Project Report

On

Recruitment and Selection Process:

Submitted for the

Post Graduate Diploma in Management

In

Marketing & Human Resources

Under The Guidance of Submitted by

Mr. Gaurav Sharma Mohd Affan Ali 7895531199

Department of Masters of Business Administration

Khandelwal College of Management Science & Technology

Kalapur Bareill 252001 UP. (India

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CERTIFICATE

TO WHOM IT MAY CONCERN

This is to certify that Mohd Affan Ali S/o Mujeeb ur Rehman a bonafide pi

persuing PGDM from KCMT Bareilly (UP) successfully competed Forty Five

Days internship (From 15 Jun, 2014 to 30 July, 2014) at this organization.

His internship activity includes familiarization to all HR and Marketing work

and other official process and there management.

Cg Education and Placement Advisor

Charanjeet Juneja

(Director)

______________________________________________________________________________

www.cgcareergroup.co.in

247, 3rd floor, Sant Nagar Main Road East of Kailash New DelhI-110065

Contact: 011-26224833, +91 9540879596, 9971223768

ACKNOWLEDGEMENT

“Acknowledging the debt is not easy for us as we are indebted to so many people”.

I take this opportunity in expressing the fact that this project report is the result of incredible amount of encouragement, co-operation, and moral support that I have received from others.

I would like to express my gratitude from the core of my heart to my Mentor

Ms. Bindu singh, who helped me in coordinating my entire project. Their

consistent support and cooperation showed the way towards the successful

completion of project.

I would like to express my deep sense of gratitude to all the members of Job

achievers, who directly or indirectly helped me during my project work.

Mohd Affan Ali

RECRUITMENT AND SELECTION PROCESS:

CASE OF COMPARISON IN RECRUITMENT PROCESS OF PINEWOOD

CHEMICAL LIMITED (manufacturing) and VIRASAT-E-KHALSA (services).

Abstract: In this research paper, a study I have been made on the recruitment and

selection processes between the two different sectors, i.e; Manufacturing sector and

Services sector. The study indicates various techniques used by the two companies, that is,

Kudos Chemical Limited, that is a manufacturing company and Virasat-e-Khalsa which

belongs to the services sector. The study made under observation comprises of the services

and guidance of a recruitment agency called Job achievers, that is functioning from its office

at Chandigarh, to provide job opportunities to the deserving candidates, in mostly areas in

Punjab.

Index Terms: Recruitment, Selection

1) INTRODUCTION

The two companies undertaken in the project study comprises of a manufacturing firm

named PINEWOOD PVT. LTD and a servicing unit named TCS. The former is having a

chemical base and is in the business of manufacturing “caffeine”.

The latter is a service unit, having the structure of a theme museum, in which the culture of

Punjab has been depicted in a versatile manner. Both of the companies need an adequate

base of employees, who can carry out the various functions int the firms. Due to the

different nature of the working aspects of these two firms, the recruitment and the

selection process of both the firms are entirely different.

The only area in which the recruitment process of these two firms concides is that both the

firms seeks out the help of recruitment agencies to find the appropriate and deserving

candidates for their firms. The project report, hereby, includes my work at such a

recruitment agency named “JOBACHIEVERS” under which I studied the recruitment and

selection processes of various firms and prepared my project report on the comparison

between the recruitment and selection process of a manufacturing firm and a service firm.

The process of recruitment begins with the sending of the “Job description” by the

company. The job description is comprising of the following requirements:

1) Position vacant

This very first point, clarifies to the recruiter, for which required position, the candidate is

needed. The recruiter then makes use of the data that is available to him, or creates new

data of the candidates. Since I undergone the training in a job consultancy, there was pre-

recorded data already available. Thus, the recruiter can contact the person and can make

him attend the scheduled interview for the required post.

2) Examining the Job description

The Job description provided by the company tells the recruiter, the complete insight of the

position vacant and also provides the knowledge of what the company is seeking in the

required candidate. Understanding the complete JD (Job description) only can help the

recruiter to move to the next step. If the recruiter fails to understand the need of the

company from the JD provided, then all of the steps undertaken by the recruiter would turn

out to be a failure.

3) Finding the required candidate

The major work of the recruiter begins here. The companies are loaded with many

responsibilities, due to which they put the pressure of the recruitment and selection of the

required candidates on a job consultancy firm. Since these firms basically, are into the

business of recruiting only, so they are having much broader aspect and determination for

the access and selection of the job seekers, plus the job providers.

Here, there are some major tools that a recruiter put to use to, in order to generate new

data, which comprises of the required candidates relevant to the given job description.

“JOB PORTALS”, usually called “PORTALS”, in midst of recruiters, are the major source of

providing the data required for the relative job description. The recruiter has the access to

these portals, by paying an amount to these portals. These portals contain the data of

candidates from almost every part of the world, ranging from a wider aspect of

qualifications and experiences.

These job portals have some very famous names among them. “NAUKRI.COM”,

“SHINE.COM” and “MONSTER.COM” are some of the major job portals that are having the

bio-data of millions of candidates. The job-seeking candidates upload their resumes on

these portals, so as to open up their profiles to the recruiter and to update themselves by

the latest and the relevant opportunities in the market.

The job portals have a specific area called the “EMPLOYER’S ZONE” , through which the

recruiter can make his/her personal account and can post the relevant job and can send

invites to the desired and qualified candidates. The desired candidates can then reply to the

message sent by the recruiter, through his/her own message.

These job portals provide a very efficient method of posting the job by the employer or

recruiter. The recruiter can post the job through the “Search-Post” method or he /she can

simply search for the desired candidates through “advanced search” and can find out the

resumes of various candidates. These portals have a special feature in which some of the

portals give the contact number of the candidate to the employer without charging any fee,

and some portals do not provide this offer to the employer.

4) Interviewing the candidate

After the candidates have been shortlisted by the recruiter, the candidates are called for the

interview. For this purpose, the recruiter prepare a logical approach to make the candidate,

understand the job for which the candidate is required and also interview him/her on the

basis of their qualification and experiences.

In some of the cases, the recruiter is the only one who conducts the interview by himself.

An aspect when the recruitment process is handed over to a recruiting agency, the

candidates are called upon and interviewed by the agency people only. The company

always would have foretold the recruiter about the kind of candidates required, for a

specific job.

5) Job Analysis

The next and the foremost part of the job procedure is “Job analysis”. When the recruiter

finally get the required candidate, then he/she has to prepare an analytic form of the work,

the employee has to do. This complete process is called “Job analysis”. Job analysis,

basically, is the procedure for determining the duties and skill requirements of a job and

the kind of person who should be hired from it.. (Reference: Human resource

Management,11th edition,ch.4)

Job analysis further further produces information that is to be used for writing Job

Descriptions. Job analysis is further necessary to support several human resource

management activities. In case of recruitment and selection process, job analysis provides

information about what the jobs entails and what human characteristics are required to

perform these activities. This information, in the form of job descriptions and

specifications, helps managers decide what sort of people to recruit and hire.

Job description is again a product of job analysis. Jon description is a list of a job’s duties,

responsibilities, reporting relationships, working conditions and supervisory

responsibilities. Job description then further helps in training and development process,

because it lists the job’s specific duties and requisite skills.

Thus job analysis, is a basic tool that is required bby the recruiter in making the candidate

understand the job carefully and properly. Certain other activities related to human

resources like Performance Appraisal, compensation and Legal compliances are also

dependent on the Job analysis procedure.

In this manner, the whole recruitment and selection process from the side of a recruitment

agency is done.

Now the question arises that if the whole recruitment process goes through such a

systematic, simplified and step-wise manner, then why do companies hire

recruitment agencies for this purpose?

The answer to this problem lies in several layers. The companies relies on the recruitment

agencies for a number of reasons, that they can fulfill by simply hiring a recruitment

agency, rather doing it themselves. Some of the reasons for their hiring the recruiters are;

1) To save the time doing the recruitment.

Since the recruitment process is a very prolonged and time-constraint activity, that

requires keen observation and insight of the candidate’s perspective, qualification and

approach towards the job, so the company, by hiring a recruitment agency, save that time

of theirs, to accomplish some other task. The HR department of a company deals with a lot

many activities related to legal compliance of the company, the compensation methods and

procedures for the employees etc. so the time for hiring the new candidates become a

tough job for the department, as such they have to devote their time for a prolonged and a

careful approach of finding the right candidate for the vacant position in the organization.

So the organization finds it easier to hire a recruitment agency for the purpose of the

recruitment and selection of the candidates.

The recruitment agency, having its due attention and business approach towards hiring the

right candidates for the right job, pay its full and foremost attention towards the hiring of

the candidates. Thus, by saving the time of the organization, they also provide the required

candidates for being the employees for the particular organization.

2) Convenience of coordination

When it comes to the convenience of coordination within the organization and the

recruitment agency, it becomes much more easier to coordinate with each other regarding

the Job descriptions, the interview handling and the final selection of the candidates. The

company finds it easier to connect with the recruiters to discuss only a few important

points on the recruitment process and not on the entire selection process. Thus, it becomes

easier for the organization to coordinate with the agency, rather than handling the

prolonged process of selection themselves.

Also, the organization can keep a check on the activities of the recruitment agency by

employing an individual to maintain and record the progress made by the agency and to

prevent any sort of misunderstanding regarding any job constraint.

The coordination process between the organization and the recruitment agency, is a major

factor of the successful completion of the recruitment and selection process of the

candidates. So, it has to be very accurate and must be in due agreements within the two

firms. Due to this convenience, the organization put their steps forward in hiring a

recruitment agency rather than handing this process by themselves.

3) Replacement Policy

A significant and most prominently, a plus-point feature, why an organization depends

much on a recruitment agency for hiring employees for them, is the “REPLACEMENT

POLICY”. Many of the recruitment agencies (also the one in which I worked in) provide this

unique feature. To be stated, the recruitment agencies works the way like the candidate

who is seeking a job and is interested in the posted job by the recruiter on the portals, has

to first register him/herself in that particular agency. The agency has their charges from

the candidates for the registration purpose. After the candidate is registered in the agency,

the interview is done by the recruiter or the candidate is sent to the HR manager of the

organization for the interview purpose. If the candidate got selected in the interview, the

agency charges for their part in the selection process. These charges are of two different

aspects.

a) If the company needed a candidate for a vacant position in their organization and

proposes a JD for the same, then after the selection of the candidate, the recruitment

agency charges its salary part from the company itself. The agency then, do not take

any amount from the employee’s end.

b) If the candidate is seeking a job in a reputed organization and contacts the

recruitment agency for the desired job, then the company sends the candidate in a

particular company for interview and if he/she gets selected there, then the agency

charges its part from the employee’s end and not from the company’s end.

This is how the recruitment agencies work. Now, for the point mentioned above, if a

candidate who is selected for the job and is placed in the organization, declines from the job

or leaves it due to some valid reason, within a given time of probation of the organization,

then again the position of that particular personnel would be left vacant. Here comes the

role of the recruitment agency again. According to the replacement policy, if such an

employee, who is provided to the organization by that agency, leaves the organization

within a given time of probation, then the recruitment agency is RESPONSIBLE for hiring

another candidate fir the same position, without charging any amount from the company’s

end.

Due to this replacement policy, it become an advantage for the organization to hire a

candidate from the due help of a recruitment agency and not by themselves as the chances

of getting a good candidate from the one who is purely into the business of recruiting, is

very high. And also, the organization do not have to allocate its time in searching for an

another efficient candidate for the job, by again investing money on the whole procedure

again.

Thus, the replacement policy is also a major factor, why an organization hires a recruitment

agency for hiring their employees.

Now that it is clear, that why organizations rely much on hiring candidates from the

recruitment agency’s side and not by themselves, we can now move on to the part that

indicates some special characteristics of the recruitment agencies. Due to these

characteristics, the recruitment agencies are considered to be the efficient choice of the

organizations for hiring candidates for them, and also by the candidates to provide better

options for the job opportunities.

1) Act as Intermediates.

There are several instances when a job-seeking candidate cannot access the interview

dates of an organization from the data available on the sites of the organization. The

general data available on these sites are only the overview of what the organization do, and

what progress they have made in the present. Most of the sites only talk about the

achievements of the organization. Inspite of all this, very few companies have sites in which

an option to upload the resumes by the candidates interested for job, is available. The

company also has a reason, NOT to put that option on its websites to avoid spam and

unwanted comments.

Now, the difficulty arises that neither the person who need the job, is able to upload

his/her resume on the company’s website, nor the company is having any resume or data

of any personnel that is required for some vacant post in the company.

Thus, in such cases the recruitment agencies act as intermediates between the job-seeking

candidate and the organization. These agencies have their tie-ups with the companies and

thus after receiving the appropriate JD, starts searching for the required candidates. Thus,

the candidate who is having the required qualification but was unable to get access to the

company, can also reach to interview desk, through the help of the recruitment agencies.

As a result both of the side’s purpose is served. And the recruitment agency get to act as the

intermediates between he two sides.

2) Can approach for collaborations.

The recruitment agencies, as are in the business of open recruiters, so they can approach

any organizations for the tie-up. To clarify this point, it is well known, that many of the

organizations have rivalries among them or even companies have cut throat competencies

between them. Due to this thing, these organizations do not communicate with each other.

But since each side of the business groups want good candidates for their organizations, so

they indulge in tie-ups with the recruitment agencies. It is the job of the recruitment

agencies then to make candidates available to all the business groups, without creating any

favoritism and to work without having any influence of any organization.

Moreover, the recruitment agencies are not bound by any sort of restriction by their

collaborators, not to approach any of the business units for business purpose. These

agencies can approach to the organizations that are having a small business unit to that of a

large one, ranging from manufacturing sectors to service sectors and from the government

-owned organizations to the private players of the market also.

The range of these agencies also depends on the sizes of them. Some recruitment agencies

run in a larger unit offices and some of them operates from smaller offices. Most of the

agencies still have the work process in them as manual, that is candidates records etc. are

kept as manual files and data are maintained in registers or folders. But now on, the

recruitment agencies are taking a broader range, operating in big offices and the work

process there is also shifting from manual to computerized. That is, the data entry of the

candidates are done in computers and special softwares are created that can access the

incoming JD’s from the companies and can search the suitable matching candidates from

the available data.

The candidates are contacted immediately through an E-mail or a message to the contact

numbers of the candidates and there are less chances of spam or missing entry and also the

chances of a missed candidate, decreases to a large extent.

3) Cut the competencies.

This is critical point to be mentioned and explained in the report, but is the extreme feature

of the agencies also. Since, the recruitment agencies have tie-ups with many organizations

and also deals with the business groups who are having rivalries or tough competencies

among them, so at many times, one organization can approach the recruitment agency to

get the employees of some other organization to join a job in their own organizations, at

more pay-packages than the previous ones.

Among all of the strategies that an organization applies to make its venture successful, this

is also one of the strategies of the company to cut the competency given to them by other

companies. Since every organization is well aware of the deserving assets of the other

organization, the organizations at many times tries to cut this competition by hiring those

employees of the others who are solely responsible for the success of any project, by

offering higher pay-packages to these employees. If the employee is committed to the

organization, he/she does not accept the offer but many cases are there, in which this thing

happen.

Now, the part of the recruitment agency comes like, that one organization cannot approach

the employees of the other, directly. So they do it through the recruitment agency. The

agency, on the behalf of the other organization approach those desired employees and

make an offer to them, for the higher package for the shift in jobs plus the organizations.

Thus, being a rather critical point to be mentioned here, it is a point that is also a

characteristic of the recruitment agencies though being a disputable one.

4) Provide candidates a broader range of opportunities.

The recruitment agencies are having a larger range of dealing with different agencies. .

These agencies can approach to the organizations that are having a small business unit to

that of a large one, ranging from manufacturing sectors to service sectors and from the

government -owned organizations to the private players of the market also.

Since both the companies and the candidates with qualification, need each other, but only

due to the lack of coordination, a better talent and a better job opportunity is lost, both of

the sides has to suffer. Now, due to the role played by the recruitment agencies in the midst

of them, the job-seeker gets a better job opportunity for themselves according to their

qualificati0on and experience, at the same time the organization also gets a better

employee for their work who can lead the company to success in the coming future.

As the range of the agencies is very broad, the candidates also get access to various other

opportunities which they can work up depending on certain abilities of them. Many of the

recruitment agencies have the job access to more than 1 or 2 places. They can provide the

deserving candidates a whole lot of openings to their career.

2) PROJECT BACKGROUND

2.1) PINEWOOD PVT. LTD

2.1.1) BACKGROUND OF THE COMPANY

Website of the company:

PINEWOOD Private. Limited is a manufacturing company which is in the business of

manufacturing “SYNTHETIC CAFFIENE”, a substance that is commonly found in various

products like Coffee etc., Chemicals, Potassium Chloride, Caustic Soda Pills, Aluminum

Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. the company is located at

Mohan Cooperatives New Delhi

The company is operating in a huge plant situated at Mohan Cooperatives New Delhi.

Nearly 1800 employees are already working on the rolls of the company. The HR

department of the company has an active group of 16 members, who handles the entire

works like recruiting and selecting the employees, regulating and controlling the attrition

rate, managing payrolls etc.

The Company is dealing in the making of various chemicals, thus having a huge chemical

base. The recruitment process for the required candidates is usually conducted by the

recruitment agency. The company, as mentioned, is having the business of manufacturing

chemicals, so the main requirement of the candidates is from the field of chemical

background.

Currently, the company is also undertaking other projects in which it is including

pharmaceuticals branch and therefore, includes the recruitment and selection of

candidates having degree in pharmacy.

2.1.2) AREA OF BUSINESS

Kudos chemical limited, as the name suggests, is a chemical manufacturing company, which

deals in the production of Synthetic Caffeine, Chemicals, Potassium Chloride, Caustic Soda

Prills, Aluminum Sulphates, Hydrochloric Acids, and Sulphuric Acids in India. The

company is having its huge chemical base, operating in a significantly great operating unit

functional at Mohan Cooperatives New delhi.

For its functioning, the company basically requires persons who have complete knowledge

of the chemical field. “Chemical Engineers” are in a great demand in this manufacturing

unit. Candidates, who are having either a diploma or degree in chemical field, are always

required in the plant. The company generally starts off with the initial post of an executive

and moves over thereafter.

The manufacturers of these chemicals have a great deal of bonding with the other chemical

manufacturers. The clients of this company are also distributed in every part of India. The

products manufactured in this unit goes to the manufacturers of various other products,

like synthetic caffeine goes up in the production of coffee, chocolates etc. and hydrochloric

acid goes to the manufacturers of salt production.

Thus, this unit deals in chemicals and therefore many manufacturers dealing in similar or

somewhat different products.

3) COMPARISON GROUNDS

3.1) OWNERSHIP

PINEWOOD Private. Limited is a privately owned company, which is having all of its

business into the manufacturing of chemicals like Synthetic Caffeine, Chemicals,

Potassium Chloride, Caustic Soda Prillss, Aluminum Sulphates, Hydrochloric Acids, and

Sulphuric Acids in India.

3.2) STABILITY PURPPOSE

No doubt, every company believes to have a stable employee who can work up to his/

her fullest, also by being stable. Stability in a company usually states that the person

should not switch to some other organization in between an estimated period of

probation.

Since the company is liable to provide training to the freshly employed candidates for

the prescribed work, the employee must get the training before he/she can think of

promotion.

Generally, the employees are much more concerned about their designation and the

also the salary expectations of these candidates are very high. Keeping this thought is

not purely incorrect but first of all, the candidate has to qualify himself for the wishes of

his own. That is why; this is also in the norms of the company to start from an initial

moderate salary according to the qualification and experience of the candidate, and to

provide him training of the work that he/she is supposed to do in the company.

The organization checks the stability to the personnel by allotting a time period of

probation. Now in this time, the company trains the employee and also checks the

stability.

Many cases are there in which the candidates appearing for job interview, already have

work experience, that is, they have worked in an already running organization. so, the

chances of their job shifting are many more, including the salary issues. While

interviewing such a candidate, the recruiter keeps a check on the candidate’s last work

location and the field in which he worked in. if the recruiter finds out that that the

candidate is shifting his/her job very quickly and frequently within 4-5 months, then

the thought always come across the recruiter that such a candidate would not be stable

in an organization for a longer period of time. Many recruiters avoid hiring such an

employee because if the employee leaves an organization, then the organization also

suffers. The organization then, has to find a new employee, shortlist candidates,

conducts interviews and moreover, have to incur expenditure on the training and

development procedure of the new employee.

Thus, the stability of an employee is an important factor, which the organization and the

recruiter keeps in mind while employing a candidate, so that the organization do not

serve a loss again, and the recruiter keeps this thing in mind due to the norms of the

“Replacement Policy”.

3.3) SALARY PACKAGES

In most of the cases, while sending the JD’s (Job Description) to the recruiter, the

organizations also mentions the initial pay packages that has to be offered to the

deserving candidates. It is mentioned in the norms of the organization, what salary has

to be given to the employees according to their qualification and experiences.

There are some special norms of the organization according to which the salaries of the

employees have been decided by the HR Department of the organization, keeping in

mind the legal compliance of the company. The HR department mentions the salary

packages that have to be given to the employees of various scales and experiences.

The recruiter, while interviewing the candidates, keeps in mind the salary norms. If the

recruiter after interviewing the candidate finds him/her eligible for the required jobs,

then the last step is to discuss the Job location and the salary packages. The recruiter

has to offer the candidate the set amount of salary package that comes along with the JD

sent to him by the organization itself. Now, again according to the qualification and

experience of the employee, the salary gets changed.

If the candidate is a fresher in his/her field then, the salary package initially begins from

Rs. 7000/- and then grows as the candidate works his way forward in the company.

PINEWOOD Chemicals Limited has certain set norms for the candidates according to

their experience, and their qualifications.

If the candidate is having diploma in the field of chemical engineering, then the

candidate has to start at Rs. 5000 initially. If the candidate is a graduate having a degree

in the required field, then the initial salary package is Rs. 7000 for him. And the

candidate who is having an experience in the required field, the starting salary package

is Rs 10000-12000, initially.

As per about incentives, the company is responsible for the transportation facilities for

the candidates. The company provides the candidates with increments, according to the

time-span of the work and the quality and amount of work that is to be done bby the

candidate in his/ her allocated period of time.

3.4) PROBATION PERIOD

Every organization has a specific period of probation for the newly hired employees.

This probation period is usually called “Training Period” in the employees generally.

The probation period is set by the organization in order to train the new employees and

to see the skills of the qualification they have.

PINEWOOD Chemical Limited is generally having a probation period of 1 year, for its

newly hired employees. Since, the plant operating is very large and there are a number

of works that are ongoing in a line, so the company has to train is employees about

every work that is in process. Since, the candidates are already from the chemical

engineering background so the company faces a quite minor problem to train the

candidates as they do not have to start off from the beginning.

The probation period is also having another important factor indulged in it. Sometimes

the employee hired does not find the job comforting or the the company feels that the

hired candidate is not up to the mark or is having some problem while adjusting with

the job. The probation period decides this very thing. The company gets to see the

knowledge and skills of the employee and the employee also gets a hint of how his/her

career would go, being in such an organization.

PINEWOOD, however gives and takes a time of 1 year to get a complete insight of the

employee, and also provides the candidate with the adequate time to think and get

through with his/her job process. If in this period of time, the employee wants to quit

the job, he/she can do that. The company does not impose any responsibility on him/

her until then. But once the candidate comes ON-ROLLS, then unlike the previous

employees, the newly hired employees also comes into the compliance of the company

and they have to give a 3 months’ notice, before they resigns from the job.

In the probation period, the company provides the interns with a particular amount of

money, that is called, stipend, as the employees are under training period. The proper

salary amount are not given to them until they complete their training period and become

permanent employees of the company. So, again gets time to check the stability of the

newly hired employee, working as an intern in the company.

Within the probation period, as the organization becomes aware of the skills and

knowledge of the employee and has also put a test to the learned up knowledge of the

employee, to testing, the probation period helps the organization to set the salary package

for the candidates. No doubt, the skillful candidates acquire better salary packages after

their good performances in this probation period and few employees gets sacked due to

their poor performance in this probation period.

This is why; the probation period is necessary as well as important both for the employee

as well as the organization.

3.5) RECRUITMENT PROCESS

Another significant, yet most important, differentiation comes in the RECRUITMENT

PROCESS in the organization. Since, PINEWOOD Chemical Limited is a manufacturing unit,

so that’s why the recruiter has to keep in mind, the work background and the qualification

of the candidate in mind. While doing the recruitment, we see to it that the organization

was mainly having the demand of chemical background people. So, before we begin the

recruitment process, we have to completely understand the JD received from the company.

Half of the process is completed at the end of the recruiter, if we understand the JD

completely.

Also, the company’s also requires different categories of employees. Sometimes the

requirement is of the diploma holders and sometimes the requirement is of degree holders.

So, candidates are called according to their qualification and their experience. Then begin

the interview process. The recruiter calls the candidate, reminding him/ her to bring

his/her resumes or CV”S. we then take an interview of the candidate as per his/her

qualification as mentioned in their resumes. The questions asked generally, are related to

their field and relative to the aptitude of the candidate.

If in some cases, the organization demands to interview the candidates themselves, then

the recruiter’s job is to shortlist the candidates and sends the deserving and interested

candidates list and the soft copies of their shortlisted resumes, to the HR of the

organization.

In PINEWOOD Chemical Limited, the interview is conducted by the HR manager of the

company, but the screening of the candidate is done at Cg Placement only (Cg Placement is

the recruitment agency here, in which my training was done). At Cg Placement, the

candidates are called along with their resumes and the screening is done initially. Then, the

shortlisted candidates are then sent to the company located at Mohan Cooperatives. There,

the final interview of the candidates are done by the HR manager of the company.

Thereafter the candidates are selected accordingly by the HR manager of the company.

The selected candidates’ name and date of joining of the job is then sent to the recruitment

agency(Cg Placemen ts, in this case). The company then provide the agency with the

amount that has to be submitted to the agency as their fee for the work.

After that, the agency also keeps a record of the candidate’s work profile and the

satisfaction level of his/her job there. This is due to the reason, because in case if the

candidate quits the job in the probation period or within 3 months, then the agency has to

re-recruit another candidate at the same place, keeping in mind the “Replacement Policy”.

Thus, the training and the development of the newly hired employee, is bkept on record by

both the recruitment agency as well as the organization.

3.6) INTERVIEW CONDUCTION

Interviews are the most popular methods for obtaining job-related information. They may

range from completely unstructured interviews to highly structured ones in which job

analysts follow detailed questionnaires in asking their questions. (Reference: Human

Resource Management, 11th edition, ch 4)

Interview conduction, is a point of differentiation, because of its mode of conduct and by

whom the interview is being conducted. In this study, this point came under observation

due to the following two points:

a) Mode Of Conduct

The mode of conduction of the interview is again of two types: Structured and

Unstructured Interview.

Unstructured Interview is an unstructured conversational-style interview in which the

interviewer pursues points of interest as tey come up in response to questions. In these

interviews, the managers do not follow a set pattern

Unlike the unstructured interviews, the structure d interviews are having a set pattern, that

is the interview follows a sequence of questions. These are such kind of interviews that are

based on carefully selected job-oriented questions with predetermined answers that

interviewers ask of all applicants.

Now, mentioning this point was the main cause of understanding the differentiation of it. In

Kudos chemical Limited, the interview approach shifts from unstructured to structed,

depending on the need of the job-profile of the candidate. Explain this point, the candidate

may or may not be asked questions related to his field. He/she may face an unstructured

interview in which questions about his previous job, reason to leave that job and about the

previous company’s management can be asked in the beginning of the interview.

This is how, the interview’s mode of conduct is important.

b) Panel of interviewers

This point differentiates the interview mode in such a manner, that the differentiation

could be done at this point.

In Kudos Chemical Limited, generally the interview is taken by the HR manager of the

company. Since, the HR department of the company is quite broad and efficient, thus the

team of members of the department, are sometimes in the panel made for the interview

purpose. The company gives the recruiter, the authority to conduct a screening of the

candidates prior to the interview. Thus the recruiter at first, have to short list various

candidate on the basis of their qualification and experience, and then also have to conduct a

short screening based upon the field to which the candidates belong.

The candidates are asked questions about their code of conduct in the previous company, if

they have worked somewhere else before. Also, the recruiter asks question checking the

stability of the candidate, that is, whether the candidate is having a positive attitude

towards the job or he/she is just doing the job for money purpose, because such a

candidate would not be loyal to the company, as per ther company norms.

After the screening of the candidates, the recruiter sends the deserving candidates to the

company for the final interview purpose. The company has its full team of HR department

who are in the process of recruitment and selection and handles the interviews of the

shortlisted candidates very effectively according to their needs and skills required int the

candidates.

After the selection of the candidates, the information is sent back to the recruiter about

how many of the shortlisted candidates are selected and the amount incurred by the

recruitment company is being given to them by the company.

3.7) DESIGNATIONS PROVIDED

This point is also a part of the differentiation. The designation provided by “Kudos

Chemical Limited” to the newly hired employees is of a “Production Executive”. After the

training of the candidates are done, then the newly hired employees work in the

organization on the post of a production executive. The salary packages of the employees

are also given according to the scale of the employees and their designations in the

company.

At first, all of the newly employed candidates work on the designation of “Production

Executives” and then work their way out. The designations keep on shifting as the

employee work proficiently and attains promotion during his/her work period. The

employees also have to work in the departments suited to their profiles, as the recruiter

and HR department feels to put the candidate into.

The company is having many divisions like Quality Control, Research and Development and

many others. The candidates are having their specialization in some of these fields but

after the interview, the organization decides in which division the candidate has to be

placed.

Also, the organization also provides a way of “Job Enrichment”. For doing this, the company

keeps shifting the positions of the employees so that they may not feel fatigue while doing

the same work every day.

Since all of the employees have got the training about starting of a work during their

training period, so the employees do not face any problem in the beginning of the work.

And in the way ahead, the employees have their supervisors, who introduce the new

projects and the work to be done, so that the employees do not have to face any problem,

while performing the shift in the work.

3.8) INCREMENTAL POLICIES

The organizations are having different incremental policies for the employees. Every

employee gets his/her increment based on 2 factors:

a) Time Period of the candidate in the organization.

The candidate is employed as a fresh candidate when he/she starts off with an initial salary

that is to be considered as the stipend of these candidates. The employees when have the

time period increasing on t heir account, then the organization according to their legal

compliance, starts giving off the increments to their employees.

The candidates also due to the process of job enrichment when have the continuous shifts

in work and starts becoming the important assets of the organization, then the incremental

policies again goes to a different scale for the candidates.

The organization sees to it that the increment policies of the organization is in full

recognition and due consent of the owners and the employees. The organization always

clear its norms to all of the candidates an tell the candidates beforehand that what amount

of increment they would receive after a due interval of time. The candidates are having

knowledge about how much time they have to spend working in an organization in order

to get an increment.

b) Experience of the employee

The candidate is having incremental policies keeping in mind their experience factors also.

The experience of the candidates is also a factor that ensures some extra incentives to the

employees. If an employee have worked already in an organization, then he/she receives a

certain amount of extra incentive added up to their salary packages.

Thus, experience of the employees also is a factor that is of significance to the incremental

policies of the candidates.

Now, these are some of the points of differentiation, that are in the respect of the case of

difference between the recruitment process and here, the recruitment process in a

manufacturing unit, PINEWOOD Private Limited is discussed.

Now, that the recruitment process in a manufacturing unit is discussed, we can now move

to the recruitment process in the services sector

For the service sector, I have researched on VIRASAT-E-KHALSA, the historical theme

museum, that is located in Anandpur Sahib, Punjab.

4) VIRASAT-E-KHALSA

VIRASAT-E-KHALSA is a historical museum, depicting the culture and religion of Punjab in

a very beautiful manner, Virasat-e-Khalsa is a museum of the Sikhs located in the holy

town, Anandpur Sahib, near Chandigarh, the capital of the state of Punjab. The museum

celebrates 500 years of the Sikh history and the 300th anniversary of the birth of Khalsa,

based on the scriptures written by the tenth and last guru, Sri Guru Gobind Singh ji. Virasat-

e-Khalsa is conceived as a repository of the rich heritage of the Khalsa its history and

culture of the Punjab so as to inspire visitors with the vision of the Gurus, emphasizing the

eternal message of the great gurus for the whole mankind.

Towards the end of the fifteenth century, in the Punjab region of Northern India, Guru

Nanak Dev founded a faith rooted in the core values of universalism, liberalism, and

humanism. The nine Gurus who followed Him built upon and consolidated His teachings,

thereby establishing Sikhism not only as a belief system but also as a way of life. The year

1999 marked the Tercentenary of the Birth of the Khalsa. To commemorate this event, the

Chief Minister of Punjab S. Parkash Singh Badal laid forth the outlines of a magnificient

edifice to be known as Virasat – e – Khalsa at Sri Anandpur Sahib.

The Heritage Complex is inspired by the rich natural and architectural heritage of Sri

Anandpur Sahib, while also drawing heavily from Sikh and regional architecture. Contrary

to the tradition of domes which crown the sacred Sikh sites, the roofs of the Museum are

concave-shaped receptors facing the sky. Sheathed in stainless steel, they reflect the sun’s

light towards the Gurudwara and the Fort.

After thirteen years of construction it has been inaugurated on November 25, 2011. It has

opened for public on November 27, 2011.

4.1) BACKGROUND

Virasat-e-Khalsa (formerly known as Khalsa Heritage Memorial Complex) is a museum

located inAnandpur Sahib.[1] The museum gives an insight to the events that took place

in Punjab five hundred years ago which gave birth to Sikhism and finally the Khalsa Panth.

The museum will throw light on the vision of the Gurus, the eternal message of peace and

brotherhood which they delivered to the whole mankind and the rich culture and heritage

of Punjab.[2] The museum is intended to commemorate 500 years of Sikh history and the

300th anniversary of the Khalsa, the scriptures written by the 10th and last Guru of

Sikhism, Guru Gobind Singh, founder of modern Sikhism.

After thirteen years of construction it has been inaugurated on November 25, 2011. It has

opened for public on November 27, 2011.

Structure of the Museum

There are two complexes at each side of a ravine, connected by a ceremonial bridge:

The smaller, western complex includes an entrance piazza, an auditorium with 400

seating-capacity, two-story research and reference library and changing exhibition

galleries.

The eastern complex contains a round memorial building as well as extensive,

permanent exhibition space, consisting of two clusters of galleries that try to evoke the

fortress architecture of the region (most evident in a nearby Gurudwara) and form a

dramatic silhouette against the surrounding cliff terrain. The gathering of the galleries

in groups of five reflects the Five Virtues, a central tenet of Sikhism.

The buildings are constructed of poured-in-place concrete; some beams and columns

remain exposed, though a great deal of the structures will be clad in a local honey-colored

stone. The rooftops are stainless steel-clad and exhibit a double curvature: they gather and

reflect the sky while a series of dams in the ravine create pools that reflect the entire

complex at night.

4.2) AREA OF BUSINESS

Virasat-e-Khalsa is, as foretold, is a historical museum, that is in the business of art and

preservance of culture and basically belongs to the services sector. This museum is to

enlighten the visitors about the Khalsa Panth and also as to inspire visitors with the vision

of the Gurus, emphasizing the eternal message of the great gurus for the whole mankind.

The museum is into the business of services and deals into Public Relations and

Development. The Heritage complex is having all of the events of the past, that are depicted

in a very descriptive and visual manner, to all of the visitors that come in the museum.

In Virasat-e-Khalsa, the people ranging from the local civilians to the delegates from

outside India, visits and are keen to know about the history and religion of Punjab. As

foretold,the inauguration of this museum is done by the Chief Minister of Punjab, the

delegates from the public sector, visits the place to see the past events of the culture and to

remain attached with the roots of their religion.

The area of business of Virasat-e-Khalsa, is into services sector. As people fromall of the

country and outside, usually visits the place, so the management of the organization keeps

a keen observation on the Public Management. Whole of the business of this complex is

totally on the basis of Public Relations and managing the visits and interests of various

categories of people visiting there.

5) COMPARISON GROU NDS

5.1) OWNERSHIP

Virasat-e-Khalsa is a Government Owned organization. Built by keeping the governmental

orders to display the religion based events to the people, the government undertake of the

events that are undergoing in the heritage complex. The complex is dealing with all the

local people to the foreign delegates,all over the world and the government of India is

responsible for maintaining the the Heritage Complex, for the proper functioning and

smooth ongoing of business there.

The heritage complex is having virtual visual events, for example if a person wishes to see

the event of “Jallianwala Bagh Massacre”, and he visits the location, then the place is having

the facilities of Visual Projectors, who can make the scene of the massacre LIVE to the

visitors. Such is the processing of the Heritage Complex.

In order to maintain this complex, the Government of India is solely responsible for all of

the proceedings going on there. Whenever there is an official meeting taking place or some

foreign delegates are arriving to visit the Heritage complex, the arrangements are made

that are to be governed by the Government of India itself.

5.2) STABILITY BASIS

No doubt, every company believes to have a stable employee who can work upto his/

her fullest, also by being stable. Stability in a company usually states that the person

should not switch to some other organization in between an estimated period of

probation.

Since the company is liable to provide training to the freshly employed candidates for

the prescribed work, the employee must get the training before he/she can think of

promotion.

Generally, the employees are much more concerned about their designation and the

also the salary expectations of these candidates are very high. Keeping this thought is

not purely incorrect but first of all, the candidate has to qualify himself for the wishes of

his own. That is why, this is also in the norms of the company to start from an initial

moderate salary according to the qualification and experience of the candidate, and to

provide him training of the work that he/she is supposed to do in the company.

The organization checks the stability ot the personnel by allotting a time period of

probation. Now in this time, the company trains the employee and also cheks the

stability.

Many cases are there in which the candidates appearing for job interview, already have

work experience, that is, they have worked in an already running organization.so, the

chances of their job shifting are many more, including the salary issues. While

interviewing such a candidate, the recruiter keeps a check on the candidate’s last work

location and the field in which he worked in. if the recruiter finds out that that the

candidate is shifting his/her job very quickly and frequently within 4-5 months, then

the thought always come across the recruiter that such a candidate would not be stable

in an organization for a longer period of time. Many recruiters avoid hiring such an

employee because if the employee leaves an organization, then the organization also

suffers. The organization then, has to find a new employee, shortlist candidates,

conducts interviews and moreover, have to incur expenditure on the training and

development procedure of the new employee.

Thus, the stability of an employee is an important factor, which the organization and the

recruiter keeps in mind while employing a candidate, so that the organization do not

serve a loss again, and the recruiter keeps this thing in mind due to the norms of the

“Replacement Policy”.

Talking about the Heritage Complex, the stability of the candidate is also necessary

because whenever the delegates from outside Idia, that is, foreign delegates come to

visit the Heritage Complex, they demand the same employee, who served them the last

time they visited. Due to their personal favourites also, the stability of the employees is

a noticeable factor in this case.

5.3) SALARY PACKAGES

Since this is a government job on adhoc basis, the salary packages can be a differential

factor, in this case.

In most of the cases, while sending the JD’s (Job Description) to the recruiter, the

organizations also mentions the initial pay packages that has to be offered to the deserving

candidates. It is mentioned in the norms of the organization, what salary has to be given to

the employees according to their qualification and experiences.

There are some special norms of the organization according to which the salaries of the

employees has been decided by the HR Department of the organization, keeping in mind

the legal compliance of the company. The HR department mentions the salary packages

that has to be given to the employees of various scales and experiences.

The recruiter, while interviewing the candidates, keep in mind the salary norms. If the

recruiter after interviewing the candidate, finds him/her eligible for the required job, then

the last step is to discuss the Job location and the salry packages. The recruiter has to offer

the candidate the set amount of salary package that comes along with the JD sent to him by

the organization itself. Now, again according to the qualification and experience of the

employee, the salary gets changed.

Now, being a governmental job in the services sector, the initial salary of the employee

ranges from 25k to 30k, initially. The employees has to deal with the people ranging from

local to important delegations. That’s why, the employees has to be very good at public

relations and know very proficiently, how to deal with different kinds of people.

Now, as obvious, since the Heritage complex is in Punjab, depicting the culture and religion

of Punjab, so it is required that the employees must be able to communicate with the

people in different languages, be it English, Hindi and Punjabi. Since most of the visitors are

from India only, so the employees can make them well understand th different events

displayed there, in Hindi as well as Punjabi, and for the foreign delegates, the employees

prefer to communicate in English, in order to make them understand every aspect of the

events that are displayed.

Also due to this, the salary packages of the newly employed candidates are decided.

Accordingly, the employees when gets promoted to a furthur designation, the salary

packages gets increased thereafter.

5.4) PROBATION PERIOD

Every organization has a specific period of probation for the newly hired employees.

This probation period is usually called “Training Period” in the employees generally.

The probation period is set by the organization in order to train the new employees and

to see the skills of the qualification they have.

Virasat-e-Khalsa is having a probation period of 3 months. Since the qualification of the

candidates who apply for this job is to have a B.Sc degree in Aviation, Hospitality and

Management and have to apply for the job in public relations department, so the

organization has to make the employee aware of all the virtual and visual events that

are ongoing in the Heritage Complex. So the organization puts its careful and necessary

steps in training the newly hired employees.

The probation period is also having another important factor indulged in it. Sometimes

the employee hired does not find the job comforting or the the company feels that the

hired candidate is not upto the mark or is having some problem while adjusting with

the job. The probation period decides this very thing. The company gets to see the

knowledge and skills of the employee and the employee also gets a hint of how his/her

career would go, being in such an organization.

Since the probation period of Virasat-e-Khalsa is only 3 months, soo the organization do

keep the trainies on some initial stipend, and provides them with th decided amount of

salary once the probation period is off. But the salary at the time of probation, is also

comparable to that of the original salary.

Within the probation period, as the organization becomes aware of the skills and

knowledge of the employee and have also put a test to the learned up knowledge of the

employee, to testing, the probation period helps the organization to set the salary package

for the candidates. No doubt, the skillful candidates acquire better salary packages after

their good performances in this probation period and few employees gets sacked due to

their poor performance in this probation period.

This is why, the probation period is necessary as well as important both for the employee

as well as the organization.

5.5) RECRUITMENT PROCESS

The recruitment procedure is yet another feature of the whole process, and that too an

important one. Since, Virasat-e-Khalsa is in the services sector, the JD sent to the

recruitment agency, is having the requirement of candidates that are having the B.Sc

degree in Aviation, Hospitality and Management, because in this business, the employees

must be having command in dealing with people and should have the required skills of

management.

So, the JD also clarifies so much things about the candidates required for the job.

In Khalsa Heritage complex also, the final recruitment is done by the organization only, so

the recruiter’s main job is to shortlist various candidates and hen send them to the

organization for the final interview.

In such case, the organization demands to interview the candidates themselves, then the

recruiter’s job is to shortlist the candidates and send the deserving and interested

candidates list and the soft copies of their shortlisted resumes, to the HR of the

organization.

The recruiter then shortlist the candidates and send them to the organization, that is

directly to the venue at Anandpur Shib where the final interviews are to be held. In this

way the process of recruitment goes on in this case.

The selected candidates’s name and date of joining of the job is then sent to the recruitment

agency(Cg Placements, in this case). The company then provide the agency with the

amount that has to be submitted to the agency as their fee for the work.

After that, the agency also keeps a record of the candidate’s work profile and the

satisfaction level of his/her job there. This is due to the reason, because in case if the

candidate quits the job in the probation period or within 3 months, then the agency has to

re-recruit another candidate at the same place, keeping in mind the “Replacement Policy”.

Thus, the training and the development of the newly hired employee, is bkept on record by

both the recruitment agency as well as the organization.

5.6) INTERVIEW CONDUCTION

Interviews are the most popular methods for obtaining job-related information. They may

range from completely unstructured interviews to highly structured ones in which job

analysts follow detailed questionnaires in asking their questions. (Reference: Human

Resource Management, 11th edition, ch 4)

Interview conduction, is a point of differentiation, because of its mode of conduct and by

whom the interview is being conducted. In this study, this point came under observation

due to the following two points:

a) Mode Of Conduct

The mode of conduction of the interview is again of two types: Structured and

Unstructured Interview.

Unstructured Interview is an unstructured conversational-style interview in which the

interviewer pursues points of interest as tey come up in response to questions. In these

interviews, the managers do not follow a set pattern

Unlike the unstructured interviews, the structure d interviews are having a set pattern, that

is the interview follows a sequence of questions. These are such kind of interviews that are

based on carefully selected job-oriented questions with predetermined answers that

interviewers ask of all applicants.

Now talking about Virasat-e-Khalsa, the mode of conducting the interview is totally

Structured, that is the interviewer follows a set pattern of questions and follows the rules

of the interview processing in a structured way. Since, the interview conduction is having

the set questions and the interviewer is also having the predetermined answers to a

specific question that is to be asked by him. So, th e interview goes on in a complete

structured manner.

a) Panel of interviewers

This point differentiates the interview mode in such a manner, that the differentiation

could be done at this point.

Unlike Kudos chemical Limited, Virasat-e-Khalsa is having the interviewers from the rank

of IAS designations. Since the job profile of the candidates to be employed for the job is to

deal with the local people to the officials of quite higher ranks. So the final interview of the

deserving candidates who has been sent by the recruiter after the screening, is usually

taken by the people of IAS designations.

The candidates are asked questions about their code of conduct in the previous company, if

they have worked somewhere else before. Also, the recruiter asks question checking the

stability of the candidate, that is, whether the candidate is having a positive attitude

towards the job or he/she is just doing the job for money purpose, because such a

candidate would not be loyal to the company, as per ther company norms.

After the selection of the candidates, the information is sent back to the recruiter about

how many of the shortlisted candidates are selected and the amount incurred by the

recruitment company is being given to them by the company.

5.7) DESIGNATIONS PROVIDED

In Virasat-e-Khalsa, the designations provided in the organization are of a Public Relations

Officer most usually called PRO, and is having the job responsibilities of dealing with the

people, whether they are local civilians or the foreign delegates.

So, the designations in this case is having the differentiation point, at the case of

Designations provided by the newly hired employees. The candidates receives their

training about the public dealing only and gets promoted in their dealing with the people of

higher scales, that is , attending the foreign delegates and other government officials.

5.8) INCREMENTAL POLICIES

The organizations are having different incremental policies for the employees. Every

employee gets his/her increment based on 2 factors:

a) Time Period of the candidate in the organization.

The candidate is employed as a fresh candidate when he/she starts off with an initial salary

that is to be considered as the stipend of these candidates. The employees when have the

time period increasing ont heir account, then the organization according to their legal

compliance, starts giving off the increments to their employees.

The candidates also due to the process of job enrichment when have the continuous shifts

in work and starts becoming the important assets of the organization, then the incremental

policies again goes to a different scale for the candidates.

The organization sees to it that the increment policies of the organization is in full

recognition and due consent of the owners and the employees. The organization always

clear its norms to all of the candidates an tell the candidates beforehand that what amount

of increment they would receive after a due interval of time. The candidates are having

knowledge about how much time they have to spend working in an organization in order

to get an increment.

b) Experience of the employee

The candidate is having incremental policies keeping in mind their experience factors also.

The experience of the candidates is also a factor that ensures some extra incentives to the

employees. If an employee have worked already in an organization, then he/she receives a

certain amount of extra incentive added upto their salary packages.

Thus, experience of the employees also is a factor that is of significance to the incremental

policies of the candidates.

Now as that the points of differentiation are discussed, an important point which is the

another important section in the work process of the recruitment agencies nowadays is

“Outsourcing”. So, this process has to be discussed fully in order to completely understand

the working process of the recruitment agencies.

6) OUTSOURCING

Outsourcing is the process of contracting an existing business process which an

organization previously performed internally to an independent organization, where the

process is purchased as a service. Though this practice of purchasing a business function—

instead of providing it internally—is a common feature of any modern economy, the term

outsourcing became popular in America near the turn of the 21st century. An outsourcing

deal may also involve transfer of the employees involved to the outsourcing business

partner.

Outsourcing is contracting with another company or person to do a particular function.

Almost every organization outsources in some way. Typically, the function being

outsourced is considered non-core to the business. An insurance company, for example,

might outsource its janitorial and landscaping operations to firms that specialize in those

types of work since they are not related to insurance or strategic to the business. The

outside firms that are providing the outsourcing services are third-party providers, or as

they are more commonly called, service providers.

Although outsourcing has been around as long as work specialization has existed, in recent

history, companies began employing the outsourcing model to carry out narrow functions,

such as payroll, billing and data entry. Those processes could be done more efficiently, and

therefore more cost-effectively, by other companies with specialized tools and facilities and

specially trained personnel.

Currently, outsourcing takes many forms. Organizations still hire service providers to

handle distinct business processes, such as benefits management. But some organizations

outsource whole operations. The most common forms are information technology

outsourcing (ITO) and business process outsourcing (BPO).

Although the definition of outsourcing includes both foreign or domestic contracting,[2] the

term is sometimes used exclusively referring to the former. The more clear term for this is

offshoring, which is described as “a company taking a function out of their business and

relocating it to another country,” [3] whether the external country is physically offshore or

not.

Outsourcing can offer greater budget flexibility and control. Outsourcing lets organizations

pay for only the services they need, when they need them. It also reduces the need to hire

and train specialized staff, brings in fresh engineering expertise, and reduces capital and

operating expenses

The process of outsourcing generally encompasses four stages: 1) strategic thinking, to

develop the organization's philosophy about the role of outsourcing in its activities; 2)

evaluation and selection, to decide on the appropriate outsourcing projects and potential

locations for the work to be done and service providers to do it; 3) contract development,

to work out the legal, pricing and service level agreement (SLA) terms; and 4) outsourcing

management or governance, to refine the ongoing working relationship between the client

and outsourcing service providers.

One of the biggest changes in the early 21st century came from the growth of groups of

people using online technologies to use outsourcing as a way to build a viable service

delivery business that can be run from virtually anywhere in the world. The preferential

contract rates that can be obtained by temporarily employing experts in specific areas to

deliver elements of a project purely online means that there is a growing number of small

businesses that operate entirely online using offshore contractors to deliver the work

before repackaging it to deliver to the end user. One common area where this business

model thrives is in provided website creating, analysis and marketing services. All elements

can be done remotely and delivered digitally and service providers can leverage the scale

and economy of outsourcing to deliver high value services at reduced end-customer prices.

Reasons of outsourcing

The most common reasons why companies decide to outsource include cost reduction and

cost savings, the ability to focus its core business, access to more knowledge, talent and

experience, and increased profits.

Many companies decide to outsource because it cut costs such as labor costs, regulatory

costs, and training costs. Foreign countries tend to have workers who will complete the

same amount of work as in the United States, but for less than half the salary that an

American employee will make [9]. This motivates companies to outsource overseas to find

foreign workers who are willing to work for these lower wages. The company can spend up

to half the usual cost to train these workers to become experts in a different country [10].

Lower regulatory costs are an addition to companies saving money when outsourcing.

Comparing the costs to employing a worker in the United States to a worker in China, it is

noticed that an employer in the U.S. has to pay higher taxes 

Companies are able to focus their money and resources more towards improving the core

aspects of its business when outsourced. For example an insurance company may

outsource its landscaping functions to a service provider that specializes in landscaping

since it is irrelevant to the core operations of insurance. The landscaping is performed by

an expert outsourced organization and the insurance company can focus on doing what it

specializes in. This allows the outsourcing company to build onto its core functions that

keep the business running smoothly [12]. Another example is that companies and public

entities such as a public school district that outsources functions, such as their payroll

offices to companies like ADP or Ceridian, which specialize in payroll functions.

In the case of outsourcing, firms may find that workers in other countries can provide

better customer support than their domestic counterparts. For example, an online coffee

shop owner who moved his calling center to the Philippines found that his customers

received better customer support from workers in this country.[13]

Revenue and profit plays a large role in the reason for a company outsourcing. Since the

costs are cheaper in different countries for a corporation to run it, as well as to train the

employees, this saves the company a large sum of money. More profit comes in when the

vendors are able to purchase products at a less expensive rate and continue to sell them at

a reasonable price for consumers. The prices are reduced for services as well as products

when purchased at a cheaper price.

Security

Before outsourcing an organization is responsible for the actions of all their staff and liable

for their actions. When these same people are transferred to an outsourcer they may not

change desk but their legal status has changed. They are no longer directly employed or

responsible to the organization. This causes legal, security and compliance issues that need

to be addressed through the contract between the client and the suppliers. This is one of

the most complex areas of outsourcing and requires a specialist third party adviser.

Risks

When companies offshore services, even though it may not be the core parts of the

business, those jobs leave the home country for foreign countries. [15]. Outsourcing may

increase the risk of leakage, reduce confidentiality, as well as introduce additional privacy

and security concerns.

Advantages

Companies are able to provide services and products to consumers at a cheaper price while

still having a large margin for profit. This profit margin benefits both the company as well

as the consumer. The cheaper prices lead to an increase a company’s economy. Although

losing jobs hurts the economy because more citizens become unemployed, the cheaper

prices allows customers to purchase more products and services which helps to rebuild an

economy.

In all cases, outsourcing success depends on three factors: executive-level support in the

client organization for the outsourcing mission; ample communication to affected

employees; and the client's ability to manage its service providers. The outsourcing

professionals in charge of the work on both the client and provider sides need a

combination of skills in such areas as negotiation, communication, project management,

the ability to understand the terms and conditions of the contracts and service level

agreements (SLAs), and, above all, the willingness to be flexible as business needs change.

The challenges of outsourcing become especially acute when the work is being done in a

different country (offshore), since that involves language, cultural and time zone

differences.

The recruitment agency, in which I worked, that is, Cg Placementr, is having a tie-up with

an another recruitment agency named as GRATIS INDIA, which is having this Outsourcing

process, active in their agency. The former organization mentioned in the report, that is,

PINEWOOD CHEMICAL LIMITED, is having a number of its employees on the rolls of

GRETIS. The chemical engineers that are working in PINEWOOD, are firstly employed on

the rolls of Gratis, and after a specific interval of time, the employees come ON-ROLLS of

the company.

While the employee’s remains OFF-ROLLS, that is ON-ROLLs of Gretis, all of the necessary

things like making of the salaries, maintaining the attendance registers, keeping the

records of each and every employee, is the responsibility of Gretis.

Also, there are certain disadvantages also. While the employees remain OFF-ROLLS for the

company, the employees are proficiently deployed of all the incentives and perks that an

employee who is ON-ROLLs of the company is being provided with.

Thus, outsourcing is the newest rage of the recruitment agencies, that are coming into a

new understanding and business with the organizations as to provide the organizations

with the required candidates, maintaining the records of the newly hired employees and

also keep the employees on their rolls, so as coming to a newly developed understanding

with the organizations, participating and sharing half of the recruitment’s workload to

themselves.

Thus, the process of Outsourcing is bringing the recruitment agencies and the

organizations, much closer and and are making them more understandable to each other.

REFRENCES:

1) www. pinewoodchemiltd.in

2) www.virasat-e-khalsa.org