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1. Introduction
1.1 Introduction of The Insurance Industry
Overview
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss
and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely
a development of the recent past, particularly after the industrial era past few
centuries yet its beginnings date back almost 6000 years.
The first two decades of the twentieth century saw lot of growth in insurancebusiness. From 44 companies with total business-in-force as Rs.22.44 crore, it rose
to 176 companies with total business-in-force as Rs.298 crore in 1938. The
Insurance Act 1938 was the first legislation governing not only life insurance but
also non-life insurance to provide strict state control over insurance business.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
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LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. Its a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Together
with banking services, it adds about 7 per cent to the countrys GDP. Gross
premium collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international
standards. And this part of the population is also subject to weak social security
and pension systems with hardly any old age income security. This itself is an
indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development and at
the same time strengthens the risk taking ability. It is estimated that over the next
ten years India would require investments of the order of one trillion US dollar.
The Insurance sector, to some extent, can enable investments in infrastructure
development to sustain economic growth of the country.
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India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in
the Indian insurance sector reveals the 360 degree turn witnessed over a period of
almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the
passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of
insurance in India and this may also include restructuring and revitalizing of the
public sector companies. In the private sector 14 life insurance and 8 generalinsurance companies have been registered. A host of private Insurance companies
operating in both life and non-life segments have started selling their insurance
policies..
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of
life insurance products was 19 percent of the total 400 million of the insurable
population. The state owned LIC sold insurance as a tax instrument, not as aproduct giving protection. Most customers were under- insured with no flexibility
or transparency in the products. With the entry of the private insurers the rules of
the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9
percent of the market in terms of premium income. The new business premiums of
the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.
Innovative products, smart marketing and aggressive distribution. That's the triple
whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who havealways seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. Buoyed by their quicker than expected success,
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nearly all private insurers are fast- forwarding the second phase of their expansion
plans.
Major Insurance Players
Licenses have been issued for the following companies
ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited
Protection of the interests of policyholders:
IRDA has the responsibility of protecting the interest of insurance policyholders.
Towards achieving this objective, the Authority has taken the following steps:
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1. IRDA has notified Protection of Policyholders Interest Regulations 2001 toprovide for: policy proposal documents in easily understandable language;
claims procedure in both life and non-life; setting up of grievance redressal
machinery; speedy settlement of claims; and policyholders' servicing. The
Regulation also provides for payment of interest by insurers for the delay in
settlement of claim.
2. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to
payment of claims.
3. It is obligatory on the part of the insurance companies to disclose clearly thebenefits, terms and conditions under the policy. The advertisements issued
by the insurers should not mislead the insuring public.
4. All insurers are required to set up proper grievance redress machinery intheir head office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the
insurance contract
1.2. COMPANY PROFILE
ICICI PRUDENTIAL LIFE INSURANCE
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it
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has diversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the
financial year ended March 31, 2005, the company garnered Rs 1584 crore of new
business premium for a total sum assured of Rs 13,780 crore and wrote nearly
615,000 policies.
The Company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind
the brand. The Company aims to achieve this by striving to provide world class
service levels through constant innovation in products, distribution channels and
technology based delivery. The Company has already taken significant steps to
achieve this goal.
India's Number One private life insurer, ICICI Prudential Life Insurance Company
is a joint venture between ICICI Bank-one of India's foremost financial services
companies-and Prudential plc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we
continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the first quarter ended
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June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new
business premiums and wrote over 450,000 retail policies in the period. The
company has assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)
rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to
meet its obligations to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 680 branches and
over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki
District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal
Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks
(RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia
Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban
Cooperative Bank Limited
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 150 cities and towns in India,
stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to
Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with
ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,
and some co-operative banks, as well as over 300 corporate agents and brokers. It
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2. INTRODUCTION OF HUMAN RESOURCES
MANAGEMENT
The Human Resources Management (HRM) function includes a variety ofactivities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel and management
practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel
policies. Usually small businesses (for-profit or nonprofit) have to carry out these
activities themselves because they can't yet afford part- or full-time help. However,
they should always ensure that employees have -- and are aware of -- personnelpolicies which conform to current regulations. These policies are often in the form
of employee manuals, which all employees have.
Note that some people distinguish a difference between HRM (a major
management activity) and HRD (Human Resource Development, a profession).
Those people might include HRM in HRD, explaining that HRD includes the
broader range of activities to develop personnel inside of organizations, e.g., career
development, training, organization development, etc.
There is a long-standing argument about where HR-related functions should beorganized into large organizations, eg, "should HR be in the Organization
Development department or the other way around?"
The HRM function and HRD profession have undergone tremendous change over
the past 20-30 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people.
More recently, organizations consider the "HR Department" as playing a major
role in staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling manner.
Recently, the phrase "talent management" is being used to refer the activities to
attract, develop and retain employees. Some people and organizations use the
phrase to refer especially to talented and/or high-potential employees. The phrase
often is used interchangeably with the field ofHuman Resource Management --
although as the field of talent management matures, it's very likely there will be an
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increasing number of people who will strongly disagree about the interchange of
these fields. For now, this Library uses the phrases interchangeably.
Human resource management (HRM) is the strategic and coherent approach to
the management of an organization's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives
of the business.[1]
The terms "human resource management" and "human
resources" (HR) have largely replaced the term "personnel management" as a
description of the processes involved in managing people in organizations.[1]
In
simple sense, HRM means employing people, developing their resources, utilizing,
maintaining and compensating their services in tune with the job and
organizational requirement.
Features
Its features include:
y Organizational managementy Personnel administrationy Manpower managementy Industrial management
But these traditional expressions are becoming less common for the theoretical
discipline. Sometimes even employee and industrial relations are confusingly listed
as synonyms, although these normally refer to the relationship between
management and workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as
basic business resources, such as trucks and filing cabinets. The field takes a
positive view of workers, assuming that virtually all wish to contribute to the
enterprise productively, and that the main obstacles to their endeavors are lack of
knowledge, insufficient training, and failures of process.
Human Resource Management(HRM) is seen by practitioners in the field as a
more innovative view of workplace management than the traditional approach. Its
techniques force the managers of an enterprise to express their goals with
specificity so that they can be understood and undertaken by the workforce, and to
provide the resources needed for them to successfully accomplish their
assignments. As such, HRM techniques, when properly practiced, are expressive of
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the goals and operating practices of the enterprise overall. HRM is also seen by
many to have a key role in risk reduction within organizations.
Synonyms such aspersonnel managementare often used in a more restricted sense
to describe activities that are necessary in the recruiting of a workforce, providing
its members with payroll and benefits, and administrating their work-life needs. So
if we move to actual definitions, Torrington and Hall (1987) define personnel
management as being:
a series of activities which: first enable working people and their employing
organisations to agree about the objectives and nature of their working
relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).
While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the management of employees at
all levels in the business and which are related to the implementation of strategies
directed towards creating and sustaining competitive advantage" (p. 352).
Academic theory
The goal of human resource management is to help an organization to meet
strategic goals by attracting, and maintaining employees and also to manage them
effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to
ensure a fit between the management of an organization's employees, and theoverall strategic direction of the company (Miller, 1989).
The basic premise of the academic theory ofHRM is that humans are not
machines, therefore we need to have an interdisciplinary examination of people in
the workplace. Fields such as psychology, industrial engineering, industrial,
Legal/Paralegal Studies and organizational psychology, industrial relations,
sociology, and critical theories: postmodernism, post-structuralism play a major
role. Many colleges and universities offer bachelor and master degrees in Human
Resources Management.
One widely used scheme to describe the role ofHRM, developed by Dave Ulrich,
defines 4 fields for the HRM function:[6]
y Strategic business partnery Change management
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y Employee championy Administration
However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive than
strategically proactive partners for the top management. In addition, HR
organizations also have the difficulty in proving how their activities and processes
add value to the company. Only in the recent years HR scholars and HR
professionals are focusing to develop models that can measure ifHR adds value.
Business practice
Human resources management comprises several processes. Together they are
supposed to achieve the above mentioned goal. These processes can be performed
in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide
significant economic benefit to the company.[8]
y Workforce planningy Recruitment (sometimes separated into attraction and selection)y Induction, Orientation and Onboardingy Skills managementy Training and developmenty Personnel administrationy Compensation in wage or salaryy Time managementy Travel management (sometimes assigned to accounting rather than HRM)y Payroll (sometimes assigned to accounting rather than HRM)y Employee benefits administrationy Personnel cost planningy Performance appraisal
Cornell University's School of Industrial and Labor Relations was the world's first
school for college-level study in HRM
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The sort of careers available in HRM are varied. There are generalist HRM jobs
such as human resource assistant. There are careers involved with employment,
recruitment and placement and these are usually conducted by interviewers, EEO
(Equal Employment Opportunity) specialists or college recruiters. Training and
development specialism is often conducted by trainers and orientation specialists.
Compensation and benefits tasks are handled by compensation analysts, salary
administrators, and benefits administrators.
Several universities offer programs of study pertaining to HRM and broader fields.
Cornell University created the world's first school for college-level study in HRM
(ILR School).[9]
University of Illinois at Urbana-Champaign also now has a school
dedicated to the study ofHRM, while several business schools also house a center
or department dedicated to such studies; e.g., University of Minnesota, Michigan
State University, Ohio State University, and Purdue University.
Professional organizations
Professional organizations in HRM include the Society forHuman Resource
Management, the Australian Human Resources Institute (AHRI), the Chartered
Institute of Personnel and Development (CIPD), the International Public
Management Association forHR (IPMA-HR), Management Association of Nepal
(MAN) and the International Personnel Management Association of Canada
(IPMA-Canada), Human Capital Institute (HCI)
Functions
The Human Resources Management (HRM) function includes a variety of
activities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel and management
practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel
policies. Usually small businesses (for-profit or nonprofit) have to carry out these
activities themselves because they can't yet afford part- or full-time help. However,
they should always ensure that employees haveand are aware ofpersonnel
policies which conform to current regulations. These policies are often in the form
of employee manuals, which all employees have.
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Note that some people distinguish a difference between HRM (a major
management activity) and HRD (Human Resource Development, a profession).
Those people might include HRM in HRD, explaining that HRD includes the
broader range of activities to develop personnel inside of organizations, including,
eg, career development, training, organization development, etc.
There is a long-standing argument about where HR-related functions should be
organized into large organizations, eg, "should HR be in the Organization
Development department or the other way around?"
The HRM function and HRD profession have undergone tremendous change over
the past 2030 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people.
More recently, organizations consider the "HR Department" as playing a major
role in staffing, training and helping to manage people so that people and theorganization are performing at maximum capability in a highly fulfilling manner.
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3. INTRODUCTION OF RECRUITEMENT
Recruitment refers to the process of attracting, screening, and selecting qualified
people for a job at an organization or firm. For some components of the
recruitment process, mid- and large-size organizations often retain professional
recruiters or outsource some of the process to recruitment agencies.
The recruitment industry has five main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, niche agencies which specialize in a particular area of
staffing and in-house recruitment. The stages in recruitment include sourcing
candidates by advertising or other methods, and screening and selecting potential
candidates using tests or interviews.
Recruitment is a process of a department in any organisation specially assignedwith the job for eg.: Human Resource Management/Department. The process
starts with the screaching for the jobs vacant with the organisation. Then comes
few steps to cover this process. After having vacancies the HRD look for the right
candidate who can either from with the organisation or outside. Recruitment
involves sourcing of the resumes which are requested to fill the vacancies,
screaning of the resumes received, selecting the suitable candidates matching the
criteria's, conducting interviews, tests etc. shortlisting and putting the right
candidate at the right place.
According to EDWIN B FLIPPO, "Recruitment is the process of searching forprospective employees and stimulating and encouraging them to apply for jobs in
an organisation."
Thus, recruitment enables the organisation to select suitable employees for
different jobs. it is the most important function of the personnel department.
It is concerned with the discovery of the sources of manpower and tapping of
these sources so that the potential employees are properly evaluated and the new
employees are placed and inducted to fill up the vacant position in the
organisation.
Recruitment aims at developing and maintaining adequate supply of labourforce according to the need of the organisation.
According to Edwin B. Flippo, recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the
organisation.Recruitmentis the activity that links the employers and the job
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seekers. A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applications from which
new employees are selected.
It is the process to discover sources of manpower to meet the requirement
of staffing schedule and to employ effective
measures for attracting that manpower in adequate numbers to facilitate
effective selection of an efficient working force.
Recruitment of candidates is the function preceding the selection, which helps
create a pool of prospective employees for the organisation so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a
pool of qualified applicants for the future human resources needs even though
specific vacancies do not exist. Usually, the recruitment process starts when a
manger initiates an employee requisition for a specific vacancy or an
anticipated vacancy.
3.1 RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization
can predict by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
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3.2 PURPOSE & IMPORTANCE OF RECRUITMENT
The Purpose and Importance of Recruitment are given below:
Attract and encourage more and more candidates to apply in the
organisation.
Create a talent pool of candidates to enable the selection of best candidates
for the organisation.
Determine present and future requirements of the organization in
conjunction with its personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of
visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected
will leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the
composition of its workforce.
Begin identifying and preparing potential job applicants who will be
appropriate candidates.
Increase organization and individual effectiveness of various recruiting
techniques and sources for all types of job applicants.
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4. RECRUITMENT PROCESSThe recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the recruitment strategic advantage for the
organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and
requires many resources and time. A general recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving
requisitions forrecruitment from any department of the company. These
contain:
Posts to be filled
Number of persons
Duties to be performed
Qualifications required
y Preparing the job description and person specification.y Locating and developing the sources of required number and type of
employees (Advertising etc).
y Short-listing and identifying the prospective employee with requiredcharacteristics.
y Arranging the interviews with the selected candidates.y Conducting the interview and decision making
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1. Identify vacancy2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing6. Arrange interviews7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process i.e.
the final interviews and the decision making, conveying the decision and theappointment formalities.
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Maven follows a systematic and rigorous procedure for recruitments, in sync with
the industry practices. Realizing the crucial importance of successful recruitment,
we pursue an organized, efficient and practical methodology.
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To comprehend the specific requirements of our clients, we get acquainted with
their needs by meeting them in person. This gives a crystal clear idea of what is
expected from us and the desired skill-set to be considered before starting our hunt
for the right candidate.
After understanding the roles and responsibilities of the prospective candidate, the
search process starts. A long list of matching resumes are reviewed and selected.
Further short listing of the candidates leaves behind a list of most potential and
appropriate candidates, who meet the desired requirements of the client.
These short listed candidates are contacted and a pre-interview check is conducted.
Meanwhile, the client is informed about the short listed candidates.
Next, our client interviews the most eligible and short listed candidates. Finally,
our clients then inform us about the selected and successful candidates, who are
updated about the positive feedback by us while auto-mailers are sent out to the
rest of the unsuccessful applicants. Once the salary negotiations are over we assistyou with the employee management.
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Recruitment refers to the process of screening, and selecting qualified people for a
job at an organization or firm, or for a vacancy in a volunteer-based some
components of the recruitment process, mid- and large-size organizations and
companies often retain professional recruiters or outsource some of the process to
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recruitment agencies. External recruitment is the process of attracting and selecting
employees from outside the organization.
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations. Recruitment
process involves a systematic procedure from sourcing the candidates to arranging
and conducting the interviews and requires many resources and time. A general
recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company.
These contain:-- Posts to be filled
-- Number of persons
-- Duties to be performed
-- Qualifications required
Preparing the job description and person specification.
Locating and developing the sources of required number and type of employees
(Advertising etc).
Short-listing and identifying the prospective employee with required
characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making
Recruitment Process1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.
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5. SOURCES OF RECRUITMENTS1. Internal Sources2. External Sources5.1 INTERNAL SOURCES OF RECRUITMENT
Some Internal Sources Of Recruitments are given below:
1. TRANSFERS
The employees are transferred from one department to another according
to their efficiency and experience.
2. PROMOTIONS
The employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according
to their performance.
4. Retired and Retrenched employees may also be recruited once again
in case of shortage of qualified personnel or increase in load of work.
recruitment such people
save time and costs of the organisations as the people are already aware of
the organisational culture and the policies and procedures.
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5. The dependents and relatives of Deceased employees and Disabled
employees are also done by many companies so that the members of the
family do not become dependent on the mercy of others.
a. Friends and Family- Many experts will advise against hiring friends andfamily. In my opinion friends and family should be treated as any other
potential employee with no favoritism. They should be subject to the same
hiring process as other potential employees to ensure they have the
qualifications for the job. Working with friends or family can be a
disadvantage if they feel they can slack off since they know you. On the
other hand it can be an advantage because since they know you they may be
more motivated to help you succeed.b. Referrals- You can get referals from friends, family, coworkers andacquaintances. Your bound to know somebody who needs a job.
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5.2 EXTERNAL SOURCES OF RECRUITMENT
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment. The main advantage of this method is that it
has a wide reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges
etc. are a good source of recruiting well qualified executives, engineers,
medical staff etc. They provide facilities for campus interviews and
placements. This source is known as Campus Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on
behalf of client companies by charging a fee. These
agencies are particularly suitable forrecruitment of executives and specialists.
It is also known as RPO (Recruitment Process Outsourcing)
4. EMPLOYMENT EXCHANGESGovernment establishes public employment exchanges throughout thecountry. These exchanges provide job information to job seekers and
help employers in identifying suitable candidates.
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5. LABOUR CONTRACTORSManual workers can be recruited through contractors who maintain close
contacts with the sources of such workers. This source is used to recruit
labour for construction jobs.
6. UNSOLICITED APPLICANTSMany job seekers visit the office of well-known companies on their
own. Such callers are considered nuisance to the daily work routine of
the enterprise. But can help in creating the talent pool or the database of
the probable candidates for the organisation.
7. EMPLOYEE REFERRALS / RECOMMENDATIONSMany organisations have structured system where the current employees
of the organisation can refer their friends and relatives for some position
in their organisation. Also, the office bearers of trade unions are often
aware of the suitability of candidates. Recruitment Management can
inquire these leaders for suitable jobs. In some organizations these are
formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
8. RECRUITMENT AT FACTORY GATEUnskilled workers may be recruited at the factory gate these may beemployed whenever a permanent worker is absent. More efficient
among these may be recruited to fill permanent vacancies.
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6. FACTORS AFFECTING RECRUITMENT
The recruitment function of the organisations is affected and governed by amix of various internal and external forces. The internal forces or factors are
the factors that can be controlled by the organisation. And the external
factors are those factors which cannot be controlled by the organisation. The
internal and external forces affecting recruitment function of an
organisation are:
FACTORS AFFECTING RECRUITMENT
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6.1 INTERNAL FACTORS AFFECTING RECRUITMENTThe internal factors or forces which affecting recruitmentand can be
controlled by the organisation are
1. RECRUITMENT POLICY
The recruitment policy of an organisation specifies the objectives of
recruitment and provides a framework for implementation of recruitment
programme. It may involve organizational system to be developed for
implementing recruitment programmes and procedures by filling up vacancies
with best qualified people.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
2.HUMAN RESOURCE PLANNINGEffective human resource planning helps in determining the gaps present inthe existing manpower of the organization. It also helps in determining the
number of employees to be recruited and what qualification they must
possess.
3. SIZE OF THE FIRMThe size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operations and expand its business, it
will think of hiring more personnel, which will handle its operations.
4.
COSTRecruitment incur cost to the employer, therefore, organizations try to
employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.
5. GROWTH AND EXPANSIONOrganization will employ or think of employing more personnel if it is
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expanding its operations.
6.2 EXTERNAL FACTORS AFFECTING RECRUITMENT
he external factors which affecting recruitmentare the forces which cannot
be controlled by the organisation. The major external forces are:
1. SUPPLY AND DEMANDThe availability of manpower both within and outside the organization is an
important determinant in the recruitment process. If the company has a
demand for more professionals and there is limited supply in the market for
the professionals demanded by the company, then the company will have to
depend upon internal sources by providing them special training and
development programs.
2. LABOUR MARKET
Employment conditions in the community where the organization is located
willinfluence the recruiting efforts of the organization. If there is surplus of
manpower at the time of recruitment, even informal attempts at the time of
recruiting like notice boards display of the requisition or announcement in the
meeting etc will attract more than enough applicants.
3. IMAGE / GOODWILLImage of the employer can work as a potential constraint forrecruitment. An
organization with positive image and goodwill as an employer finds it easier
to attract and retain employees than an organization with negative image.Image of a company is based on what organization does and affected by
industry. For example finance was taken up by fresher MBAs when many
finance companies were coming up.
4. POLITICAL-SOCIAL- LEGAL ENVIRONMENTVarious government regulations prohibiting discrimination in hiring and
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employment have direct impact on recruitment practices. For example,
Government of India has introduced legislation for reservation in
employment for scheduled castes, scheduled tribes, physically
handicapped etc. Also, trade unions play important role in recruitment.
This restricts management freedom to select those individuals who it
believes would be the best performers. If the candidate cant meet criteria
stipulated by the union but union regulations can restrict recruitment
sources.
5. UNEMPLOYMENT RATEOne of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its rate).
When the company is not creating new jobs, there is often oversupply of
qualified labour which in turn leads to unemployment.
6. COMPETITORSThe recruitment policies of the competitors also effect the recruitment
function of the organisations. To face the competition, many a times the
organisations have to change their recruitment policies according to the
policies being followed by the competitors.
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7. RECRUITMENT POLICY OF A COMPANY
In todays rapidly changing business environment, a well defined recruitment
policy is necessary for organizations to respond to its human resource
requirements in time. Therefore, it is important to have a clear and concise
recruitment policy in place, which can be executed effectively to recruit the
best talent pool for the selection of the right candidate at the right place
quickly. Creating a suitable recruitment policy is the first step in the
efficient hiring process. A clear and concise recruitment policy helps ensure a
sound recruitment process.
It specifies the objectives of recruitment and provides a framework forimplementation of recruitment programme. It may involve organizational
system to be developed for
implementing recruitment programmes and procedures by filling up vacancies
with best qualified people.
7.1 COMPONENTS OF THE RECRUITMENT POLICY
y The general recruitment policies and terms of the organisationy Recruitment services of consultantsy Recruitment of temporary employeesy Unique recruitment situationsy The selection processy The job descriptionsy The terms and conditions of the employment
A recruitment policy of an organisation should be such that:
y It should focus on recruiting the best potential people.y To ensure that every applicant and employee is treated equally with
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dignity and respect.
y Unbiased policy.y To aid and encourage employees in realizing their full potential.y Transparent, task oriented and merit based selection.y Weightage during selection given to factors that suit organization needs.y Optimization of manpower at the time of selection process.y Defining the competent authority to approve each selection.y Abides by relevant public policy and legislation on hiring and
employment relationship.
y Integrates employee needs with the organisational needs.
7.2 FACTORS AFFECTING RECRUITMENT POLICY
y Organizational objectivesy Personnel policies of the organization and its competitors.y Government policies on reservations.y Preferred sources of recruitment.y Need of the organization.y Recruitment costs and financial implications.
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8.RECENT TRENDS IN RECRUITMENT
The following trends are being seen in recruitment:
8.1 OUTSOURCING
In India, the HR processes are being outsourced from more than a decade
now. A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organisation by the initial screening of the
candidates according to the needs of the organisation and creating a suitable
pool of talent for the final selection by the organisation. Outsourcing firmsdevelop their human resource pool by employing people for them and make
available personnel to various companies as per their needs. In turn, the
outsourcing firms or the intermediaries charge the organisations for their
services. Recruitment Process Outsourcing is a form of business process
outsourcing (BPO) where an employer outsources or transfers all or part of its
recruitment activities to an external service provider.
The Recruitment Process Outsourcing Association defines RPO as follows:
"when a provider acts as a company's internal recruitment function for a
portion or all of its jobs. RPO providers manage the entire recruiting/hiringprocess from job profiling through the on-boarding of the new hire, including
staff, technology, method and reporting. A properly managed RPO will
improve a company's time to hire, increase the quality of the candidate pool,
provide verifiable metrics, reduce cost and improve governmental
compliance."[1]
The RPO Alliance, a group of the Human Resources Outsourcing Association
(HROA), approved this definition in February 2009: "Recruitment Process
Outsourcing (RPO) is a form of business process outsourcing (BPO) where an
employer transfers all or part of its recruitment processes to an external
service provider. An RPO provider can provide its own or may assume the
company's staff, technology, methodologies and reporting. In all cases, RPO
differs greatly from providers such as staffing companies and
contingent/retained search providers in that it assumes ownership of the
design and management of the recruitment process and the responsibility o
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results."
Occasional recruitment support, for example temporary, contingency and
executive search services is more analogous to out-tasking, co-sourcing or just
sourcing. In this example the service provider is "a" source for certain types o
recruitment activity. The biggest distinction between RPO and other types o
staffing is Process. In RPO the service provider assumes ownership of the
process, while in other types of staffing the service provider is part of a
process controlled by the organization buying their services.
History
While temporary, contingency and executive search firms have provided
staffing services for many decades, the concept of an employer outsourcing
the management and ownership of part or all of their recruiting process wasn't
first realized on a consistent basis until the 1970s in Silicon Valley's highly
competitive high tech labor market. Fast-growing high tech companies were
hard-pressed to locate and hire the technical specialists they required, and so
had little choice but to pay large fees to highly specialized external recruiters
in order to staff their projects. Over time, companies began to examine how
they might reduce the growing expenses of recruitment fees while still hiringhard-to-find technical specialists. Toward this end, companies began to
examine the various steps in the recruiting process with an eye toward
outsourcing only those portions that they had the greatest difficulty with and
that added the greatest value to them. Initial RPO programs typically consisted
of companies purchasing lists of potential candidates from RPO vendors. This
"search/research" function, as it was called, generated names of competitors'
employees for a company and served to augment the pool of potential
candidates from which that company could hire.
Over time, as business in general embraced the concept of outsourcing moreand more, RPO gained favor among Human Resource management: not only
did RPO reduce overhead costs from their budgets but it also helped improve
the company's competitive advantage in the labor market. As labor markets
became more and more competitive, RPO became more of an acceptable
option. Furthermore, through the advent in the 1980's and 1990's of human
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resources outsourcing (HRO) companies that began taking on the processes
associated with benefits, taxes, and payroll, companies began recognizing that
recruiting--a significant cost of HR--should also be considered for
outsourcing. In the early 2000's more companies began considering the
outsourcing of recruitment for major portions of their recruiting need.
There have been fundamental changes in the US labor market that serve to
reinforce the use of RPO as well. The labor market has become increasingly
dynamic: workers today change employers more often than in previous
generations. De-regulated labor markets have also created a shift towards
contract and part-time labor and shorter work tenures. These trends increase
recruitment activity and may encourage the use of RPO. It should also be
noted that even in slower economic times or higher unemployment, RPO is
still considered by companies to assist in an increasing need to screen through
a larger candidate pool.
Benefits
RPO's promoters claim that the solution offers improvement in quality, cost,
service and speed.
RPO providers claim that leveraging economies of scale enables them to offer
recruitment processes at lower cost while economies of scope allow them to
operate as high-quality specialists. Those economies of scale and scope arise
from a larger staff of recruiters, databases of candidate resumes, and
investment in recruitment tools and networks.
RPO solutions are also claimed to change fixed investment costs into variable
costs that vary with fluctuation in recruitment activity. Companies may pay by
transaction rather than by staff member, thus avoiding under-utilization or
forcing costly layoffs of recruitment staff when activity is low.
Problems
If a company failed to define its overall recruitment strategy and hiring
objectives, then any recruiting program may fail to meet the company's needs.
This is especially true for outsourced programs like RPO: RPO can only
succeed in the context of a well-defined corporate and staffing strategy.
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As with any program, a company must manage its RPO activities. A company
must provide initial direction and continued monitoring to assure the desired
results. Overall, providing guidance to external activities can present a
significant management challenge. Outsourcing of company processes may
fail or prove a poor organizational fit. Improperly implemented RPO could
reduce the effectiveness of recruitment.
The costs charged for outsourced recruitment transactions may total more than
the cost of the internal recruitment department.
RPO service providers may fail to provide the quality or volume of staf
required by their customers.
Placing all recruitment in the hands of a single outside provider may
discourage the competition that would arise if multiple recruitment agencieswere used.
An RPO solution may not work if the company's existing recruitment
processes are performing poorly. An RPO solution may not work if the
service provider has inadequate recruitment processes or procedures to work
with the client.
RPO may not resolve difficulties that organizations have hiring staff when the
organization is perceived negatively by potential employees. This will instead
require improved branding and an adjustment of image. The perception is thatvery few RPOs can successfully integrate their client's brand and therefore do
not represent their client's brand as well as a retained search or internal
recruiting resource may drive brand representation and or marketing.
Further, most RPOs perform their staffing functions and service offsite,
further disconnecting the client's growth & recruiting strategy from the actual
workforce within the client company. This is important because during a
period of rapid recruitment growth, one of the many positive effects that a
company typically enjoys is an increase in the workforce wellness or an
overall workforce positivity of sentiment of optimism that comes withpersonnel additions... this may be lessened with an offsite recruiting function.
Organizations with efficient hiring process that are viewed as employers o
choice by potential staff may stand to gain negligible benefits from RPO.
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Advantages of outsourcing are:
1. Company need not plan for human resources much in advance.2. Value creation, operational flexibility and competitive advantage3. turning the management's focus to strategic level processes ofHRM4. Company is free from salary negotiations, weeding the unsuitable
resumes/candidates.
5. Company can save a lot of its resources and time8.2 POACHING/RAIDING
Buying talent (rather than developing it) is the latest mantra being
followed by the organisations today. Poaching means employing a
competent and experienced person already working with another reputed
company in the same or different industry; the organisation might be a
competitor in the industry. A company can attract talent from another firm
by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidate. But it is seen as an unethical
practice and not openly talked about. Indian software and the retail sector
are the sectors facing the most severe brunt of poaching today. It has
become a challenge for human resource managers to face and tackle
poaching, as it weakens the competitive strength of the firm.
8.3E-RECRUITMENTMany big organizations use Internet as a source of recruitment. E-
recruitment is the use of technology to assist the recruitment process. They
advertise job vacancies through worldwide web. The job seekers send theirapplications or curriculum vitae i.e. CV through e mail using the Internet.
Alternatively job seekers place their CVs in worldwide web, which can be
drawn by prospective employees depending upon their requirements.
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y Advantages of recruitment are:o Low cost.o No intermediarieso Reduction in time for recruitment.o Recruitment of right type of people.o Efficiency of recruitment process.
The buzzword and the latest trends in recruitment is the E-Recruitment .
Also known as Online recruitment , it is the use of technology or the web
based tools to assist the recruitment processes. The tool can be either a job
website like naukri.com, the organisations corporate web site or its own
intranet. Many big and small organizations are using Internet as a source o
recruitment. They advertise job vacancies through worldwide web. The job
seekers send their applications or curriculum vitae (CV) through an e-mail
using the Internet. Alternatively job seekers place their CVs in worldwide
web, which can be drawn by prospective employees depending upon their
requirements.
The internet penetration in India is increasing and has tremendous potential.
According to a study by NASSCOM Jobs is among the top reasons why new
users will come on to the internet, besides e-mail. There are more than 18
million resumes floating online across the world.
The two kinds of e-recruitment that an organisation can use is
8.4 Job portals i.e. posting the position with the job description and the job
specification on the job portal and also searching for the suitable resumesposted on the site corresponding to the opening in the organisation.
Creating a complete online recruitment/application section in the companies
own website. - Companies have added an application system to its website,
where the passive job seekers can submit their resumes into the database of
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the organisation for consideration in future, as and when the roles become
available.
8.5 Resume Scanners: Resume scanner is one major benefit provided by the
job portals to the organisations. It enables the employees to screen and filter the
resumes through pre-defined criterias and requirements (skills, qualifications,
experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes to the employees
facilitating the just-in-time hiring by the organisations. Also, the jobs can be
posted on the site almost immediately and is also cheaper than advertising in
the employment newspapers. Sometimes companies can get valuable references
through the passers-by applicants. Online recruitment helps the organisations
to automate the recruitment process, save their time and costs on recruitments.
8.6 Online recruitment techniques
y Giving a detailed job description and job specifications in the jobpostings to attract candidates with the right skill sets and qualifications at
the first stage.
y E-recruitment should be incorporated into the overall recruitmentstrategy of the organisation.
y A well defined and structured applicant tracking system should beintegrated and the system should have a back-end support.
y Along with the back-office support a comprehensive website to receiveand process job applications (through direct or online advertising) should
be developed.
Therefore, to conclude, it can be said that e-recruitment is the Evolving face of
recruitment.
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9.TYPES OF JOB SEEKERS
Types Of Job Seekers
1. Quid Pro QueThese are the people who say that I can do this for you, what can you give
me These people value high responsibilities, higher risks, and expect higher
rewards, personal development and company profiles doesnt matter to them.
2. I will be with youThese people like to be with big brands. Importance is given to brands. They
are not bothered about work ethic, culture mission etc.
3. I will do you what you wantThese people are concerned about how meaningful the job is and they define
meaning parameters criteria known by previous job.
4. Where do you want me to come
These people observe things like where is your office, what atmosphere do you
offer. Career prospects and exciting projects dont entice them as much. It is the
responsibility of the recruiter to decide what the employee might face in given
job and thus take decision. A good decision will help cut down employee
retention costs and future recruitment costs.
9.1 RECRUITMENT MANAGEMENT SYSTEM
Recruitment management system is the comprehensive tool to manage the
entire recruitment processes of an organisation. It is one of the technological
tools facilitated by the information management systems to the HR o
organisations. Just like performance management, payroll and other systems,
Recruitment management system helps to contour the recruitment processes
and effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management
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system are explained below:
y Structure and systematically organize the entire recruitment processes.y Recruitment management system facilitates faster, unbiased, accurateand reliable processing of applications from various applications.
y Helps to reduce the time-per-hire and cost-per-hire.y Recruitment management system helps to incorporate and integrate thevarious links like the application system on the official website of the company,
the unsolicited applications, outsourcing recruitment, the final decision
making to the main recruitment process.
y Recruitment management system maintains an automated active databaseof the applicants facilitating the talent management and increasing theefficiency of the recruitment processes.
y Recruitment management system provides and a flexible, automated andinteractive interface between the online application system, the recruitment
department of the company and the job seeker.
y Offers tolls and support to enhance productivity, solutions andoptimizing the recruitment processes to ensure improved ROI.
yRecruitment management system helps to communicate and createhealthy relationships with the candidates through the entire recruitment
process.
The Recruitment Management System (RMS) is an innovative information
system tool which helps to sane the time and costs of the recruiters and
improving the recruitment processes.
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9.2 ROI ON RECRUITMENT
Before making any investment, every organisation would want to evaluate
the investment by answering the following questions in quantifiable terms:
What are the costs and the corresponding and related risks on the
investment?
What are the expected returns of the investment?
What is the expected pay-back period of the investment?
An organisation makes a tremendous amount of investment in its
recruitment processes.
A lot of resources like time and money are spent on recruitment processes
of an organisation. But assessing or quantifying the returns on the
recruitment process, or, calculating the return on investment (ROI) on
recruitment is a complicated task for an organisation. Indeed, it is difficult
to judge the success of their recruitment processes. Instead, recruitment is
one activity that continues in an organisation without anyone ever realizing
its worth or measuring its impact on the organisations business.
According to a survey, 38 % of organisations do not prepare or produce any
kind of documents or reports on their The recruitment processes, and there
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is no accountability of the HR department for the costs incurred and the
opportunities missed.
With the increasing strategic focus on the human resources, more and more
organisations are adopting one or the other way for calculating the ROI on
its recruitments. Many organisations are examining theirHR functions and
processes and are trying to quantify their results and returns.
A recruitment professional or manager can calculate and maximize the
return on investments on its organisations recruitment by
y Clear definition of the results to be achieved from recruitment.y Developing methods and ways measuring the results like the time to
hire, cost-Per-Hire and effectiveness of the recruitment source etc.
y Estimating the costs associated with the recruitment projecty Estimating the tangible and intangible benefits to the organization
including the payback period of the recruitments.
y Providing and ensuring proper training and development of therecruitment professionals.
Assessing theROI on recruitments can assist an organisation to strengthen its
HR processes, improving its recruitment function and to build a strategic
human resource advantage for the organisation.
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10.RECRUITMENT PROCESS IN TOP ORGANISATIONS ININDIAN INDUSTRY
10.1 RECRUITMENT STRATEGIESRecruitment is of the most crucial roles of the human resource
professionals. The level of performance of and organisation depends on the
effectiveness of its recruitment function. Organisations have developed and
follow recruitment strategies to hire the best talent for their organisation and
to utilize their resources optimally. A successful recruitment strategy
should be well planned and practical to attract more and good talent to apply
in the organisation.
For formulating an effective and successful recruitment strategy, the strategy
should cover the following elements:
1. Identifying and prioritizing jobsrecruitment keep arising at various levels in every organisation; it is
almost a never-ending process. It is impossible to fill all the positions
immediately. Therefore, there is a need to identify the positions requiring
immediate attention and action. To maintain the quality of the recruitment
activities, it is useful to prioritize the vacancies whether to focus on all
vacancies equally or focusing on key jobs first.
2. Candidates to targetThe recruitment process can be effective only if the organisation
completely understands the requirements of the type of candidates that are
required and will be beneficial for the organisation. This covers the
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following parameters as well:
o Performance level required: Different strategies are required forfocusing on hiring high performers and average performers.
o Experience level required: the strategy should be clear as to what isthe experience level required by the organisation. The candidates
experience can range from being a fresher to experienced senior
professionals.
o Category of the candidate: the strategy should clearly define thetarget candidate. He/she can be from the same industry, different
industry, unemployed, top performers of the industry etc.
3. Sources of recruitmentThe strategy should define various sources (external and internal) of
recruitment. Which are the sources to be used and focused for the
recruitment purposes for various positions. Employee referral is one of
the most effective sources of recruitment.
4. Trained recruitersThe recruitment professionals conducting the interviews and the other
recruitment activities should be well-trained and experienced to conductthe activities. They should also be aware of the major parameters and
skills (e.g.: behavioural, technical etc.) to focus while interviewing and
selecting a candidate.
5. How to evaluate the candidatesThe various parameters and the ways to judge them i.e. the entire
recruitment process should be planned in advance. Like the rounds of
technical interviews, HR interviews, written tests, psychometric tests etc.
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10.2 HR CHALLENGES IN RECRUITMENT
Recruitment is a function that requires business perspective, expertise, abilityto find and match the best potential candidate for the organisation, diplomacy,
marketing skills (as to sell the position to the candidate) and wisdom to align
the recruitment processes for the benefit of the organisation. The HR
professionals handling the recruitment function of the organisation- are
constantly facing new challenges in Recruitment. The biggestHR challenge
in Recruitmentfor such professionals is to source or recruit the best people or
potential candidate for the organisation.
In the last few years, the job market has undergone some fundamental changes
in terms of technologies, sources of recruitment, competition in the market
etc. In an already saturated job market, where the practices like poaching and
raiding are gaining momentum.
HR professionals are constantly facing new challenges in one of their most
important function- recruitment. They have to face and conquer various
challenges to find the best candidates for their organisations.
The majorchallenges faced by the HRin recruitment are:
y Adaptability to globalization The HR professionals are expected andrequired to keep in tune with the changing times, i.e. the changes taking
place across the globe. HR should maintain the timeliness of the process
y Lack of motivation Recruitment is considered to be a thankless job.Even if the organisation is achieving results, HR department or
professionals are not thanked for recruiting the right employees and
performers.
y Process analysis The immediacy and speed of the recruitment processare the main concerns of the HR in recruitment. The process should be
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flexible, adaptive and responsive to the immediate requirements. The
recruitment process should also be cost effective.
y Strategic prioritization The emerging new systems are both anopportunity as well as a challenge for the HR professionals. Therefore,
reviewing staffing needs and prioritizing the tasks to meet the changes inthe market has become a challenge for the recruitment professionals.
10.3 RECRUITING EXPATRIATESExpatriate is a person who leaves his country to work and live in a foreign
country. Generally, expatriates are the nationals from the other countries than
the host and the MNCs parent country, i.e. expatriates are the third country
nationals.
The unavailability of the required skills and talents takes the organisation to
source talent from other countries. The procedures and processes of
recruiting and selecting the human resources are never uniform even within a
single organisation. The procedures vary according to the post, the skill set
required, the nature of work etc. More of it is seen in the case of recruitment
of expatriates. The recruitment and selection procedures and considerationsare drastically different for expatriates than that
of the domestic employees. Recruitment of expatriates involves greater time,
monetary resources and other indirect costs. Improper recruitment and selection
can cause the expatriates to return hastily or a decline in their performance.
A mismatch between job (its requirements) and people can reduce the
effectiveness of other human resource activities and can affect the performance
of the employees as well as the organisation.
Recruiting expatriates require special considerations and skills to select the
best person for the job. Except for a few expatriate selection policies, the
expatriate selection criterion is generally organisation and nation specific.
The recruiters for recruiting the expatriates should be carefully selected and
trained. The recruitment strategies for expatriates should be aligned with
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requirements of the job. The interviews of expatriates are designed in a manner
to judge their:
y Adaptability to the new culturey Intercultural interactiony Flexibilityy Professional expertisey Past international work experiencey Tolerance and open-mindednessy Family situationy Language abilityy Attitude and motivationy Empathy towards local culture
A few researches in this field also suggest that women are morel likely to be
successful in certain positions as expatriates as they are more sensitive towardsnew culture and people. recruitment of expatriates should be followed by
cultural and sensitivity training, and language training.
10.4HEAD HUNTING
Headhunting refers to the approach of finding and attracting the bestexperienced person with the required skill set. Headhunting is also a
recruitment process involves convincing the person to join your organization.
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forms of recruitmentpractices according to the specific needs of the
organisation. The organisations can choose from the centralized or
decentralized forms of recruitment, explained below:
CENTRALIZED RECRUITMENT
The recruitment practices of an organisation are centralized when the HR /
recruitment department at the head office performs all functions of
recruitment. Recruitment decisions for all the business verticals and
departments of an organisation are carried
out by the one central HR (or recruitment) department. Centralized from of
recruitment is commonly seen in government organisations.
Benefits of the centralized form of recruitment are:
y Reduces administration costsy Better utilization of specialistsy Uniformity in recruitmenty Interchangeability of staffy Reduces favoritismy Every department sends requisitions for recruitment to their central office
DECENTRALIZED RECRUITMENT
Decentralized recruitment practices are most commonly seen in the case of
conglomerates operating in different and diverse business areas. With diverse
and geographically spread business areas and offices, it becomes important to
understand the needs of each department and frame the recruitment policies
and procedures accordingly. Each department carries out its own recruitment.
Choice between the two will depend upon management philosophy and needsof particular organization. In some cases combination of both is used. Lower
level staffs as well as top level executives are recruited in a decentralized
manner.
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10.6 EQUAL EMPLOYMENT OPPORTUNITYEqual employment opportunity refers to the approach of the employers to
ensure the practice of being fair and impartial in the employment process.
*The term "Equal Opportunity Employment" was first given by President
Lyndon B. Johnson when he signed Executive Order 11246 which was created
to prohibit federal contractors from discriminating against employees on the
basis of race, sex, creed, religion, color, or national origin*. The scope of the
order also covered the discrimination on the basis of the minority status.
Discrimination in employment
Discrimination refers to the any kind of prejudice, biasness or favoritism on the
basis of
y disabilityy racey agey sexy sexualityy pregnancyy Marital status
in employment. No person should be treated less favourably than any other on
the basis of the specified issues above. Many countries (like SA) have already
implemented Equal Opportunity Act, making it against the law to treat anybody
unfairly.
Diversity in workforce
With the globalization and the increasing size of the organisations, the diversityin the workforce is increasing i.e. people from diverse backgrounds,
educational background, age groups, race, gender, abilities etc come together to
work for one organisation and common objectives. Therefore, it is the
responsibility of the employer to create an equality-based and discrimination-
free working environment and practices.
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Equal opportunity means treating people equally and fairly irrespective of their
race, religion, sex, age, disability etc. Giving women an equal treatment and
access to opportunities at the workplace. Any employee should be ill-treated or
harassed by the employer or other employees.
Equal Employment Opportunity principles help to realize and respect the actual
worth of the individual on the basis of his knowledge, skills, abilities and merit.
And the policy should cover all the employees of an organisation whether
permanent or temporary, contractual etc.
Equal employment opportunity is necessary to ensure:
y To give fair access to the people of all development opportunitiesy To create a fair organisation, industry and society.y To encourage and give disadvantaged or disabled people a fair chance to
grow with the society
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11. RECRUITMENT PROCESS IN INDIAThe recruitment process in India is designed in such a way that each
candidate gets the desired job profile according to his or her own choice.
Placing the candidate in the right job profile, in the best company, is the end
solution of most of the Indian recruitment agencies.
The recruitment process in India involves identifying the vacancies,
preparing the job description and person specification, advertising, managing
the response, short-listing, arranging interviews, conducting interviews,
decision making, convey the decision and appointment action. This means
that a lot of time and resources have to be invested before the right candidate
is selected.
Most of the recruitment companies in India follow three steps in the
recruitment process, which basically are application short listing,
preliminary assessment and final interview & selection.
The recruitment process may include a written test to judge particular skills
of a candidate. In this case, the test should be prepared carefully, not
deviating from the subject. A lot can be judged about the candidate from his
CV. A proper presentation of his CV in an organized and refined manner
speaks a lot about the individual. His mindset and attitude can be judged
according to his CV.
Next come the interview, which is an important and crucial part of the
recruitment process. The person taking the interview of the candidate has to
be well prepared in advance. Concerns like the location of the interview, the
time table, the structure of the question strategy, style of taking the interview
needs to be decided beforehand so that nothing is left out and all the issues
are properly addressed.
Moreover, there are a few things that need to be kept in mind during the
recruitment process. Until the final decision about a certain candidate is
taken, it is important to keep in regular touch with the candidate. The
decision making process should not take very long to avoid the candidate
from taking up some other opportunity. A candidate should be duly informed
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once the decision is taken. He or she should be told the complete process of
his appointment clearly with details of all the documents that he or she needs
to submit. A record file should be maintained of the candidate for future
reference.
The recruitment process must be robust and justifiable and should stand up
to external scrutiny. Only a good recruitment agency with good
understanding of the domain as well as the process can perform the same
successfully. In India most of the recruitment agencies understand the needs
of the clients and of the candidates and they work in a planned way to recruit
people.
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12. RECRUITING STARS: TOP TEN IDEAS FORRECRUITING GREAT CANDIDATES
Looking for talent? The smartest employers, who hire the best people, recruit a
pre-qualified candidate pool of potential employees before they need to fill a job.
Or, as Harvey Mackay, well-known, irreverent, author and speaker, says about
networking, Dig Your Well, Before You're Thirsty (Compare Prices).
You can develop relationships with potential candidates long before you need
them. These ideas will also help you in recruiting a large pool of candidates when
you have a current position available. Read on to discover the best ways to developyour talent pool and recruit employees.
The earlier you adopt these practices, the better your organization will do in the
upcoming war for talent. (And, trust me, you will experience wars for talent as the
baby boomer generation retires.) Read on to discover the best ways to develop
your talent pool.
12.1 Recruiting Your Ideal CandidateA job description that tells potential employees the exact requirements of the
position is useful. Even more useful is the process you use to develop the job
description internally and the behavioral characteristics of your ideal candidate.
Assemble a team of people who represent the best qualities of the people who
currently hold the same or a similar position. Include the hiring manager.
Develop a job description that delineates the key responsibilities and outputs of the
position. Then, define the behavioral characteristics of the person you feel is your
ideal candidate. Finally, list your five - ten key responsibilities and characteristics
you will use to screen resumes, perform phone screens and eventually, establishthe questions for the candidates you interview.
Sound like a lot of effort? It is. But, you'll have a much better idea about the
characteristics of the ideal candidate you want to attract to your company when
you do this planning via email or a recruiting planning meeting.
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12.2 Tap Your Employee Networks in Recru
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