INTRODUCTION

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INTRODUCTION TO THE STUDY:

The study entitled “Recruitment and selection” is the research

involved in analyzing the functions or the practices that are been followed in
INDIA INFOLINE LTD. It highlights the recruitment and selection process that
are been followed in the organization, and brings out the advantages and
drawbacks of these functions. In general, the sources of employees can be
classified into two types, internal and external, Recruitment forms the first
stage in the process, which continues with selection and ceases with the
placement of candidates. Recruitment is a process to discover the sources of
manpower to meet the recruitments of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of and efficient working force. Recruitment is the
generating of applications or applicants for specific positions.
After identifying the sources of human resources, searching for
prospective employees and stimulating to apply for jobs in an organization,
the management has to perform the function of selecting the right employees
at the right time. The obvious guiding policy in selection the intention to
choose the best qualified candidates. The selection procedure is the system
of the functions and devices adopted in a given company to ascertain whether
the candidate specifications are matched with the job specifications and
requirements or not. The selection procedure cannot be effective until and
unless.
Requirements of the job to be filled, have been clearly specified (job
analysis, etc).
Thus, the development of job analysis, human resource planning and
recruitment are necessary prerequisites to the selection process. A
breakdown in any of these processes can make even the best selection
system ineffective.
Recruitment is a process to discover the sources of man power to
meet the requirement of the staffing schedule and to employ effective
measures for attracting that manpower in adequate number to facilitate,
effective selection of an effective work force.

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 Selection is a process of choosing the person most competent for a
particular job, or weeding out the unsuitable.
SCOPE OF THE STUDY:
The present study is a descriptive one, because it involves in
analyzing the accurate events or situations that are been followed in an
organization.
The scope of the study is limited only to the INDIA INFOLINE LTD.
located at Dilsukhnagar, Hyderabad. Due to time constraint the research may
not cover all the areas of HR practices at INDIA INFOLINE LTD, Still I believe
that the data collected at the organization can be recommended because it is
sufficient in giving the necessary suggestions.

NEED FOR THE STUDY:

Human Resource Planning has been deemed necessary for all
organizations for one or the other of the following reasons:
 To carry on its work each organization needs personnel with the
necessary qualifications, skills, knowledge, work experience, aptitude
for work.
 There is a constant need for replacing personnel who have grown old
or who retire, die or become incapacitated.
 It is essential because of frequent employees turnover which is
unavoidable and even beneficial because it arise from factors which
are socially and economically sound such as voluntary quits,
discharges , promotions etc.
 In order to meet the needs of expansion Programmes (which become
necessary because of increase in demand for goods and services by a
growing population, a rising standard of living) human resource
planning is unavoidable.
 The nature of the present work force in relation to its changing needs
also necessitates the recruitment of new employees. To meet the
challenge of new technology existing employees need to be trained.
It is also needed in order to identify areas of surplus personnel areas in which
there is shortage of personnel.

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OBJECTIVES OF THE RESEARCH:
 To know the recruitment and selection procedure in the company.
 To compare the recruitment and selection procedure of the company
with theoretical concepts
 To present the observations to the management,
 To improve the performance of existing system by giving suggestions

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RESEARCH METHODOLOGY:

SAMPLE DESIGN:
The total population in the organization was one hundred. The
sample chosen for attaining feedback contained of general managers,
managers, supervisors, foremen, employees etc. The sample size is 50.

SOURCES OF DATA :
The study is based on primary and secondary data collected in
INDIA INFOLINE LTD

PRIMARY DATA:
The primary data are that information which is collected afresh.
And thus happened to be original in character. These data are published by
the researchers who themselves are responsible for data collection.
Primary data can be collected in market by three basic
methods, viz., surveys, observations and experiments.
Data collected through interaction with the employees at INDIA
INFOLINE LTD.

SECONDARY DATA:
The secondary data are those which have already been collected by
some other agency and which have already been processed, generally
speaking secondary data is collected by some organization that satisfies its
own need but being used by various departments for different reasons.
Secondary sources of this survey are:
 Internet
 Through books

Sample selection: I have used Random sampling method; total sample size
is 50, covering all the departments in the company.

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STATISTICAL TOOL EMPLOYEED:
Since uniform scale was not used for analyzing the data,
“Percentage Method” was used to smooth out the differences in data for a
uniform analysis. It was also felt that interpretation would be easier with
Percentage Method. Bar diagrams were used to represent the data.

LIMITATIONS:
 As the project work was for just 45 days the research may not
cover all the areas of HR practices at INDIA INFOLINE LTD.
 The research program done in INDIA INFOLINE LTD may not
match with other organizations.
 The response given by the employees/ employee may not be
correct, because they want to maintain confidentiality.

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LITERATURE REVIEW

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RECRUITMENT

Recruitment forms the first stage in the process which continues

with selection and ceases with the placement of the candidate. It is the next
step in the Procurement function, the first being the manpower planning.
Recruitment makes it Possible to acquire the number and the types of people
necessary to ensure the continued Operation of the organization. Recruiting is
the discovering of potential applicants for actual or anticipated organizational
vacancies.

Defined:
“Recruitment is a process to discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measures
for attracting that man power in adequate numbers to facilitate effective
selection of an efficient workforce.” The purpose of recruitment is to locate
sources of manpower to meet job requirements and job specifications.
Recruitment has been regarded as the most important function of personnel
administration, because unless the right type of people are hired, even the
best plans, organizational charts and control systems would not do much
good.

Recruitment is a continuing function involving efforts to attract

employees equipped with desirable qualities to fill up the vacant positions
matching the personal qualities of the would be employees with the job
requirements. Thus it relates to the supply of potential employees for jobs in
an organization.

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Factors affecting recruitment;

All organizations, whether large or small, do engage in recruiting

activity though not to the same extent. This defers with
 The size of organization, rate of growth of organization
 The employment conditions in the community where the
organization is located
 The effects of past recruiting efforts which shows the
organization’s ability to locate, keep good performing people.
 Work conditions, salary benefit packages offered by the
organization- which may influence turnover & necessitates
future recruiting.
 The level of seasonality of operations and future expansion and
production programmes.
 Cultural, economic and legal factors etc.

RECRUTIMENT POLICY:

Recruitment policy asserts the objectives of recruitment and provides and

frame work of implementation of the recruitment programme in the form of
procedures. According to Yoder,” such a policy may involve a commitment to
broad principles such as filling vacancies with the best qualified individuals. It
may embrace several issues such as extent of promotion from within,
attitudes of enterprise in recruiting its old employees, handicaps, minority
groups, women employees, part time employees, friends and relatives of
present employees. It may involve the organization system to be developed
for implementing recruitment programme and procedures to be employed.”

A good recruitment policy must contain these elements,

 Organization’s objectives both in short term and long term must

be taken into consideration as basic parameter for recruitment
decisions and needs of the personnel.

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  Identification of recruitment needs to take decisions regarding
the balance of the qualitive dimensions of the would be recruits.
 Preferred sources of recruitment.
 Criteria of selection and preferences.
 The cost of recruitment and financial implications of the same.

According to Yoder,” the recruitment policy is concerned with quantity and

qualifications of man power” it established broad guidelines for staffing
process. A recruitment policy in its broadest sense, involves a commitment by
the employer to such principles as;

 To find and employ the best qualified persons for each job.
 To retain the best and mast promising of those hired.
 To offer promising opportunities for lifetime working careers.
 To provide programmes and facilities for personal growth on the
job.

Prerequisites of a good recruitment policy.

The recruitment policy of an organization must satisfy the following conditions;
 It should be in conformity with its general personnel polices.
 It should be flexible enough to meet the changing needs of an
organization.
 It should be so designed as to ensure employment opportunities
for its employees on a long term basis so that the goals of the
organization should be achievable and it should develop the
potentialities of employees.
 It should match the qualities of employees with the requirements
of the work for which they are employed.
 It should highlight the necessity of establishing job analysis.
SOURCES OF RECRUITMENT:

The organizations activity begins with considering the most likely source of
type of employee it needs rather than recruiting applicants. some companies

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try to develop new sources while most try to tackle the existing sources they
have. The sources of supply do not remain constant but vary from time to
time. This implies that managers must pay attention to local, statewide and
national factors responsible for the variability of sources. These sources may
be termed as internal and external mode of recruitment.

INTERNAL SOURCES:

Internal sources are the most obvious sources. These include personal
already on the pay roll of an organization. When ever any vacancy arises,
somebody from within the organization is upgraded, transferred, promoted.
This source also included personnel who were once on the payroll of the
company, but who planned to return or whom the company would like to hire,
such as those on leave of absence, those who quit voluntarily or those on
production lay-off..

Internal sources it includes:

(i) present permanent employees:

Orgaizations consider the candidates from this source for higher level jobs
due to
(1) Availability of most suitable candidates for jobs relatively or equally
to the external source.
(2) To the policy of the organization to motivate the present employees

(ii) Present temporary or casual employees;

Organizations find this source is fill the vacancies relatively at the lower level
owing to the availability of suitable candidates or trade and pressures or in
order to motivate them on the present job.

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(iii) Dependends of deceased, disabled, retired and present employees:

Some organizations with a view to developing the commitment and

loyalty of not only the employee but also his family members and to build up
image provide employment to the dependents of deceased, disabled and
present employees. Such organizations find this source as an effective source
of recruitment.
Merits:
 It improves the morale of the employees.
 The employer is in a better position to evaluate those employed
than outside candidates. This is because the company maintains a
record of the progress, experience and service of its employees.
 It promotes loyalty among the employees for it gives a sense of
job security and opportunities for advancements.
 The employees require little training, as they are aware of the
company’s policies and operating procedures resulting in low cost
and less time.

Demerits;
 It often leads to inbreeding and discourages new blood.
 There are possibilities that internal sources may dry up and it may be
difficult to find requisite personnel from within an organization.
 On jobs, which require original thinking, this practice is not followed.
 As promotion is based on seniority the danger is that capable hands may
not be chosen.
EXTERNAL SOURCES:

External sources lie outside the organization. they include new

entrants to employees force, the un employed with the wide range of skills
and abilities; retired experienced persons; others not in the employees force.

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 These sources include the college students, the un employed
outsiders, retired experienced persons and others not in the employees force.
It is further sub-divided as:

(i) Campus recruitment:

Most of the organizations contact various educational institutions

in order to get in experienced candidates. The bio-data of each candidate is
obtained from the institution and evaluated for the selection process after the
recruitment in the campus is completed indicates that the number of members
constituted by the most effective recruiting them should be between 30 and 45
and they should have through knowledge of the company and the job.
(ii)Private employment agencies:
These agencies or consultants are appointed by the
organization to perform the recruitment function on behalf or Client Company
by charging fee so that the company can concentrate more on their
operational activities.

(iii)Public employment exchange:

They provide information about vacancies to the candidate and
also help the organizations in findings out a suitable candidate.
(iv)Professional organizations:
These organizations maintain complete bio-data or executive
and provide the same to the various organizations on requisitions
organizations find this source useful to recruit experienced and professional
employees.
(v)Data banks:
The management can collect the bio-data of the candidates from
different sources like employment exchange, educational training institution,
candidates themselves act and fed the particulars in the computer.
(vi)Casual applications:

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 Some times certain organizations consider the bio-data of the
candidate who apply casually for jobs through mail or handover the
application for the job in the personnel department.

Merits:
 External sources provide the requisite type of personnel having
skill, training and education upto the required standard.
 Since persons are recruited from a large market, the best
selection can be made without any distinctions.
 This source proves economical because potential employees do
not need extra training for their jobs.

Demerits:

 This system suffers from what is called “brain drain” especially

when experienced persons are raided or hunted by sister concerns.

Methods/Techniques of Recruiting:-
While recruitment sources indicate where human recourses may be procured
the recruitment methods and techniques deal with how these resources
should be tapped. As soon as the manpower manager has determined the
personal qualities required on part of the individual to fill a vacant position and
visualized the possible sources of candidates with these qualities, his next
step relates to making contact with such candidates.

Dunn and Stephens follow three-tier classification of recruitment method-

direct, indirect and third party.

Direct Methods:-
Most frequent used direct methods are the traveling of the recruiter to
schools, colleges, management institutes and university departments. This

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type of recruiting is performed in cooperation with the placement bureau of the
educational institutions providing assistance in attracting students, arranging
interviews and making available space and student resumes. The recruiter
should keep abreast of trends in recruiting activities of other companies so
that he plans his visits in time to recruit students.

Other direct methods include sending recruiters to establish at job fairs, using
mobile camps to visit shopping centers in rural areas and places where the
unemployed might be contracted. Indeed trade shows, country fairs, seminars
and elite business shows provide opportunities for advertising the company as
a good place to work which leads to recruiting the best candidates. Some
organizations prepare special recruiting booklets for applicants indicating
details about the company, its advantages and its employment opportunities.
These sheets provide information as to whether the potential applicants
should go through the process of a formal application.

Indirect Methods:-
Indirect methods involve mostly advertising in newspapers, magazines, trade
journals, technical and professional journals, radio, television, internet and
other electronic media. The choice of media, place and timing of the
advertisement and appeal to the reader all determine the efficacy of the
advertisement. The main point is that the higher the position in the
organization, or the more specialized the skills sought; the more widely
dispersed advertisement is likely to be.

According to Advertisement Tactics and strategy in Personnel Recruitment,

the points that need to be borne in mind are:
 To visualize the type of applicant one is trying to recruit
 To write out a list of advantages a company offers
 To decide where to run the advertisement

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Third Party Methods:
The most frequently used third party methods are public and private
employment agencies. Public Employment exchanges have been largely
concerned with factory employees and clerical jobs. They also provide help in
recruiting professional employees. Private agencies provide consultancy
services and charge a fee. They are usually specialized for different
categories of operations, office employes, salesmen, supervisory and
management personnel. Other third party methods include the use of trade
unions.

Third party methods include the use of commercial or private employment

agencies, state agencies, and placement offices in schools, colleges and
professional associations, recruiting firms, management consulting firms,
indoctrination seminars for college professors and friends and relatives.
It also includes employee referrals, trade unions, casual employees or
applicant at the gate, unconsolidated applications, voluntary organizations
and computer data blanks. The best management policy regarding
recruitment is to look first within the organization and then for external
recruitment.

Recruitment Practices in India:

The different sources for recruitment in India have been classified as
 Within the organization, Badli or temporary employees
 Employment agencies, Casual callers
 Applicants introduced by friends and relatives in the organization
 Advertisements, employees contractors

Assessment of the recruitment Procedure:

Sources of recruiting should be periodically evaluated.
The organization should first identify how an applicant was attracted to the
firm. The next step is to determine whether any one method attracts better
applicants. The last step is to use this information to improve the recruiting

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process. A successful and effective recruitment programme necessitates a
well-defined recruitment policy, a proper organizational structure, and
procedures for locating sources of manpower resources, suitable methods
and techniques for utilizing these and a constant assessment and consequent
improvement.

Selection Process:

The organization can make use of more than one source for carrying out the
recruitment procedure. Once the recruiting sources are identified, suitable
candidates are called for selection process.
Definition:
Selection refers to the “Process of offering jobs to one or more applicants
from the applications. Great attention has to be paid to selection because it
means establishing “the best fit” between job requirements on the one hand,
and the candidate’s qualifications on the other. Faculty judgment can have a
far-reaching impact on the organizational functioning.”
Significance of selection process:
Selection of personnel to man the organization is a crucial complex and
continuing function. The abilities of an organization to attain its goals
effectively and to develop in a dynamic environment largely depend upon the
effectiveness of its selection programme. If night personnel is selected the
remaining functions of Personnel Management becomes easier, the employee

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contribution and commitment will be an optimum level and employee –
employer relations will be congenial. In an opposite situation where the right
person is not selected, the remaining functions of personnel management,
employee-employer relations will not be effective. If the right person is he
becomes a valuable asset to the organization. In case of faulty selection, the
employee will become a liability to the organization.

Steps Involved In The Selection Process:

1. Application Form
2. Written Examination
3. Preliminary Interview
4. Group Discussion
5. Tests
6. Final Interview
7. Medical Examination
8. Reference Checks
9. Managers Decision
10. Employment

1. Application Form or Application Blank:

An application blank is a traditional, widely accepted device for
securing information from prospective candidates. It can also be
used as a device to screen the candidates at the preliminary level
itself.

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 An application blank provides preliminary information as well as an
aid in the interview by indicating areas of interest and discussion. It’s
a good means of quickly collecting verifiable (and there fore fairly
accurate) basic historical data (employees background) from the
candidate. It also serves as a convenient device for circulating
information about the applicant to appropriate members of the
management and as a useful device for storing information for later
reference. The information furnished by the candidate should be
relevant.
Some organizations make use of the Graphology technique where in
the candidate is assed to fill the application form in his own hand
writing so that tentative inference can be drawn easily. Information is
generally called on the items like family background, Educational
qualifications, work experience etc. The information enquired by
different organizations will vary and would be according to their
requirements.
The application blank of each candidate is then evaluated which is
carried out based on certain parameters like his background,
qualifications, experience , leadership, ability, emotional and writing
ability, human relations, habits, spouse and children etc.
2. Written Examination:
The organizations have to conduct written examinations for the
qualified candidates after they are screened on the basis of the
application blanks
so as to measure the candidates ability in arithmetic calculations, to
know the candidates attitude towards the job, to measure there
aptitude , reasoning knowledge in various disciplines and general
knowledge.
3. Preliminary Interview:
These interviews are short and known as “standard Interviews”. This
is conducted to solicit ness necessary information from the
prospective applicants and to assess their suitability for the job. The
information thus provided by the candidate may be related to the job
or personnel specifications regarding education, experience salary

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 expected, aptitude towards the job, age, physical appearance and
other requirements. Thus, it is a process of eliminating the
undesirable and unsuitable candidates. If candidate satisfier job
requirements, he may be selected for further process. This interview
is also useful to provide the basic information about the company to
the candidate.

4. Group Discussion:
It is a method where groups of successful applicants are brought
around a conference table and are asked to discuss either a case
study or job subject-marks. They are required to analyze, discuss,
find alternative solutions and finally select the sound solution. A
selection panel observes the candidates in the areas of initiating a
discussion , explaining a problem , soliciting unrevealing information
based on the given information and using common sense, keenly
observing the discussion of others , clarifying controversial issues,
influencing others ,speaking effectively concealing and mediating
arguments among the participants summarizing and finally
concluding aptly. Based on the observation, the selection panel
judges the candidates skill and ability and rank them according to
their merit.
5. Tests:
It would be difficult to organizations to evaluate the candidates
performance by only on the basis of application blank/or interviews.
Employment tests helps the management in evaluating the
candidates suitability to the job. These tests are also called as
psychological tests because psychologists have contributed a lot in
developing these tests. Employment test is an instrument designed
to measure the nature and degree of one’s psychological
potentialities based on psychological factors, essential to perform a
given job efficiently. The purpose of these tests is to help in judging
the ability of a candidate in a given job situation. The tests help in
determining subsequent success on the job.

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 Thus, tests are useful in selection, placement promotions,
performance appraisal and promotion appraisal.

Tests are categorized in to following 5 types:

(a) Aptitude Tests:
These tests measure whether the individual has the capacity
or talent ability to learn a given job if given adequate training.
Candidate is tested for his intelligence, or mental ability,
comprehensive power, reasoning memory and specific
aptitudes such as mechanical skills, manipulate capacity,
computation etc. through these tests.
(b) Achievement Tests:
These tests are conducted to test the job knowledge of the
candidate by asking direct questions or a portion of actual
work is given to the candidate and is asked to do it. Thus the
candidate achievement in his career is tested regarding
knowledge about the job actual work experience.
(c) Situational Tests:
This test evaluates a candidate in a similar real life situation
where by he is asked either to cope up with the situation or
solve the critical situations of the job.

(d) Interest Tests:

These tests have been designed to discover a persons area
of interest and to identify the kind of work that will satisfy him.
(e) Personality Tests:
These tests involve the use of unconventional tools like
graphology. Certain traits like analytical ability
communication skills, innovativeness, self confidence tact,
emotional control, optimism, decisiveness, patience,
alertness judgment dominance etc., are tested here. Another

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 technique that can be used to test the above projective tests
where the candidates have to draw inferences based on
ambiguous figures, pictures etc.
6. Final Interview:
The purpose of employment interview is to find out the candidates
mental and social make-up and to know weather the qualities
possessed by him make him suitable for a job in the concern.
The purpose of interview is definitely not to confuse the candidate
and, so to say, to defeat him. There fore it must be conducted in a
friendly atmosphere and the candidate must be made to feel at ease.
An employer tries to achieve an exacting appraisal of an applicant,
his previous experience, and education, training and family
background through interviews. It enables the interviewer to judge
certain qualities (manners, neatness, appearance, ability to speak
meet other people pleasantly and make a good impression on the
others) of the prospective candidate before he is selected. It also
gives an opportunity to make judgment on the candidates
enthusiasm, and intelligence and also assess subjective aspects” of
the candidate facial expression, appearance, nervousness etc.

Four kinds of interviews for selection has been identified:

(a) Preliminary Interview:
These are preliminary screening of the applicants to decide weather
a more detailed interview will be worth while. The applicant is given
job details during the interview to afford him freedom to decide
weather the job will suit him. It is argued that preliminary interviews
are unsatisfactory, first because they may lead to the elimination of
many desirable candidates, and second because of many desirable
candidates, and second because interviews may not have much
experience in evaluating candidates. The only argument for this
method is that its saves the companies time and money.
(b) Stress Interview:
These are deliberate attempts to create pressure to observe how an
applicant performs under stress. The most important advantage of

22
 stress interview is that it helps to demonstrate important personality
characteristics which would be difficult to observe in tension free
situation.
However, this interview must be done carefully by trained and skilled
interviewers. Emotionally disturbed persons should not be subjected
to stress. It should not be done at beginning of the interview because
this can make it impossible to compare a candidate’s customary
behavior with this behaviour under stress. The applicant should be
given a chance to recover from the stress before he leaves.

(c) Depth Interview:

It covers the complete life history of the applicant and includes such
areas as the candidates work experience, academic qualifications,
health, interest and hobbies. It is an excellent method for executive
selection performed by qualified personnel. It is however costs and
time consuming.
(d) Patterned Interview:
These interviews are combination of direct and indirect questioning
of the applicant. What is to be asked is already structured. The
interviewer has already certain clues and guidelines to areas which
should be probed deeply. The interview also encourages the
candidate to express the relevant information freely.
7. Medical Examination:
Certain jobs require certain physical qualities like clear vision perfect
hearing, unusual stating, tolerance of hard working conditions clear
tone etc. Medical examination reveals weather or not a candidate
possess these qualities. The basic aim of this examination is to judge
weather the applicant is medically suited for the specific job.
8. Reference Checks:
After final interview and medical examination, the personnel
department will engage in checking references, candidates are
required to give the name and address of the reference in their
application form. These references may be from the individual who
are familiar with the candidates academic achievements or from the

23
 applicants previous employer who is well versed with the applicants
job performance, and even sometimes from the co- employees The
information extracted from the concerned people through these
references are job title , job specification and description, period of
employment, pay and allowances, gross emoluments, benefits
provided, rate of absence, willingness of the previous employer to
employ the candidate again, candidates regularly at work , character,
progress etc. checks on references are made by mail or telephone
and occasionally in person.
9. Final Decision by the Line Manager:
It is the last and final stage of the selection procedure. The
consumed line manager has to make the final decision weather to
select or reject the candidate after soliciting the required information
from different selection techniques.

10. Employment:
After taking the final decision the organization has to intimate this
decision to the successful as well as unsuccessful candidates. The
organization sends the appointment order to the successful
candidate either immediately or after some time depending up on its
time schedule. At the same time, certain organizations also dispatch
the rejection letters to the unsuccessful candidates accordingly.

Placement:
Placement is defined as “The determination of the job to which an accepted
candidate is to be assigned and his assignment to that job”.
When once the candidates reports for the ducts, the organization has to place
him initially in that job, for which he selected. Immediately the candidate will
be trained in various related jobs during the period of probation of training or
trail. The organization generally decides the final placement after the initial

24
training is over on the basis of candidates aptitude and performance during
the training or probation period which ranges between six months, and two
years. If the performance is not satisfactory, the organization may extend the
probation period and ask the candidate to quit the job. If the performance is
satisfactory, his services will be regularized and he will be placed permanently
on a job.

Induction:
It is “The process of receiving and welcoming the employee when he just joins
the company and giving him the basic information he needs to settle down
quickly and happily and start the work”.
The new employee who is designed as a probationer to the job, is introduced
to the job location, surroundings, organizations, various employees etc. this is
conducted because of the problem of adjustment and adaptability to the new
surroundings and environment. Further, absence of information, lack of
knowledge of new environment, cultural gap, behavioral variations, different
levels of technology variations in the requirements of the job and the
organization also disturb the new employee. Further, induction is essential as
a new comer may feel insecure shy, nervous and disturb. Hence, induction
plays a pivotal role in a acquainting the new employee to the new
environment, companies rules and regulations.

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26
 COMPANY PROFILE

COMPANY PROFILE
It was originally incorporated on October 18, 1995 as Probity Research and service
Private Limited at Mumbai under the companies Act, 1956 with Registration no:
1193797.We commenced our operations as an independent provider of information
analysis and research covering Indian businesses, financial market and economy, to
institutional customers. We became a public limited company on April 28,2000 and
the name of company was changed to Probity Research and service Limited .The
name of the company was changed to India Infoline.com on May 23, 2000 and later to
India Info line Limited on march 23, 2001.

India info line was founded in 1995 by group of professionals with impeccable
educational qualification and professional credentials. Its intuitional investors include
Intel capital (world’s leading technology company), CDC (promoted by UK govt),
ICICI, TDA.

27
INDIA INFOLINE group offers the entire gamut of investment products including
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www.indiainfoline.com has been the only Indian website to have been listed by none
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Stock and commodities broking is offered under the trade name 5paisa. India Infoline
Commodities Pvt. Ltd. A wholly owned subsidiary of India Infoline Ltd., holds
member ship of MCX. Com It has more than 800,000 customers. In December 2000,
our subsidiary, India Infoline Insurance services Limited became a corporate agent for
ICICI Prudential Life Insurance Company Limited. And emerged as one of the
leading corporate agent for ICICI Prudential Life Insurance Company Limited.
In the year 2004, company launched commodities broking through our subsidiary
India Infoline commodities private Ltd.
(Over View of the company)
The IIFL (India Infoline) group, comprising the holding company, India
Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of
India’s premier providers of financial services.

IIFL offers advice and execution platform for the entire range of financial
services covering products ranging from Equities and derivatives,
Commodities, Wealth management, Asset management, Insurance, Fixed
deposits, Loans, Investment Banking, Gold bonds and other small savings
instruments.
We have a presence in:
Equities our core offering, gives us a leading market share in both retail and
institutional segments. Over a million retail customers rely on our research, as
do leading FIIs and MFs that invest billions.

28
Private Wealth Management services cater to over 2500 families who have
trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice.

Investment Banking services are for corporates looking to raise capital. Our
forte is Equity Capital Markets, where we have executed several marquee
transactions.

Credit & Finance focuses on secured mortgages and consumer loans. Our
high quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong
capital adequacy of approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge
Nifty ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open architecture

complete our product suite to help customers build a balanced portfolio.
IIFL has received membership of the Colombo Stock Exchange becoming the
first foreign broker to enter Sri Lanka. IIFL owns and manages the website,
www.indiainfoline.com, which is one of India’s leading online destinations
for personal finance, stock markets, economy and business. IIFL has been
awarded the ‘Best Broker, India’ by FinanceAsia and the ‘Most improved
brokerage, India’ in the AsiaMoney polls. India Infoline was also adjudged as
‘Fastest Growing Equity Broking House - Large firms’ by Dun & Bradstreet.
A forerunner in the field of equity research, IIFL’s research is acknowledged
by none other than Forbes as ‘Best of the Web’ and ‘…a must read for
investors in Asia’.

Our research is available not just over the Internet but also on international
wire services like Bloomberg, Thomson First Call and Internet Securities
besides others where it is amongst one of the most read Indian brokers.

29
IIFL is a listed company with a consolidated group networth of about Rs 1,800
crores. The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs.
2.1 bn respectively.

The Group has a consistent and uninterrupted track record of profits and
dividends since its listing in 2005. The company is listed on both Exchanges
and also trades in the derivatives segment.

IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and
ICRA (A1+) respectively. For long term, IIFL has been rated ICRA(AA-) by
ICRA and CRISIL AA-/Stable by CRISIL indicating high degree of safety for
timely servicing of financial obligations.

IIFL is near you physically: we are present in every nook and cranny of the
country, with over 3,000 business locations across 500 cities in India. You can
reach us in a variety of ways, online, over the phone and through our
branches. All our offices are connected with the corporate office in Mumbai
with cutting edge networking technology. The group caters to a customer
base of about a million customers.
Our physical presence in key global markets includes subsidiaries in
Colombo, Dubai, New York, Mauritius, London, Singapore and Hong Kong.

At present company has a network of 73 branches across 36 cities in India we plan to

set up 77 additional branches in 50 cities across India for our different business
including broking insurance, Commodities and distribution of mutual funds other
investment product.

30
Promoters (Hint :- CEO, Directors)
Board Of Directors
Mr. Nirmal Jain Chairman
Mr. R. Venkataraman Managing Director
Mr. Nilesh Vikamsey Independent Director
Mr. Kranti Sinha Independent Director
Mr. A. K. Purwar Independent Director
Sunil Kaul Independent Director
Core Management Team
Bharat Parajia MD, IIFL (Asia) Pte Ltd.
Pratima Ram CEO, Credit & Finance
Karan Bhagat MD, IIFL Wealth Management Ltd.
H. Nemkumar President, Institutional Equities
Aniruddha Dange President, Institutional Equities

31
Vasudev Jagannath President, Institutional Equities
Nipun Goel President, Investment Banking
Mukesh Kumar Singh President, Insurance
Prasanth Prabhakaran President, Retail Broking
R. Mohan Chief Compliance Officer
Narendra Jain Chief Operating Officer
Pallab Mukherji President, Human Resource
Sankarson Banerjee Chief Information Officer

IIFL (India Infoline Ltd) - Corporate Structure

32
33
FACT SHEET (MILESTONES)

History And Milestones

2011
Launched IIFL Mutual Fund.
2010
Received in-principle approval for membership of the Singapore Stock
Exchange
Received membership of the Colombo Stock Exchange
2009
Acquired registration for Housing Finance
SEBI in-principle approval for Mutual Fund
Obtained Venture Capital license
2008
Launched IIFL Wealth
Transitioned to insurance broking model
2007
Commenced institutional equities business under IIFL
Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
2006
Acquired membership of DGCX
Commenced the lending business
2005
Maiden IPO and listed on NSE, BSE

2004
Acquired commodities broking license
Launched Portfolio Management Service
2003
Launched proprietary trading platform Trader Terminal for retail customers
2000
Launched online trading through www.5paisa.com Started distribution of life
insurance and mutual fund

1999
Launched www.indiainfoline.com

1997
Launched research products of leading Indian companies, key sectors and the
economy Client included leading FIIs, banks and companies.
1995
Commenced operations as an Equity Research firm

Awards & Recognition

- Awarded "The Best Wealth Management House" in india.

34
 - Forbes rates www.indiainfoline.com as the "Best of the Web" and
recommends "...must read for investors"
- Awarded "Most Improved brokerage" in india by AsiaMoney as a part of its
survey of brokerages in countries across Asia for 2008
- Awarded "Best Broker-India" by FiananceAsia as a part of its survey of
financial services firms across Asia for 2008.

35
Latest Financial Information (Hint :- How the company is perfuming in the
recent years) - IT IS NOT COMPULSORY

BROKERAGE SERVICES

36
Online Brokerage: We offer subscribers real time trading on the NSE and BSE Apart
from this we also offer commodities
Trading on the MCX and NCDEX. Customer can directly place orders to buy and sell
securities through our automated order processing system.
Offline Brokerage: We began offering offline brokerage service as a back upto our
online brokerage offering through our branches. This was mainly to address the
internet access problem faced by some of our retail customers.

Competition
Broking: we face competition from small retail distributors (traditional)
and pan India brokers like Kotak Securities Ltd
S.S Kantilal Ishwarlal securities Ltd, India bulls Securities Ltd,
ICICI Web Trade limited, Geojit, financial Services Ltd etc.
Distribution: we face competition from small retail distributors (typically single
outlet unorganized units), brokers who have a distribution set, old and established
distribution companies like blue chip Corporate Investment Center Limited, Bajaj
Capital Ltd, Karvy Securities Ltd, and banks including their PMS and Wealth
Management desks.
Our strength: our strengths are our contents and research online technology and
customers services.
COMPETITORS OF TARNAKA BRANCH

 Share khan
 SBI
 Religare
 Indian bulls
 Karvy.

37
DATA ANALYSIS
AND
INTERPRETATION

38
1). What made you join INDIA INFOLINE LTD?

No of A(SALRY) B(LIKE C(NEAR TO D(PROSPECTS)

response FORGNG) MY PLACE)
No of 15 12 13 60
respondents
Percentage 15% 12% 13% 60%

.
Interpretation:
60% of the people joined the organization because of its good career
prospects, 15% of the people joined for the salary, 12% of the people joined
the company because it is near to their place and remaining people joined the
company as they like forging industry From the above observations it is clear
that most of the people joined Vyb of its good career prospects.

39
2). In your company through which of the following external source you are
recruited
No of A(through B(consultants) C(any D(none
response advt) other) of the
above)
No of 20 20 50 10
respondents
Percentage 20% 20% 50% 10%

Interpretation:

50% of the people are recruited through internal source, 20% of the people
are recruited through advt, other 20% are recruited through consultants and
remaining are recruited through some other external sources. The company is
giving more importance to internal source of recruitment, though some people
are recruited though advt. and consultants, more emphasis is laid on internal
source of recruitment.

40
3). In your company through following internal source recruitment is done?
No of A(employee B(promotions) C(known D(none of
response relatives) references) these)
No of 10 20 40 30
respondents
Percentage 10% 20% 40% 30%

Interpretation:
40% of people joined through known reference, 20% of the people through
promotions, 10% through employee relatives. It is clear that most of the
people joined through known reference, company is giving more importance
to this method to build a good industrial relation.

41
4). How do you describe the selection and recruitment process in INDIA
INFOLINE LTD

No of response A(traditional) B(modern) C(depth study)

No of 60 10 30
respondents
Percentage 60% 10% 30%

Interpretation:

60% of the people described it as traditional, 30% described it as In-depth

study remaining described it as modern. By the above observations it is clear
that most of the employees are recruited through traditional method.

42
5). The objective of recruitment policy at INDIA INFOLINE LTD is based on

No of response A(to attract the B(on time C(to infuse fresh

best) recruitment) blood in org)
No of 60 30 10
respondents
percentage 60% 30% 10%

Interpretation:

60% is to attract the best talent, 30% feel that it is on time recruitment and
remaining feel to infuse fresh blood in the organization. It seems to be that the
main objective of the recruitment policy in the company is to attract the best
talent,
Which helps the company to reach new heights.

43
6). Should scientific procedure of recruitment and selection be adopted for
employee employees at lower levels?

No of response A(Yes)
B(No)
No of 85 15
respondents
Percentage 85% 15%

Interpretation:
85% of the people say that scientific procedure of recruitment and selection
should not be adopted for employing employees at lower levels remaining
people need scientific procedure at lower levels.Most of the people are not in
favor of applying Sscientific procedure of recruitment and selection for lower
level employees/ employees

44
7). According to you, the standards being followed for the process of
recruitment and selection of an employee in the organization are

No of response A(good) B(satisfactory) C(be improved)

No of 20 70 10
respondents
Percentage 20% 70% 10%

Interpretation:

70% of the people say that it is satisfactory, 20% of the people say that it is
good remaining felt that it should be improved. Most of the people are just
satisfied with the recruitment and selection process of employees.

45
8). Is selection policy in INDIA INFOLINE LTD unbiased and employment
oriented

No of response A(Yes) BNo) C(No response)

No of 15 65 20
respondents
Percentage 15% 65% 20%

Interpretation:

65% of the people are in an opinion that it is unbiased, 20% of the people
gave no response and the remaining said that there is some bias. Most of the
people say that it is unbiased and employment oriented, some people have
not responded to the question.

46
9). Do you vote the selection policy in INDIA INFOLINE LTD is so well designed
that it can replace basic training?

No of response A(Yes) B(No)

Nom of respondents 25 75
Percentage 25% 75%

80
70
60
50
40
J OB
30 S
20
10
0
A B

Interpretation:

75% of the people are in the opinion that selection policy in INDIA INFOLINE
LTD is not so well designed that it can replace basic training and the
remaining felt that it can replace basic training. From the above figure it is
clear that most of the people are in an opinion that the selection policy is not
so well designed.

47
10). Among the two which do you prefer for recruiting CEO and other top
executives
No of response A(centralized) B(decentralized)
No of respondents 70 30
Percentage 70% 30%

Interpretation:

70% of the people prefer centralized way for recruiting CEO and other top
executives, remaining prefer decentralized way. Most of the people are
preferring centralized way for recruiting top executives, it seems to be that,
they want to avoid wastage of time in recruiting and making decisions.

48
11). What are the key attributes for selecting a candidate
No of response A(technical B(cultural C(work D(all
skilled) fit) minded) the
above)
No of respondents 15 5 25 55
Percentage 15% 5% 25% 55%

Interpretation:
55% of the people are in an opinion that all the three attributes should be
taken into consideration, 25% of the people prefer work minded, 15% prefer
technically skilled and the remaining prefer cultural fit. More than half of the
people are in an opinion that all the three attributes i.e., Technically skilled,
Cultural fit and work minded should be taken into consideration while
selecting a candidate.

49
13). Do you think man power planning in INDIA INFOLINE LTD is perfect

No of response A B
No of respondents 65 35
Percentage 65% 35%

Interpretation:

65% of the people felt that it is perfect and the remaining arse in an opinion
that it should be improved. Most of the people feel that the man power
planning in the company is perfect some people feel that it is not perfect.

50
14). whom do you prefer in selection panel
PEOPLE A(immediate B(H R manager) C(all the above)
superior)
JOBS 25 15 60
Percentage 25% 15% 60%

70
60
50
No. Of People

40
Series1
30
20
10
0
A B C

Interpretation:

60% of the people prefer both immediate superior and HR manager, 25% of
the people prefer immediate superior and the remaining of them prefer HR
manager. From the above figure it is clear that more than half of the people
prefer both immediate superior and HR manager in selection panel

51
15). Do you want to add any other steps in the selection procedure?
No of response A (yes) B (no)
No of respondents 85 15
Percentage 85% 15%

100
80
No. Of People

60
Series1
40
20
0
A B

Interpretation:

85% of the people are satisfied with the selection procedure and the
remaining felt that it should be improved. Some people suggested that
group discussion and stress interview. should be added in selection
procedure.

52
 FOR HR DEPARTMENT:

1).Do the management is maintaining data bank of applications

No of response A B
No of respondents 0 100
Percentage 0 100%

120

100
No. Of people

80

60 Series1

40

20

0
A B

Interpretation:
Management is not maintaining any data bank of applicants.

53
2). Do you think the recruitment and selection procedure in INDIA INFOLINE
LTD differ from those of theoretical concept
No of response A B
No of respondents 100 -
Percentage 100% -

Interpretation:

The total recruitment and the selection process is according to theoretical

concept.

54
FINDINGS

55
FINDINGS

These are the following observations and findings which are prevailing in
INDIA INFOLINE LTD. They are
1. Mostly internal source of recruitment is going on in INDIA INFOLINE LTD
Most of the people joined INDIA INFOLINE LTD because of good carrier
prospects.
2. The standards being followed for recruitment and selection is just
satisfactory.
3. Employees are not aware of the modern methods of recruitment which
company is using currently.
4. Few employees felt that their exists some bias in selection procedure.
5. Selection process is not so well designed that it can replace basic
training.
6. The present form of recruiting CEO and other top executives in the
company is good.
7. Man power planning is not up to the mark.
8. Once employee is placed in to a particular job, HR department is giving
proper employee orientation program.
9. Industrial relations are very poor.
10. The HR department is not maintaining employee databank.
11. Recruitment and selection policy is according to theoretical concept.

56
Conclusions

57
Conclusions

The INDIA INFOLINE LTD. was established in the year 2000 at Dilsukhnager in
hyderabad. The unit is involved in the manufacture of high quality, Ferrous
and Non-Ferrous Forge components with the basic objective of providing
defect free products by applying innovative & latest techniques in their
operations and to ensure continuous improvement in all areas i.e. quality,
cost, delivery & services. It’s a forging company, there exists separate HR
department to look after the needs of human resources.
Coming to my research Recruitment and selection procedure is well designed,
but it showed to make some changes for effectiveness, like giving more
preference to external recruitment, well designed selection procedure should
be adopted etc.
Present form of recruiting top executives is good, overall recruitment and
selection policy is satisfactory.

58
Suggestions.

59
Suggestions.

 As the company is more of manufacturing mechanical engineering

components and the function is production the manpower is expected
to have thorough knowledge of production procedure, standard
production skills, the man power planning in the company is not up the
mark, more skilled persons should be given preference while planning
human resource.

 Presently it is observed that mostly internal source of recruitment is

done, but in some levels where planning and other managerial skills
are required it is suggested that external source are also to be
considered.

 Regarding recruitment and selection policy, it is observed that most of

the employees felt it is traditional, people are not aware of the
companies modern process which it is existing currently. The line
managers should take the responsibility to educate the consumed
persons about the modern features involved in the selection process
and how it benefits the employee and the company.

 Though most of the people said that selection policy is unbiased, but
HR department should care of those people who felt that there is some
bias. HR department should educate the employees and prove
themselves that there no bias.

 Standards being followed for the process of recruitment and selection

of an employee are not up to the mark, HR department is advised to
improve it.
 HR department should organize workshops, seminars and meetings for
the lower level employees stressing the need of scientific procedure of
recruiting and change the mind set of the lower level employees, also
HR department should gear up the lower level employees to face and

60
 prepare for a scientific interview and selection process. It should strive
hard to increase the awareness of lower level employees in this aspect.
 While recruiting the top executives apart from experience, qualification,
work minded, technical skills, communication abilities and patience
should be taken in to consideration.
 Telephonic interview, communication ability tests, stress interviews ate
some stops to be added in the selection procedure.
 HR department is advised to maintain databank of employees.

 Lastly but more importantly the industrial relations in the company are
very poor, it may lead to painful circumstances in the future. So HR
department is advised to have good tools for the analysis of all
disputes. Disagreements of employees standards, minute failure are
also to be brought to book and analyzed carefully and immediate
remedial action in terms of employee development, grievance handling
or training is to be taken up.

61
QUESTIONNAIRE

I SANDYA pursuing MBA from KARUNA P.G COLLEGE doing a project

entitled “RECRUITMENT & SELECTION PROCESS”
I request you to kindly fill up the following questionnaire and assure that the
data provided will be used for the project.

Name:
Experience:
Department:
Designation:
Please tick the appropriate box.
Q) Did which method recruit you into the organization?
a)Internal Method
b)External Method
Q) If you have nevewr supervised, how do you feel about assuming those
responsibilities?
Q) Describe what would be an ideal working environment?
Q) How do you describe the selection and recruitment process in India
Infoline limited?
Q)Describe what would be an ideal environment?
Q) If by internal method,by which method were you recruited ?
Q)After screening of the application how didn the organization approach
you?
a)direct call for interview

b)call to attend the test

c)direct appointment

62
Q) If called for test what kind of test did you appear go?

a) technical test

b)aptitude test

c)psychological test

d)subject test

Q) If called for interview what kind of interview did you face?

a) formal and structured

b) informal and unstructured

c) stress interview

d) board interview

Q) How many rounds of interview did you face H R Manager?

a) three members interview

b) head of the department interview

Q) Is the process of recruitment and selection satisfactory or dissatisfactory?

a) yes

b) no

q) What measures do you suggest for effective recruitment and selection

process?

63
BIBILOGRAPHY

64
 BIBILOGRAPHY

Books

Personnel Management C.B.Mamoria

Organization Behaviour L.M.Prasad

Personnel/Human Resource Management P.Subba Rao &

V.S.P.Rao

Web Sites Browsed

WWW.goldstonetech.Com

WWW.Google.Com

WWW.humancapitalonline.Com

65
 ABSTRACT
This study examines the concept of the “RECRUITMENT AND
SELECTION” in relation to the “INDIA INFILINE LTD” in
harmony plaza, himayathnagar, Hyderabad aspecifically looking
at the ground crews. The research will identify whether
independent variables such as recognition, rewards etc., have a
significant relationship to an employees satisfaction and total
work environment.

 Though most of the people said that selection policy is unbiased, but
HR department should care of those people who felt that there is some
bias. HR department should educate the employees and prove
themselves that there no bias.
FINAL CONCULSION states that it focuses on work teams,
skill development, and also focuses on redesigning efforts
based on socio-technical systems with a wide variety of
onterventions such as quality circles.

66
 CHAPTER.1

INTRODUCTION

67
 CHAPTER.2

REVIEW OF LITERATURE

68
CHAPTER.3

COMPANY
PROFILE

69
CHAPTER.4

DATA ANALYSIS

70
 CHAPTER.5
FINDINGS & SUGGESTIONS

71
CHPTER.6

APPENDICES

72
 CHAPTER.7

BIBLIOGRAPHY

73