HUMAN RESOURCE MANAGEMENT IN THE CHODAVARAM COOPERATIVE SUGARS LTD,

GOVADA

Project report is submitted to Andhra University in partial fulfillmentfor the award of the Degree of

Master of Commerce

submitted ByMs. V. DHANA LAKSHMI, M.Com (Final)

Regd.No.2085601006

Under the guidance of

Dr. V.CHIRANJIVI RAO, M.Com, Ph.D.Reader & Head

P.G. Department of CommerceA.M.A.L.COLLEGE, Anakapalle

NAAC ‘B++’GRADE (Affiliated Andhra University, Visakhapatnam)

2008-2010

DECLARATION I hereby declare that the project report entitled Human

Resource Management in the Chodavaram Cooperative Sugars

Limited, Govada being submitted to Andhra University is original

and it has not been submitted to any other University or educational

institution for the award of degree or diploma or similar title and it

has not been published before.

Anakapalle (V. DHANA LAKSHMI)

Dt

CERTIFICATE

3

This is certify that the Project Report entitled “Human

Resource Management in the Chodavaram Cooperative Sugars

Limited, Govada is a bonafide work carried out and submitted by

Ms. V.Dhana Lakshmi, M.Com final year student of this College in

partial fulfillment for the award of Masters Degree in Commerce.

Dr. V.CHIRANJIVI RAO, M.Com, Ph.D Project Guide

ACKNOWLEDGEMENT I sincerely thank Dr. V.Chiranjivi Rao, M.Com, Ph.D Reader and

Head of the Post Graduate Department of Commerce, A.M.A.L.College for

4

guiding me to complete this project on ‘Human Resource Management in the

Chodavaram Cooperative Sugars Limited, Govada.

I thank all the other faculty members of the Department Dr. T.Gopala

Rao, Reader and Sri. P.Rajeswara Prasad Lecturer for encouraging me to

pursue M.Com course and Dr. K.S.Eswara Rao, Principal of A.M.A.L

College, Anakapalle for providing me this opportunity to take up the project.

I express my sincere thanks to Sri. Varma , Manager- Human

Resources of the Chodavaram Cooperative Sugars Limited. Govada.

I am indebted to my parents Sri. V. Rama Chandra Rao and Smt.

Satyavathi for nurturing, caring and educating me and for their shower of love

and affection on me.

V.DHANA LAKSHMI

CONTENTS

Page

CHAPTER -1 ABOUT THE PROJECT

Need for study

5

Scope of the studyObjectivesMethodologyLimitations

CHAPTER –II INDIAN SUGAR INDUSTRY

CHAPTER – III PROFILE OF THE CO-OPERATIVE SUGAR Ltd

CHAPTER – IV THEORETICAL FRAME WORK

CHAPTER – V DATA ANALYSIS AND INTERPRETATION

CHAPTER – VI FINDINGS SUGGESTIONS CONCLUSION

BIBLIOGRAPHY

6

CHAPTER -1 NEED FOR STUDY

SCOPE OF THE STUDY

OBJECTIVIES

METHODOLOGY

SAMPLING

PRESENTATION

LIMITATIONS

7

INTRODUTION

NEED FOR THE STUDY

Among all the resources (Men, Materials, Money, Market, Methods, Machines) Men are

important resources of any organization. Careful planning of human resource requirement,

procurement of people, placing them in right places, training, compensation, directing,

coordinating, controlling men are significant aspects of Human Resource Management.

The present study focuses on recruitment and selection process of manpower in the

selected organization.

Recruitment is the first step in the procurement of human resources followed by

selection of suitable candidates for the jobs identified. Managers have realized that the

recruitment & selection of right or able candidates is a crucial step in the management

system. Thus, “The Chodavaram Co-operative Sugars Ltd”., GOVADA has been selected

for study.

The Study is useful to the selected undertaking as it focuses on identifying the

merits and limitations of the recruitment and selection procedures adopted for procuring the

manpower of the Sugar mill. The study is also useful to the Government of Andhra Pradesh

to streamline the procedure of recruitment and selection of manpower to the Cooperative

Sector in the State of Andhra Pradesh. Further, this is useful to the academicians as the

outcome of the study would through an insight into the practical problems that may

encounter in putting the theory into practice.

OBJECTIVES OF THE STUDY

In the light of the above, the study aims at the following objectives:

To examine the recruitment and selection programmes at managerial, ministerial and shop floor level adopted in the selected unit:

To discover ways and means of strengthening the abilities, skills and talents of employees:

8

To appraise proposed policies, programmes and practices of Cooperative Sugars at Govada

To predict the future projections of manpower requirements:

To identify the drawbacks in recruitment and selection system.

To find out various factors that can be emphasized in improving the recruitment policy.

METHODOLOGY

Primary and Secondary sources are utilized for collection and analysis of data for the

purpose of this study.

Primary Data Sources: In order to collect the opinions on recruitment and

selection a survey has been made among the employees, office bearers of trade union, and

managerial personnel of the selected unit. In this connection schedules are prepared for

gathered information form the interest groups.

Secondary Data sources: Secondary data have been collected from the reports

and records of “The Chodavaram Co-operative Sugars Ltd”.GOVADA, Books and library

and various brochures and business reports published in newspapers and magazines. The

annual reports, administrative manuals, standing orders of the selected unit and previous

recruitment records of the sugar mill were helpful to assess the merits and limitations of the

recruitment and selection practices at the selected unit.

SAMPLING

In order to assess the effectiveness of the recruitment and selection procedures at

the selected unit, a survey has been made by executing the schedules among the existing

managerial, ministerial and shop floor level employees of “The Chodavaram Cooperative

Sugars Limited”, Govada. The sample includes:

9

Managerial cadre 03

Ministerial cadre 04

Workers’ cadre 23

Total number of respondents 30

The sample has been selected on purposive random sampling basis.

PRESENTATION OF THE STUDY

The project report begins with the design of the project which includes need for the

study, methodology, sampling and limitations of the study. This is followed by profile of

the sugar industry in India which is described the past and the present scenario of sugar

industry in the country. Chapter three brings about “The Chodavaram Co-operative Sugars

Ltd”, Govads unit and the fourth Chapter theoretical base of the project has been discussed.

The data analysis and interpretation has been given in Chapter five. Chapter six contains

findings and suggestions based on the data analysis.

LIMITATIONS OF THE STUDY

This study is not free from certain limitations. They are:

1) Time is a limiting factor because one months duration is not enough for in-depth study.

2) Collection of current data is also a limiting factor because of confidentially.

3) The scope of this study is limited to the organization only. No comparison was made with similar organizations in this region.

4) Financial constraint was also a limiting factor.

5) Since the sample is small for collection of opinions of the respondents on recruitment and selection process, bias in their opinions could not been eliminated.

6) Limited statistical tools have been used in the analysis of the data.

10

CHAPTER – II INDIAN SUGAR INDUSTRY.

11

INDIAN SUGAR INDUSTRY

India is one of the largest sugar producing and consuming countries in world.

According to World Bank India is second largest producer of sugarcane and occupy first

place in sugar consumption in the world. In India, Apart form sugar, other traditional

sugarcane sweetness – Khanda – sari and gur are also produced for the rural markets.

Taking all sweetness sugar khandasari and gur India is world’s largest producer of sugar

followed by the Brazil in the second place. There are 493 sugar milks. Operating in India

with in aggregate installed capacity of 16.2 million tones of these 152 are in the private

sector 21 in the co-operative sector and 70 in the public sector. The sugar industry plays a

vital role in rural development and provides direct and indirect employment in the country.

India emerged as the largest producer of White Sugar in the world. The requirement of

sugar for consumption in the country in 2009-10 is 23 million tons, where as the production

is estimated at 16 million tons. Thus, the position has been reversed as the country had to

import sugar from other countries. This was due to the agricultural policies adopted by the

Central Government. The primary reason for this situation is the increase in the support

price for Wheat and Paddy in the country. As a result of this, cultivators turned to grow

paddy in the Southern States and Wheat in the Northern States. This ultimately led to

shortage of sugar supply in the country and increase in the retail prices of sugar in India.

The Central Government has already de-licensed the sugar production. The purpose

of decontrolling is to eliminate deliberate price spirals by the traders and to stop stocking of

sugar by the profiteering and to reduce black market operations of this essential commodity

in India. Further it helps to organize a formal mechanism which helps the traders to involve

in forward and future trading in sugar.

The Sugar industry has a unique place in Indian economy and rural development can

be achieved through its multiple contributions in terms of employment and provisions of

raw materials to other industries. This industry has been providing substance to 5.5 lakes

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workers and sustaining about 4.50 crores agriculturists. Its total capital investment amounts

to Rs. 1560 Crores.

The sugar industry as the second largest Agro-based processing industry thus

occupies a vital role among the consumer industries in the country and ranks next only to

Cotton Textile industry. In terms of contribution to the next value added by manufacturers

it takes the third place among the industries in the county. In fact India is among the four

major sugar – Producing countries in the world. The other three being U.S.S.R.

(C.I.S.)BRAZIL and CUBA. The sugar industry in the recent years has started to export

sugar there by earning valuable foreign exchange.

World Sugar Production

Brazil

India

China

U.S.A

Thailand

Mexico

Australia

Germany

France

Cuba

Others

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World Sugar Production

Western Europe

14%

Eastern Europe

5%

Africa7%

N & C America

13%South

America21%

Asia36%

Oceania4% Western Europe

Eastern Europe

Africa

N & C America

South America

Asia

Oceania

Agro-based processing industry in India, having certain unique features if its own. It

is a seasonal industry based on perishable raw materials namely sugarcane. The by-product

of the industry have opened up fresh areas of enterprise in device direction malas and

important by – product is utilized for production of alcohol and down stream chemicals,

bio gases, another important by - product apart from meeting the fuel requirement of the

industry, offers the potential to general additional power for supply to the grid.

In 2007-08, the cane sugar grown in 2.47 lakh hectares in Andhra Pradesh and the

production of sugar is 132 lakh tons. The area of cane sugar cultivation declined to 1.40

lakh hectares and the production fell to 60 lakh tons in 2008-09. In the following year, the

area under cane sugar cultivation is 1.2 Lakh hectares and the estimated output of cane

sugar is 55 lakh tons.

The scenario in the country is similar to that of the situation in Andhra Pradesh. In

2007-08, the cane sugar cultivation area in India is 50.45 lakh hectares whereas in 2009-10

it fell to 55 lakh hectares.

14

Sugar Production in various States of India

A.P.

Gujarat

Karnataka

Maharashtra

UP(East)

UP(West)

UP(Central)

Tamilnadu

Others

Problem of Sugar Industry In India

Excessive Control:

The industry is now seriously suffering from the changing poliieces of the Central

Government. The Government has no fixed policy regarding the price and distribution of

sugar. The production of sugar is influenced by the purchasing price of sugar cane

depending upon the cost of cultivation. Strangely in India, the industry is determining the

prices of out puts of the agricultural crops whereas the cane price is fixed by the

Government of India. The price is not remunerative to the cultivators in the country and as

a result, agricultural operations in India are not remunerative and many families could not

eke out their lives. Today we are witnessing suicides by good number of cultivators in the

State. The agricultural policies of the Government are also affecting the operations of the

Cooperative Sugar Mills in the Country. The survival of the Cooperative Sugar Mills is in

danger.

15

Under Utilization of Bi-products: Two by – products, namely,

molasses and bagas, while molasses is used in alcoholic preparation and the

cooperative sugar mills have are not developed to utilize the by-products.

Bagas can be used in paper Industry as one of the input to prepare paper pulp.

But this is not being utilized properly by the Indian paper industry.

Short crushing Season: Although the land is unutilized through out

the year crushing season is confined only to 3 - 4 months. Hence, factories

have to be closed for the remaining period of the year which makes the sugar

mills uneconomic.

Obsolescence: Most of the factories in the private sector were set up five to six

decades ago. Their machinery has by now dilapidated (decaying). The cost of production

of such units is unduly high owing to less mechanical efficiency and more down time. It

will require more money for modernization of such factories.

Technology: The level of technology in the Indian sugar industry is quite high

and a number of developing countries have borrowed Indian sugar technologies.

Unfortunately however many of Indian factories had been up in the early 30’s and have

become obsolete. It is the need of the hour to modernize, rehabilitate and expand the

industry.

Output trends: Over production due to cyclical nature and seasonal

conditions and cultivations of average of sugar cane. The fluctuation in the production of

sugar cane is a major problem of the day,

16

CHAPTER – III PROFILE OF THE CHODAVARAM COOPERATIVE SUGARS

LIMITED, GOVADA

17

PROFILE OF “THE CHODAVARAM COOPERATIVE SUGARS LIMITED, GOVADA”

ORIGIN

The Government of Andhra Pradesh seriously thought of reducing unethical

practices of private sector sugar mills in the purchase of cane sugar from the cultivators of

cane sugar. In this direction, the State Government has promoted sugar mills in the

Cooperative Sector where cane sugar growers themselves manage the sugar mills by

electing their representatives to the management boards of those mills. Among the several

mills the State Government promoted “The Chodavaram Co-operative Sugars Ltd”is the

one and it was incorporated in the year 1955. Its initial production capacity was 1000

T.C.D and the cost of sugar mill was Rs. 150 Lakhs. The factory started its commercial

production in the year 1962-63.

The losses sustained in the initial years were completely wiped out by 1972-73 and

the factory made profits till 1976. In the year 1976 expansion of the crushing capacity of

the plant was taken up at a total cost of Rs. 130.57 Lakhs. The cane crushing with the

expanded capacity of 1600 T.C.D. started from the year 1978. Keeping in view, the

availability of cane in the vicinity of the factory another expansion prgramme was taken to

increase its crushing capacity further to 2500 T.C.D. In the year 1988, one more expansion

was taken up with an out lay of Rs. 8.5 crores and the expansion was completed by March

– 1991.

The society covers vast area of 2658 villages in 14 mandals of Visakhapatnam

District. Out of whom 80% are small and marginal formers. The total acreage in the area

of operation of factory is 30,000 acres out of which cane grown in about 20,000 acres is

agreement to the factory as the members are limited to that extant 60% of the factory zone

is under rain fed conditions.

Basically the factory is an agro based seasonal industry. The raw material of the

factory for the production is sugar cane. There are growers from 265 villages, which are

supplying cane to the factory. The starts its Operation most probably during the first week

18

of December and ends with April /May depending upon the availability sugar cane for

crushing. National Federation of Co-Operative sugars factory Ltd. New Delhi was

awarded best technical efficiency award for the session of 2005-06.

Ideally a co-operative society should be organized on the principal of voluntary

service and it should provide maximum participation to its membership in decision making

in benefit and in evolution of performance. A popular definition of the term co-operative is

that it is an association of persons are house hold usually of a limited means, who have

agreed to work together on a continuation basis, which is jointly control and whose cost

risk and benefits are equally among the members. Equality, Social justice and self helped

of the major concerns of the co-operative.

Membership and share Capital:

The Society is having around 20,000 members on its registers The authorized share

capital of the society under by law no.6 of the byelaws of the society is Rs. 600 Crores. As

on 31-03-2006 the society has paid up share capital of Rs. 16.4 Crores from the share

members the govt of Andhra Pradesh has contributed an amount of Rs. 40 Lakhs towards

their share in the capital structure of the society.

Location

Location advantage for the chodavaram cooperative sugars ltd, to be set up at govada:

The entire are of operation has been a traditionally sugarcane growing belt since so

many decades. A part of from being located beside river belt it is centrally located in the

cane-growing region. Free communication facilities are available through out the zone. To

draw cane formers in the required time. More that 60% of the growers are with in the

radius of 10 miles. There is an advanced mode of transpirations of out put though road

ways.

19

Objectives:

The objective of the society shall be promote the economic interests and members

by encouraging proper development of agriculture industries on supportive line and

through agriculturists with special attention to and preference to farmers as far as possible.

The advantages of scientific agricultural and production and the benefits of large scale

industries and for the said purpose it shall be competent to society.

1. To establish a factory for the manufacture of sugar, jiggery, and other subsidiary by products and allied industries and for the purpose.

a) To raise share capital and borrow funds either on the security of the property of the society of other wise form cooperative societies, government, industrial finance corporation and other sources.

b) To purchase, to taken on lease or other wise acquire land , houses and other buildings light railway siding may be necessary or expedient form purpose of any of them

c) To purchase and install the machinery

d) To purchase form members or non-members sugar cane or other than raw material and also to under take cultivation of sugar cane.

e) To own or hire transport vehicles in the business of the society

f) To construct and take on rent go downs at places of manufacturing as well as out side for shortage sale of the products.

g) To do all other things incidental to or necessary for the established and running of the factory.

h) To purpose and sell sugar, molasses and other products produced to the best advantage.

2) To under take measures for the development sugarcane including supply of sheed, fertilizers, agricultural implements, irrigation facilities and other product requirements, including agriculture credit and to provide technical advices on improved cultivation methods.

3) To heir or purchase land for the purposes of undertaking research and to take necessary measures to disseminative knowledge to numbers.

20

4) To purpose are take hire tractors, boring sets and other agricultural implements and give them members.

5) To issue loans to members for productive and other similar purpose.

6) To undertake such activities as are incidental and among conductive members to the development of sugar cane, sugar and allied industries.

Organizational set u of the chodavaram co-operative sugars ltd.

Chairman:

He shall preside over all the meeting of the board and general body, he shall be

responsible form bringing all policy matters before board and the general body and shall

see the effective implementation of the resolutions passed by the said bodies. In his

absence vice chairman will preside over the board and general body.

Managing director:

The Managing Director is the Chief Executive of the sugar factory. He looks after

each and every thing that is going on the factory. He is the key of the organization. His

responsibility are tremendous. Millions Of Rs May be made or lost by his decisions. The

MD formulates the factory policy in cane procurement, manufacturing factory operation

purchases and sales. For the consideration of board of directors and when approved

ensures their executive through directors of departmental heads. He values and comments

of schemes and suggestions coming form department heads for guidance to board of

directors. He shall be fully informed about the factory over all activates and must

instructed and guide departmental heads in their work. He is accountable to chairman and

board of directors. He shall be competent to make all purchases and incurred expenditure

up to 15,000 for capital expenditure and Rs. 25,000/- under revenue expenditure at a time.

Depending on the government policy he shall arrange sale of sugar.

21

Departments:

The organization has 5 departments. The department heads are accountable to

managing director co-ordinates all the activities of the 5 departments. The departments of

the organizations are as follows:

1) Administrative department

2) Accounts department

3) Agricultural department

4) Engineering department

5) Manufacturing department

Administrative department:

This Department is headed by the administrative officer. He is next to managing

director. He shall exercise such powers and perform such as may be interested to him from

time to time by the managing director. Under the administrative officer there 7

departments which are directly responsible to him. They are secretarial department,

general administration, sales, purchase, stores go down, and time office and security

department. In addition to the above activities he also looks welfare and medical care of

the employees. The department also develops good relations between management and

trade unions. The department is the backbone of the whole organization.

In the absence of both the managing director Administrator officer the board shall

make necessary arrangements with the approval of the register for the conduct of the

business of the society during their absence.

Account Department: The Account Department is headed by chief accounts officer. He is responsible for

his department. The department is divided into 3 areas i.e.l)

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General Accounts 2) Stores Account 3) Cane Accounts. His duty involves preparations of

balance sheets and correspondence with their investors, merchants, banks, financial

institutions etc., he has to maintain up to date all account books of the factory and balance

sheets , cost reports, financial statement, share reports, periodical budgets, cash flow

statement and all income tax returns and formalities. He has to attend all work relating to

money transaction advice management through the managing director and the financial

implications of any of any scheme of expenditure.

Agricultural Department:

This is headed by the Chief Agricultural Officer. The duties of the chief

agricultural officer can by divided into distinct spheres.

a) Cane Developmentb) Cane procurement

There are 5 asst. agricultural officer and 16 fields’ men working under the

guidance of the chief agricultural officer. The duties and responsible of the fields officer

and agricultural officer to develop sugar cane and to draw cane uniformly. They have to

build up proper records such as cane register, area under sugarcane variety etc., and to

inspect the cane plots regularly and also to meet the cane growers and issue proper

instructions to them.

Engineering Department:

This department is headed by the Chief Engineer. The plant and machinery of

the factory are under the control of chief engineer. He formulates the techniques of current

and economic crushing of sugar cane. Shunting to the machinery and equipment correlated

with the variety of cane quality. He is responsibility for keeping day to day check on

milling, boiler and power house, performance and power consumption and various sections

of the factory personally direct repairs, overhauling and erection of

23

major equipments. He periodically reviews engineering stores stock position and furnishes

indents for purchase for his departments. Civil section, turbines, boilers, mill house,

electrical and the main parts of the engineering section such as rehabilitation

modernization, lay out, and replacement, labour and staff policy to management and

ensures that all factory regulations and scrupulously concerned and compelled with the al

concerned

Manufacturing Department:

This department his helded by chief chemist, he is responsible for over all operation

of sugar manufacturing side of the factory form juice to final bagging of sugar. The

department is to see the food quality of the sugar production. He has to co-ordinate the

work of manufacturing department with that of the engineering and cane department.

Cadre - wise employees in The Chodavram Co-Operative sugars Ltd… GOVADA AS ON 01-06-2010.

Sl. No

Cadre/Category Number of permanent employees

Seasonal Employees

Total

1 Managing Director 1 0 12 Departmental heads 5 0 53 Supervisors

- A- B- C

578

278

71416

4 Clerical Grade- 1- 2- 3

31339

000

31339

5 High SkilledSkilled – ASkilled – BSemi- SkilledUn Skilled

43372214

0351717

436123931

6 Medical Officer (Consolidated 1 0 1

24

on Contract)Total 162 59 221

PRODUCTS

The products of “The Chodavaram Co-operative Sugars Ltd”are:

Sugar: Sugar is the major product of the mill and it is prominently used in foods as sweetening agent. The consumption of sugar in India is very high compared to many other countries. Sugar production is India is a major agro-industrial activity in India. Some cultivators manufacture ‘gur’ (called as jaggery in the local region).

Sprit: Spirit is a by-product which is used by distillery units to manufacture medicines as well as liquor. Liquor has very good demand in the State.

Bio – Earth: It is manure to the agriculture and horticultural operations. Bio-earth is

mostly used in stead of complex fertilizers.

Bio – gas: It is used again in the sugar mill for the production of sugar. The boilers need steam and water can be heated in the boilers by using the bio-gas.

Co-generation of power: The bagas is the by-product derived when juice is extracted from the cane sugar. Previously this is used in the boilers to heat the water and now this can used to generate power that is required for the sugar mill itself.

Production of sugar is a seasonal operations and the sugar mills work during cane

sugar harvesting seasons. The cane sugar is crushed and juice is extracted and from the

juice sugar is made. In this process by-products are extracted such as spirit (molasses) and

bugas.

Cane Sugar

Bagas

Sugar Juice Bio - manure

Captive generation of Power

Sugar

25

CHAPTER – IV THEORETICAL FRAME WORK

26

THEORETICAL FRAME WORK

INTRODUCTION:

Once the required number and kind of human resources are determined, the management

has to find the places where required human resource are/well be available and also find

the means of attracting them towards the organization before selecting suitable candidates

for jobs. All this process is generally known as recruitment. Some people use the term

recruitment' for employment. These two are not one and the same. Recruitment is only one

of the steps in the entire employment process. Some other use the term recruitment for

selection. These two terms are not one and the same either. Technically speaking the

function of recruitment precedes the selection function and it includes only finding,

developing the sources of prospective employees and attracting them to apply for jobs in an

organization, whereas the selection is the process of finding out the most suitable candidate

to the job out of the candidates attracted(i.e., recruited). Formal definition of recruitment

would give clear cut idea about the function of recruitment. The purpose of recruitment is

to locate sources of the man power to meet the job specification. Recruitment and selection

had been regarded as the most important function of personnel administration, because

unless the right type people are hired even the best plan organization charts and control

would not do much good. The basic purpose of ‘Recruitment’ is to attract job seekers in

sufficient numbers. The Management spreads its not wide in order to get as many

applications as possible. Recruitment offers opportunity in a positive process where the

aim is to increase the scope for selection. The second of ‘selection’ is test and

preliminary interview where the administration of tests is a specialized job. Those who

administrator tests must be knowledgeable and component, otherwise the test may result in

the elimination of good candidates in some organization for certain posts, a preliminary

interview of the candidates is make addition to the administration of tests. HRD is mainly

concerned with developing the skill, knowledge and competencies of people and it is

people –oriented concept. When we call it as a people-oriented concept the question of

people is developed in the larger or national context or in the smaller organization

27

concept? Is it different at macro and micro level? HRD is applied both for the

national level and organization level.

The concept of HRD is not yet well conceived by various authors. Thought

they have defined the term from their approach as it is of recent origin and still is in the

conceptualizing stage. It is an understanding of the term. that is, new or rather was new.

HRD is not training and development. But many personnel managers and organization

view HRD as synonymous to training and development. Many organizations in the country

renamed their training departments as HRD departments. Surprisingly some organization

renamed their personnel departments as HRD departments. Some educational,insttituons

started awarding degrees and diplomas in HRD even though the concept is not yet crystal

clear. Leonard Nadler formally introduced the concept of HRD in 1969 in a conference

organized by the American Society for Training and Development. Leonard Nadler HRD

as, “those learning experience which are organized, for a specific time, and designed to

bring about the possibility of behavioral change. Among the Indian authors

T.Venkateswara Rao worked extensively on HRD. He defines HRD in the organization

concept as, “a process by which the employees of an organization are helped in a

continuous, planned way to:

i. aquire or sharpen capabilities required to perform various functions associated with their present or expected future roles.

ii. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their and own and/or organizational development purposes.

iii. Development an organizational culture in which superior-subordinate relationship, teamwork and collabouration among subunits are strong and contribute to the professional well being, motivated and pride employees.

HRD from organizational point of view is a process in which the employees of an

organizational are helped/motivated to acquire and develop technical, managerial and

behavioral knowledge skills and abilities, and mould the values, beliefs, attitude necessary

to perform present and future roles by realizing highest human potential with a view to

contribute positively to the organizational, group, individual and social goals.

28

A comparative analysis of these definitions show that the third definition seems to be

comprehensive and elabourate as it deals with the development aspects of all the

components of human resources. Further, it deals with all types of skills the present and

future organizational needs and aspect of contribution to not only organizational but also

other goals.

The analysis of the third definition further shows that there are three aspects viz.,

i. Employees of an organization are helped/motivated,ii. Acquire, develop and mould various aspects of human resources and

iii. Contribute to the organizational, group, individual and social goals.The first aspect deals with helping and motivating factors for HRD.

HUMAN RESOURCE PLANNING:

Planning for human resource is more important than planning for other resource as

demand for the latter depends upon the size and structure of the former whether it is a

country or in an industry. Further management of human resource hardly begins from

human resource planning. In fact it is the basis for most of the other functions.

DEFINITION:

An integrated approach to performing the planning aspects of the personnel function

in order to have a sufficient supply of adequately developed and motivated people to

perform the duties and tasks required to meet organizational objectives and satisfy the

individual needs and goals of organizational members .

29

---Leon C.Magginson.

OBJECTIVES:

To recruit and retain the human resource of required quantity and quality.

To foresee the employees turnover and the arrangements for minimizing turnover and filing up consequent vacancies.

To meet the needs of programmers of expansion, diversification etc.

To foresee the impact of technology on work, existing employees and future human resources requirements.

To improve the standards skill knowledge ability discipline etc.

To maintain congenial industrial relations by maintaining optimum level and structure of human resources.

To minimize imbalances caused due to non-availability of human resources of right kind right time and right place.

To make the best use its human resources.

To estimate the cost of human resources.

PROCESS OF HUMAN RESOURCE PLANNING:

The process of human resource planning consists of the following steps:

Analyzing the organizational plans

Forecasting the overall human resource requirements

Supply Forecasting

Estimating the net human resource requirements

Action plan for Redeployment, Redundancy/Retrenchment

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Analyzing the organizational plants:

The process of human resources planning should start with analyzing the

organizational plan into production plan, technological plan, plans for expansion,

diversification etc. marketing plan, sales plan, financial plan. Each plan can be further

analyzed into sub-units. Detailed programmed should be formulated on the basis of unit

wise plans. Practicability of each programmed should be ensured. Analysis of

organizational plans and programmers helps in forecasting the demand for human

resources as it provides the quantum of future work activity.

Forecasting the overall Human Resource Requirements:

The existing job design and analysis may be thoroughly be reviewed keeping in

view the future capabilities, knowledge and skills of present employees. Further the jobs

should be redesigned and reanalyzed keeping in view the organizational and unit wise

plans and programmers, future work quantum, future activity or task analysis, future skills

values, knowledge and capabilities and present employees and prospective employees. The

jobs should generally be designed and analyzed reflecting the future human resource and

based on future organizational plans.

Supply Forecasting:

The first step of forecasting the future supply of human resource is to obtain the

data and information about the present human resource inventory. The data relating to

present human resources inventory in terms of human resources components, number,

Forecast future supply form all the sources

Action plan for Recruitment, Development etc.

Modify the organizational plan.

Retention plan

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designation wise and department wise should be obtained. Similar to potential loss, there

will also be additions to the present inventory to human resource. Potential additions are

new hires, promotions in, transfer in and demotion in:

(a) Potential total (b) Permanent partial (c) Temporary total

(d) Temporary partial.

Estimating the net human resource requirements:

Net human resource requirement in terms of number and components are to be

determined in relation to the overall human resource requirements for a future date and

supply forecast for that date. The difference between overall human resource requirements

and future supply of human resource is to be found out.

Action Plan for Redeployment, Redundancy/Retrenchment:

If future surplus is estimated, the organization has to plan for redeployment,

redundancy etc. If surplus is estimated in some jobs/departments, employees can be

redeployed tin other jobs./departments were the deficit of employees is estimated.

Organization should also plan for training or reorientation before redeployment of

employees. Redeployment takes place in the form of transfers. If the deficit is not

estimated in any job/department and surplus is estimated for the entire organization, the

organization in consultation with trade unions has to plan for redundancy or retrenchment.

Redundancy plan includes; Type and number of employees, time and place of

retrenchment, type of help to be extended to retrenched employees in the form of

compensation help in getting new job, priority in filling future vacancies.

Forecast future supply forms all the sources:

If deficit is estimated in any department and in the entire organizations, management

has to forecast the future supply of human resources form various sources like internal

sources, comparable organizations, educational and training institutes, employment

exchanges, labour market etc.

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Action plan for recruitment, Development etc:

If the relating to future supply of manpower from internal sources of the organization

shows favorable trends, the management may prefer internal candidates and plan for

promotion, transfer, training and development. If suitable candidates are not be available

form internal sources and if the forecasts relating to future supply form external sources

indicate the availability of required human resources, plan for recruitment and selection.

Modify the Organizational Plan:

If future supply of human resources form all the external sources is estimated to be

inadequate or less tha the requirements, the manpower planner has to suggest the

management to alter or modify the organizational plan. In view of shortage of certain

categories of employees, the organization has to take care only of recruitment but also

retention of existing employees.

Retention Plan:

Though there is the problem of employment, organizations experience shortage of some other categories of employees due to employee mobility. Hence, the organizations have to plan for retention of the existing employees.

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INTRODUCTION TO CONCEPT OF RECRUITMENT AND SELECTION

The performance of an organization heavily depends upon the people who work

inside it. If the organization has right people on right jobs, the work proceeds smoothly

and efficiently. Unfortunately, this is not the position in most of the industrial undertakings

and, therefore, we see today industrial indiscipline. People working in industry are not

only apathetic but in many instances they are hostile to the very objectives of their

organization.

Manpower or Human resource is thought of as the “Total knowledge, skills, creative

abilities, talents and aptitudes of an organization’s work force, as well as the values,

attitudes and benefits of an individual involved.” It is the sum total inherent abilities,

acquired knowledge and skills represented by the talents and aptitudes of the employed

persons. Of all the resources (Men, Material, Machines, Money, Market, and Methods),

the most important resource is men or human resources. It is the most valuable assets of an

organization and not the money and physical equipment. It is in fact important economic

resource, coverings all human resources organized or unorganized, employed or capable of

employment, working at all level supervisors, executives, blue or white collar workers,

managerial, scientific, engineering, technical, skilled or unskilled persons who are

employed in creating, designing, developing, managing and operating productive and

service enterprises and other economic activities. The success or viability of an

organization depends on the quality of manpower it has. Hence it is the important duty of

the organization to see that the right man is placed on the right hob at the right time and

plane to effectively utilize its human resources.

This function known as recruitment forms the most important aspect of Personal

Management. Recruitment is a process of searching for prospective employees and

stimulating and encouraging them to apply for jobs in an organization. The Labour

Investigation Committee rightly observed that recruitment is the first step in employment

of laboor, and naturally the methods by mean of which labour is brought into the industry,

has a lot to do with the ultimate success or failure of such employment.

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If proper care is not taken in the recruitment of labour force, the employers, the

workers and the community and bound to suffer. The employer suffer if he does not get

the men best suited for a particular job, the worker suffers if he cannot find a job for which

he is best suited, and the community suffers as a result of low productivity and

dissatisfaction among workers and employers .

SIGNIFICANCE AND METHOD OF RECRUITMENT, SELECTION AND INDUCTION

Every sound organization whether commercial or otherwise must be built on full

recognition of the importance of the workmen that is to become a part of the organization.

The enterprising talent of entrepreneur personnel in the organization was selected on

modern concepts of recruitment. Practically, the works of every establishment are in a

state of flux, but the problem of recruitment is a permanent one. Recruitment is a process

of getting potential employees willing to apply for job into an organization.

RECRUITMENT POLICY:

A “Recruitment Policy” in its broadest sense involves a commitment by the employer to such general principles as:

i. To find and employ the best qualified persons for each job.

ii. To retain the best and most promising of those hired.

iii. To offer promising for life time working careers.

iv. To provide programmers and facilities for personal growth on the job.

According to Yoder the recruitment policies concerned with quantity and

qualifications. Generally the following factors are involved in a recruitment policy.

1. To carefully observe the latter and spirit of the relevant public policy of hiring and on the whole employment relationship.

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2. To provide individual employees with the maximum of employment security, avoiding frequent lay-off to lost time.

3. To provide each employee with an open road and encouragement in the continuing development for his talents and skills.

4. To assure employees of fairness in all employment relationships. Including promotions and transfers.

5. To assure each employee if the organization interest in his personal goals and employment objectives.

6. To avoid cliques that may develop when several members of the same household or community are employed in the organization.

7. To provide employment in jobs which are engineered to met the qualifications of handicapped workers and minority sections.

8. To encourage one or more strong, effective, responsible trade unions among the employees.

RECRUITMENT PRACTICES IN INDIA:

According to survey of public and private section employees by Prof. R.Basavaraj

the following methods were used to recruit employees.

(a) In the public sector, the major resources of recruitment in of performances are:

Casual callers of employment seekers. Newspapers advertisement Employment Exchanges Other public sector undertaking Internal advertisements Relatives and friends Displaced persons Employee recommendations and Institutions In the public sector the sources fro non-supervisory staff are: Employment Exchanges External advertisements

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Internal advertisements Central Training Institute Introduction by the liaison officer of a corporation Deputation personnel Transfers from other public undertakings

(b) In the Private Sector, the survey disclosed that the procedures formulated were not

institutionalized in character. In some organizations, preference was given to it and

relatives of employees and to local people. In order of preferences, the major sources are:

Advertisements Employment Exchange Relatives and Friends Casual callers and Employee’s recommendations.

SELECTION:

Once applications are received, the stage is set for processing them for talking

further steps in the selection process. The selection procedure is concerned with securing

relevant information about an applicant. This Information is secured in a number of steps.

The prime objectives of selection process are to find out enough about the application so

that the may be matched with the job.

STEPS IN SELECTION PROCEDURE:

The hiring process are therefore generally long are complicated. The following is a

popular procedure, though it may be modified to suit individual situations.

Preliminary Interview or Reception or screening

Application forms a fact finder, which helps one in learning about an applicant’s background and life history.

Testing

Reference Checking

Physical examination

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Conditional Offer letter

APPLICATION FORM:

An application is traditional, widely accepted device for getting information form a

prospective applicant, which will enable a management to make a proper selection. Many

type of application forms are used

Employment tests:

A test may be defined as a systematic procedure for sampling human behavior. On

the basis of human behavior, tests have been generally classified into 4 categories:-

Aptitude tests

Achievement tests

Personality tests

Interest tests This is the second stage of selection, test and preliminary interview. In this stage

after reducing the candidates sufficiently a curial stage is reached where only the most

suitable are form amongst the apparently suitable candidates retained for further

consideration. If the post advertised requires special skill, experience or aptitude tests can

be administered. Certain organizations conduct preliminary interview for the candidates.

The work preliminary interview is normally left to a senior officer of the personnel

department sitting along with an officer of the concerned department where the vacancy

has arisen.

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Reference Checks:

The use of reference is common in most selection procedures, for it involves less

money, and minimum amount of effort. Checks on references are made by mail or by

telephone and occasionally in person or by using a reference form. The opinions of

previous employers and others, which have known the applicant, are generally useful in

getting a picture of his potential performance on a particular job.

Interview:

The final interview is the last stage in the selection process. It is the stage at which

the final search is on for the most suitable candidates. There will be panel of officials of

the company including the chief of personnel and the General Manager.

There are various ways of conducting the final personal interview structured and

unstructured. In an unstructured interview it is easier to put the candidate is case. There is,

however a danger of missing some important points relevant to the requirements of the job

if the interview is unstructured. As against this structured interview though formal is more

complete because the relevant questions are carefully prepared in advance.

The best solution is to keep on hand the structured questions for reference but to

allow the interview to proceed in an informal and unstructured manner. The panel

normally comes to a final decision about the most suitable candidate.

Even though the object is to ultimately select one man for one post, it is better to

select 2 or 3 candidates and rank them in order of merit. Selection being an expressive

process, it is prudent to take sufficient care so that final interview results in selection of a

suitable candidate for the organization. It is recommended that 2 or 3 persons should be

selected because if the candidate who stands first in the order of merit does not join the

organization for some reasons, the other candidates in order of merit can be invited to join.

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Induction:

On the completion of the selection process, the candidate has to issue an

appointment letter. Before doing so, it is prudent to make sure if the selected candidate is

physically fit to undergo medical test. Once they pass the medical test, there should be no

delay in issuing the appointment letters.

There is no set form for an appointment letter but normally it should contain the

name of the post, the designation, salary and prerequisites offered and a clause requiring

the candidate to sign acceptance the terms, contestations ran rules of the organization.

The selected candidate who reports for the duties is a stranger to the organization

unless he is promoted form within. It is, therefore necessary, particularly in case off

outside candidates to give them adequate information about the history, structure and

working practices of the organization. Familiarity of the newcomer with the organization,

this step is referred to as induction.

The objective of induction is to help the integration of a newcomer with the

organization. Induction should be a two way process. It introduces the candidate to the

organization and the organization to the candidate. It is instance offering him a warm

welcome and then introducing him to the people with he is going to work. The

psychological impressions gained by the candidate at the start of his career in the new

organization make a lasting impression on him. In organization where new comers are left

to their own fate, harmful consequences may follow…

In case of candidate selected for higher posts, the danger is of a different kind.

Highly educated and experienced people normally have a strong sense of ego. If they feel

on first contact with the organization that they are not cared for, they will rapidly lose

interest in their assignment and will never get job satisfaction.

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Induction program can be formal or informal. The duration of the programmer

depends of the prevailing in the organization. The following points should be noted while

conducting an induction programme:

1. The new entrants to the organization should in the first instance, receive a warm welcome form the officers of the personnel department.

2. They should be told about the organizational structure and the management hierarchy.

3. They should be acquainted with the rules and regulation and should be encouraged to ask questions for qualification.

4. They should be told about the industrial relation situations and the policy of the management towards trade unions.

5. They should also be facilitates provided by the organization for canteen, sport, cultural activities etc…

At the end of the programme, the candidate should be introduced to important

persons in various departments, and the one who takes the new comer to his place

of work.

NEED OF RECRUITMENT AND SELECTION:

The basic purpose of Recruitment is to attract job seekers in sufficient

numbers. The management spreads its net wide in order to get as many applications as

possible. Recruitment offers opportunity scope to management in choosing the right men

from a large pool. Obviously, therefore, recruitment is a positive process where the aim is

to increase the scope for selection.

In a country like ours, there is no dearth of job seekers and yet it is always difficult

to get suitable personnel for specific jobs. Such difficulties are solved only through proper

and effective methods of recruitment. It is important to note that the management is not

necessarily to get adequate number of suitable application. This is the purpose and essence

of recruitment.

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Once the applicants are received, in the first stage of screening irrelevant

applications are removed of junior officials. Commonly to about twenty-five percent of the

applications are eliminated.

The second stage of Selection is test and preliminary interview where the

administration of tests is a specialized job. Those who administer tests must be knowledge

and component, otherwise the test may result in the elimination of good candidates in some

organizations for certain posts, a preliminary interview of the candidates is taken in

addition to the administration of tests.

The need of preliminary interview is that the candidate is seen in persons the strong

and weak points of his personality can be noticed. Some more candidates can be

eliminated at this stage. They are in a position to put searching questions regarding

background and experience of the candidates and choose form amongst only four or five to

be sent up for the final interview.

A panel of three of four top officials of the company including the chief of personnel

and the General Manager takes the final interview. The necessity for having a panel in

place of and individual is obvious. One individual is likely to come under pressure form

other. This is controlled to a large extent if the selection is through a panel. One of the

problems at this final stage of interview is impression that the candidate creates by the

visual impact of his personality.

The selected candidate who reports for duty is a stranger to the organization. It is

therefore, necessary, particularly in the case of outside candidates to give them adequate

information about the history, structure and working practices of the organization.

Familiarity with these facts puts the newcomer at ease, and helps him.

REGULATORY FRAME WORK

Introduction:

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Attracting and selection new employee personnel is and important aspect of the

personnel manager’s job. This unit in recruitment and selection tells you about the

procedure used for obtaining recruitment with the potential capacity of becoming good

employees. Once these poor of talent have been generated, it becomes feasible to select the

individuals fit for needs of the organization. The employee selection is the step by step

procedure that the personal manager goes through the staff in the organization his role and

become buyer of employee talent and potential.

Once the company has determined the number and kind of employee it requires the

next step in selection is set the right application in sufficient number for the position. All

the activities involved in securing the application for the employee position are referred to

as recruitment.

It does not include but is followed by the selection process to whole and screen the

applications. The nature of recruitment effort for employer’s personnel differ form from to

company mainly with respect to their recruitment sources. Different companies call for

individuals with widely varying abilities, skills, education, training, and experience. The

scope of recruitment effort is influence by the size of company’s organization, rate of turn

over, the forecasted employee’s volume, distribution channels and promotional strategies.

DEFINITION:

“Recruitment is a process to discover the sources of manpower to meet the

requirements of the staffing schedule and to employee effective measures for attracting the

manpower in adequate numbers to facilitate effective working force.” According the

purpose of recruitment is to locate sources of manpower to meet job requirement and job

specification.

-YODER-

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“Recruitment is the discovering of potential applicants for actual or anticipated

organization vacancies.”

-FLIPPO-

“Selection is a process of differentiating between applicants in order to identity

(and hire) those with a greater likelihood of success in a job.”

-ASWATHAPPA-

PRE REQUIREMENTS OF GOOD RECRUITMENT POLICY:-

The recruitment policy of an organization must satisfy the following condition.

It should have conformity with its general personnel policies.

It should be flexible enough to meet the changing needs of an organization.

It should be so designed as to ensure employment opportunity for its employees on a long-term basis, so that the goals of the organization should be achievable, and it should developed the potentialities of employees.

It should match the qualities of employees with the requirements of the work for which they are employed and

It should highlight the necessary of establishing job analysis.

SOURCES OF RECRUITMENT

The sources of recruit can broadly be classified into two:

2) Internal3) External

Internal sources refer to the present working force of a company. In the event of a

vacancy, some one ready on the payroll is promoted. Thus at the TATA engineering and

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locomotion’s and Unilever Lever, outside recruitment is restored to only when recruitment

cannot be met form internal promotions.

Filling vacancies form internal sources by promoting people has the advantages of

increasing the general level of movable of lusting employees and of providing to the

company more reliable information about the candidate’s suitability who has already

worked with the company on al lower posts. The major weakness of this source is that the

inbreeding, which it deprives the organization of a fresh out look of originality and institute

lost the opportunity of qualified and competent candidates which can be usually brings in

from the outside.

Among the more commonly used external sources are the following.

1) Advertising in Newspaper: Senior posts are largely filled by this method. This

method is however followed by companies in 3 different ways.

First: There are some companies, which do not their own advertising. On the other hand,

they send their requisition to certain specialized agency position in leading newspapers

without divulging the name of the Client Company. The application received form the

candidates by the agencies are duplicated and mailed to the clients.

Second : There are some companies, which although do their won advertisement

generally do not draw good candidates who feel that it is not worth to apply without

knowing employee’s name.

Third: There are some companies, which their names in their advertisements.

2) Employment Exchanges:

An employment exchange is an office set up by the gout for bring together a quickly

possible those men who are in search of employment and those employees who are

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looking men. Employment exchanges register unemployed people land maintain the

record of their part intimate the exchange above the vacancies, which occur in their

factories and types of employees. They require for filling up these vacancies whenever

any exchange selects some person’s form among the employment seekers already

registered with it and forward their names to the employers for consideration.

3) Field Trip :

An interviewing team makes trips to towns and cities, which are known to contain the

kinds of employees required. Arrival dates and the time and venue of interview are

advertised in advance.

4) Educational Institution:

Sometimes recruits are next to educational institution where they meet the members of the

faculty and persons in change of placement services who recommended suitable meetings

and convictions to recruit employees.

5) Labour Contractor:

In many industries workers are recruited through contractions that are themselves the

employees of these organizations.

6) Employee’s Referrals:

Some industries with a record of good personnel relation encourage their employees to

bring suitable candidates for various openings in the organization.

7) Unsolicited Applicants:

These are persons who gather at the factory gates to sever as casual workers or who send

the application without any invitation form of the factory.

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RECRUITMENT:

In general the sources of employees can be classified into two types,

internal and external. Filling a job opening form with in the firm has the

advantage of stimulating preparation for possible transfer or promotion

increasing the general level of morale and providing more information about

job candidates through analysis of work with in the organization.

There is no specifically recruitment policy for the organization is

following the soon of the social policy i.e., perfuming the candidates in

around the place of the industry as the organization is suited to extreme i.e.,

Govada, in order to retain the employees the soon of the icily policy.

SELECTION:

Selection as the name implies involves picking for hire of subset of workers who

have applied for the job. Selections are done comparing the requirements of a job with

applicant’s qualification. An attempt is make to find a round makes selection a negative

function.

It is not always essential for an organization to have selection programme. The need

to install such a programme arises only when there is a labour surplus and there are

individual in job performance. This mean that when there is al labour shortage or when the

work is such that no programme. The widespread notion that differences among workers

in terms of job performance are always large is not time. For example, on a production line

workers. For this social pressure of fellow workers may comely uniformity in their rate of

production.

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IMPLEMENTAION OF RESERVATION FOR VARIOUS CATEGORIES

The organization comes under the private sector. It does not follow any reservation

procedure for the candidate during recruitment process. It depends purely on merit and

performance basis dealing the process.

SELECTION PROCEDURE:

The selection procedure in the organization is follows.

The Organization employees in two ways:

1) Trainees

2) Regular Employees

1) Trainees:

Organization selects three types of trainees in the industry. They are of

a) Technical Trainees

b) Graduate Engineering trainees

c) Management trainees

a) Technical Trainees:

The organization after selection the human resource requirements they intimate the

college near the area that the outgoing batch of the required dept. is selected for technical

trainees. The Aug percentage requirement is 70 % it is a qualifying grade for the written

test, which is conducted by the organization. After qualifying in the test then final

interview will be conducted. He is kept for medical test. If the candidate is proved to be fit

for the job, then he will be organization class will be given to the trainee for 2-3 weeks and

after that 1 yr. 3 moths of trainee period is offered for trainees. If the trainees prove them

rules by up to grade level of performance they will be observed as regular employee in the

organization.

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b) Graduate Engineering Trainee:

The process of selection of GET’s follows the same procedure as diploma trainees.

The required percentage to quality for written test is 70% same procedure is followed i.e.

Intimating the college

Application bank for the qualified candidate

1) Written test

2) Preliminary interview

3) Final interview

4) Medical test

5) Trainee for 1 yr. 6 months duration

6) Regular employees.c) Management Trainees:

The process of selecting management trainee in the same GET’s the required

percentage of Mays is 60% same procedure is followed as GET’s.

2) Regular Employees:

Selection of employees directly into the organization a regular employee is done to

the executor under cadre of the employee. The are through different types. They are

1) Walk-in-interview2) Advertisements etc.

The above process in the organization does the selection process procurement of

human resources.

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Recruitment Organization:

There is no general procedure for hiring new personnel, which is applicable to all

business enterprises. Each enterprise has its “Tailor Made” procedure which brings it the

desired quality and quantity of man power at the minimum possible lost. The most

commonly adopted practice is to centralize the recruitment and selection function in a

single office.

Steps in Recruitment Process:

According to Formula, personnel Recruitment process involves six elements they are

A Recruitment policy

A Recruitment organization

A Forecast of manpower

The development of sources of recruitment sources.

Method of assessing the recruitment programmes.

The Advantage of Centralization of Recruitment and selection are:

It reduces the administrative cost associated with selection by consolidating all activities in a single office.

It relies line officers, the details involved in hiring workers is common under a decentralized plan.

It tends to make the selection of workers scientific.

It makes possible, the development of a centralized manpower pool in a company

It tends to reduce favoritism as a basis for selection.

This centralized department is generally known as the recruitment selection. The staff

personnel were attached. This enables specialists to concentrate upon the recruitment

function and soon they become very efficient in the use of various recruitment techniques.

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Method & Techniques of Recruitment:

An author summarizes the possible recruitment’s method into three categories.

1) Direct

2) Indirect

3) Third Party

DIRECT METHOD:

These include sending traveling recruitment to educational and professional

institution, employees contact with public and manned exhibits. One of the widely used

direct method is that of Sendai of recruitment to colleges and technical schools. Most of

the college recruitment is alone in cooperation with the placement office usually provides

help in attracting students, arranging interviews, furnishing space and providing student

resumes.

For management professionals and sales personnel campus recruiting is an entry

operation. Devour studying MBA or other technical diplomas are picot up in this

organization and the jobs it offers are distributed among students, before the interviewer

arrives. Sometimes firms directly solicit information form the concerned profession about

students with in outstanding record. Many companies have found employee’s contact with

the public in a very effective method.

INDIRECT METHOD:

Indirect methods involve mostly advertising in newspapers, on the radio, in the trade

and professional journals, technical magazines and brochures.

Advertising in newspapers and or trade journals and magazines fin the most

frequently used method when qualified or experienced personnel are not available from

other sources. Senate posts are largely filled by such methods when they cannot be filled

by promotion from with in.

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Advertising is very useful for recruiting blue collar and hourly workers, as well as

scientific, professional and technical employees local newspaper can be an administrative

employee. Other methods include advertising in publication such as trade and professional

journals and radio or television announcements, as is done by many Indian Manufacturers.

People with specialized background and internets read professional journals. Therefore

advertisements in these are generally selective.

THIRD PARTY METHOD:

These include the use of commercial or private employment agencies, state

agencies, and placement offices of schools, colleges and professional association,

recruiting firms, management consulting firms, indoctrination, seminars for college

professor and friends and relatives.

Private employment agencies are widely used. They change a small fee form an

applicant. They specialize in specific occupation. Several offices help salesman, technical

workers, accounts, computer staff, engineers and executives. These private agencies are

broken who bring employees and employee together. The specification of their clients is to

seek out particular types of persons and to develop proficiency in recognition the talent of

specialized personnel.

State or public employment agencies are also known as employment or labour

exchange is the main agencies of public employment. They provide a clearing house for

jobs and job information. Employees inform them of their personnel requirements, while

job seekers get information forms them about the types of jobs that are referred to by

employees. These agencies provide a wide range of services counseling, assistance in

getting job and information about the labour, market and wage rates.

Schools, Colleges and Professional Institutions offer opportunities for recruiting their

students. They operate placement services where complete biodata and other particular of

the students are available.

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The companies that need employees maintain contact with the guidance of counselors

of employment bureaus and teachers of Business and vocational subjects. The prospective

employees can review credentials and interviewed.

Candidate for management trainees or probation whether the education sought

involves a higher secondary certificate, specific vocational training or a college background

with a bachelor masters or doctor degree educational institution provide an excellent

sources of potential employees for entry level position in organization. These general and

technical/professional institutions provide blue-collar applicants, white collar and

managerial personal. Sometimes the organization provides work-study programme.

The man point is that the higher the position in the organization or the more

specialized the skills sought. The more widely dispersed advertisement is likely to be

search fro top executive might include advertisements in national periodicals, while the

advertisements of blue-collar jobs is confined to the daily newspaper or regional trade

journals.

The classified advertisement selection of a daily newspaper or the Sunday, weekly

edition of the Hindu, Times of India, The Tribune, Bharat jyothi, The National Herald,

Frap Press Journal, The pioneer, Amnit

Bazaar Patrika, Economic Times, The Hindu, The Indian Express etc… carry

advertisements for all types of position, such advertisements enable prospective candidates

to screen them selves in order to find out whether they are fit for the job which the

advertisement has been issued.

In order to be successful, and advertisements should be carefully written. If it is not

properly written, it doesn’t draw the right types of applicants or it may attract too many

applicants who are not qualified for the job. It should be so framed as to attract attention

for example by the use of different sized and type of print. The first line should limit the

audience somewhat and the next few lines should further screen out the readers who do not

possess the necessary qualification. It should provide specific information on job

requirements and opportunities for advertisement; the benefits to be enjoyed by working in

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the company and it should emphasis facts related to the dignity of the job and to its

professional aspects. “Firstly Advertisement contains exaggerated dacim and simmicky

appeals are to be avoided” Advertisement can be very effective if its media are properly

chosen.

According to advertisement tactics and strategy in personnel Recruitment, three

points need to be borne in mind before and advertisement is inserted. First to visualize the

type of applicant is trying to recruit. Second, to write out a list of the advantages of a

company offer, in other words, when the reader should work for the company. Third, to

decide where to run the advertisement not only in the area in which newspaper having

circulation in the Local, State or Nation-wide circulation.

Much organization offers place what is referred to as a blind advertisement, one in

which there is no identification of the organization. Respondents are asked to reply to post

office box between the applicant and the organization, the large organization with regional

or national reputation does not usually use blind advertisements.

PROCEDURE OF RECRUTMENT IN COOPSUGARS,GOVADA

Placing the Requisition:

The requisition is placed to the personnel department based on the requirement of

the particular department.

Sources of Recruitment:1. Advertisement in Newspapers:

One of the main sources of recruitment is through the newspaper when and where the

recruitment is felt the personnel department gives an advertisement in all leading

newspaper for recruitment the desired personal with required prerequisites.

2. Employment Exchange:

54

This is also another source for recruitment when the personnel department

approaching the local employment for personnel it sends the list of candidates under the

requisite category in order of the employment registration number.

CAMPUSES:

The personnel department staff along with the technical personnel makes trips to

educational institutions during Jan/Apr for Recruiting personnel directly. They conduct

them test and interview at the campus itself and pick the appropriate candidates for the

organization. The recruitment undo this category include Graduate Engineer Training

(GAT) form various universities and reputed college campuses and technical staff form

local industrial training institutes and polytechnics and colleges for operators and other

staff.

APPLICATIONFORMAT:

There is no prescribed format for applying but once the final application is given by the

organization.

INTERVIEW PATTERN:

Panel consists of the respective dept, which had placed the requisition and personnel

pf panel department.

SELECTION:

The ultimate selection is based on the performance of the candidate in

his or her written exams and interview the rating is based on the type and

qualify of the candidates who have come for recruitment and selection

procedure that one generally at COOPSUGARS,GOVADA.

55

The primary objective of this study selection and recruitment process fat

COOPSUGARS, GOVADA is to access the procedures find techniques that

are prevent at the organization. The procedure for recruitment and selection is

shown in tabular for moth wise. The data is basically divided into 2 parts.

1) Commercial & Technical

2) Executive

1) Commercial & Technical :

The Commercial and Technical staff includes clerical supervisory

and staff technical trade below engineers.

2) Executive Staff:

The executive staff includes Graduate Engineer Trainee and Managers.

Determination of the kind or Quality of Personnel

Knowledge of the nature and requirements of jobs is a fundamental

prerequisite for determining the kind or quality of personnel needed. The

securing of this knowledge entails. There closely related processes.

1) The analysis of jobs

2) The uniting of job description

3) Preparation of job specification

Jon Analysis:

Job analysis is the process by mean of which a description is developed

in the present method and procedures of doing job, physical condition in

56

which the job is done, relation of the job to other jobs and other conditions of

employment. Job analysis is intended to reveal what is actually done as

opposed to what should be done. Therefore, if a man is found doing some

activity is possible. The purpose of job analysis is not to describe an ideal but

to show the management how. At the moment a particular job is being carried

out.

Various points on which information may be gathered for job analysis

are as follows:

Job title

Alternate titles

Work performed

Equipment used

Tools used

Materials used

Reports and records made

Relation of the job to other jobs.

Education (General, technical and on-the-job)required

Physical effort required

Mental effort required

Visual attention required

57

Responsibility (in terms of typical damage, money value and normal consequences) for equipment, tolls, materials and records and reports.

Discomforts

Hazards (in terms of typical injury and preventive measures taken)

Supervision(close or general ) received

Supervision (close or general) given

Any other (e.g. number of personnel men and women employed)

JOB DESCRIPTION:

The results of a job analysis are not set down in job description. The

main points to be included in a job description are:-

The location of the job-division, department, branch or section

The title of the job

The job title of the individual to whom the jobholder is responsible

The job grade

The job title of any individual responsibility to the job holders and the number of employees he surprise

A brief description of the overall purpose of the job

The main tasks carried out by the jobholder these should be listed either in chronological order or in their order of importance.

Details of the equipment or tools used or any special requirements to deal with people, inside or outside of the company.

58

The location of the job and the amount of traveling that may be required.

Special circumstances such as shifts or night work, overtime or weekend working, heavy lifting, exceptionally monotonous work, unpleasant or dangerous working conditions, traveling required so on.

A more development is job description for managers. The two types of

job description, however, differ form each in many ways.

i. The lower level job description is generally written by personnel department but managerial job description are (more closely related to several intangible relationship. They are description of the authority and responsibility relationships of an executive). Written by the incumbent executive him self or by his superior.

ii. The lower level job description center directly around tangible duties but managerial job description is more closely related to several intangible relationship. They are description of the authority and responsibility relationship of an executive.

iii. The lower level job description being compete description of the day to day work of an employee always serve as the bases in the recruitment and selection of works but managerial job description being incomplete portrayals of the changes assignments of a manager cannot serve as the basis in executive selection. It should be remembered that through the description of a managerial job might not change for a long time the assignment many change every time the position is being filled.

JOB SPECIFICATIONS:

A job specification (also called man specification) is a statement of the

minimum acceptable human qualities necessary to perform a job satisfactory.

Making job description as its base, it prescribes the abilities and qualities that

59

a worker should posses in order to hold the job in question. The exact list of

information varies according to the company’s and the uses to which the job

specification is to be used only for hiring decisions it may list only the

physical, educational, experience and skill requirements of the job. But if it

too used also for appeasing an employee’s performance a standards and the

career paths as well.

It should be remembered that preparing a complete and correct job

specification is relatively difficult as compared with preparing a complete and

correct job description. There is always considerable disagreement

concerning the human requirement for the work. For example, on the

question of education some people may say that simple high school is enough;

other may say that some college education is necessary. There may also be a

difference of opinion of whether a requirement should be classified as

‘Mandatory’ or ‘describe’, The employer cannot arbitrarily decide such issues.

Now a days more and more burden is being placed as the employer of

showing that any given requirement has a manifest relationship to the

employee must in question.

PART – I

JOB DESCRIPTON

Department

Section

Job title job grade

Reporting to (job titles) Reporting to jobholder (job titles)

60

Overall purpose of job

Main activities

Special requirements (tools and equipment used, external contracts)

Other features of job: shift or night work, traveling, Working condition

etc. Location etc…

PART – I

JOB DESCRIPTIOIN

Knowledge and skills Education, Qualification and special traveling Experience Personality requirements Physical requirements Other requirements Age Travel

Cadre-wise strength of employees of the Chodavaram Cooperative Sugars Ltd

Cadre 2005-06 2006-07 2007-08 2008-09 2009-10 (up t0 February 2010)

Managerial 5 5 6 6 6Supervisory 4 5 5 5 5Clerical 97 86 81 75 71Un-skilled workers

188 168 158 141 142

NMR (daily workers)

457 448 426 406 410

61

5 5

6 6 6

4

5 5 5 5

0

1

2

3

4

5

6

7

2005-06 2006-07 2007-08 2008-09 2009-10(up t0

February2010)

Managerial

Supervisory

Staff Strength - non-managerial

0

50

100

150

200

250

300

350

400

450

500

2005-06 2006-07 2007-08 2008-09 2009-10(up t0

February2010)

Years

Num

ber

of e

mpl

oyee

s

Clerical Un-skilled workers NMR (daily workers)

62

It is evident that recruitment activity has been stopped during the study

period. It is because the State Government is not permitting to go for filling up

of vacancies. At present the organization is recruiting to the posts which are

included in grants-in-aid. It recruits personnel who took superannuation and

for those vacancies approved by the State Government. It recruits workers on

daily basis as per the requirement of human resources. During the crushing

season it recruits good number of personnel.

In respect of seasonal workers, people are appointed on temporary

basis. Some of them did not report to duty in crushing season as they engage

in some other employment like agricultural activity, petty businesses, and

industrial employment in some other organizations.

NUMERICAL DATA OF EMPLOYEE RECRUTED INTO COOPSUGARS, GOVADA IN THE YEAR 2007

Jan 01 Feb 01 Mar 06 Apr 08 May 23 June 29 July 07 Aug 05 Sep 14 Oct 14 Nov 14 Dec 09 --------------- Total 141 ------------------

63

The major source of recruitment is through friends, relatives, and

persons known to the Directors of the sugar mill. However, preference will be

given to the persons who worked in the earlier years. The firm maintains data

base of temporary workers and basing on the seniority of them, priority is

given in the selection of the seasonal workers during the crushing period.

64

CHAPTER – V DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

65

1. Does a system of Recruitment and Selection exist in the Chodavaram Cooperative Sugars, Govada?

PARTICULARS NO.OF RESPONDENTS % OF

RESPONDENTSYES 30 100NO NIL 0

TOTAL 30 100

Graphical Representation:

% OF RESPONDENTS

Interpretation:

Cent per cent of the respondents opined that the firm under study had a

scientific system of selection of manpower. It is a welcoming sign that the

management is transparent in the selection of human resources.

2. Are you aware about Recruitment and Selection procedure followed?

66

PARTICULARS NO.OF RESPONDENTS % OF

RESPONDENTSYES 24 80NO 6 20

TOTAL 30 100

Awareness of recruitment and selelction process

80%

20%

YES

NO

It is evident that an overwhelming majority of the respondents (80 per

cent) are aware of the recruitment and selection process of the organization

under study. It shows that the management of the organization has clear

policies of recruitment as well as selection of the personnel.

67

3. Which technique of Recruitment procedure is followed by the Chodavaram Cooperative Sugars Ltd?

PARTICULARS NO.OF

RESPONDENTS % OF RESPONDENTS

Direct recruitment

30 100

Indirect- Through Recruitment

Agencies 0 0

Both 0 0TOTAL 30 100

The recruitment of the firm under study is entirely through direct method

and no private placement agencies are involved in this process. The firm

mostly looks for seasonal workers and it had a list of persons worked in the

earlier years. From that list it calls for the people who would like to work in

the present season. Basing on the previous experience, the management

selects the personnel.

4. Whether the recruited candidates are getting necessary induction training and support form the management and head of the department?

PARTICULARS NO.OF RESPONDENTS % OF

68

RESPONDENTSAgree 26 86

Partially Agree 2 7

PartiallyDisagree

0 0

Disagree 2 7TOTAL 30 100

Induction & Training given to new recruitees

86%

7% 7%

Agree Partially Agree Disagree

An overwhelming majority of the respondents (86 per cent) have

agreed that they were given proper induction and training immediately after

recruitment. Seven per cent of the respondents have agreed that they were

69

given partial induction and training to the newly recreated persons. None

have agreed that the firm under study is partially inducting and train the

personnel immediately after recruitment. A few of the respondents not agreed

that the firm is providing induction and training prgramme to the newly

recruited personnel.

5. Is the company recruiting the candidates suitable to the field of the working area?

PARTICULARSNO.OF

RESPONDENTS% OF RESPONDENTS

Agree 26 86.67Partially Agree 2 6.67

PartiallyDisagree

0 0

Disagree 2 6.67TOTAL 30 100

70

Ssuitability of the Candidates selected

90%

5%5%

Agree

Partially Agree

Disagree

96.67 percent of the respondents agreed that the candidates

selected are really suitable to the positions intended for in the

organization. It is an evidence of good recruitment and selection

policies adopted by the management of the firm under study. Very few

respondents (6.67 percent) partially agreed to the above mentioned

opinion, where as 6.67per cent of the respondents disagreed to the

above statement and they said that the candidates selected are not fully

suitable to the intended positions in the firm.

71

6. Does your company give preference to fresher’s also along with experienced candidates?

PARTICULARSNO.OF

RESPONDENTS% OF RESPONDENTS

YES 28 93.33NO 2 6.67

TOTAL 30 100

% OF RESPONDENTS

93.33 per cent respondents felt that the firm is encouraging fresh

candidates along with the candidates having previous experience in the sugar

mill. The rest of the respondents reported that the management is not

encouraging candidates without previous experience.

72

6. Does your company give preference to local candidates?

PARTICULARSNO.OF

RESPONDENTS% OF

RESPONDENTS

Agree 26 86 Partially Agree 2 7

Partially Disagree 0 0 Disagree 2 7

TOTAL 30 100

Preference to local candidates

86%

7%0% 7%Agree

Partially Agree

Partially Disagree

Disagree

Out of 30 respondents (86 per cent) agreed that the management is

preferring local candidates in recruitment and seven per cent partially

agreed respondents are agree, 10 percent respondents are Partially

73

Agree, 0 Percent respondents are partially Disagree and remaining 5

percent are Disagree

7. Do you feel that Recruitment and Selection procedure followed by The Chodavaram Cooperative Sugars Ltd, Govada is good?

PARTICULARSNO.OF

RESPONDENTS% OF

RESPONDENTSAgree 26 86.67

Partially Agree 26.67

PartiallyDisagree

2 6.67

TOTAL 30 100

Opinion on Recruitment and Selection Policies

26

2

2

0 5 10 15 20 25 30

Agree

Partially Agree

Partiallydisagree

op

inio

n

Number of respondents

74

26 out of 30 respondents have agreed that the policies of recruitment

and selection of personnel of the selected unit are good and further 6.67

per cent have partially supported the above mentioned opinion. The rest

of the respondents (6.67 per cent) have partially disagreed to the

opinion of the majority respondents.

8. Is Succession Planning done in advance since it takes time to recruit senior people?

ParticularsNumber of

Respondents Per centAgree 25 83.33

Partially Agree

2 6.67

Partially Disagree

3 10.00

TOTAL 30 100.00

75

83%

7%

10%

Agree

Partially Agree

Partially Disagree

Out of 30 respondents 83%(20) of respondents agreed that it had

succession plan and 10 per cent disagreed that the firm had no succession

plan. 6.67 per cent of the respondents partially agreed to the statement that

the firm is planning in advance about the succession plan..

9. Are you submitting any letter to Employment Exchange?

Particulars NO.OF Respondents % OF Respondents

YES 30 100NO 0 0

TOTAL 30 100

Yes

76

All the 30 respondents (100 %) knew that the management will inform

the vacancy position to the employment exchange and fill the vacancies with

the candidates enlisted by the exchange.

10.Are you satisfied with you recruitment process?

Particulars No of Respondents % OF RespondentsYES 30 100NO 0 0

TOTAL 30 100

Yes

77

All the 30 respondents (100 %) were satisfied with the recruitment

procedure adopted by the management.

11.Do you rotate employees who don’t perform potential evaluated?

PARTICULARS NO.OF RESPONDENTS % OF RESPONDENTS

Agree 25 83.33Partially Agree 3 10.00

PartiallyDisagree

2 6.67

Disagree 0 0TOTAL 30 100.00

78

Job rotation

25

3 2 0Agree

Partially Agree

Partially

Partially Disagree

Out of 30 respondents 83.33% (19) of respondents agreed that the firm

is rotating the employees who are week at certain positions and to train them,

10 per cent respondents partially disagree about job rotation.

QUESTIONNAIRE

79

1. Does a system of Recruitment & Selection exist in COOPSUGARS,Govada?

(a) yes (b) No

2. Are you aware about recruitment & selection procedure followed in COOPSUGARS,Govada?

(a) Yes (b) No

3. Which technique of Recruitment procedure is followed by COOPSUGARS,Govada?

(a) Direct (b) Indirect – through Recruitment Agencies (c) Both

4. Whether the recruited candidates are getting necessary induction training and support from the management and also from the head of the department?

(a) Agree (b) Partially Agree (c) Partially Disagree (d) D disagree

5. Is the company recruiting the candidates suitable to field of the working area?

(a) Agree (b) Partially Agree (c) Partially Disagree (d) Disagree

6. Does you company give preference to fresher’s also along with experienced candidates?

(a) Yes (b) No7. Does your company give preference to local candidates?

(a) Agree (b) Partially Agree (c) Partially Disagree (d) Disagree

8. Do you feel that the Recruitment & selection procedure followed by COOPSUGARS,Govada is good?

(a) Agree (b) Partially Agree (c) Partially Disagree (d) D disagree

9. Is Succession planning done in advance since it takes time to recruit senior people.

a) Agree b) Partially Agee c) Disagree

80

10.Are you submitting any letter to Employment Exchange?

a) Yes b) No

11.Are you satisfied with you recruitment process?

a) Yes b) No

12.Do you rotate employees who don’t perform potential evaluated?

a) Agree b) Partially Agree c) Partially Disagree d) Disagree

13.Any Suggestions you give with Recruitment & Selection?

81

CHAPTER – VI FINDINGS

SUGGESTIONS

CONCLUSION

FINDINGS

82

It is evident from the above study that the Chodavaram Cooperative Sugars Litmited had a clear procedure of recruitment and selection of human resources.

The employees are aware of the recruitment and selection procedure followed by the firm under study.

The most striking feature is the recruitment is carried out mainly through direct method and it has not hired the services of the agents or placement broking agencies. It notify the vacancies to the Government Employment Exchange.

The recruited candidates are properly inducted and given full-fledged training and support.

After completion of their training period, they are placed on the right job.

Freshers are also invited along with experienced candidates.

COOPSUGARS, Govada does not follow any reservation system in the filling up of vacancies.

In COOPSUGARS, Govada selection procedure is classified into two ways:

(i) Trainees(ii) Regular Employees

SUMMARY

83

The recruitment procedure followed at The Chodavaram Cooperative

Sugars Ltd, Govada is more transparent. Since inception of the project, rate

of recruitement was the highest in 1991. In this year it touched a total of 155

employees. 128 form commercial/technical and 27 from executive. The

organizational development programmes are being offered for its new and

existing employees. As the initial training provides necessary imputes to

integrate themselves to the organization goals.

The organization’s profitability and turnover are an indication of the

effectiveness of the training and development programmers, which are part of

recruitment and selection process. The company expanded the capacity of the

project by doubling its production. This was completed and commercial

production was started in 1998. The organization has the required personnel

to taken to the needs of the expansion project. The company at present is

recruiting a majority of its employees form local areas.

SUGGESTIONS

84

The firm should have manpower planning and it should take up the

recruitment programme on a regular interval basus and it should not be

like when need comes in order maintain the uniformity.

The firm needs to have an analysis of job and its specification.

Initial dropouts at training period itself must be prevented. Some

instruments could be used to minimize dropouts at training period.

Apart from intake interviews exit interviews are to be conducted. Score

card method to be adopted while selecting.

While recruiting fresh candidates preference should be given for the

children of the employees deceased or who are working in the firm

under study.

85

BIBLIOGRAPHY

BIBLIOGRAPHY

86

1 Human Resources Management

--- Dr C.B. Gupta

2 Personnel Management

--- C.B.MEMORIA

3 The Management of Human Resources

--STEPHEN.P.ROBINS

4 Personnel Administration and Human Resources Management

--- SIKULA, ANDREW.F

5 Human Resources management and industrial relations

--- P.SUBBA RAO

6 Human resource and personnel management

--- K.ASWATHAPPA

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