made by the agency and to prevent any sort of
misunderstanding regarding any job constraint.
The coordination process between the organization and the recruitment agency, is a major factor
of the successful completion of the recruitment and selection process of the candidates. So, it has
to be very accurate and must be in due agreements within the two firms. Due to this convenience,
the organization put their steps forward in hiring a recruitment agency rather than handing this
process by themselves.
3) Replacement Policy
A significant and most prominently, a plus-point feature, why an organization depends much on
a recruitment agency for hiring employees for them, is the “REPLACEMENT POLICY”. Many
of the recruitment agencies (also the one in which I worked in) provide this unique feature. To be
stated, the recruitment agencies works the way like the candidate who is seeking a job and is
interested in the posted job by the recruiter on the portals, has to first register him/herself in that
particular agency. The agency has their charges from the candidates for the registration purpose.
After the candidate is registered in the agency, the interview is done by the recruiter or the
candidate is sent to the HR manager of the organization for the interview purpose. If the
candidate got selected in the interview, the agency charges for their part in the selection process.
These charges are of two different aspects.
a) If the company needed a candidate for a vacant position in their organization and
proposes a JD for the same, then after the selection of the candidate, the recruitment
agency charges its salary part from the company itself. The agency then, do not take any
amount from the employee’s end.
b) If the candidate is seeking a job in a reputed organization and contacts the recruitment
agency for the desired job, then the company sends the candidate in a particular company
for interview and if he/she gets selected there, then the agency charges its part from the
employee’s end and not from the company’s end.

10. This is how the recruitment agencies work. Now, for the point mentioned above, if a candidate
who is selected for the job and is placed in the organization, declines from the job or leaves it
due to some valid reason, within a given time of probation of the organization, then again the
position of that particular personnel would be left vacant. Here comes the role of the recruitment
agency again. According to the replacement policy, if such an employee, who is provided to the
organization by that agency, leaves the organization within a given time of probation, then the
recruitment agency is RESPONSIBLE for hiring another candidate fir the same position, without
charging any amount from the company’s end.
Due to this replacement policy, it become an advantage for the organization to hire a candidate
from the due help of a recruitment agency and not by themselves as the chances of getting a good
candidate from the one who is purely into the business of recruiting, is very high. And also, the
organization do not have to allocate its time in searching for an another efficient candidate for
the job, by again investing money on the whole procedure again.
Thus, the replacement policy is also a major factor, why an organization hires a recruitment
agency for hiring their employees.
Now that it is clear, that why organizations rely much on hiring candidates from the recruitment
agency’s side and not by themselves, we can now move on to the part that indicates some special
characteristics of the recruitment agencies. Due to these characteristics, the recruitment agencies
are considered to be the efficient choice of the organizations for hiring candidates for them, and
also by the candidates to provide better options for the job opportunities.
1) Act as Intermediates.
There are several instances when a job-seeking candidate cannot access the interview dates of an
organization from the data available on the sites of the organization. The general data available
on these sites are only the overview of what the organization do, and what progress they have
made in the present. Most of the sites only talk about the achievements of the organization.
Inspite of all this, very few companies have sites in which an option to upload the resumes by the
candidates interested for job, is available. The company also have a reason, NOT to put that
option on its websites to avoid spam and unwanted comments.

11. Now, the difficulty arises that neither the person who need the job, is able to upload his/her
resume on the company’s website, nor the company is having any resume or data of any
personnel that is required for some vacant post in the company.
Thus, in such cases the recruitment agencies act as intermediates between the job-seeking
candidate and the organization. These agencies have their tie-ups with the companies and thus
after receiving the appropriate JD, starts searching for the required candidates. Thus, the
candidate who is having the required qualification but was unable to get access to the company,
can also reach to interview desk, through the help of the recruitment agencies.
As a result bothof the sides purpose is served. And the recruitment agency get to act as the
intermediates between he two sides.
2) Can approach for collaborations.
The recruitment agencies, as are in the business of open recruiters, so they can approach any
organizations for the tie-up. To clarify this point, it is well known, that many of the organizations
have rivalries among them or even companies have cut throat competencies between them. Due
to this thing, these organizations do not communicate with each other.
But since each side of the business groups want good candidates for their organizations, so they
indulge in tie-ups with the recruitment agencies. It is the job of the recruitment agencies then to
make candidates available to all the business groups, without creating any favoritism and to work
without having any influence of any organization.
Moreover, the recruitment agencies are not bound by any sort of restriction by their
collaborators, not to approach any of the business units for business purpose. These agencies can
approach to the organizations that are having a small business unit to that of a large one, ranging
from manufacturing sectors to service sectors and from the government -owned organizations to
the private players of the market also.
The range of these agencies also depends on the sizes of them. Some recruitment agencies runs
in a larger unit offices and some of them operates from smaller offices. Most of the agencies still
have the work process in them as manual, that is candidates records etc. are kept as manual files
and data are maintained in registers or folders. But now on, the recruitment agencies are taking a

12. broader range, operating in big offices and the work process there is also shifting from manual to
computerized. That is, the data entry of the candidates are done in computers and special
softwares are created that can access the incoming JD’s from the companies and can search the
suitable matching candidates from the available data.
The candidates are contacted immediately through an E-mail or a message to the contact
numbers of the candidates and there are less chances of spam or missing entry and also the
chances of a missed candidate, decreases to a large extent.
3) Cut the competencies.
This is critical point to be mentioned and explained in the report, but is the extreme feature of
the agencies also. Since, the recruitment agencies have tie-ups with many organizations and also
deals with the business groups who are having rivalries or tough competencies among them, so at
many times, one organization can approach the rec ruitment agency to get the employees of some
other organization to join a jjob in their own organizations, at more pay-packages than the
previous ones.
Among all of the strategies that an organization applies to make its venture successful, this is
also one of the strategies of the company to cut the competency given to them by other
companies. Since every organization is well aware of the deserving assets of the other
organization, the organizations at many times tries to cut this competition by hiring those
employees of the others who are solely responsible for the success of any project, by offering
higher pay-packages to these employees. If the employee is committed to the organization,
he/she do not accept the offer but many cases are there, in which this thing happen.
Now, the part of the recruitment agency comes like, that one organization cannot approach the
employees of the other, directly. So they do it through the recruitment agency. The agency, on
the behalf of the other organization approach those desired employees and make an offer to
them, for the higher package for the shift in jobs plus the organizations.
Thus, being a rather critical point to be mentioned here, it is a point that is also a characteristic
of the recruitment agencies though being a disputable one.

13. 4) Provide candidates a broader range of opportunities.
The recruitment agencies are having a larger range of dealing with different agencies. . These
agencies can approach to the organizations that are having a small business unit to that of a large
one, ranging from manufacturing sectors to service sectors and from the government -owned
organizations to the private players of the market also.
Since both the companies and the candidates with qualification, need each other, but only due to
the lack of coordination, a better talent and a better job opportunity is lost, both of the sides has
to suffer. Now, due to the role played by the recruitment agencies in the midst of them, the jjobseeker gets a btter job opportunity for themselves according to their qualificati0on and
experience, at the same time the organization also gets a better employee for their work who can
lead the company to success in the coming future.
As the range of the agencies are very broad, the candidates also get access to various other
opportunities which they can work up depending on certain abilities of them. Many of the
recruitment agencies have the job access to more than 1 or 2 places. They can provide the
deserving candidates a whole lot of openings to their career.
2) PROJECT BACKGROUND
2.1) KUDOS CHEMICAL LIMITED
2.1.1) BACKGROUND OF THE COMPANY
Website of the company:
KUDOS Chemical Limited is a manufacturing company which is in the business of
manufacturing “SYNTHETIC CAFFIENE”, a substance that is commonly found in various
products like Coffee etc., Chemicals, Potassium Chloride, Caustic Soda Pills, Aluminium
Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. the company is located at
Derabassi, near Chandigarh.

14. The company is operating in a huge plant situated at Derabassi,near Chandigarh. Nearly 1800
employees are already working on the rolls of the company. The HR department of the company
has an active group of 16 members, who handles the entire works like recruiting and selecting
the employees, regulating and controlling the attrition rate, managing payrolls etc.
The Company is dealing in the making of various chemicals, thus having a huge chemical base.
The recruitment process for the required candidates is usually conducted by the recruitment
agency. The company, as mentioned, is having the business of manufacturing chemicals, so the
main requirement of the candidates is from the field of chemical background.
Currently, the company is also undertaking other projects in which it is including
pharmaceuticals branch and therefore, includes the recruitment and selection of candidates
having degree in pharmacy.
2.1.2) AREA OF BUSINESS
Kudos chemical limited, as the name suggests, is a chemical manufacturing company, which
deals in the production of Synthetic Caffeine, Chemicals, Potassium Chloride, Caustic Soda
Prills, Aluminium Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. The company
is having its huge chemical base, operating in a significantly great operating unit functional at
derabassi, near Chandigarh.
For its functioning, the company basically requires persons who have complete knowledge of the
chemical field. “Chemical Engineers” are in a great demand in this manufacturing unit.
Candidates who are having either a diploma or degree in chemical field, are always required in
the plant. The company generally starts off with the initial post of an executive and moves over
thereafter.
The manufacturers of these chemicals have a great deal of bonding with the other chemical
manufacturers. The clients of this company are also distributed in every part of India. The
products manufactured in this unit goes to the manufacturers of various other products, like
synthetic caffeine goes up in the production of coffee, chocolates etc. and hydrochloric acid goes
to the manufacturers of salt production.

15. Thus, this unit deals in chemicals and therefore many manufacturers dealing in similar or
somewhat different products.
3) COMPARISON GROUNDS
3.1) OWNERSHIP
KUDOS Chemical Limited is a privately owned company, which is having all of its business
into the manufacturing of chemicals like Synthetic Caffeine, Chemicals, Potassium
Chloride, Caustic Soda Prills, Aluminium Sulphates, Hydrochloric Acids, and Sulphuric
Acids in India.
3.2) STABILITY PURPPOSE
No doubt, every company believes to have a stable employee who can work upto his/ her
fullest, also by being stable. Stability in a company usually states that the person should not
switch to some other organization in between an estimated period of probation.
Since the company is liable to provide training to the freshly employed candidates for the
prescribed work, the employee must get the training before he/she can think of promotion.
Generally, the employees are much more concerned about their designation and the also the
salary expectations of these candidates are very high. Keeping this thought is not purely
incorrect but first of all, the candidate has to qualify himself for the wishes of his own. That
is why, this is also in the norms of the company to start from an initial moderate salary
according to the qualification and experience of the candidate, and to provide him training of
the work that he/she is supposed to do in the company.
The organization checks the stability ot the personnel by allotting a time period of probation.
Now in this time, the company trains the employee and also cheks the stability.
Many cases are there in which the candidates appearing for job interview, already have work
experience, that is, they have worked in an already running organization.so, the chances of
their job shifting are many more, including the salary issues. While interviewing such a

16. candidate, the recruiter keeps a check on the candidate’s last work location and the field in
which he worked in. if the recruiter finds out that that the candidate is shifting his/her job
very quickly and frequently within 4-5 months, then the thought always come across the
recruiter that such a candidate would not be stable in an organization for a longer period of
time. Many recruiters avoid hiring such an employee because if the employee leaves an
organization, then the organization also suffers. The organization then, has to find a new
employee, shortlist candidates, conducts interviews and moreover, have to incur expenditure
on the training and development procedure of the new employee.
Thus, the stability of an employee is an important factor, which the organization and the
recruiter keeps in mind while employing a candidate, so that the organization do not serve a
loss again, and the recruiter keeps this thing in mind due to the norms of the “Replacement
Policy”.
3.3) SALARY PACKAGES
In most of the cases, while sending the JD’s (Job Description) to the recruiter, the
organizations also mentions the initial pay packages that has to be offered to the deserving
candidates. It is mentioned in the norms of the organization, what salary has to be given to
the employees according to their qualification and experiences.
There are some special norms of the organization according to which the salaries of the
employees has been decided by the HR Department of the organization, keeping in mind the
legal compliance of the company. The HR department mentions the salary packages that has
to be given to the employees of various scales and experiences.
The recruiter, while interviewing the candidates, keep in mind the salary norms. If the
recruiter after interviewing the candidate, finds him/her eligible for the required job, then the
last step is to discuss the Job location and the salry packages. The recruiter has to offer the
candidate the set amount of salary package that comes along with the JD sent to him by the
organization itself. Now, again according to the qualification and experience of the
employee, the salary gets changed.

17. If the candidate is a fresher in his/her field then, the salary package initially begins from Rs.
7000/- and then grows as the candidate works his way forward in the company. Kudos
Chemicals Limited has certain set norms for the candidates according to their experience, and
their qualifications.
If the candidate is having diploma in the field of chemical engineering, then the candidate has
to start at Rs. 5000 initially. If the candidate is a graduate having a degree in the required
field, then the inintial salary package is Rs. 7000 for him. And the candidate who is having
an experience in the required field, the starting salary package is Rs 10000-12000, initially.
As per about incentives, the company is responsible for the transportation facilities for the
candidates. The company provides the candidates with increments, according to the timespan of the work and the quality and amount of work that is to be done bby the candidate in
his/ her allocated period of time.
3.4) PROBATION PERIOD
Every organization has a specific period of probation for the newly hired employees. This
probation period is usually called “Training Period” in the employees generally. The
probation period is set by the organization in order to train the new employees and to see the
skills of the qualification they have.
Kudos Chemical Limited is generally having a probation period of 1 year, for its newly hired
employees. Since, the plant operating is very large and there are a number of works that are
ongoing in a line, so the company has to train is employees about every work that is in
process. Since, the candidates are already from the chemical engineering background so the
company faces a quite minor problem to train the candidates as they do not have to start off
from the beginning.
The probation period is also having another important factor indulged in it. Sometimes the
employee hired does not find the job comforting or the the company feels that the hired
candidate is not upto the mark or is having some problem while adjusting with the job. The
probation period decides this very thing. The company gets to see the knowledge and skills

18. of the employee and the employee also gets a hint of how his/her career would go, being in
such an organization.
Kudos, however gives and takes a time of 1 year to get a complete insight of the employee,
and also provides the candidate with the adequate time to think and get through with his/her
job process. If in this period of time, the employee wants to quit the job, he/she can do that.
The company does not impose any responsibility on him/ her until then. But once the
candidate comes ON-ROLLS, then unlike the previous employees, the newly hired
employees also comes into the compliance of the company and they have to give a 3 months
notice, before they resigns from the job.
In the probation period, the company provides the interns with a particular amount of money,
that is called, stipend, as the employees are under training period. The proper salary amont are
not given to them until they complete their training period and become permanent employees of
the company. So, again gets time to check the stability of the newly hired employee, working as
an intern in the company.
Within the probation period, as the organization becomes aware of the skills and knowledge of
the employee and have also put a test to the learned up knowledge of the employee, to testing,
the probation period helps the organization to set the salary package for the candidates. No
doubt, the skillful candidates acquire better salary packages after their good performances in this
probation period and few employees gets sacked due to their poor performance in this probation
period.
This is why, the probation period is necessary as well as important both for the employee as well
as the organization.
3.5) RECRUITMENT PROCESS
Another significant, yet most important, differentiation comes in the RECRUITMENT
PROCESS in the organization. Since, Kudos Chemical Limited is a manufacturing unit, so that’s
why the recruiter has to keep in mind, the work background and the qualification of the
candidate in mind. While doing the recruitment, we see to it that the organization was mainly
having the demand of chemical background people. So, before we begin the recruitment process,

19. we have to completely understand the JD received from the company. Half of the process is
completed at the end of the recruiter, if we understand the JD completely.
Also, the company’s also requires different categories of employees. Sometimes the requirement
is of the diploma holders and sometimes the requirement is of degree holders. So, candidates are
called according to their qualification and their experience. Then begin the interview process.
The recruiter calls the candidate, reminding him/ her to bring his/her resumes or CV”S. we then
take an interview of the candidate as per his/her qualification as mentioned in their resumes. The
questions asked generally, are related to their field and relative to the aptitude of the candidate.
If in some cases, the organization demands to interview the candidates themselves, then the
recruiter’s job is to shortlist the candidatesand send the deserving and interested candidates list
and the soft copies of their shortlisted resumes, to the HR of the organization.
In Kudos Chemical Limited, the interview is conducted by the HR manager of the company, but
the screening of the candidate is done at Jobachievers only (Jobachievers is the recruitment
agency here, in which my training was done). At Jobachievers, the candidates are called along
with their resumes and the screening is done initially. Then, the shortlisted candidates are then
sent to the company located at Derabassi. There, the final interview of the candidates are done by
the HR manager of the company. Thereafter the candidates are selected accordingly by the HR
manager of the company.
The selected candidates’s name and date of joining of the job is then sent to the recruitment
agency(Jobachievers, in this case). The company then provide the agency with the amount that
has to be submitted to the agency as their fee for the work.
After that, the agency also keeps a record of the candidate’s work profile and the satisfaction
level of his/her job there. This is due to the reason, because in case if the candidate quits the job
in the probation period or within 3 months, then the agency has to re-recruit another candidate at
the same place, keeping in mind the “Replacement Policy”.
Thus, the training and the development of the newly hired employee, is bkept on record by both
the recruitment agency as well as the organization.

20. 3.6) INTERVIEW CONDUCTION
Interviews are the most popular methods for obtaining job-related information. They may range
from completely unstructured interviews to highly structured ones in which job analysts follow
detailed questionnaires in asking their questions. (Reference: Human Resource Management, 11th
edition, ch 4)
Interview conduction, is a point of differentiation, because of its mode of conduct and by whom
the interview is being conducted. In this study, this point came under observation due to the
following two points:
a) Mode Of Conduct
The mode of conduction of the interview is again of two types: Structured and Unstructured
Interview.
Unstructured Interview is an unstructured conversational-style interview in which the interviewer
pursues points of interest as tey come up in response to questions. In these interviews, the
managers do not follow a set pattern
Unlike the unstructured interviews, the structure d interviews are having a set pattern, that is the
interview follows a sequence of questions. These are such kind of interviews that are based on
carefully selected job-oriented questions with predetermined answers that interviewers ask of all
applicants.
Now, mentioning this point was the main cause of understanding the differentiation of it. In
Kudos chemical Limited, the interview approach shifts from unstructured to structed, depending
on the need of the job-profile of the candidate. Explain this point, the candidate may or may not
be asked questions related to his field. He/she may face an unstructured interview in which
questions about his previous job, reason to leave that job and about the previous company’s
management, can be asked in the beginning of the interview.
This is how, the interview’s mode of conduct is important.
b) Panel of interviewers

21. This point differentiates the interview mode in such a manner, that the differentiation could be
done at this point.
In Kudos Chemical Limited, generally the interview is taken by the HR manager of the
company. Since, the HR department of the company is quite broad and efficient, thus the team of
members of the department, are sometimes in the panel made for the interview purpose. The
company gives the recruiter, the authority to conduct a screening of the candidates prior to the
interview. Thus the recruiter at first, have to short list various candidate on the basis of their
qualification and experience, and then also have to conduct a short screening based upon the
field to which the candidates belong.
The candidates are asked questions about their code of conduct in the previous company, if they
have worked somewhere else before. Also, the recruiter asks question checking the stability of
the candidate, that is, whether the candidate is having a positive attitude towards the job or
he/she is just doing the job for money purpose, because such a candidate would not be loyal to
the company, as per ther company norms.
After the screening of the candidates, the recruiter sends the deserving candidates to the
company for the final interview purpose. The company has its full team of HR department who
are in the process of recruitment and selection and handles the interviews of the shortlisted
candidates very effectively accoding to their needs and skills required int the candidates.
After the selection of the candidates, the information is sent back to the recruiter about how
many of the shortlisted candidates are selected and the amount incurred by the recruitment
company is being given to them by the company.
3.7) DESIGNATIONS PROVIDED
This point is also a part of the differentiation. The designation provided by “Kudos Chemical
Limited” to the newly hired employees is of a “Production Executive”. After the training of the
candidates are done, then the newly hired employees work in the organization on the post of a
production executive. The salary packages of the employees are also given according to the scale
of the employees and their designations in the company.

22. At first, all of the newly employeed candidates work on the designation of “Production
Executives” and then work there way out. The designations keep on shifting as the employee
work proficiently and attains promotion during his/her work period. The employees also have to
work in the departments suited to their profiles, as the recruiter and HR department feels to put
the candidate into.
The company is having many divisions like Quality Control, Research and Development and
many others. The candidates are having their specialization in some of these fields but after the
interview, the organization decides in which division the candidate has to be placed.
Also, the organization also provides a way of “Job Enrichment”. For doing this, the company
keeps shifting the positions of the employees so that they may not feel fatigue while doing the
same work everyday.
Since all of the employees have got the training about starting of a work during their training
period, so the employees do not face any problem in the beginning of the work. And in the way
ahead, the employees have their supervisors, who introduce the new projects and the work to be
done, so that the employees do not have to face any problem, while performing the shift in the
work.
3.8) INCREMENTAL POLICIES
The organizations are having different incremental policies for the employees. Every employee
gets his/her increment based on 2 factors:
a) Time Period of the candidate in the organization.
The candidate is employeed as a fresh candidate when he/she starts off with an initial salary that
is to be considered as the stipend of these candidates. The employees when have the time period
increasing ont heir account, then the organization according to their legal compliance, starts
giving off the increments to their employees.
The candidates also due to the process of job enrichment when have the continuous shifts in
work and starts becoming the important assets of the organization, then the incremental policies
again goes to a different scale for the candidates.

23. The organization sees to it that the increment policies of the organization is in full recognition
and due consent of the owners and the employees. The organization always clear its norms to all
of the candidates an tell the candidates beforehand that what amount of increment they would
receive after a due interval of time. The candidates are having knowledge about how much time
they have to spend working in an organization in order to get an increment.
b) Experience of the employee
The candidate is having incremental policies keeping in mind their experience factors also. The
experience of the candidates is also a factor that ensures some extra incentives to the employees.
If an employee have worked already in an organization, then he/she receives a certain amount of
extra incentive added upto their salary packages.
Thus, experience of the employees also is a factor that is of significance to the incremental
policies of the candidates.
Now, these are some of the points of differentiation, that are in the respect of the case of
difference between the recruitmenmt process and here, the recruitment process in a
manufacturing unit, KUDOS CHEMICAL LIMITED is discussed.
Now, that the recruitment process in a manufacturing unit is discussed, we can now move to the
recruitment process in the services sector
For the service sector, I have researched on VIRASAT-E-KHALSA, the historical theme
museum, that is located in Anandpur Sahib, Punjab.

24. 4) VIRASAT-E-KHALSA
VIRASAT-E-KHALSA is a historical museum, depicting the culture and religion of Punjab in a
very beautiful manner, Virasat-e-Khalsa is a museum of the Sikhs located in the holy town,
Anandpur Sahib, near Chandigarh, the capital of the state of Punjab. The museum celebrates 500
years of the Sikh history and the 300th anniversary of the birth of Khalsa, based on the scriptures
written by the tenth and last guru, Sri Guru Gobind Singh ji. Virasat-e-Khalsa is conceived as a
repository of the rich heritage of the Khalsa its history and culture of the Punjab so as to inspire
visitors with the vision of the Gurus, emphasizing the eternal message of the great gurus for the
whole mankind.
Towards the end of the fifteenth century, in the Punjab region of Northern India, Guru Nanak
Dev founded a faith rooted in the core values of universalism, liberalism, and humanism. The
nine Gurus who followed Him built upon and consolidated His teachings, thereby establishing
Sikhism not only as a belief system but also as a way of life. The year 1999 marked the
Tercentenary of the Birth of the Khalsa. To commemorate this event, the Chief Minister of
Punjab S. Parkash Singh Badal laid forth the outlines of a magnificient edifice to be known as
Virasat – e – Khalsa at Sri Anandpur Sahib.
The Heritage Complex is inspired by the rich natural and architectural heritage of Sri Anandpur
Sahib, while also drawing heavily from Sikh and regional architecture. Contrary to the tradition
of domes which crown the sacred Sikh sites, the roofs of the Museum are concave-shaped
receptors facing the sky. Sheathed in stainless steel, they reflect the sun’s light towards the
Gurudwara and the Fort.
After thirteen years of construction it has been inaugurated on November 25, 2011. It has opened
for public on November 27, 2011.

25. 4.1) BACKGROUND
Virasat-e-Khalsa (formerly known as Khalsa Heritage Memorial Complex) is a museum
located inAnandpur Sahib.[1] The museum gives an insight to the events that took place
in Punjab five hundred years ago which gave birth to Sikhism and finally the Khalsa Panth. The
museum will throw light on the vision of the Gurus, the eternal message of peace and
brotherhood which they delivered to the whole mankind and the rich culture and heritage of
Punjab.[2] The museum is intended to commemorate 500 years of Sikh history and the 300th
anniversary of the Khalsa, the scriptures written by the 10th and last Guru of Sikhism, Guru
Gobind Singh, founder of modern Sikhism.
After thirteen years of construction it has been inaugurated on November 25, 2011. It has opened
for public on November 27, 2011.
Structure of the Museum
There are two complexes at each side of a ravine, connected by a ceremonial bridge:

The smaller, western complex includes an entrance piazza, an auditorium with 400
seating-capacity, two-story research and reference library and changing exhibition galleries.

The eastern complex contains a round memorial building as well as extensive, permanent
exhibition space, consisting of two clusters of galleries that try to evoke the fortress
architecture of the region (most evident in a nearby Gurudwara) and form a dramatic
silhouette against the surrounding cliff terrain. The gathering of the galleries in groups of
five reflects the Five Virtues, a central tenet of Sikhism.
The buildings are constructed of poured-in-place concrete; some beams and columns remain
exposed, though a great deal of the structures will be clad in a local honey-colored stone. The
rooftops are stainless steel-clad and exhibit a double curvature: they gather and reflect the sky
while a series of dams in the ravine create pools that reflect the entire complex at night.
4.2) AREA OF BUSINESS

26. Virasat-e-Khalsa is, as foretold, is a historical museum, that is in the business of art and
preservance of culture and basically belongs to the services sector. This museum is to enlighten
the visitors about the Khalsa Panth and also as to inspire visitors with the vision of the Gurus,
emphasizing the eternal message of the great gurus for the whole mankind.
The museum is into the business of services and deals into Public Relations and Development.
The Heritage complex is having all of the events of the past, that are depicted in a very
descriptive and visual manner, to all of the visitors that come in the museum.
In Virasat-e-Khalsa, the people ranging from the local civilians to the delegates from outside
India, visits and are keen to know about the history and religion of Punjab. As foretold,the
inauguration of this museum is done by the Chief Minister of Punjab, the delegates from the
public sector, visits the place to see the past events of the culture and to remain attached with the
roots of their religion.
The area of business of Virasat-e-Khalsa, is into services sector. As people fromall of the country
and outside, usually visits the place, so the management of the organization keeps a keen
observation on the Public Management. Whole of the business of this complex is totally on the
basis of Public Relations and managing the visits and interests of various categories of people
visiting there.
5) COMPARISON GROU NDS
5.1) OWNERSHIP
Virasat-e-Khalsa is a Government Owned organization. Built by keeping the governmental
orders to display the religion based events to the people, the government undertake of the events
that are undergoing in the heritage complex. The complex is dealing with all the local people to
the foreign delegates,all over the world and the government of India is responsible for
maintaining the the Heritage Complex, for the proper functioning and smooth ongoing of
business there.
The heritage complex is having virtual visual events, for example if a person wishes to see the
event of “Jallianwala Bagh Massacre”, and he visits the location, then the place is having the

27. facilities of Visual Projectors, who can make the scene of the massacre LIVE to the visitors.
Such is the processing of the Heritage Complex.
In order to maintain this complex, the Government of India is solely responsible for all of the
proceedings going on there. Whenever there is an official meeting taking place or some foreign
delegates are arriving to visit the Heritage complex, the arrangements are made that are to be
governed by the Government of India itself.
5.2) STABILITY BASIS
No doubt, every company believes to have a stable employee who can work upto his/ her
fullest, also by being stable. Stability in a company usually states that the person should not
switch to some other organization in between an estimated period of probation.
Since the company is liable to provide training to the freshly employed candidates for the
prescribed work, the employee must get the training before he/she can think of promotion.
Generally, the employees are much more concerned about their designation and the also the
salary expectations of these candidates are very high. Keeping this thought is not purely
incorrect but first of all, the candidate has to qualify himself for the wishes of his own. That
is why, this is also in the norms of the company to start from an initial moderate salary
according to the qualification and experience of the candidate, and to provide him training of
the work that he/she is supposed to do in the company.
The organization checks the stability ot the personnel by allotting a time period of probation.
Now in this time, the company trains the employee and also cheks the stability.
Many cases are there in which the candidates appearing for job interview, already have work
experience, that is, they have worked in an already running organization.so, the chances of
their job shifting are many more, including the salary issues. While interviewing such a
candidate, the recruiter keeps a check on the candidate’s last work location and the field in
which he worked in. if the recruiter finds out that that the candidate is shifting his/her job

28. very quickly and frequently within 4-5 months, then the thought always come across the
recruiter that such a candidate would not be stable in an organization for a longer period of
time. Many recruiters avoid hiring such an employee because if the employee leaves an
organization, then the organization also suffers. The organization then, has to find a new
employee, shortlist candidates, conducts interviews and moreover, have to incur expenditure
on the training and development procedure of the new employee.
Thus, the stability of an employee is an important factor, which the organization and the
recruiter keeps in mind while employing a candidate, so that the organization do not serve a
loss again, and the recruiter keeps this thing in mind due to the norms of the “Replacement
Policy”.
Talking about the Heritage Complex, the stability of the candidate is also necessary because
whenever the delegates from outside Idia, that is, foreign delegates come to visit the Heritage
Complex, they demand the same employee, who served them the last time they visited. Due
to their personal favourites also, the stability of the employees is a noticeable factor in this
case.
5.3) SALARY PACKAGES
Since this is a government job on adhoc basis, the salary packages can be a differential factor, in
this case.
In most of the cases, while sending the JD’s (Job Description) to the recruiter, the organizations
also mentions the initial pay packages that has to be offered to the deserving candidates. It is
mentioned in the norms of the organization, what salary has to be given to the employees
according to their qualification and experiences.
There are some special norms of the organization according to which the salaries of the
employees has been decided by the HR Department of the organization, keeping in mind the
legal compliance of the company. The HR department mentions the salary packages that has to
be given to the employees of various scales and experiences.

29. The recruiter, while interviewing the candidates, keep in mind the salary norms. If the recruiter
after interviewing the candidate, finds him/her eligible for the required job, then the last step is
to discuss the Job location and the salry packages. The recruiter has to offer the candidate the set
amount of salary package that comes along with the JD sent to him by the organization itself.
Now, again according to the qualification and experience of the employee, the salary gets
changed.
Now, being a governmental job in the services sector, the initial salary of the employee ranges
from 25k to 30k, initially. The employees has to deal with the people ranging from local to
important delegations. That’s why, the employees has to be very good at public relations and
know very proficiently, how to deal with different kinds of people.
Now, as obvious, since the Heritage complex is in Punjab, depicting the culture and religion of
Punjab, so it is required that the employees must be able to communicate with the people in
different languages, be it English, Hindi and Punjabi. Since most of the visitors are from India
only, so the employees can make them well understand th different events displayed there, in
Hindi as well as Punjabi, and for the foreign delegates, the employees prefer to communicate in
English, in order to make them understand every aspect of the events that are displayed.
Also due to this, the salary packages of the newly employed candidates are decided.
Accordingly, the employees when gets promoted to a furthur designation, the salary packages
gets increased thereafter.
5.4) PROBATION PERIOD
Every organization has a specific period of probation for the newly hired employees. This
probation period is usually called “Training Period” in the employees generally. The
probation period is set by the organization in order to train the new employees and to see the
skills of the qualification they have.
Virasat-e-Khalsa is having a probation period of 3 months. Since the qualification of the
candidates who apply for this job is to have a B.Sc degree in Aviation, Hospitality and
Management and have to apply for the job in public relations department, so the organization

30. has to make the employee aware of all the virtual and visual events that are ongoing in the
Heritage Complex. So the organization puts its careful and necessary steps in training the
newly hired employees.
The probation period is also having another important factor indulged in it. Sometimes the
employee hired does not find the job comforting or the the company feels that the hired
candidate is not upto the mark or is having some problem while adjusting with the job. The
probation period decides this very thing. The company gets to see the knowledge and skills
of the employee and the employee also gets a hint of how his/her career would go, being in
such an organization.
Since the probation period of Virasat-e-Khalsa is only 3 months, soo the organization do
keep the trainies on some initial stipend, and provides them with th decided amount of salary
once the probation period is off. But the salary at the time of probation, is also comparable to
that of the original salary.
Within the probation period, as the organization becomes aware of the skills and knowledge of
the employee and have also put a test to the learned up knowledge of the employee, to testing,
the probation period helps the organization to set the salary package for the candidates. No
doubt, the skillful candidates acquire better salary packages after their good performances in this
probation period and few employees gets sacked due to their poor performance in this probation
period.
This is why, the probation period is necessary as well as important both for the employee as well
as the organization.
5.5) RECRUITMENT PROCESS
The recruitment procedure is yet another feature of the whole process, and that too an important
one. Since, Virasat-e-Khalsa is in the services sector, the JD sent to the recruitment agency, is
having the requirement of candidates that are having the B.Sc degree in Aviation, Hospitality and
Management, because in this business, the employees must be having command in dealing with
people and should have the required skills of management.

31. So, the JD also clarifies so much things about the candidates required for the job.
In Khalsa Heritage complex also, the final recruitment is done by the organization only, so the
recruiter’s main job is to shortlist various candidates and hen send them to the organization for
the final interview.
In such case, the organization demands to interview the candidates themselves, then the
recruiter’s job is to shortlist the candidatesand send the deserving and interested candidates list
and the soft copies of their shortlisted resumes, to the HR of the organization.
The recruiter then shortlist the candidates and send them to the organization, that is directly to
the venue at Anandpur Shib where the final interviews are to be held. In this way the process of
recruitment goes on in this case.
The selected candidates’s name and date of joining of the job is then sent to the recruitment
agency(Jobachievers, in this case). The company then provide the agency with the amount that
has to be submitted to the agency as their fee for the work.
After that, the agency also keeps a record of the candidate’s work profile and the satisfaction
level of his/her job there. This is due to the reason, because in case if the candidate quits the job
in the probation period or within 3 months, then the agency has to re-recruit another candidate at
the same place, keeping in mind the “Replacement Policy”.
Thus, the training and the development of the newly hired employee, is bkept on record by both
the recruitment agency as well as the organization.
5.6) INTERVIEW CONDUCTION
Interviews are the most popular methods for obtaining job-related information. They may range
from completely unstructured interviews to highly structured ones in which job analysts follow
detailed questionnaires in asking their questions. (Reference: Human Resource Management, 11th
edition, ch 4)

32. Interview conduction, is a point of differentiation, because of its mode of conduct and by whom
the interview is being conducted. In this study, this point came under observation due to the
following two points:
a) Mode Of Conduct
The mode of conduction of the interview is again of two types: Structured and Unstructured
Interview.
Unstructured Interview is an unstructured conversational-style interview in which the interviewer
pursues points of interest as tey come up in response to questions. In these interviews, the
managers do not follow a set pattern
Unlike the unstructured interviews, the structure d interviews are having a set pattern, that is the
interview follows a sequence of questions. These are such kind of interviews that are based on
carefully selected job-oriented questions with predetermined answers that interviewers ask of all
applicants.
Now talking about Virasat-e-Khalsa, the mode of conducting the interview is totally Structured,
that is the interviewer follows a set pattern of questions and follows the rules of the interview
processing in a structured way. Since, the interview conduction is having the set questions and
the interviewer is also having the predetermined answers to a specific question that is to be asked
by him. So, th e interview goes on in a complete structured manner.
a) Panel of interviewers
This point differentiates the interview mode in such a manner, that the differentiation could be
done at this point.
Unlike Kudos chemical Limited, Virasat-e-Khalsa is having the interviewers from the rank of
IAS designations. Since the job profile of the candidates to be employed for the job is to deal
with the local people to the officials of quite higher ranks. So the final interview of the deserving
candidates who has been sent by the recruiter after the screening, is usually taken by the people
of IAS designations.

33. The candidates are asked questions about their code of conduct in the previous company, if they
have worked somewhere else before. Also, the recruiter asks question checking the stability of
the candidate, that is, whether the candidate is having a positive attitude towards the job or
he/she is just doing the job for money purpose, because such a candidate would not be loyal to
the company, as per ther company norms.
After the selection of the candidates, the information is sent back to the recruiter about how
many of the shortlisted candidates are selected and the amount incurred by the recruitment
company is being given to them by the company.
5.7) DESIGNATIONS PROVIDED
In Virasat-e-Khalsa, the designations provided in the organization are of a Public Relations
Officer most usually called PRO, and is having the job responsibilities of dealing with the
people, whether they are local civilians or the foreign delegates.
So, the designations in this case is having the differentiation point, at the case of Designations
provided by the newly hired employees. The candidates receives their training about the public
dealing only and gets promoted in their dealing with the people of higher scales, that is ,
attending the foreign delegates and other government officials.
5.8) INCREMENTAL POLICIES
The organizations are having different incremental policies for the employees. Every employee
gets his/her increment based on 2 factors:
a) Time Period of the candidate in the organization.
The candidate is employed as a fresh candidate when he/she starts off with an initial salary that is
to be considered as the stipend of these candidates. The employees when have the time period
increasing ont heir account, then the organization according to their legal compliance, starts
giving off the increments to their employees.

34. The candidates also due to the process of job enrichment when have the continuous shifts in
work and starts becoming the important assets of the organization, then the incremental policies
again goes to a different scale for the candidates.
The organization sees to it that the increment policies of the organization is in full recognition
and due consent of the owners and the employees. The organization always clear its norms to all
of the candidates an tell the candidates beforehand that what amount of increment they would
receive after a due interval of time. The candidates are having knowledge about how much time
they have to spend working in an organization in order to get an increment.
b) Experience of the employee
The candidate is having incremental policies keeping in mind their experience factors also. The
experience of the candidates is also a factor that ensures some extra incentives to the employees.
If an employee have worked already in an organization, then he/she receives a certain amount of
extra incentive added upto their salary packages.
Thus, experience of the employees also is a factor that is of significance to the incremental
policies of the candidates.
Now as that the points of differentiation are discussed, an important point which is the another
important section in the work process of the recruitment agencies nowadays is “Outsourcing”.
So, this process has to be discussed fully in order to completely understand the working process
of the recruitment agencies.
6) OUTSOURCING
Outsourcing is the process of contracting an existing business process which an organization
previously performed internally to an independent organization, where the process is purchased
as a service. Though this practice of purchasing a business function—instead of providing it
internally—is a common feature of any modern economy, the term outsourcing became popular

35. in America near the turn of the 21st century. An outsourcing deal may also involve transfer of
the employees involved to the outsourcing business partner.
Outsourcing is contracting with another company or person to do a particular function. Almost
every organization outsources in some way. Typically, the function being outsourced is
considered non-core to the business. An insurance company, for example, might outsource its
janitorial and landscaping operations to firms that specialize in those types of work since they are
not related to insurance or strategic to the business. The outside firms that are providing the
outsourcing services are third-party providers, or as they are more commonly called, service
providers.
Although outsourcing has been around as long as work specialization has existed, in recent
history, companies began employing the outsourcing model to carry out narrow functions, such
as payroll, billing and data entry. Those processes could be done more efficiently, and therefore
more cost-effectively, by other companies with specialized tools and facilities and specially
trained personnel.
Currently, outsourcing takes many forms. Organizations still hire service providers to handle
distinct business processes, such as benefits management. But some organizations outsource
whole operations. The most common forms are information technology outsourcing (ITO) and
business process outsourcing (BPO).
Although the definition of outsourcing includes both foreign or domestic contracting,[2] the term
is sometimes used exclusively referring to the former. The more clear term for this is offshoring,
which is described as “a company taking a function out of their business and relocating it to
another country,” [3] whether the external country is physically offshore or not.
Outsourcing can offer greater budget flexibility and control. Outsourcing lets organizations pay
for only the services they need, when they need them. It also reduces the need to hire and train
specialized staff, brings in fresh engineering expertise, and reduces capital and operating
expenses

36. The process of outsourcing generally encompasses four stages: 1) strategic thinking, to develop
the organization's philosophy about the role of outsourcing in its activities; 2) evaluation and
selection, to decide on the appropriate outsourcing projects and potential locations for the work
to be done and service providers to do it; 3) contract development, to work out the legal, pricing
and service level agreement (SLA) terms; and 4) outsourcing management or governance, to
refine the ongoing working relationship between the client and outsourcing service providers.
One of the biggest changes in the early 21st century came from the growth of groups of people
using online technologies to use outsourcing as a way to build a viable service delivery business
that can be run from virtually anywhere in the world. The preferential contract rates that can be
obtained by temporarily employing experts in specific areas to deliver elements of a project
purely online means that there is a growing number of small businesses that operate entirely
online using offshore contractors to deliver the work before repackaging it to deliver to the end
user. One common area where this business model thrives is in provided website creating,
analysis and marketing services. All elements can be done remotely and delivered digitally and
service providers can leverage the scale and economy of outsourcing to deliver high value
services at reduced end-customer prices.
Reasons of outsourcing
The most common reasons why companies decide to outsource include cost reduction and cost
savings, the ability to focus its core business, access to more knowledge, talent and experience,
and increased profits.
Many companies decide to outsource because it cut costs such as labor costs, regulatory costs,
and training costs. Foreign countries tend to have workers who will complete the same amount of
work as in the United States, but for less than half the salary that an American employee will
make [9]. This motivates companies to outsource overseas to find foreign workers who are willing
to work for these lower wages. The company can spend up to half the usual cost to train these
workers to become experts in a different country [10]. Lower regulatory costs are an addition to
companies saving money when outsourcing. Comparing the costs to employing a worker in the

37. United States to a worker in China, it is noticed that an employer in the U.S. has to pay higher
taxes
Companies are able to focus their money and resources more towards improving the core aspects
of its business when outsourced. For example an insurance company may outsource its
landscaping functions to a service provider that specializes in landscaping since it is irrelevant to
the core operations of insurance. The landscaping is performed by an expert outsourced
organization and the insurance company can focus on doing what it specializes in. This allows
the outsourcing company to build onto its core functions that keep the business running
smoothly[12]. Another example is that companies and public entities such as a public school
district that outsources functions, such as their payroll offices to companies
like ADP or Ceridian, which specialize in payroll functions.
In the case of outsourcing, firms may find that workers in other countries can provide better
customer support than their domestic counterparts. For example, an online coffee shop owner
who moved his calling center to the Philippines found that his customers received better
customer support from workers in this country.[13]
Revenue and profit plays a large role in the reason for a company outsourcing. Since the costs
are cheaper in different countries for a corporation to run it, as well as to train the employees,
this saves the company a large sum of money. More profit comes in when the vendors are able to
purchase products at a less expensive rate and continue to sell them at a reasonable price for
consumers. The prices are reduced for services as well as products when purchased at a cheaper
price.
Security
Before outsourcing an organization is responsible for the actions of all their staff and liable for
their actions. When these same people are transferred to an outsourcer they may not change desk
but their legal status has changed. They are no longer directly employed or responsible to the
organization. This causes legal, security and compliance issues that need to be addressed through
the contract between the client and the suppliers. This is one of the most complex areas of
outsourcing and requires a specialist third party adviser.

38. Risks
When companies offshore services, even though it may not be the core parts of the business,
those jobs leave the home country for foreign countries. [15]. Outsourcing may increase the risk of
leakage, reduce confidentiality, as well as introduce additional privacy and security concerns.
Advantages
Companies are able to provide services and products to consumers at a cheaper price while still
having a large margin for profit. This profit margin benefits both the company as well as the
consumer. The cheaper prices lead to an increase a company’s economy. Although losing jobs
hurts the economy because more citizens become unemployed, the cheaper prices allows
customers to purchase more products and services which helps to rebuild an economy.
In all cases, outsourcing success depends on three factors: executive-level support in the client
organization for the outsourcing mission; ample communication to affected employees; and the
client's ability to manage its service providers. The outsourcing professionals in charge of the
work on both the client and provider sides need a combination of skills in such areas as
negotiation, communication, project management, the ability to understand the terms and
conditions of the contracts and service level agreements (SLAs), and, above all, the willingness
to be flexible as business needs change.
The challenges of outsourcing become especially acute when the work is being done in a
different country (offshored), since that involves language, cultural and time zone differences.
The recruitment agency, in which I worked, that is, Jobachievers, is having a tie-up with an
another recruitment agency named as GRETIS INDIA, which is having this Outsourcing
process, active in their agency. The former organization mentioned in the report, that is, KUDOS
CHEMICAL LIMITED, is having a number of its employees on the rolls of GRETIS. The
chemical engineers that are working in KUDOS, are firstle employed on the rolls of Gretis, and
after a specific interval of time, the employees come ON-ROLLS of the company.

39. While the employees remains OFF-ROLLS, that is ON-ROLLs of Gretis, all of the necessary
things like making of the salaries, maintaining the attendance registers, keeping the records of
each and every employee, is the responsibility of Gretis.
Also, there are certain disadvantages also. While the employees remain OFF-ROLLS for the
company, the employees are proficiently deployed of all the incentives and perks that an
employee who is ON-ROLLs of the company is being provided with.
Thus, outsourcing is the newest rage of the recruitment agencies, that are coming into a new
understanding and business with the organizations as to provide the organizations with the
required candidates, maintaining the records of the newly hired employees and also keep the
employees on their rolls, so as coming to a newly developed understanding with the
organizations, participating and sharing half of the recruitment’s workload to themselves.
Thus, the process of Outsourcing is bringing the recruitment agencies and the organizations,
much closer and and are making them more understandable to each other.

40. REFRENCES:
1) www. Kudoschemieltd.in
2) www.virasat-e-khalsa.org
3) Human Resources Management, 11th Edition, chapter 4.