IIM Ranchi || Pensol Industries Ltd

Navigating theRecruitment and SelectionProcessGuide for Pensol Industries Managers/Supervisors

Prepared and Provided by:IIM RANCHI, Human Resource Management Students (PGDHRM 2013-15)ALOK GUPTA (H004/13) DEVANSHU WADHAWAN (H009/13) MEGHDOOT MUKHERJEE (H014/13)NISHIT KUMAR MINZ (H020/13) RUSSELL WARJRI (H030/13)SATVIR SINGH (H034/13) SHAILESH JAYACHANDRAN (H036/13) SULABH DAIGAVANE (H041/13)Acknowledgement

We take the opportunity to express our gratitude to all of them who in some or other way helped us to accomplish this challenging project on Recruitment and Selection. No amount of written expression is sufficient to show my deepest sense of gratitude to them.

Weare extremely thankful and pay our gratitude to our faculty guide Mr Andrew Dutta for his valuable guidance and support on completion of this project in its presently.

We are very thankful to Mrs Ruchi Agarwal (HR Manager) for her everlasting support and guidance on the ground of which we have acquired a new field of knowledge.

This task would not have been successful without unlimited resources of our Institute library. Special thanks to Mr Jayanta Tripathy, library in-charge of IIM Ranchi.

At last but not the least, gratitude goes to all of our friends who directly or indirectly helped us to complete this project report.

ALOK GUPTA alok.gupta13h@iimranchi.ac.inDEVANSHU WADHAWAN devanshu.wadhawan13h@iimranchi.ac.inMEGHDOOT MUKHERJEE meghdoot.mukherjee13h@iimranchi.ac.inNISHIT KUMAR MINZnishit.minz13h@iimranchi.ac.inRUSSELL WARJRI russell.warjri13h@iimranchi.ac.inSATVIR SINGH satvir.singh13h@iimranchi.ac.inSHAILESH JAYACHANDRAN shailesh.jayachandran13h@iimranchi.ac.inSULABH DAIGAVANE sulabh.daigavane13h@iimranchi.ac.in

INTRODUCTION

Recruitment and selection are two of the most important functions of personnel management. Recruitment precedes selection and helps in selecting a right candidate. Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient personnel.

Staffing is one basic function of management. All managers have responsibility of staffing function by selecting the chief executive and even the foremen and supervisors have a staffing responsibility when they select the rank and file workers. However, the personnel manager and his personnel department is mainly concerned with the staffing function. Every organisation needs to look after recruitment and selection in the initial period and thereafter as and when additional manpower is required due to expansion and development of business activities.

Right person for the right job is the basic principle in recruitment and selection. Every organisation should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and essential for the orderly working of an enterprise.

Every business organisation/unit needs manpower for carrying different business activities smoothly and efficiently and for this recruitment and selection of suitable candidates are essential. Human resource management in an organisation will not be possible if unsuitable persons are selected and employment in a business unit.

To carry out a detailed study on the Recruitment and selection of a company, we selected Pensol Lubricants. Founded in 1972, as a partnership, and converted into a closely held Public Limited Company in 1995, Pensol Industries Limited, has grown to become one of the largest independent manufacturers of lubricants in India. Recognized nationwide for its innovative lubricants and industry related specialty products, Pensol today boasts of a vast product portfolio manufactured as per the exacting national and international quality standards of API, JASO, BSI etc.

Why Pensol? Firstly, it is located in the heart of Ranchi which helped the group to conduct a detailed study about the company. Secondly, Pensol considers its Human resources to be of core importance for the success of the company. One of its values states Treating our human resources as our greatest asset and ensuring that all possible steps are taken to facilitate the well-being, growth and retention of our huge pool of talented employees Thirdly, the company was very supportive and professional when we approached them for this project.

Background of Company

An ISO 9001:2008 certified company, Pensol Industries registered office is at Mumbai, India along with two regional offices - one in eastern India at Ranchi (Jharkhand) and second one at Indore (MP). Pensol Industries Ltd has grown to become one of the largest independent manufacturers of lubricants in India.At present, Pensol Industries Limited has a wide range of products, both in Automotive and Industrial lubricants, and is a market leader in automotive greases in India. With its two state-of-the-art manufacturing plants in India (Namkum, Jharkhand and Pithampur, M.P.), the Company has been successful in creating a niche for themselves in the lubricant segment in India.Pensol Industries Limited was founded in 1972, as a partnership, and converted into a closely held Public Limited Company in 1995, it has grown to become one of the largest independent manufacturers of lubricants in India. Recognized nationwide for its innovative lubricants and industry related specialty products, Pensol today boasts of a vast product portfolio manufactured as per the exacting national and international quality standards of API, JASO, BSI etc.Under the able leadership of its founder Mr. C. B. Khemka, Pensol Industries has witnessed a steady and appreciable growth. During the last four decades, the company which started out with just one product - Monoutility Grease - today boasts of a product mix of more than 150 different lubricants and greases. At present, Pensol Industries Limited has a wide range of products, both in Automotive and Industrial lubricants, and is a market leader in automotive greases in India. With its two state-of-the-art manufacturing plants in India (Namkum, Jharkhand and Pithampur, M.P.), the Company has been successful in creating a niche for themselves in the lubricant segment in India.Since its inception Pensol Industries Limited has formulated and followed the philosophy of charting its own unique path in the market. At Pensol, the management is fully aware of the changing markets - the increased competition and complexities that necessitate a firm resolve towards ceaseless innovation. It is committed to continuously invest in skills, technology, facilities and manpower to keep abreast with the latest changes. Its success is the result of its strategic business alliances with its agents, distributors, business partners and customers. It is also commitment to provide quality products at competitive price which is one of the key focus points of our companys philosophy. With more than 40 years of experience, Pensol remains committed in providing high quality lubricants and services.The vision of the company is to be the leading lubricants and functional fluids company with a global market share and offer innovative lubrication solutions that customers can implicitly trust. It aims to become a leading lubricants and functional fluids company with a global market share amongst the top competitors, To achieve its strategic vision and mission, it focuses on the following core aspect - Human Resources, Customer Centric Approach, Excellence in Execution, Team Work and Innovation.As a part of its Corporate Social Responsibility, Pensol is also deeply committed to developing a sustainable business environment conducive for long term growth and prosperity. It proactively seeks out opportunities to make positive and tangible differences in a variety of ways that are both directly and indirectly related to its service lines. Pensol has taken concrete steps to build value for the communities within which it operates. The company deeply respects its employees and has taken continuous steps to build value for its stake holders. In addition it proactively seeks out new solutions and technologies to develop techno-economically viable and environment-friendly products. In the last 40 years, Pensol Industries Limited has also supported several community and social initiatives covering educational, cultural, social and environmental projects across the nationPensol Ranchi circle has set different targets trying to cover the rural as well as urban market. The products are readily available in the market. The company is trying to expand and compete in this segment. The company is not able to market their products in this region because the sales people who are being hired find difficult to gel in with the culture of Ranchi. Also branding is very important for a product to be sold. The people who are hired work for some time and then switch the company or leave the company due to personal as well as family reasons. People are not stagnant here. The company hires local people who have idea about lubricants and also have work experience in these areas. The current process is not working here because of shortage of manpower. Also the people who are hired here dont have professional degree. When they are hired they are given inductiontraining and are given the job role as sales representatives. The Pensol lubricants in Ranchi lack manpower due to which the company is not able to hold its place in the market (both rural and urban).The people who are hired are normally graduates. The person who does marketing in urban has to also do marketing in the rural areas. Due to this selling of lubricants is not effective and result oriented and targets are not reached. The company sets two kinds of targets 1) Yearly based 2) Target Based. The employee numbers are not much. The number of people working in eastern region is about 100 and its trying to increase the number up to 200.

Recruitment and Selection Practice

Recruitment and selection is an important, time-consuming and expensive process. Effective and non-discriminatory selection of employees maximises the companys use of human resources, and reduces the chance of costly errors. It is essential to good administrative and educational practice. Selections to positions within the Company are based on the principles of appointment on merit and the provision of equal employment opportunity. The appointment of employees must be made on the basis of the individual capacity of the person having particular regard to the knowledge, skills, qualifications, experience and potential for future development of that person in their employment. Selection on the basis of merit means that the grounds for the decision must directly relate to the inherent requirements of the position and prevents those decisions being made on unjustified discriminatory grounds such as: race, colour, national or ethnic origin, nationality sex or gender, sexual preference, marital status, pregnancy, status as a parent or a carer religious or political belief or activity, industrial activity age, physical features, disability, medical record personal association with a person who is identified by reference to any of the listed attributes You have a vacancy, where do you begin? First, review the job description: Is it up to date?Does it encompass all of the critical competencies necessary for the incumbent to perform thejob? Work with CHR Compensation to get the position classified. Submit the job description inthe People Admin system for review and classification. Once the job description has beenreviewed and classified by Compensation, you may create and enter your requisition in the people admin system to start the recruitment process.Pensol Industries ltd Employment Process General Overview

The Organizational structure of Pensol Industries ltd

The recruitment process marketing and sales executive essentially tries and answers the following 4 questions. Who makes a good employee for Pensol company for the position of marketing and sales executive? How to get these people to apply? How to screen these people? How to select these people?In order to answer the above questions, HR departments head starts with the strategic question, What is the objective of recruitment?As per the information shared by Mrs Ruchi Agarwal (HR Manager) the main requirement for the organization is generated from two possible ways: If there is a shortage of manpower If employees are not working properlyOut of these two the main requirement occurs due to the shortage of man-power. Being a middle level company, attrition rate at the level of Marketing and sales executives which is an entry level position in this organization is relatively high. The recruitment process is initiated almost every quarter. This requirement is analyzed on timely basis and takes care of the shortage. The company being a middle level company does not have large number of hierarchies.The recruitment strategy that the company follows is as given below.Requirement assessment and approval: 1st and foremost the requirements are assessed at the position of marketing and sales executive. It is done as a joint exercise between marketing & sales head and the HR head of the company. It is an iterative process. It involves developing Job description and Job specification. Since the company is mostly operational in east and south of India as far after the requirements of marketing and sales are concerned, the job summary states that executives are required to work in different locations in east & south understanding market for different lubricants; give business & statistical insights via reports on lubricant industry, company products, competition products & future trends on industry & products. Executives are required to conduct local launch and promotion events. They are also required to ensure sales of products at the retailer level and act as a co-ordination point between retailers, wholesalers and regional office. The job requires them to move around in the field. The job specification states that executives should be well versed with the vernaculars of the region located in, must have knowledge of lubricant industry, market research.Executives must have skills of writing business reports, communication etc.Once the job description and job specifications have been developed, HR department goes on to revise compensation structure in the light of new requirements. Once the requirements have been understood, they send it for the approval from the higher authority or there senior managers. They wait till the proposal has been approved and then take the next step.Notification of Job: The job notification is given after the requirements are approved by the managers. There are mainly two ways which they use in order to recruit people at the level of marketing and sales executive Internal resource or by peer referral Consulting firmsSince the company has a total strength of 200 employees company does not get enough candidates from internal referrals. Thus, Consulting firms are the main source of their recruitment. Since, these firms have a large database related to people- sales and marketing in lubricant industry, the company prefers having access to data from these consulting firms as and when required. In spite of these major recruitment sources, the other way that they use some times are online portals like naukari.com.As far as the consulting firms are concerned, they charge 5 to 8.33 percentage of the total of the employee salary. Filtering: After the notification has been given to the consulting firms and employees, these consulting firms and employees provide resumes to the HR department.The company always demands applications at least 5 times the actual requirement. Though this number is less than the thumb rule of 7 X actual requirement but since the knowledge, skills and abilities required for the job are not very technical or very industry specific, this number has been giving them satisfactory results. Out of these submitted applicants the HR filter the application forms based on the job description and job specification developed before releasing notification. The company provided in sights in to filtering criteria that experience, relatively young age knowledge of vernacular is definitely taken in to account. These applicants are selected on the following criteria: At least Experience of 2-3 years in the relevant area Local language Should know basics of marketingInterview: Since it is field job where they take experienced people, test step of the process is not required to be conducted. After resumes have been filtered, HR conduct the following two interview: Telephonic interview Personal interviewFirst, the telephonic interview is conducted; it saves time and money for company. Depending upon their performance of the candidates in the telephonic round, people are further short listed. The selected people are called for personal interview.The company does not have a very long hierarchy, thus the personal interview are conducted by the senior managers and then candidates are judge based on the performance on telephonic and personal interview together because some of them perform well in telephonic interview and fail to show themselves in the personal interview. Over a period of time, company has developed an objective marking criteria based on different parameters. 2 lists are prepared. One of the lists consist of candidates who have been selected while the other one consists of waitlist candidates.Probationary Period: The candidates are given conditional offer letters subject to successful medical test and other requirements. The probationary period is of 3/6 months and they are judged for their performance. If they perform well as per the standards set by the company then they are declared as regular employees and confirmed.

References Strategic Staffing by Jean M Philips and Stanley M Gully http://www.humanresources.utas.edu.au/__data/assets/pdf_file/0008/8918/rs_guide_prac.pdf http://www.cipd.co.uk/nr/rdonlyres/01f95685-76c9-4c96-b291-3d5cd4de1be5/0/9781843982579_sc.pdf http://www.uvm.edu/extension/agriculture/faccp/files/aglabor/employee_recruit.pdf http://humanresources.nuim.ie/documents/recruitmentandselectionguidelines.pdf http://www.chr.ucla.edu/chr/portaldocs/emp/empdoc-guide-interviewandselect.pdf http://www.wnc.ac.uk/Documents/About-Us/Working-Here/Recruitment%20and%20Selection%20Procedure.pdf http://www.pensolind.com/