A

INTERIM REPORT

ON

THE THESIS

COMPARATIVE ANALYSIS OF

RECRUITMENT AND SELECTION

PROCESS FOLLOWED

BY

BRITANNIA AND PARLE

A report submitted in partial fulfillment of the requirements of the

Master of Business Administration (MBA) program (The Class of 2010) in the

ICFAI National College, Pantnagar

UNDER THE SUPERVISION OF- SUBMITTED BY-

Mr. VIKAS AGARWAL BEENA Pandey

(FACULTY GUIDE) MBA – IV SEM

ENROLL. NO. -0801120318

PANTNAGAR

TABLE OF CONTENTS

1. Introduction

1.1 Introduction of the Topic

2. Research Methodology

2.1 Research Formulation

2.2 Research Methodology

3. Recruitment & Selection

3.1 Concept of Recruitment

3.2 Concept of Selection

4. Review of Literature

4.1 Case Study: 1- UNILIVER

4.2 Case Study: 2- 2. WHICH IS MORE IMPORTANT –RECRUITING OR RETAINING

4.3 Case Example: Inducements

4.5 Article: 1- Recruiting suitable applicants-Mc Donald’s

4.6 Article: 2- Cummins: Using effective recruitment to retain competitive advantage.

5. Progress review

6. Bibliography

INTRODUCTION

The human resources are the most important assets of an organization. The success or failure

of an organization is largely dependent on the caliber of the people working therein. Without

positive and creative contributions from people, organizations cannot progress and prosper.

In order to achieve the goals or the activities of an organization, therefore, they need to

recruit people with requisite skills, qualifications and experience. While doing so, they have

to keep the present as well as the future requirements of the organization in mind.

Recruitment is distinct from Employment and Selection. Once the required number and kind

of human resources are determined, the management has to find the places where the required

human resources are/will 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 others use the term recruitment for selection. These are not 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.

RESEARCH FORMULATION

The research to be conducted can be formulated as:-

“A detail study on Recruitment and Selection process followed by Britannia Industries Ltd. &

Parle Biscuits Ltd., Sidcul”

RESEARCH OBJECTIVES:

1. The objective of the study is to have comparative analysis at the Recruitment &

Selection process at Britannia and Parle.

2. To study the recruitment and selection process in Britannia & Parle.

3. To analyze the awareness level of employees regarding recruitment and selection

process of the company.

4. Suggest ways to make it more effective.

5. To find out the employees views towards the present recruitment policies of the

company.

6. To analyze various factors affecting recruitment and selection process.

LIMITATAIONS OF THE STUDY:

1. Views of only few members could be included because of time limitation.

2. Limited availability of data.

3. This project is based on the method of recruitment and selection policies and due

to limited practical approach is not possible to work on all tools and techniques of

recruitment policies.

4. This report is based on my own perception and finding so it cannot use for

generalizing purpose.

5. Data are extracted from various employees and secondary sources so any error in

the statement will subsequent affect the company R&S process.

RESEARCH METHODOLOGY

Research methodology refers to the various sequential steps (along with a rationale, of each

such step to adopt by a researcher in studying a problem with certain object or objectives in

view.

DATA COLLECTION:

When research problem has been defined or research plan has been chalked out, the task of

data collection begins.

There are two types of data-

1- PRIMARY DATA

2- SECONDARY DATA

PRIMARY DATA –

Primary data are those which are collected fresh and for the first time and original in

character.

METHODS OF COLLECTING PRIMARY DATA-

1- OBSERVATION METHOD

2- INRTVIEW METHOD

3- OUESTIONNAIRE

SECONDARY DATA-

Secondary data are those which have already been collected by someone and this data has

already been passed through a statistical process.

SOURCES OF SECONDARY DATA-

Technical and trade journals, books, magazines and newspapers.

Reports prepared by research scholars, unadvertised, economists etc in different

fields.

Internet

CONCEPT OF RECRUITMENT

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

requirements of the staffing schedule and to employ effective measures for attracting that

manpower in adequate numbers to facilitate effective selection of an efficient workforce.”

Edwin B. Flippo defined recruitment as “the process of searching for prospective employees

and stimulating them to apply for jobs in the organization.” Recruitment is a ‘linking

function’-joining together those with jobs to fill and those seeking jobs. Thus, the recruitment

process begins when new recruits are sought and ends when their applications are submitted.

The result is a pool of applicants from which new employees are selected.

Recruitment represents the first contact that a company makes with potential employees. It is

through recruitment that many individuals will come to know a company, and eventually

decide whether they wish to work for it. The recruitment process should inform qualified

individuals about employment opportunities, create a positive image of the company, provide

enough information about the jobs so that applicants can make comparisons with their

qualifications and interests, and generate enthusiasm among the best candidates so that they

will apply for the vacant positions.

The negative consequences of a poor recruitment process speak volumes about its role in an

organization. The failure to generate an adequate number of reasonably qualified applicants

can prove costly in several ways. It can greatly complicate the selection process and may

result in lowering of selection standards. The poor quality of selection means extra cost on

training and supervision. Furthermore, when recruitment fails to meet the organizational

needs for talent, a typical response is to raise entry-level pay scales. This can distort

traditional wage and salary relationships in the organization, resulting in avoidable

consequences. Thus, the effectiveness of a recruitment process can play a major role in

determining the resources that must be expended on other HR activities and their ultimate

success.

CONCEPT OF SELECTION

Introduction

The size of the labour market, the image of the company, the place of posting, the nature of

job, the compensation package and a host of other factors influence the manner of aspirants

are likely to respond to the recruiting efforts of the company. Through the process of

recruitment the company tries to locate prospective employees and encourages them to apply

for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection.

Definition

To select mean to choose. Selection is the process of picking individuals who have relevant

qualifications to fill jobs in an organisation. The basic purpose is to choose the individual

who can most successfully perform the job from the pool of qualified candidates.

Purpose

The purpose of selection is to pick up the most suitable candidate who would meet the

requirements of the job in an organisation best, to find out which job applicant will be

successful, if hired.

The Process

Selection is usually a series of hurdles or steps. Each one must be successfully cleared before

the applicant proceeds to the next one. The time and emphasis place on each step will

definitely vary from one organisation to another and indeed, from job to job within the same

organisation. The sequence of steps may also vary from job to job and organisation to

organisation. For example some organisations may give more importance to testing while

others give more emphasis to interviews and reference checks. Similarly a single brief

selection interview might be enough for applicants for lower level positions, while applicants

for managerial jobs might be interviewed by a number of people.

REVIEW OF LITERAURE

CASE STUDIES:

1. Unilever

Unilever is one of the world’s leading suppliers of fast-moving consumer goods. With a total

of 265,000 people worldwide and 90 percent of its managers recruited and trained locally,

Unilever is committed to embrace diversity in a working environment where there is mutual

trust and respect.

The Challenge

The challenge for Unilever is nothing less than making it the ‘ideal employer’. Unilever must

overtake some strong competition and offer the best in terms of careers opportunities,

personal development and rewards.

Strategizing Recruitment & Selection

Employer Branding

Unilever actively promotes its Unilever Employer Brand (UEB). A strong emphasis and

positioning in employee personal development and career opportunities gives Unilever an

edge in attracting candidates. Evident in its communication, Unilever is dedicated to help

employees plan their careers and achieve goals that are important to them. A browse in their

official web site will reveal the interest that Unilever takes in helping people plan their

careers. “Interactive personal evaluation toolkit” and “My Competencies” are examples of the

career tools offered to assist visitors make the right career choice.

Diversity in Hire

Unilever believes that having a diverse group of people who can adapt and grow in response

to changing market conditions is key to meeting its business objective of achieving

sustainable growth. When selecting candidates, recruiters and hiring managers carefully

consider if the candidates will contribute to the diversity of the existing work groups. There is

a tendency not to hire likes. The philosophy is to recruit and select outstanding candidates

with qualities that complement the existing work groups.

Competency-Based Selection

To build an Enterprise Culture and deliver sustainable growth, Unilever engaged the help of

external consultants to identify the competencies associated with growth achievement.

Integrating key findings from various sources, a ‘competency dictionary’ that is unique to

Unilever in achieving its organizational goal of building an ‘Enterprise Culture’ is developed.

The ‘dictionary’ provides a framework for growing desired leadership behaviour as well as

enables Unilever to select candidates who possess the desired competencies that brings

success.

Moving Forward

The importance of competency-based selection in Unilever has triggered a series of training

programmes for Human Resources and line managers to fully equip them with skills and

techniques to conduct competency-based assessment methods such as Behavioral Event

Interviews (BEI).

Unilever aims to enhance the UEB. Improving communications and making aspirations for

its UEB to be clearly understood inside and outside the company are Unilever’s key

objectives for the near future.

2. WHICH IS MORE IMPORTANT –

RECRUITING OR RETAINING

Uptron Electronics Ltd is an internationally reputed electronics firm. It attracted employees

from internationally reputed institutes and industries by offering high salaries, perks, etc. It

had advertised for the position of an Electronics engineer some years back. Nearly 150

candidates working in various electronics firm applied for the job. Mr. Sashidhar, an

Electronics Engineer Graduate from Indian Institute of Technology with 5 years of working

experience in a small electronics firm was selected among those interviewed. The interview

board recommended an enhancement in his salary by Rs.500 more than his present salary at

his request. He was very happy and was congratulated by his previous employer for his

brilliant interview performance and good luck.

Mr. Sashidhar joined the company with great enthusiasm and also found his job to be quite

comfortable and challenging one. He found that his colleagues and superiors were friendly

and co-operative. But this didn’t last long. After one year of his service, he slowly learnt

about a number of unpleasant stories about the company, management, the superior-

subordinate relations, rate of employee turnover, etc. But still he decided to continue with the

promise that he made in the interview. He wanted to please and change the attitude of

management through his performance, commitment and dedication. Looking at his great

contributions and efforts, the management got the impression that he is well settled will

remain in the company for a long time. After sometime they all started taking undue

advantage of him and overloaded him with multifarious jobs and thereby ridded over him. As

a result, his freedom in deciding and executing was cut down to size; his colleagues started

assigning their responsibilities to him. Consequently, there were imbalances in his family,

social and organization life.

It was quite surprising to the general manager to see the resignation letter of Mr. Sashidhar

one fine morning. The general manager failed to convince him to withdraw his resignation.

The general manager wanted to appoint a committee to go into the matter immediately, but

dropped the idea later so that the company’s image doesn’t get spoiled.

ANALYSIS:-

Thus, from this case study it is clear that retaining is much more important than recruiting.

What’s the use and benefits of recruiting quality employees if they cannot be retained by the

organization in a proper manner? The purpose of recruitment is fulfilled when the employees

selected from a pool of qualified applicants are retained in the company by keeping them

satisfied in all aspects. They must be provided with better working conditions, better pay

scales, incentives, recognition, promotion, bonus, flexible working hours, etc. They should

treat the employees as co-owners and partners of the company.

3. CASE EXAMPLE (Inducements)

INFOSYS: The Software Powerhouse

Infosys Technologies Limited (ITL), one of the country’s best known software exporting

house, treats its employees as partners and co-owners. It provides them challenging

assignments, allows flexible working hours, rewards them solely on the basis of performance

and conducts regular training programmes to upgrade their skills. It has an “Employee Stock

Option Plan” (ESOP) to share its wealth with employees on the basis of their performance.

Even lower level employees are proud owners of the prized stock worth 25 to 40 lakh rupees,

according to Narayan Murthy, the CEO of ITL. Apart from increasing shareholder value,

ESOP has greatly enhanced the image of the company in the information technology industry

where employee attrition rates are very high. It is small wonder companies like Procter &

Gamble, Johnson & Johnson, Citibank have reposed their faith in ESOP as a way of

attracting and retaining talent in a highly competitive environment.

ARTICLES:

1. Recruiting suitable applicants-Mc Donald’s

Under McDonald's recruitment policy, each individual restaurant is responsible for filling

hourly-paid positions. The Management Recruitment department in East Finchley co-

ordinates the recruitment of managers.

For recruiting hourly-paid employees McDonald’s use several avenues. Positions are

generally advertised in the restaurant. The company’s recruitment history shows this is the

best method of hiring quality staff e.g. people living locally and/or friends of existing

employees. McDonald’s also uses local job centers, career fairs and other local facilities. It is

vital to use effective hiring material with a clear message targeted at the right audience.

A recruitment exercise often generates more applications than there are positions available.

The manager will select the applicants to be interviewed and will conduct the interviews.

Over 60% of restaurant crew are aged 20 or under and; for the majority of applicants, a job

with McDonald’s would be their first experience of employment. For many young people,

McDonald’s also offers a career opportunity. A well-run interview will identify an

applicant’s potential to be a successful McDonald’s employee.

Typical Recruitment Methods

Advertising in restaurants

Local Job Centres

Carrers Fairs Others

To find people who will be committed to excel in delivering outstanding service, McDonald’s

scripts an interview guide that helps the company predict how an applicant’s past behaviour

is likely to influence future performance. It uses a fact-based decision-making process. The

questions look for actual events or situations rather than allowing applicants to give a general

or theoretical response. Interviewers look for behavioral evidence in the applicant’s life

history that fits with the requirements of the job. The interviewer rates candidates on their

responses and offers jobs to those who earn the highest ratings.

New employees will also meet their trainer, and tour the restaurant. The company operates a

3-week probationary period, after which employees are rated on their performance and are

either retained or have their employment terminated.

Conclusion:

McDonald’s believes that the success of the restaurants and the company is achieved through

the people it employs. The company aims to recruit the best people, to retain them by offering

ongoing training relevant to their position and to promote them when they are ready. Its

recruitment policies, procedures and practices reflect the company’s determination to fulfill

its aim.

2. Cummins

Using effective recruitment to retain competitive advantage.

Recruiting staff is a very costly exercise. It is also an essential part of any business and it

pays to do it properly. When organizations choose the right people for the job, train them well

and treat them appropriately, these people not only produce good results but also tend to stay

with the organization longer. In such circumstances, the organization’s initial and ongoing

investment in them is well rewarded.

An organization may have all of the latest technology and the best physical resources, but if it

does not have the right people it will struggle to achieve the results it requires. This is true

across the whole spectrum of business activity e.g. schools, hospitals, legal practices,

restaurants, airlines, and diesel engine manufacturers.

Cummins is well aware of the importance of ‘getting it right’. Poor choices at the recruitment

stage can prove expensive. The company needs to be sure of a candidate’s technical

competence. For example, if an engineer designs a component that fails and has to be

reengineered, the company loses both time and money and may incur penalty charges on any

delay in fulfilling particular contracts. Time and money spent in recruiting that particular

employee will have proved expensive and wasteful whilst a better candidate may not only

have ‘got away’ but gone to a competitor. Cummins was recently first to market with a

complete range of engines that met new stringent environmental legislation. Their technical

solution to meeting this legislation was completely different to the competitor’s approach.

Had it turned out to be ineffective or not to be approved by government authorities, it could

have led to the downfall of the company. The responsibility of making the correct decision

was shared by relatively few individuals.

In addition to technical competence and appropriate experience, an organization needs to be

sure that it can rely on candidates’ goodwill, loyalty and commitment towards the

organization and its aims. According to the Chief Executive Officer of the Cummins

Group, ‘one of the most crucial decisions that a leader will make is the choice of those who

will support them.’

In a highly technological competitive market, Cummins requires people who are not only

technically competent, well informed, loyal and committed but also capable of showing good

judgments, often under pressure. When submitting a written tender for a contract, for

example, the team working on it has to decide just what the company can promise to deliver,

when and at what price. This can be particularly tricky when offering a new product for the

first time e.g. what level of ‘after sales service’ should the tender include, based on the

company’s assessment of the risks associated with its new venture?

Conclusion:

In order to maintain business performance and competitive advantage, organizations

competing in a global marketplace must recruit the best people they can. For such

organizations, recruitment becomes a key component of their overall business strategy.

Cummins provides an excellent example of a company that uses its recruitment procedures to

ensure that it meets its business needs in challenging and competitive circumstances.

PROGRESS REVIEW

In my Interim report I have given a brief introduction about recruitment & selection. For

literature review I have studied case studies and articles from journals, magazines and

internet. I have collected primary data from the company and internet. And for the fulfillment

of my project I will interview the employees of my concerned companies and than I will do

the comparative analysis of the recruitment & selection process followed by the

BRITANNIA & PARLE through the questionnaire. I will prepare comparison charts,

hypothesizing and questionnaire for analyzing recruitment & selection process of my

concerned companies and for I would need the guidance of my faculty guide.

Bibliography

Icfai University press Training & Development.

Icfai University press SHRM.

Icfai University press HRM.

www.scribed.com

www.suite100.com J

www.amfiindia.com