A Project Report on Recruitment and Selection Process1

1. INTRODUCTION

1.1 RECRUITMENT According to Edwin B. Flippo, recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation”. Recruitment is the activity that links the employers and the job seekers. A few definitions of recruitment are:  A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.  It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process. Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy. Recruitment and Selection are the two phases of the employment process. The differences between the two are: 1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation whereas selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 1

2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation whereas the basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation. 3. Recruitment is a positive process i.e. encouraging more and more employees to apply whereas selection is a negative process as it involves rejection of the unsuitable.

1.1.1 The Purpose and Importance of Recruitment are given below:  Attract and encourage more and more candidates to apply in the organisation.  Create a talent pool of candidates to enable the selection of best candidates for the organisation.  Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.  Recruitment is the process which links the employers with the employees.  Increase the pool of job candidates at minimum cost  Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.  Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.

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Figure No: 1.1.1

SOURCE OF RECRUITMENT

Source: www.wikepedia.com Figure No: 1.1.2

FACTORS AFFECTING RECRUITMENT

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1.1.2 SELECTION Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job.

Selection done by two steps namely, STEP 1 : PRELIMINARY INTERVIEW STEP 2 : SELECTION TEST: The following are the type of tests taken: 1). Ability tests 2). Aptitude test 3). Intelligence test 4). Interest Test 5). Personality Test 6). Projective Test 7). General knowledge Test 8). Perception Test 9). Graphology Test 10). Polygraph Test 1.1.3Types of interview 1) Informal Interview 2) Formal Interview 3) Non-directive Interview 4) Depth Interview 5) Stress Interview 6) Group Interview 7) Panel Interview 8) Sequential Interview

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9) Structured Interview The following chart gives an idea about selection process: Figure No: 1.1.3 EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT PRELIMINARY INTERVIEW

Rejected Application

SELECTION TESTS

EMPLOYMENT INTERVIEW

Reference and Background Analysis SELECTION DECISION

PHYSICAL EXAMINATION

JOB OFFER

EMPLOYMENT CONTRACT

Evaluation

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1.2

INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000 mn.

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1.2.1 MILK PRODUCTION FROM 1950 TO 2020 IN INDIA 1950 –

17 million tonnes

1996 –

70.8 million tonnes

1997 –

74.3 million tonnes

(Projected) 2020 –

240 million tonnes

Expected to reach- 220 to 250 mt – 2020 India contributes to world milk production rise from 12-15 % & it will increase up to 3035% (year 2020) TABLE NO. 1.2.1 WORLD'S MAJOR MILK PRODUCERS (MILLION MTS)

Country India Brazil Russia Germany France Pakistan USA UK Ukraine Poland

2007-08

2008-09 (Approx.) 81 75 34 27 24 21 71 14 15 12

84.5 77 33 27 24 22 71 14 14 12

1.2.2 RESEARCH AND DEVELOPMENT IN DAIRY INDUSTRY: The research and development need to the dairy industry to develop and survives for long time with better status. The various institute and milk dairy companies R&D results provide base for today’s industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides

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insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread world wide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also. 1.2.3 DEVELOPMENT OF FOOD PROCESSING INDUSTRY: The food processing industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government of accorded it is a high priority, with a number of fiscal relieves and incentives, to encourage commercialization and value addition to agriculture produce, for minimizing harvest wastage, generating employment and export growth. Food processing industry is providing backbone support to the milk industry. The development food products by using milk can give good market opportunities to produces milk. 1.2.4 PRODUCTS AND INDUSTRY STATUS: Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk etc.. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally. Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.

1.2.5 INVESTMENT POTENTIAL IN MILK PRODUCTS: At the present rate of growth, India is expected to overtake the US in milk production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being largely imported, manufacture of casein and lactose has good scope in the country.

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Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr. TABLE NO. 1.2.2 PRODUCTION OF MILK INCREASE IN INDIA Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Production in million MT 61.2% 63.5% 65.0% 68.0% 71.0% 74.5% 78.0% 81.51% 85.17% 89.0% 93.0% 97.65% 102.45% 107.58%

1.2.6 INDUSTRY PROFILE ON DAIRY PRODUCT A dairy is a facility for the extraction and processing of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. Typically it is a farm (dairy farm) or section of a farm that is concerned with the production of milk, butter and cheese. Terminology differs slightly between countries. In particular, in the U.S. a dairy can also be a facility that processes, distributes and sells dairy products, or a room, building or establishment where milk is kept and butter or cheese is made. In New Zealand English a dairy means a corner convenience store, or Superette—and dairy factory is the term for what is elsewhere called a dairy. As an attributive, the word dairy refers to milk-based products, derivatives and processes, and the animals and workers involved in their production: for example dairy cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a variety

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of dairy products. These establishments constitute the dairy industry, a component of the food industry. 1.2.7 STRUCTURE OF THE INDUSTRY While most countries produce their own milk products, the structure of the dairy industry varies in different parts of the world. In less developed countries the producer generally sells directly to the public, whereas in major milk-producing countries most milk is distributed through wholesale markets. In Ireland and Australia, for example, farmers' cooperatives own many of the large-scale processors, while in the United States many farmers and processors do business through individual contracts. In the United States, the country's 196 farmers' cooperatives sold 86% of milk in the U.S. in 2002, with five cooperatives accounting for half that. This was down from 2,300 cooperatives in the 1940s. As in many other branches of the food industry, dairy processing in the major dairy producing countries has become increasingly concentrated, with fewer but larger and more efficient plants operated by fewer workers. This is notably the case in the United States, Europe, Australia and New Zealand. In 2009, charges of anti-trust violations have been made against major dairy industry players in the United States. Government intervention in milk markets was common in the 20th century. A limited anti-trust exemption was created for U.S. dairy cooperatives by the Capper-Volstead Act of 1922. In the 1930s, some U.S. states adopted price controls, and Federal Milk Marketing Orders started under the Agricultural Marketing Agreement Act of 1937 and continue in the 2000s. The Federal Milk Price Support Program began in 1949. The Northeast Dairy Compact regulated wholesale milk prices in New England from 1997 to 2001. Plants producing liquid milk and products with short shelf life, such as yogurts, creams and soft cheeses, tend to be located on the outskirts of urban centres close to consumer markets. Plants manufacturing items with longer shelf life, such as butter, milk powders, cheese and whey powders, tend to be situated in rural areas closer to the milk supply. Most large processing plants tend to specialise in a limited range of products.

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Exceptionally, however, large plants producing a wide range of products are still common in Eastern Europe, a holdover from the former centralized, supply-driven concept of the market. As processing plants grow fewer and larger, they tend to acquire bigger, more automated and more efficient equipment. While this technological tendency keeps manufacturing costs lower, the need for long-distance transportation often increases the environmental impact. Milk production is irregular, depending on cow biology. Producers must adjust the mix of milk which is sold in liquid form vs. processed foods (such as butter and cheese) depending on changing supply and demand. 1.2.8 OPERATION OF THE DAIRY FARM When it became necessary to milk larger numbers of cows, the cows would be brought to a shed or barn that was set up with bails (stalls) where the cows could be confined while they were milked. One person could milk more cows this way, as many as 20 for a skilled worker. But having cows standing about in the yard and shed waiting to be milked is not good for the cow, as she needs as much time in the paddock grazing as is possible. It is usual to restrict the twice-daily milking to a maximum of an hour and a half each time. It makes no difference whether one milks 10 or 1000 cows, the milking time should not exceed a total of about three hours each day for any cow. As herd sizes increased there was more need to have efficient milking machines, sheds, milk-storage facilities (vats), bulk-milk transport and shed cleaning capabilities and the means of getting cows from paddock to shed and back. Farmers found that cows would abandon their grazing area and walk towards the milking area when the time came for milking. This is not surprising as, in the flush of the milking season, cows presumably get very uncomfortable with udders engorged with milk, and the place of relief for them is the milking shed.

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As herd numbers increased so did the problems of animal health. In New Zealand two approaches to this problem have been used. The first was improved veterinary medicines (and the government regulation of the medicines) that the farmer could use. The other was the creation of veterinary clubs where groups of farmers would employ a veterinarian (vet) full-time and share those services throughout the year. It was in the vet's interest to keep the animals healthy and reduce the number of calls from farmers, rather than to ensure that the farmer needed to call for service and pay regularly. Most dairy farmers milk their cows with absolute regularity at a minimum of twice a day, with some high-producing herds milking up to four times a day to lessen the weight of large volumes of milk in the udder of the cow. This daily milking routine goes on for about 300 to 320 days per year that the cow stays in milk. Some small herds are milked once a day for about the last 20 days of the production cycle but this is not usual for large herds. If a cow is left unmilked just once she is likely to reduce milk-production almost immediately and the rest of the season may see her dried off (giving no milk) and still consuming feed for no production. However, once-a-day milking is now being practised more widely in New Zealand for profit and lifestyle reasons. This is effective because the fall in milk yield is at least partially offset by labour and cost savings from milking once per day. This compares to some intensive farm systems in the United States that milk three or more times per day due to higher milk yields per cow and lower marginal labor costs. Farmers who are contracted to supply liquid milk for human consumption (as opposed to milk for processing into butter, cheese, and so on—see milk) often have to manage their herd so that the contracted number of cows are in milk the year round, or the required minimum milk output is maintained. This is done by mating cows outside their natural mating time so that the period when each cow in the herd is giving maximum production is in rotation throughout the year. Northern hemisphere farmers who keep cows in barns almost all the year usually manage their herds to give continuous production of milk so that they get paid all year round. In the southern hemisphere the cooperative dairying systems allow for two months on no productivity because their systems are designed to take advantage of maximum grass and milk production in the spring and because the milk processing plants pay bonuses in the 12

dry (winter) season to carry the farmers through the mid-winter break from milking. It also means that cows have a rest from milk production when they are most heavily pregnant. Some year-round milk farms are penalised financially for over-production at any time in the year by being unable to sell their overproduction at current prices. 1.2.9 INDUSTRIAL PROCESSING A Fonterra cooperative dairy factory in Australia. Interior of a cheese factory in Seine-et-Marne, France Main article: dairy products Dairy plants process the raw milk they receive from farmers so as to extend its marketable life. Two main types of processes are employed: heat treatment to ensure the safety of milk for human consumption and to lengthen its shelf-life, and dehydrating dairy products such as butter, hard cheese and milk powders so that they can be stored. 1.2.10 CREAM AND BUTTER Today, milk is separated by large machines in bulk into cream and skim milk. The cream is processed to produce various consumer products, depending on its thickness, its suitability for culinary uses and consumer demand, which differs from place to place and country to country. Some cream is dried and powdered, some is condensed (by evaporation) mixed with varying amounts of sugar and canned. Most cream from New Zealand and Australian factories is made into butter. This is done by churning the cream until the fat globules coagulate and form a monolithic mass. This butter mass is washed and, sometimes, salted to improve keeping qualities. The residual buttermilk goes on to further processing. The butter is packaged (25 to 50 kg boxes) and chilled for storage and sale. At a later stage these packages are broken down into home-consumption sized packs. Butter sells for about US$3200 a tonne on the international market in 2007 (an unusual high). 1.2.11 SKIMMED MILK

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The product left after the cream is removed is called skim, or skimmed, milk. Reacting skim milk with rennet or with an acid makes casein curds from the milk solids in skim milk, with whey as a residual. To make a consumable liquid a portion of cream is returned to the skim milk to make low fat milk (semi-skimmed) for human consumption. By varying the amount of cream returned, producers can make a variety of low-fat milks to suit their local market. Other products, such as calcium, vitamin D, and flavouring, are also added to appeal to consumers. 1.2.12 MILK POWDERS Milk is also processed by various drying processes into powders. Whole milk, skim milk, buttermilk, and whey products are dried into a powder form and used for human and animal consumption. The main difference between production of powders for human or for animal consumption is in the protection of the process and the product from contamination. Some people drink milk reconstituted from powdered milk, because milk is about 88% water and it is much cheaper to transport the dried product. Dried skim milk powder is worth about US$5300 a tonne (mid-2007 prices) on the international market. 1.2.13 TRANSPORT OF MILK Historically, the milking and the processing took place in the same place: on a dairy farm. Later, cream was separated from the milk by machine, on the farm, and the cream was transported to a factory for buttermaking. The skim milk was fed to pigs. This allowed for the high cost of transport (taking the smallest volume high-value product), primitive trucks and the poor quality of roads. Only farms close to factories could afford to take whole milk, which was essential for cheesemaking in industrial quantities, to them. The development of refrigeration and better road transport, in the late 1950s, has meant that most farmers milk their cows and only temporarily store the milk in large refrigerated bulk tanks, whence it is later transported by truck to central processing facilities. 1.2.14 MILKING MACHINES Milking machines are used to harvest milk from cows when manual milking becomes inefficient or labour intensive. The milking unit is the portion of a milking 14

machine for removing milk from an udder. It is made up of a claw, four teatcups, (Shells and rubber liners) long milk tube, long pulsation tube, and a pulsator. The claw is an assembly that connects the short pulse tubes and short milk tubes from the teatcups to the long pulse tube and long milk tube. (Cluster assembly) Claws are commonly made of stainless steel or plastic or both. Teatcups are composed of a rigid outer shell (stainless steel or plastic) that holds a soft inner liner or inflation. Transparent sections in the shell may allow viewing of liner collapse and milk flow. The annular space between the shell and liner is called the pulse chamber. Milking machines work in a way that is different from hand milking or calf suckling. Continuous vacuum is applied inside the soft liner to massage milk from the teat by creating a pressure difference across the teat canal (or opening at the end of the teat). Vacuum also helps keep the machine attached to the cow. The vacuum applied to the teat causes congestion of teat tissues (accumulation of blood and other fluids). Atmospheric air is admitted into the pulsation chamber about once per second (the pulsation rate) to allow the liner to collapse around the end of teat and relieve congestion in the teat tissue. The ratio of the time that the liner is open (milking phase) and closed (rest phase) is called the pulsation ratio. The four streams of milk from the teatcups are usually combined in the claw and transported to the milkline, or the collection bucket (usually sized to the output of one cow) in a single milk hose. Milk is then transported (manually in buckets) or with a combination of airflow and mechanical pump to a central storage vat or bulk tank. Milk is refrigerated on the farm in most countries either by passing through a heat-exchanger or in the bulk tank, or both. In the photo above is a bucket milking system with the stainless steel bucket visible on the far side of the cow. The two rigid stainless steel teatcup shells applied to the front two quarters of the udder are visible. The top of the flexible liner is visible at the top of the shells as are the short milk tubes and short pulsation tubes extending from the bottom of the shells to the claw. The bottom of the claw is transparent to allow observation of milk flow. When milking is completed the vacuum to the milking unit is shut off and the teatcups are removed. 15

Milking machines keep the milk enclosed and safe from external contamination. The interior 'milk contact' surfaces of the machine are kept clean by a manual or automated washing procedures implemented after milking is completed. Milk contact surfaces must comply with regulations requiring food-grade materials (typically stainless steel and special plastics and rubber compounds) and are easily cleaned. Most milking machines are powered by electricity but, in case of electrical failure, there can be an alternative means of motive power, often an internal combustion engine, for the vacuum and milk pumps. Milk cows cannot tolerate delays in scheduled milking without serious milk production reductions. 1.2.15 TEMPORARY MILK STORAGE Milk coming from the cow is transported to a nearby storage vessel by the airflow leaking around the cups on the cow or by a special "air inlet" (5-10 l/min free air) in the claw. From there it is pumped by a mechanical pump and cooled by a heat exchanger. The milk is then stored in a large vat, or bulk tank, which is usually refrigerated until collection for processing.

1.2.26 ASSOCIATED DISEASES •

Leptospirosis is one of the most common debilitating diseases of milkers, made somewhat worse since the introduction of herringbone sheds, because of unavoidable direct contact with bovine urine

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Cowpox is one of the helpful diseases; it is barely harmful to humans and tends to inoculate them against other poxes such as small pox.

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Tuberculosis (TB) is able to be transmitted from cattle mainly via milk products that are unpasteurised. TB has been eradicated from many countries by testing for the disease and culling suspected animals.

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Brucellosis is a bacterial disease transmitted to humans by dairy products and direct animal contact. Brucellosis has been eradicated from certain countries by testing for the disease and culling suspected animals

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Listeria is a bacterial disease associated with unpasteurised milk, and can affect some cheeses made in traditional ways. Careful observance of the traditional cheesemaking methods achieves reasonable protection for the consumer.

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Johne's Disease (pronounced "yo-knees") is a contagious, chronic and sometimes fatal infection in ruminants caused by a bacterium named Mycobacterium avium subspecies paratuberculosis (M. paratuberculosis). The bacteria are present in retail milk, and are believed by some researchers to be the primary cause of Crohn's disease in humans. This disease is not known to infect animals in Australia and New Zealand.

1.3COMPANY PROFILE HATSUN AGRO PRODUCT LTD., was incorporated in the year of 1986. Shri R.G.Chandramogan is the promoter of the company. He is the chairman and managing director of the company. He has initially started icecream business in early 1970s and later ventured into milk and milk related products. In the year 1986 he formed the business into a private limited company, which was later converted into a public limited company. 1.3.1 MANAGEMENT

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1.3.1.1 BOARD OF DIRECTORS The company is managed by the Managing Director, Joint Managing Director and Executive Director - Operations subject to the superintendence, control and direction of the board of directors. The board of Directors of the company have an optimum combination of executive, Non-Executive and independent directors, which compels with clause 49 of the listing requirements as well. The entire board of the company is involved in selection, Orientation and succession of directors. 1.3.1.2 EXECUTIVE DIRECTORS Shri R.G.Chandramogan Chairman & Managing Director Shri R.G.Chandramogan is the promoter of the company. He is the chairman and managing director of the company. He has initially started icecream business in early 1970s and later ventured into milk and milk related products. In the year 1986 he formed the business into a private limited company, which was later converted into a public limited company. Shri K.S.Thanarajan Joint Managing Director Shri K.S.Thanarajan is a post-graduate in economics and is in-charge of day-by-day operations of the dairy division of the company. Shri Thanarajan has had more than 30 years of experience. Shri C.Sathyan Executive Director-Operations Shri C.Sathyan, a Company Executive, is a Bachelor of Business Management with specialization in Marketing. He has held various executive positions during his career spanning over 10 years. 1.3.1.3 NON - EXECUTIVE DIRECTORS Shri P. Vaidyanathan Shri P.Vaidyanathan is a fellow member of The Institute of Chartered Accountants of India and associate member of The Institute of Company Secretaries of India and The 18

Institute of Cost and Works Accountants of India. Shri Vaidyanathan is the Chairman of M/s Integrated Enterprises (India) Limited. He is also on the Board of reputed companies viz., City Union Bank Limited, Economist Communications Limited and Templeton Asset Management Pvt. Limited. Shri Vaidyanathan has had more than 32 years of experience in the Finance functions. Shri Kirti P Shah Shri Kirti P Shah, an Industrialist, is an Engineering Graduate. Shri Shah is a NonResident Indian. At present he is the President of M/s Custom Magnetics Inc., U.S.A. Shri Shah has had more than 40 years of experience in the field of Engineering. Shri S. Thiagarajan Shri. S.Thiagarajan is a post graduate in Economics and a Certified Associate of the Indian Institute of Bankers. He has over four decades of experience in the financial services sector and has held various senior positions in Reserve Bank of India, Industrial Development Bank of India and Small Industrial Development Bank of India. Shri B. S. Mani Shri. B.S.Mani is a post graduate in Literature and has a Diploma in Journalism from Cardiff England. He has over 4 decades of experience in the Journalism. He is the Chairman of Karnataka News Publications Private Limited, which publishes a Tamil Daily outside Tamilnadu.

Shri N Chandrasekaran Shri N.Chandrasekaran is a Mechanical Engineering Graduate with about 38 years experience. He has held various executive positions during his career. He is the Managing Director of M/s Fichtner Consulting Engineers (India) Pvt. Ltd. and M/s Fortune Valley Agro Forms Pvt. Ltd. He is also on the Board of reputed companies viz., M/s EPT Engineering Services Pvt. Ltd. and M/s Enmas Process Technologies Pvt. Ltd. 1.3.2 INFRASTRUCTURE 1.3.2.1 MILK PROCUREMENT 19

The Company has an excellent milk collection system with chilling centers in more than 36 locations and a fleet of more than 1348 vehicles on contract for procurement. FIGUR 1.3.2.1 MILK PROCUREMENT

Its milk shed area is spread over 10 districts in Tamilnadu and 3 in Karnataka and covers over 52,000 milk producers and 2000 medium and bulk milk vendors. The Company is also involved in dairy extension services to farmers for the development of livestock quality and yields. Besides this the company also has tie up with banks for arranging agricultural loans to milk producers. More than 110 veterinary doctors under direct employment rendering full-scale animal care to the milk producers. 1.3.2.2 PROCESSING PLANTS Hatsun's state of the art processing and packaging plants are located in Salem, Kancheepuram, Madurai, Palacodu in TamilNadu and Honnali, Belgaum in Karnataka. After procurement, milk vans then take the procured milk to these plants where the milk has to undergo a quality test again to enter the plant. Then the weight is checked. After that, using superior technologies milk is subjected to pasteurisation, homogenisation, and bacteria clarification. Hatsun is a pioneer in India of the world-acclaimed homogenisation processes where the fat globules are broken and evenly distributed in the milk making it rich and wholesome. An unyielding commitment to quality has formed the backbone of Hatsun's business ethics right from its start. At every stage, intensive procedures to preserve quality are undertaken to ensure the purity of the milk. The entire Hatsun staff work in harmony as one family in enforcing the tough standards that Hatsun set for itself as basic guidelines. 20

Each milk packet packaged-using German technology-reaches the consumer with this assurance: The Hatsun Quality. 1.3.2.3 DISTRIBUTION FIGUR 1.3.2.3 DISTRIBUTION VEHICLE Everyday Hatsun's fleet of puff-insulated trucks travel 3.9 times the distance around the world,

i.e.

1,82,730

km

taking

milk

for

consumption by homes across the states of Tamilnadu, Karnataka, Goa and Kerala. Hatsun takes pride in having its large cold-chain network in India ensuring that each and every one of its consumers gets fresh milk day after day. 1.3.2.4 LOGISTICS The company has a strong logistics and distribution network in icecream and milk. Around 1100 exclusive Arun Icecreams parlours spread over the entire Tamilnadu and parts of Andhra Pradesh and Karnataka. The company has six cold room distribution points, strategically located for quick and easy distribution of its products. In the milk segment, the Company's distribution network comprises of 150 wholesale distributors and above 10,000 dealers for Arokya and around 850 direct selling agents for Hatsun Komatha milk. More than 1348 vehicles handling distribution, and each covering a distance of 200 to 250 km every day. The total distance travelled by company vehicles in procurement, marketing and other administrative activities per day comes close to 1, 82, 730 km, which is equivalent to going around the world 3.9 times a day. 1.3.3 RECOGNITION Hatsun's dairies are ISO 9001:2000and HACCP (Hazard Analysis Critical Control Point) certified. The Salem plant has received ISO 14001and been certified eco-friendly.

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The quality assurance of Hatsun ensures that stringent quality standards and norms of American Dairy Products Institute (ADPI) are fully met. The success of Arun Icecreams has been taken as a case study by the Indian Institute of Management, Ahmedabad, India's leading business school.

1.3.4 OUR NETWORK The company has achieved excellence in establishing an extremely efficient supply chain management, better logistics and widespread distribution network spearheaded by exclusive franchisee outlets. All the brands of the company enjoy very strong brand equity and despite being in a price sensitive market, its brands command a premium. ARUN Icecream is sold through exclusive franchisee outlets and is occupying the top slot in Tamilnadu and figures within the top three in the south India. With the commissioning of plant in Belgaum, the company has entered into the Goa, Pune and southern districts of Maharashtra markets. The company has also entered into International markets during the financial year (2004-05). The company has implemented an arrangement, whereby Arun icecream is now available in Seychelles. Arun Icecream is also being exported to Brunei.

1.3.5 CORPORATE MILESTONES Arun Icecream Launch. •

1970 - M/s. R.G. Chandramogan & Co. set up.

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1986 - March- M/s. Hatsun Foods (HFPL) incorporated as a private limited company. The same year HFPL was admitted as a partner in M/s. R.G. Chandramogan & Co.

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1986 - April HFPL takes over M/s. R.G. Chandramogan & Co. HFPL was allowed to register the brand name 'Arun' in its own name subject to a royalty payment of 1% on the gross icecream sales.

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1991 - MPD Factory (Atlantic) - Salem Inauguration.

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1993 - Hatsun Dairy Private Limited (HDPL), promoted by M/s. Hatsun Foods Private Limited, established. 22

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Salem Dairy - Inauguration.

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1995 - M/s. Hatsun Foods goes public. Changes name to Hatsun Agro Product Limited. Icecream Factory - Red Hills - Inauguration.

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1998 - Hatsun Milk Product Limited (formerly known as HFPL amalgamated with Hatsun Agro Product Limited.

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2000 - Belgaum Dairy - Inauguration.

Kanchipuram Dairy Acquisition. •

2004 - Dairy Ingredient Plant - Inauguration (Salem & Kanchipuram) 1.3.6 FINANCIAL RESULTS The company's sales have grown from a level of INR 190.9 million (approx. USD 4 million) in 1997 to INR 8694 million (approx. US$ 183 million) in 2008. The company's PBDITA has increased from INR 25.14 million (approx. US$ 0.53 million) in 1997 to INR 614 million (approx US$ 12.92 million) in 2008. The equity base with reserves stand at Rs.481 million (approx US$ 10.12 million) and gross asset base of more than Rs.2332 million (approx US$ 49.09 million).

1.3.7 SHARE CAPITAL The Company made its maiden public issue of 18,00,000 equity shares of Rs.10/- at a premium of Rs.35/- per share. The issue was well subscribed. The present listed and paidup Equity Share Capital of the company is Rs.6.79 Crore with a shareholder base of 3,772 as of 30th September, 2008. 1.3.8 LIST OF SHARES The Company's Equity Shares are listed on Bombay Stock Exchange Limited and the shares are regularly traded.

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1.3.9 PROCURING WITH CARE The company procures around 1.65 million litre of liquid milk per day by directly collecting it from farmers spread over 4500 villages in south India. Hatsun has its own infrastructure of milk collection centre & chilling centre for procuring & handling of raw milk. Over 350 field's staffs are employed to ensure timely collection, testing of milk at the point of collection, weekly payment; cattle feed sales, encouraging farmers to grow their herd size, bank loans, animal insurance, training farmers on a better animal management and clean milking. Over 100 veterinary doctors and 160 inseminators under direct employment, assist in artificial insemination, feed management, breed management, vaccination program and render full scale animal health care. 1.3.10 HIGHLY SOPHISTICATED PROCESSING FACILITIES With high-tech processing plants operating at 7 locations, Hatsun ensures rigors testing of milk before processing. Intensive procedures to ensure the purity of milk with handling capacity of 1.7million litre of milk per day, proves Hatsun's unyielding commitment to quality. The facilities comprise of highly advanced technology from westfalia called Bactofuge which bacteria clarifies the milk resulting in a high quality end product. There are state-of-the-art laboratories (chemical & microbiological) for process control, product quality control and product development. Validations of critical parameters are also done at our fully quipped central lab located at Chennai. These ISO 22000:2005; 9001:2000, 14001:2004 and HACCP certified manufacturing facilities have been regularly upgraded to meet the requirement & standards of various large multinational companies.

1.3.10 MILK PROCESS Hatsun operates state of the art processing plants at 6 locations. Rigorous milk testing is done at each of these locations. The raw milk when

24

received is bacteria clarified by use of west Falia Bactofuge. The milk is then sent either for fresh product processing or for manufacturing of dairy ingredients. An unyielding commitment to quality has formed the backbone of Hatsun's business ethics right from its start. Intensive procedures to pressure the quality are undertaken to ensure the purity. Handling capacity of 1.7 million litre of milk per day, including Fresh milk and Dairy ingredients. ISO 22000:2005, ISO 14001:2004 and ISO 9001:2000 certified manufacturing facilities that have been extensively upgraded in the last three years. Only company in India using Bactofuge Technology (from West Falia-Germany) to clarify liquid milk. State-of-the-art laboratory for process control, product quality control including Micro Biological lab and product development.Capable of being scaled up for higher volumes and enhanced product range.

1.4

PRODUCT PROFILE

1.4.1 ARUN ICECREAM

25

Arun: An insight Arun Icecreams believes in the motto "Customer is the King". Arun Icecreams, a feather in the cap of Hatsun is a brand leader in the icecream market. Today, Arun is the largest selling icecream brand in south India. It sells its icecreams through exclusive parlours spread all over Tamilnadu, and parts of Karnataka, Kerala and Andhra Pradesh. With over 70 unforgettable varieties, Arun continues to delight millions of customers. Arun Icecreams success was due to the below said reasons •

Pure Milk based Icecreams with rich and creamy taste.

•

Range of flavours and varieties

•

Innovative product concepts

•

Packaging at par with International standards

Arun: First to Take the Parlour Route Arun introduced the concept of exclusive franchise parlours selling only Arun Icecreams. This is admittedly one of the major reasons for Arun Icecreams' strong performance over the years. By reaching out to towns with a population of 30,000 and in some cases even smaller towns, Arun has boldly taken a path that is less traveled. Arun Icecreams continue to come up with new varieties and flavours which should help it maintain its strong performance and brand image. Arun: Parlour Standardisation Arun has now brought about standardisation of its parlours. This will help maintain the unique identity of the parlours. This, in turn, enhances uniformity in the image of the brand among the consumers leading to utmost satisfaction. Arun Icecreams parlours have been hugely successful. The reasons for this are explained briefly: •

Ideal and convenient location

26

•

Well-decorated parlours where cleanliness given top priority

•

Convenient working hours (10 A.M to 10 P.M.)

•

Regular maintenance of freezer to keep them functioning at optimum levels

•

Courteous and unmatched service

•

Knowledge of product/variety among the staff

•

Ability to understand customers' needs so as to satisfactorily cater to their tastes

1.4.1.1 ICE CREAM MANUFACTURING PROCEDURE FIGUR 1.4.1.1 ICE CREAM MANUFACTURING PROCEDURE

27

The basic steps in the manufacturing of ice cream are generally as follows: •

Blending of the mix ingredients

•

Pasteurization

•

Homogenization

•

Aging the mix

•

Freezing

•

Packaging

•

Hardening

Process flow diagram for ice cream manufacture: the red section (Blending of mix ingredients, Pasteurization) represents the operations involving raw, unpasteurized mix, the pale blue section (Homogenization, Cooling, Aging) represents the operations involving pasteurized mix, and the dark blue section (Continuous Freezing, Batch freezing, Packaging, Hardening, Storage/Distribution) represents the operations involving frozen ice cream.

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1.4.1.2 BLENDING First the ingredients are selected based on the desired formulation and the calculation of the recipe from the formulation and the ingredients chosen, then the ingredients are weighed and blended together to produce what is known as the "ice cream mix". Blending requires rapid agitation to incorporate powders, and often high speed blenders are used. 1.4.1.3 PASTEURIZATION The mix is then pasteurized. Pasteurization is the biological control point in the system, designed for the destruction of pathogenic bacteria. In addition to this very important function, pasteurization also reduces the number of spoilage organisms such as psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers). Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s Both batch pasteurizers and continuous (HTST) methods are used. Batch pasteurizers lead to more whey protein denaturation, which some people feel gives a better body to the ice cream. In a batch pasteurization system, blending of the proper ingredient amounts is done in large jacketed vats equipped with some means of heating, usually steam or hot water. The product is then heated in the vat to at least 69 C (155 F) and held for 30 minutes to satisfy legal requirements for pasteurization, necessary for the destruction of pathogenic bacteria. Various time temperature combinations can be used. The heat treatment must be severe enough to ensure destruction of pathogens and to reduce the bacterial count to a maximum of 100,000 per gram. Following pasteurization, the mix is homogenized by means of high pressures and then is passed across some type of heat exchanger (plate or double or triple tube) for the purpose of cooling the mix to refrigerated temperatures (4 C). Batch tanks are usually operated in tandem so that one is holding while the other is being prepared. Automatic timers and valves ensure the proper holding time has been met. Continuous pasteurization is usually performed in a high temperature short time (HTST) heat exchanger following blending of ingredients in a large, insulated feed tank. Some preheating, to 30 to 40 C, is necessary for solubilization of the components. The HTST system is equipped with a heating section, a cooling section, and a regeneration

29

section. Cooling sections of ice cream mix HTST presses are usually larger than milk HTST presses. Due to the preheating of the mix, regeneration is lost and mix entering the cooling section is still quite warm. 1.4.1.4 HOMOGENIZATION The mix is also homogenized which forms the fat emulsion by breaking down or reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved. Homogenization provides the following functions in ice cream manufacture: •

Reduces size of fat globules

•

Increases surface area

•

Forms membrane

•

Makes possible the use of butter, frozen cream, etc.

By helping to form the fat structure, it also has the following indirect effects: •

Makes a smoother ice cream

•

Gives a greater apparent richness and palatability

•

Better air stability

•

Increases resistance to melting

Homogenization of the mix should take place at the pasteurizing temperature. The high temperature produces more efficient breaking up of the fat globules at any given pressure and also reduces fat clumping and the tendency to thick, heavy bodied mixes. No one pressure can be recommended that will give satisfactory results under all conditions. The higher the fat and total solids in the mix, the lower the pressure should be. If a two stage homogenizer is used, a pressure of 2000 - 2500 psi on the first stage and 500 - 1000 psi on the second stage should be satisfactory under most conditions. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved.

30

1.4.1.5 AGEING The mix is then aged for at least four hours and usually overnight. This allows time for the fat to cool down and crystallize, and for the proteins and polysaccharides to fully hydrate. Aging provides the following functions: •

Improves whipping qualities of mix and body and texture of ice cream

It does so by: •

providing time for fat crystallization, so the fat can partially coalesce;

•

allowing time for full protein and stabilizer hydration and a resulting slight viscosity increase;

•

allowing time for membrane rearrangement and protein/emulsifier interaction, as emulsifiers displace proteins from the fat globule surface, which allows for a reduction in stabilization of the fat globules and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature should be maintained as low as possible without freezing, at or below 5 C. An aging time of overnight is likely to give best results under average plant conditions. A "green" or unaged mix is usually quickly detected at the freezer. 1.4.1.6 FREEZING AND HARDENING Following mix processing, the mix is drawn into a flavour tank where any liquid flavours, fruit purees, or colours are added. The mix then enters the dynamic freezing process which both freezes a portion of the water and whips air into the frozen mix. The "barrel" freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a boiling refrigerant such as ammonia or freon. Mix is pumped through this freezer and is drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch freezers) with about 50% of its water frozen. There are rotating blades inside the barrel that keep the ice scraped off the surface of the freezer and also dashers inside the machine which help to whip the mix and incorporate air.

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Ice cream contains a considerable quantity of air, up to half of its volume. This gives the product its characteristic lightness. Without air, ice cream would be similar to a frozen ice cube. The air content is termed its overrun, which can be calculated mathematically. As the ice cream is drawn with about half of its water frozen, particulate matter such as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry which has a consistency similar to soft-serve ice cream. In fact, almost the only thing which differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into cones at this point in the process rather than into packages for subsequent hardening. 1.4.1.7 HARDENING After the particulates have been added, the ice cream is packaged and is placed into a blast freezer at -30° to -40° C where most of the remainder of the water is frozen. Below about -25° C, ice cream is stable for indefinite periods without danger of ice crystal growth; however, above this temperature, ice crystal growth is possible and the rate of crystal growth is dependant upon the temperature of storage. This limits the shelf life of the ice cream. A primer on the theoretical aspects of freezing will help you to fully understand the freezing and recrystallization process. Hardening invloves static (still, quiescent) freezing of the packaged products in blast freezers. Freezing rate must still be rapid, so freezing techniques involve low temperature (40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced conduction (plate freezers). The rate of heat transfer in a frezing porcess is affected by the temperature difference, the surface area exposed and the heat transfer coefficient (Q=U A dT). Thus, the factors affecting hardening are those affecting this rate of heat transfer: •

Temperature of blast freezer - the colder the temperature, the faster the hardening, the smoother the product.

•

Rapid circulation of air - increases convective heat transfer.

•

Temperature of ice cream when placed in the hardening freezer - the colder the ice cream at draw, the faster the hardening; - must get through packaging operations fast.

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•

Size of container - exposure of maximum surface area to cold air, especially important to consider shrink wrapped bundles - they become a much larger mass to freeze. Bundling should be done after hardening.

•

Composition of ice cream - related to freezing point depression and the temperature required to ensure a significantly high ice phase volume.

•

Method of stacking containers or bundles to allow air circulation. Circulation should not be impeded - there should be no 'dead air' spaces (e.g., round vs. square packages).

•

Care of evaporator - freedom from frost - acts as insulator.

•

Package type, should not impede heat transfer - e.g., styrofoam liner or corrugated cardboard may protect against heat shock after hardening, but reduces heat transfer during freezing so not feasible.

Ice cream from the dynamic freezing process (continuous freezer) can also be transformed into an array of novely/impulse products through a variety of filling and forming machines, which have ben identified on a separate page. 1.4.2 ARUN ICECREAM UNLIMITED And now Arun introduces the whole new concept in icecream retailing in south India, the Unlimited concept. Arun unlimited offers the customer a wide range of flavours with unlimited options of creating ones own sundaes. The customer is given the option to choose his own choice of icecream and toppings or sauces to go with it. In addition to allowing customers to create their own combinations, The Arun unlimited has a sundae menu of proprietary and innovative creations ready for customers to enjoy. We even offer take away icecreams. The parlours are decorated to offer a vibrant,fun and friendly experience. Currently operational at Chennai's leading shopping mall - Spencer plaza and also stand alone parlours at Annanagar, R.K.Salai , Besant nagar, Egmore etc Arun Unlimited also operates inside the most renowned IT parks like Chennai one and IT giants like Accenture. Arun unlimited is very much on its way marching ahead to become the leading icecream Retail chain in south India in years to come. 33

1.4.3 AROKYA MILK OVERVIEW

Arokya - Milk that suits children & adults alike !!! Arokya has more nutrition and butterfat. Growing children can consume Arokya because it's wholesome and nourishing. It fortifies the bones with calcium, proteins and minerals. In case of adults, Arokya can be diluted with water & used. Arokya is a healthy and ready nourishment for growing children. Fortified with 4.5% butterfat, Arokya helps in the growth of vital strengths of a child - both physical and mental. It contains adequate quantities of calcium and phospholipids for development of the bones and brain respectively. Unlike toned milk where butterfat is removed to make it only 3%, Arokya has 4.5% butterfat. Hence the catchy slogan attached to it: Nothing added. Nothing removed. Nobody underscores the need for healthy foods more than the World Health Organisation (WHO). In fact, World Children's Fund (WCF)-a body recognized by WHObelieves that milk with 4.5% butterfat is best for growing children. It is very critical to give every child the right kind of food and nutrients, and to give the child just when he needs them the most. If you are looking to make your child skilled, agile and admired, switch to Arokya. And watch your child excel. 1.4.4 MILK PRODUCTS / HATSUN COOKING BUTTER

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Hatsun's all-natural high-quality Cooking Butter has something that makes it stand out from the crowd - it has dollops of 'zeal' in it. Hatsun Pasteurised Cooking Butter is made from the choicest of creams, churned from pure farm fresh milk. It is then processed in a high-tech dairy plant where hygiene and quality are given utmost importance. This ensures that sweets, savouries and cakes have a great taste and aroma. 1.4.5 HATSUN COW GHEE At Hatsun, we decided that Hatsun would be different from other branded ghees that jostle for your attention. So, what makes Hatsun Ghee different? The nutty taste of Hatsun Ghee - a special grade ghee, is perfect for Indian cuisine in general and sweet making in particular. Being made only from cow milk, all the freshness and uniqueness associated with cow milk can be found in Hatsun Ghee. It has the distinct property of carrying and enhancing the flavour of practically any dish that one briefly fries in Hatsun Ghee. Hatsun Ghee comes with the 'Agmark' seal of quality. 1.4.6 HATSUN CURD

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Hatsun Curd is a semi-solid fermented milk product, with excellent consistency. It has a very low bacteria count making it extremely healthy in nature and delightfully tasty in character.

1.4.7 HATSUN PANEER

36

Made from farm-fresh milk. Higher milk solids make it more tasty and helps in retaining texture & shape. 1.4.8 DAIRY INGREDIENTS PRODUCTS OVERVIEW Quality that's perfect for the World Hatsun's Range of Dairy Ingredients is made directly from Liquid Milk and contains all the premium qualities and Nutritional benefits of Fresh COW'S MILK. Hatsun's Procurement team ensures timely collection, testing of milk at the point of collection, cattle feed sales, encouraging farmers to grow their herd size, training farmers on a better animal management and clean milking. Over 110 veterinary doctors under direct employment assist in artificial insemination, feed management, breed management, vaccination program and also render full-scale animal care. Hatsun's Dairy Ingredients are processed at the state-of-the-art processing technology run by people with strong technological capabilities. These, together with an innovative and flexible approach, enable us to manufacture a range of high quality products. Hatsun has an annual production of 20,000 MT of Milk Powders and 11,000 MT of milk Fat at present.

1.4.9 QUALITY Preamble: We at "Hatsun" from management to down the line i.e. land/floor are conscious and continue to strive hard to achieve high level of pledge in obtaining pure milk and safe products. Scruple sly & sincerely IS standard of analysis are followed "before during - after"; at procurement point, collection bank point, raw fresh milk reception point, Chilled milk point, market milk point, dairy ingredients point, dairy by-products point. Particularly physical, chemistry, microbiology, residue monitoring are applied at all necessary point in order to comply & to provide comfortable milk & milk products. This applies from cow to commercial. COW TO COMMERCIAL ANALYSIS SUBJECTIVE STRATEGY:

37

At Fresh milk collection centre i.e. Hatsun Milk bank (HMB) First stage analysis):Fresh Milk is procured and poured at our dedicated (major) fresh milk collection centre i.e. Hatsun Milk Bank (HMB). 1.4.10 PHYSICAL EVALUATION: •

Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB

personal •

Milk is measured i.e. computerized.

•

Cleanliness of milk cans.

1.4.11 CHEMICAL ANALYSIS: •

Gerber method applied to find out fat percentage

•

Lactometer method is applied to find out Solid non fat

At Chilling centre raw fresh milk reception dock (Second tire analysis): 1.4.12 PHYSICAL EVALUATION: •

Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB

personal •

Milk is measured i.e. computerized.

•

Cleanliness of milk cans.

1.4.13 CHEMICAL ANALYSIS: •

Gerber method applied to find out fat percentage

•

Lactometer method is applied to find out Solid non fat

•

Adulteration test are carried out.

•

MBRT is conducted.

•

COB is conducted.

1.4.14 PHYSICAL EVALUATION:

38

•

Sensory evaluation is carried out by our trained HMB personal

•

Milk is measured i.e. computerized.

•

Cleanliness of milk cans.

1.4.15 CHEMICAL OF MILK: •

Gerber method applied to find out fat percentage

•

Lactometer method is applied to find out Solid non fat

•

Adulteration test are carried out.

•

COB is conducted.

•

Acidity test

1.4.16 MICROBIOLOGY OF MILK: •

MBRT of milk

•

Antibiotic residue test

•

CAP residue test

•

Standard plat count enumeration

•

Coli form enumeration

1.4.17 DURING AND AFTER PROCESS OF MARKET MILK: •

Homogenization efficiency

•

The entire test stated above to confirm its declaration on the package.

1.4.18 DURING AND AFTER PROCESS OF DAIRY INGREDIENTS: •

Entire IS standard of analysis and enumerations (Chemistry, microbiology, residue

monitoring both quantitative and qualitative) are carried out scrupulously with out any deviations. •

Shelf-life studies are in place.

•

Third party analyses are in place.

•

Third party frequent audit are in place.

39

Constant monitoring, feed-back and collection of various datas have played and playing a major role in our assurance of safe products to our royal - real ultimate customers.

1.5 1.5.1

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE To find out the effective recruitment and selection process in HATSUN AGRO

PRODUCT LTD with reference to ARUN ICE CREAMS, CHENNAI 1.5.2 SECONDARY OBJECTIVES

1. To evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. 2. To identify the various factors companies undertake prior to the recruitment process. 3. To study how the companies establish a balance between their business strategy and recruitment strategy. 4. To find the recruitment and selection system in the organization., 5.

To study the process of intake of employees with relation to experience , communication skills and qualification in the organization.,

6. To find out the reason why the people choose Hatsun Agro Product Ltd., 7. To identify the reason why they are leaving the present company and also the reason

to join Hatsun Agro Product Ltd.,

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8. To evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.,

1.6

SCOPE OF THE STUDY

o HR professional is having a big responsibility to hire a best person from the available talent team. At the same time, one needs to be cost conscious. It is a good practice in recruitment to be objective and seek to identify the candidates' abilities. Judge on individual merits and set the same standards for all. Whereas generalized assumptions made about ability or ambition, based on applicant's sex, caste, age, religious belief, sexual orientation or any disability, is a bad practice. One need to use the technology, to get the best results from recruitment process.

o This study helps in finding the improvements to be done in recruitment and selection process.

o This study able to know about the expectations of the candidates from the company.This study able to learn about the strength and weakness of the strategies followed by the company.

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1.7

LIMITATIONS OF THE STUDY



It cannot be generalized to any other organization.



There may be personal bias in the information provided, as some employees like to underestimate or appreciate their organization.



The results and findings are confined to a limited area.



Employees have to answer the questionnaires amidst their hectic schedule of work.

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2. REVIEW OF LITERATURE 2.1 BOOK REVIEW 2.1.1. BOOK: EXPERIENCING RECRUITMENT AND SELECTION Author: Jon Billsberry Recruitment and election is a stressful and traumatic transition for both the people and the organisations, where futures are decided and destinies set. How does it feel to be involved in 43

this process? "Experiencing Recruitment and Selection" offers readers a unique insight into this life-changing event; one that is very different to the current recruitment literature as it gives a voice to both applicants and recruiters. Using real-life stories, this book explores applicants' and selectors' experiences of the recruitment and selection process. The author offers original insights into: differences between internal and external applicants; perceptions of fairness; how failure to get appointed influences internal applicants; how recruiters select for 'fit'; the reasons why people apply for jobs; the influence of market forces on selection decisions. Each chapter focuses on a key topic in recruitment and selection and features at least three related stories. The stories are interwoven with analyses that demonstrate the key lessons for practitioners and students. Each chapter concludes with a series of provocative questions and a guide to further reading.With its practical, easy-to-use format, "Experiencing Recruitment and Selection" is essential reading for undergraduate and postgraduate students in disciplines including organisational psychology, organisational behaviour, management studies and HRM, as well as personnel or HR managers and occupational psychologists. "Experiencing Recruitment and Selection" uses real-life stories to explore issues such as why people apply for jobs, perceptions of fairness, how failure affects internal applicants, the impact of market forces on decisions, how recruiters select for 'fit' and much more. In each chapter Jon Billsberry tackles a particular topic, drawing on at least three related stories and concluding with provocative questions and a guide to further reading. The stories are interwoven throughout with analyses that highlight key lessons.

2.2 PROJECT REVIEW 2.2.1 REVIEW ON A STUDY ON RECRUITMENT AND ITS EFFECTIVENESS. Author : Nayab Naseer Rcruitment is the process of soliciting, screening, and selecting qualified people for a job at an organization or firm, and therefore the process by which organizations fulfill their human

44

resource requirements. Small and Medium scale industries are relatively small enterprises employing far less manpower compared to large scale firms and usually concentrated on a specific area or region, tapping into the resources available in such areas. Recruitment is one of the major Human Resource activities of an enterprise. An enterprise first determines the number of employees required to run its operations through a manpower planning exercise, and then lists out the skills and qualifications required for each of these employees through a Job Analysis. The Human Resource department then conducts the recruitment process wherein they sources candidates through various ways to fulfill such requirements. The short listing and eventual selection the appropriate candidates from the candidates sourced for the vacancies count as the selection process, which is a sub-set of the recruitment process. This process repeats itself whenever there are new vacancies on when an existing employee leaves.

2.2.2. AUDITING RECRUITMENT AND SELECTION USING GENERIC BENCHMARKING Author: Sharon This article provides an account of an audit on the recruitment and selection systems and procedures in place within a printing company based in the West Midlands (England). A human resource audit (HRA) of generic benchmarks was developed from a literature review. The audit subsequently was applied to establish the current position of the company in the areas of recruitment and selection. The empirical investigation process primarily consisted of content analysis of documents and the interviewing of 13 staff within the company. As a result of the audit, the recruitment and selection processes, systems and procedures were identified as ineffective. Consequently, an action plan was developed as part of a quality improvement process and preparation for Investors in People Award. As a result of the implementation of the recommendations, the culture of the company and the staff should become more focused, systematic and of a higher quality.

2.2.3. TEACHER RECRUITMENT AND RETENTION: A REVIEW OF THE RECENT EMPIRICAL LITERATURE 45

Author: Glenn A. Daley This article critically reviews the recent empirical literature on teacher recruitment and retention published in the United States. It examines the characteristics of individuals who enter and remain in the teaching profession, the characteristics of schools and districts that successfully recruit and retain teachers, and the types of policies that show evidence of efficacy in recruiting and retaining teachers. The goal of the article is to provide researchers and policymakers with a review that is comprehensive, evaluative, and up to date. The review of the empirical studies selected for discussion is intended to serve not only as a compendium of available recent research on teacher recruitment and retention but also as a guide to the merit and importance of these studies.

2.2.4. E-RECRUITMENT AND THE BENEFITS OF ORGANIZATIONAL WEB APPEAL Author: Lori Foster Thompson This study examined the influences of website design on prospective job seekers. A total of 182 participants accessed and reviewed an online job ad. Afterwards, they rated: (a) the attractiveness of the ad's formatting, (b) the usability of the website, (c) overall evaluations of the organization's web appeal, (d) impressions of the organization, and (e) willingness to pursue employment with the hiring organization. Although both the formatting attractiveness and usability of online recruitment materials influenced participants' inclinations to pursue jobs, formatting was more important than usability. Moreover, impressions of the employer mediated the relationship between satisfaction with the website and willingness to pursue employment with the organization. Overall, this research advances knowledge by applying signaling theory to the web-based recruitment domain and by testing a mediated relationship implied therein. In addition, this is the first study to introduce relative weights analysis to the recruitment literature.

2.2.5. THE STUDY ABOUT VARIOUS ASPECTS OF RECRUITMENT AND

SELECTION SUCH AS SOURCES OF RECRUITMENT 46

Author: K. W. Smith "Management is the art of getting things done through people": Mark Parker Follet. The above quote implies management to be a process of planning, organizing, leading and controlling all other organizational resources to achieve the stated organizational goals, which in turn would help in bringing up the organizational effectiveness and attaining optimum profits. All the efforts of the organization could be achieved through employing the organizational elements like Land, Labor and Capital. Until recently, human resources where not given prior importance. With the emergence of industrialization and mass production, the concept of human resource started to change. After further studies, it was understood that human resources was one of the most important elements, in fact the assets of the organization. It involves human elements in an organization that contribute their maximum efforts towards the attainment of the organizational goals. When the human elements are properly managed, the concept of Human Resource Management emerges, which is defined as the planning, compensation, integration, maintenance and separation of human resource to the end that individual, organizational and social objectives are accomplished.

2.2.6. STUDY ABOUT THE VARIOUS BENEFITS OFFERED BY

RECRUITMENT TECHNIQUES Author: Gareth Roberts. Recruitment is a core of human resource activity carried out in organization of all kinds, whether they are manufacturing, trading, service or not-for-profit organizations. The recruitment activity makes it possible for these organizations to acquire the number and types of personnel necessary to ensure the continued operation of the business.

47

Recruitment is the discovery of potential candidates for actual or anticipated organizational vacancies and selection is choosing the candidate suitable for the job. recruiting the right person for the right job is a time consuming and a lengthy process. tricky an art though it is, it need not be difficult, as long as it is in a careful and systematic manner. Since it is a traditional and primary human resource activity, most organizations undertake recruitment individually, identifying the right sources of prospective candidate, contacting them, and selecting the best candidate from among those who apply. 2.2.7. TO STUDY VARIOUS METHODS THE ORGANIZATION IS

FOLLOWING FOR RECRUITMENT AND SELECTION. Author: Dean Taylor Glen. Recruitment and selection techniques" is a GUI based application that automates the recruitment and selection activities for better functioning and providing accurate information time. It is a computerized solution for organizations that often undergo the process of recruitment for fulfilling their vacancies the application maintains electronic database comprising various information about the job applicants organizational requirements, the results of the various recruitment and selection phase etc.

Based on the various phases performed during recruitment and selection of employees in an organization the undergoing project is classified into three modules. In today's highly and competitive situation. Choice of right personnel has far reaching implication for an organizations functioning. Employees well selected and well placed would not only contribute to the efficient running of the organization but effective human organization becomes the most important management function.

48

2.2.8. STUDY OF RECRUITMENT REGARDING DIFFERENT ASPECTS OF

RECRUITMENT PROCESS Author: Dominic cooper. Measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process. Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy. Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates for the organization. Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities. Recruitment is the process which links the employers with the employees. Increase the pool of job candidates at minimum cost. Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of its workforce. Begin identifying and preparing potential job applicants who will be appropriate candidates.

2.2.9. THE MODES OF THE SELECTION AND RECRUITMENT ARE THE

ON REQUIREMENT AND SELECTION. 49

Author: John Wiley. Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. It is the processes of ascertain the need requirements for prospective candidates and finally identifying potential candidates for the vacant job. This is conducted with different tools at different stages to identify the suitability of the person to the job. Recruitment and selection are the two crucial steps in the HR process and are often used interchangeably. While recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs, selection is concerned with picking the right candidates from a pool of applicants. Potential candidates may come from an internal trawl of the organization or from the external job market. The latter are reached through channels such as recruitment advertising, employment agencies, professional associations or word of mouth. The approach differs according to the organization's resourcing philosophy:

3. RESEARCH METHODOLOGY RESEARCH Research is conscious to find out the truth which is hidden and which has not been discovered anyone, applying scientific procedure.

RESEARCH METHODOLOGY 50

Research methodology is a way to systematically solve the research problems. It is the scientific steps that are generally adopted by the research in studying his problem along with the logic behind them. The advanced learner’s dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”.  Research Design  Data Collection  Sampling Techniques  Tools for Analysis

3.1 RESEARCH DESIGN Research design contains:•

A clear statement of research problem.

•

Procedure and techniques to be used for gathering information.

•

Population to be studied and

•

Methods to be used in processing and analyzing data.

Descriptive research The descriptive study is the one that aims at describing accurately the characteristics of the group, community or people. A researcher may be concerned with discriminating the proportion of people in a particular population who hold the certain views and attitude. In this study descriptive research design is used. The research study was descriptive in nature. Descriptive research studies which are concerned with specific predictions with narrations of facts and characteristics concerning individuals groups or situations are examples of descriptive research.

51

3.2 SAMPLING DESIGN A sample design is a finite plan in obtaining a sample from a given population. It refers the techniques or procedure the researcher would adopt in selecting items for the sample. The probability sampling design offers every item of the population equal chance of inclusion in the sample 3.2.1 POPULATION Population gives the total number of employees present in the organization. The total population under study is around 300 employees. 3.2.2 SAMPLING TECHNIQUE The method of selecting a portion of the universe for the study with a view to draw a conclusion about the “universe/population” is known as sampling. SAMPLING DESIGN (Simple random sampling) In the simple random sampling, more commonly known as simple random sampling, every element in the population has a known and equal chance of being selected as a sample. The respondent has different type of characteristics and spread across various groups. Standard form of appraisal is being used irrespective of the class of the employees, so everyone knows about the system. Each and every employee has something to contribute towards the study. The employees have been selected from the list randomly. SAMPLE SIZE In this study also convenience sampling is applied. The sample size of the study is 100 employees. 3.2.4 AREA OF THE STUDY

52

The area of study is recruitment and selection at Arun Ice Cream, Chennai. 3.2.5 PERIOD OF STUDY The study period of the project work was for six months from January to June 2010.

3.3 DATA COLLECTION The data collected by the researcher were purely based in the primary data and was less dependent on secondary data. 3.2.1PRIMARY DATA The primary data was collected through a structured questionnaire. 3.2.2 SECONDARY DATA The secondary data was collected from personal department files and records, company broachers, magazines and journals.

3.4 STATISTICAL TOOLS USED FOR ANALYSIS 3.4.1 SIMPLE PERCENTAGE ANALYSIS: It is simple analysis tool. In this method, based on the opinions of the respondents, percentage and bar chart is calculated for the respective scales of each factor. Formula: Simple percentage =

No of Respondents Total No of Sample Size

53

3.4.2CHI- SQUARE TEST: As a non parametric test chi-square can be used be to determine if categorical data shows dependency or the two classifications are independent. It is generally used to test the significance of association between two variables. In chi-square test first a null hypothesis is formed that there is no significance relation between the two given attributes. The calculated chi-square value is less than the theoretical value. We accept the null hypothesis as valid. Otherwise reject the null hypothesis and accept the alternative hypothesis. H0: Null Hypothesis

H1: Alternative Hypothesis

Chi- square is a measure for comparing variance studies. Formula:

Where, O = is the observed frequency, and E = is the expected frequency Expected frequency (E) = Row Total *Column Total/Grand Total. Degree of freedom = (R – 1)*(c -1) Where, R = Number of Rows C = Number of Columns

3.5 DATA ANALYSIS AND INTERPRETATION 3.5.1 AGE OF THE RESPONDENTS TABLE 3.5.1 AGE OF THE RESPONDENTS S. NO

PARTICULARS 1 Below 20 Years 2 26-30 years

NO. OF

AGE OF

RESPONDENTS 6 65

RESPONDENTS 6% 65%

54

3 31-35 years 4 Above 35 years TOTAL Source: Primary Data

17 12 100

17% 12% 100%

INFERENCE:From the above table it can be inferred that 65% of the respondents are in the age between 26 – 30, 17% of the respondents are in the age between 31 – 35, 12% of the respondents are above 35 years and 6% of the respondents are below 20 years.

FIGURE 3.2.1 AGE OF THE RESPONDENTS

55

3.5.2 GENDER OF THE RESPONDENTS TABLE 3.5.2 GENDER OF THE RESPONDENTS

56

S. NO

PARTICULARS 1 Male 2 Female TOTAL Source: Primary Data

NO. OF

GENDER OF

RESPONDENTS 77 23 100

RESPONDENTS 77% 23% 100%

INFERENCE:From the above table it can be inferred that 77% of the respondents are male, 23% of the respondents are female.

FIGURE 3.5.2 GENDER OF THE RESPONDENTS

57

3.5.3 QUALIFICATION OF THE RESPONDENTS

58

TABLE 3.5.3 QUALIFICATION OF THE RESPONDENTS S. NO

PARTICULARS 1 Below SSLC 2 SSLC 3 HSC 4 UG 5 PG TOTAL Source: Primary Data

NO. OF

AVG OF

RESPONDENTS 26 12 18 33 11 100

RESPONDENTS 26% 12% 18% 33% 11% 100%

INFERENCE:From the above table it can be inferred that 33% of respondents have done UG, 26% of the respondents qualification is below SSLC, 18% of the respondents are HSC, 12% of the respondents are qualified SSLC and 11% of the employees have completed PG.

FIGURE 3.5.3 QUALIFICATION OF THE RESPONDENTS

59

3.5.4 EXPERIENCE OF THE RESPONDENTS 60

TABLE 3.5.4 EXPERIENCE OF THE RESPONDENTS NO. OF S. NO

PARTICULARS 1 Below One Year 2 1-2 Years 3 2-3 Years 4 3-4 Years 5 Above 4 Years TOTAL Source: Primary Data

RESPONDENTS 6 23 10 40 21 100

PERCENTAGE % 6% 23% 10% 40% 21% 100%

INFERENCE:From the above table it can be inferred that 40% of respondents have 3 – 4 years of experience, 23% of respondents are having 1-2 years of experience, 21% of respondents are having above 4 years of experience, 10% of respondents are having 2-3 years of experience and 6% of the respondents have below one year of experience.

FIGURE 3.5.4 EXPERIENCE OF THE RESPONDENTS

61

3.5.5 WAY OF JOIN IN THE ORGANIZATION TABLE 3.5.6 WAY OF JOIN IN THE ORGANIZATION 62

NO. OF S. NO

PARTICULARS 1 Referrals 2 News Paper 3 Consultancy 4 Walk-in 5 Job Site TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 74 74% 0 0% 0 0% 12 12% 14 14% 100 100%

INFERENCE:From the above table it can be inferred that 74% have joined at Hatsun Agro Product Ltd., through referrals, 14% of respondents are joined at Hatsun Agro Product Ltd., and 12% of respondents are join at Hatsun Agro Product Ltd., by Walk – in.

FIGURE 3.5.5 THE WAY OF JOIN IN THE ORGANIZATION

63

3.5.6 REASON TO QUIT THE PREVIOUS JOB TABLE 3.5.6 REASON TO QUIT THE PREVIOUS JOB

64

NO. OF S. NO

PARTICULARS 1 No use of job skills 2 No hike in the salary 3 No promotion 4 Far from house 5 No Flexible work schedule TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 41 41% 22 22% 9 9% 7 7% 21 21% 100 100%

INFERENCE:From the above table it can be inferred that 41% of the respondents are quit the previous job because of no use of job skills, 22% of respondents is left the job because of no hike in the salary, 21% of the respondents are quit the previous job due to No flexible work schedule, 9% of respondents are quit the job due to no promotion and 7% of the respondents are quit the job due to organization was so far from house.

FIGURE 3.5.6 REASON TO QUIT THE PREVIOUS JOB

65

3.5.7 REASON TO CHOOSE HATSUN AGRO PRODUCT LTD TABLE 3.5.7 REASON TO CHOOSE HATSUN AGRO PRODUCT LTD S. NO

PARTICULARS

NO. OF 66

AVG OF

1 Career Development Monetary/Non monetary

RESPONDENTS RESPONDENTS 46 46%

2 3 4 5

benefits Appraisal system Near to home Working condition TOTAL Source: Primary Data

0 23 22 9 100

0% 23% 22% 9% 100%

INFERENCE:From the above table it can be inferred that 46% of the respondents are chosen the Hatsun Agro Product Ltd., because of career development, 23% of respondents are chosen Hatsun Agro Product Ltd., because of appraisal system, 22% of respondents are chosen Hatsun Agro Product Ltd., because of Near to home and 9% of the respondents have chosen Hatsun Agro Product Ltd., because of Working condition.

FIGURE 3.2.7 REASON TO CHOOSE HATSUN AGRO PRODUCT LTD

67

3.5.8 RULES AND PROCEDURE FOLLOWED IN HATSUN AGRO

PRODUCT LTD.

68

TABLE 3.5.8NRULES AND PROCEDURE FOLLOWED IN HATSUN AGRO PRODUCT LTD. NO. OF S. NO

PARTICULARS 1 Excellent 2 Above Average 3 Average 4 Below average 5 Poor TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 0 0% 9 9% 61 61% 19 19% 11 11% 100 100%

INFERENCE:From the above table it can be inferred that 61% of the respondents are says the rules and procedure followed in Hatsun Agro Product Ltd is average, 19% of the respondents are says the rules and procedure followed in Hatsun Agro Product Ltd is Below average, 11% of the respondents are says the rules and procedure followed in Hatsun Agro Product Ltd is Poor and 9% of the respondents are says that the rules and procedure followed in Hatsun Agro Product Ltd is above average.

FIGURE 3.2.8 RULES AND PROCEDURE FOLLOWED IN HATSUN

69

3.5.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN YOUR DEPARTMENT 70

TABLE 3.5.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN YOUR DEPARTMENT NO. OF S. NO

PARTICULARS 1 Excellent 2 Above Average 3 Average 4 Below average 5 Poor TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 2 2% 11 11% 54 54% 18 18% 15 15% 100 100%

INFERENCE:From the above table it can be inferred that 54% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is Average, 18% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is Below average, 15% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is poor, 11% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is above Average

and 2% of the respondents are says that the morale and ethics followed in

department at Hatsun Agro Product Ltd is Excellent.

FIGURE 3.2.9 EMPLOYEE MORALE AND ETHICS FOLLOWED IN YOUR DEPARTMENT

71

3.5.10 BASIS EMPLOYEE HAVE BEEN SELECTED TABLE 3.5.10 BASIS EMPLOYEE HAVE BEEN SELECTED

72

NO. OF S. NO

PARTICULARS 1 Experience 2 Qualification 3 Technical skills 4 Family members 5 References TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 18 18% 11 11% 54 54% 2 2% 15 15% 100 100%

INFERENCE:From the above table it can be inferred that 54% of the respondents are selected on the basis of Technical skills, 18% of the respondents are selected on the basis of previous experience, 11% of the respondents are selected on the basis of qualification and 2% of the respondents are selected on the basis of family member’s reference.

FIGURE 3.2.10 BASIS EMPLOYEE HAVE BEEN SELECTED

73

3.5.11 EMPLOYEE FIND IT USEFUL HAVING THE INTERVIEW

DATE DETAILED IN THE ADVERTISEMENT

74

TABLE 3.5.11 EMPLOYEE FIND IT USEFUL HAVING THE INTERVIEW DATE DETAILED IN THE ADVERTISEMENT NO. OF S. NO

PARTICULARS 1 Yes 4 No TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 78 78% 22 22% 100 100%

INFERENCE:From the above table it can be inferred that 78% of the respondents are find it useful having the interview date detailed in the advertisement and 22% of respondents are not find it useful having the interview date detailed in the advertisement.

FIGURE 3.5.11 EMPLOYEE FINDS IT USEFUL HAVING THE INTERVIEW DATE DETAILED IN THE ADVERT

75

3.5.12 EMPLOYEE FEEL ABOUT PAY

TABLE 3.1.12 EMPLOYEE FEEL ABOUT PAY

76

NO. OF S. NO

PARTICULARS 1 Excellent 2 Above Average 3 Average 4 Below average 5 Poor TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 0 0% 7 7% 34 34% 26 26% 33 33% 100 100%

INFERENCE:From the above table it can be inferred that 34% of the respondents are feel about their pay is average, 33% of the respondents are feel about their pay is poor, 26% of the respondents are feel about their pay is below average and 7% of the respondents are feel about their pay is above average.

FIGURE 3.5.12 EMPLOYEE FINDS IT USEFUL HAVING THE INTERVIEW DATE DETAILED IN THE ADVERT

77

3.5.13 EMPLOYEE PERFORMANCE EVALUATIONS PROVIDE

FEEDBACK TO ASSIST IN THE PERFORMANCE OF THE JOB TABLE

3.5.13

EMPLOYEE

PERFORMANCE

EVALUATIONS

FEEDBACK TO ASSIST IN THE PERFORMANCE OF THE JOB

78

PROVIDE

NO. OF S. NO

PARTICULARS 1 Yes 4 No TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 82 82% 18 18% 100 100%

INFERENCE:From the above table it can be inferred that 82% of the respondents are says the feedback of the performance appraisal is assist to performance of their job and 18% of the respondents are says the feedback of the performance appraisal is not assist to performance of their job.

FIGURE

3.5.13

EMPLOYEE

PERFORMANCE

EVALUATIONS

FEEDBACK TO ASSIST YOU IN THE PERFORMANCE OF YOUR JOB

79

PROVIDE

3.5.14

SUPPORTIVE WAS THE WORK ENVIRONMENT ROLE AS AN EMPLOYEE

80

TABLE 3.5.14 SUPPORTIVE WAS THE WORK ENVIRONMENT ROLE AS AN EMPLOYEE

NO. OF S. NO

PARTICULARS 1 Excellent 2 Above Average 3 Average 4 Below average 5 Poor TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 52 52% 21 21% 15 15% 12 12% 0 0% 100 100%

INFERENCE:From the above table it can be inferred that 52% of the respondents are says the work environment is excellent, 21% of the respondents are says the work environment is Above Average, 15% of the respondents are says the work environment is average, 12% of the respondents are says the work environment is below Average.

FIGURE 3.5.14 SUPPORTIVE WAS EMPLOYEE WORK ENVIRONMENT ROLE AS AN EMPLOYEE

81

3.5.15

EMPLOYEE LOOK AT HATSUN AGRO PRODUCT LTD., WEBSITE FOR RECRUITMENT

TABLE 3.5.15 EMPLOYEE LOOK AT HATSUN AGRO PRODUCT LTD., WEBSITE FOR RECRUITMENT 82

S. NO

PARTICULARS

1 Yes 4 No TOTAL Source: Primary Data

NO. OF

AVG OF

RESPONDENTS RESPONDENTS 12 12% 88 88% 100 100%

INFERENCE:From the above table it can be inferred that 12% of the respondents are look at Hatsun website for recruitment and 88% of the respondents are not look at Hatsun website for recruitment.

FIGURE 3.5.15 EMPLOYEE LOOK AT HATSUN AGRO PRODUCT LTD., WEBSITE FOR RECRUITMENT

83

3.5.16

EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND

INDUCTION FROM HATSUN AGRO PRODUCT LTD TABLE 3.5.16 EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND INDUCTION FROM HATSUN AGRO PRODUCT LTD 84

NO. OF S. NO

PARTICULARS 1 Yes 4 No TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 12 12% 88 88% 100 100%

INFERENCE:From the above table it can be inferred that 12% of the respondents are receive adequate orientation and induction for Hatsun Agro Product Ltd., 88% of the respondents are not receive adequate orientation and induction for Hatsun Agro Product Ltd.,

FIGURE 3.2.16 EMPLOYEE RECEIVE ADEQUATE ORIENTATION AND INDUCTION FROM HATSUN AGRO PRODUCT LTD

85

3.5.17 EMPLOYEE SATISFY WITH THE PRESENT RECRUITMENT

AND SELECTION SYSTEM IN HATSUN AGRO PRODUCT LTD. TABLE 3.5.17 EMPLOYEE SATISFY WITH THE PRESENT RECRUITMENT AND SELECTION SYSTEM IN HATSUN AGRO PRODUCT LTD.

86

NO. OF S. NO

PARTICULARS 1 Highly Satisfaction 2 Satisfaction 3 Neutral 4 Dissatisfaction 5 Highly Dissatisfaction TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 22 22% 21 21% 15 15% 42 42% 0 0% 100 100%

INFERENCE:From the above table it can be inferred that 42% of the respondents are dissatisfaction with present recruitment and selection system, 22% of the respondents are highly satisfaction with present recruitment and selection system, 21% of the respondents are satisfaction with present recruitment and selection system, 15% of the respondents are neutral with present recruitment and selection system at Hatsun Agro Product Ltd.

FIGURE 3.2.17

EMPLOYEE SATISFIES WITH THE PRESENT

RECRUITMENT AND SELECTION SYSTEM IN HATSUN AGRO PRODUCT LTD.

87

3.5.18 EMPLOYEE MOTIVATED AND ACKNOWLEDGED BY SUPERIOR

88

TABLE

3.5.18

EMPLOYEE

MOTIVATED

AND

ACKNOWLEDGED

BY

SUPERIOR NO. OF S. NO

PARTICULARS 1 Yes 4 No TOTAL Source: Primary Data

AVG OF

RESPONDENTS RESPONDENTS 67 67% 33 33% 100 100%

INFERENCE:From the above table it can be inferred that 67% of the respondents are motivated and acknowledged by their superior and 33% of respondents are not motivated and acknowledged by their superior.

FIGURE 3.2.18 EMPLOYEE MOTIVATED AND ACKNOWLEDGED BY YOUR SUPERIOR

89

3.5.19 EMPLOYEE FEEL ABOUT BENEFITS TABLE 3.5.19 EMPLOYEE FEEL ABOUT BENEFITS S. NO

PARTICULARS 1 Excellent

NO. OF

AVG OF

RESPONDENTS RESPONDENTS 2 2% 90

2 3 4 5

Above Average Average Below average Poor TOTAL Source: Primary Data

11 43 27 17 100

11% 43% 27% 17% 100%

INFERENCE:From the above table it can be inferred that 43% of the respondents are says that they feel about their benefit is average, 27% of the respondents are says that they feel about their benefit is below average, 17% of the respondents are says that they feel about their benefit is poor and 2% of the respondents are says that they feel about their benefit is excellent.

FIGURE 3.2.19 EMPLOYEE FEELS ABOUT BENEFITS

91

92

3.6 STATISTICAL ANALYSIS

CHI-SQUARE TEST Table 3.6.1.1 Cross tabulation for satisfaction on the present recruitment system and rules and procedure followed in Hatsun Agro Product Ltd Rules & procedure

Satisfaction

Excellent

Above Average

Below average

Average

Poor

Total

Highly Satisfaction

0

2

11

5

4

22

Satisfaction

0

3

12

4

2

21

Neutral

0

3

10

1

1

15

Dissatisfaction

0

1

28

9

4

42

Highly Dissatisfaction

0

0

0

0

0

0

Total

0

9

61

19

11

100

STEP: 1

93

SETTING AN HYPOTHESIS H0: There is no significant relationship between the rules and procedure followed and recruitment system H1:

There is significant relationship between the rules and procedure

followed and recruitment system STEP: 2 TO FIND THE EXPECTED FREQUENCY Expected frequency

= Corresponding row total * Corresponding column total Total number of samples

STEP: 3 CALCULATION OF CHI-SQUARE VALUE Formula (O-E) 2 χ 2=

E

O

=

Observed frequency

E

=

Expected frequency

χ 2

=

Chi square

Table 3.6.1.2 Computation Table for χ

2

94

O 0 2 11 5 4 0 3 12 4 2 0 3 10 1 1 0 1 28 9 4 0 0 0 0 0

E 0.00 1.98 13.42 4.18 2.42 0.00 1.89 12.81 3.99 2.31 0.00 1.35 9.15 2.85 1.65 0.00 3.78 25.62 7.98 4.62 0.00 0.00 0.00 0.00 0.00

O-E 0.00 0.02 -2.42 0.82 1.58 0.00 1.11 -0.81 0.01 -0.31 0.00 1.65 0.85 -1.85 -0.65 0.00 -2.78 2.38 1.02 -0.62 0.00 0.00 0.00 0.00 0.00

(O-E)2 0.00 0.00 5.86 0.67 2.50 0.00 1.23 0.66 0.00 0.10 0.00 2.72 0.72 3.42 0.42 0.00 7.73 5.66 1.04 0.38 0.00 0.00 0.00 0.00 0.00

Total

(O-E)2/E 0.00 0.00 0.44 0.16 1.03 0.00 0.65 0.05 0.00 0.04 0.00 2.02 0.08 1.20 0.26 0.00 2.04 0.22 0.13 0.08 0.00 0.00 0.00 0.00 0.00 8.41

STEP: 4 Level of significance α = 0.05 Degrees of freedom = (R-1) (C-1) = (5-1) (5-1) = 16 Tabulated value at 5% level of significance and degree of freedom 16 is 26.296 STEP: 5 The calculated value is lesser than the tabulated value: 8.41 < 26.296

95

RESULT Therefore, accept the Null Hypothesis H0 and reject the alternate Hypothesis H1 INFERENCE There is no significant relationship between the rules and procedure followed and recruitment system

Table 3.6.1.2 Cross tabulation for employee feel about pay and employee feel about benefits Employee feel about pay

Benefits

Excellent

Above Average

Average

96

Below average

Poor

Total

Highly Satisfaction

0

0

0

0

0

0

Satisfaction

0

1

1

5

0

7

Neutral

1

8

10

11

4

34

Dissatisfaction

1

2

18

0

5

26

Highly Dissatisfaction

0

0

14

11

8

33

Total

2

11

43

27

17

100

STEP: 1 SETTING AN HYPOTHESIS H0: There is no significant different between employee feel about pay and employee feel about their benefits H1: There is significant different between employee feel about pay and employee feel about their benefits. 97

STEP: 2 TO FIND THE EXPECTED FREQUENCY Expected frequency

= Corresponding row total * Corresponding column total Total number of samples

STEP: 3 CALCULATION OF CHI-SQUARE VALUE Formula (O-E) 2 χ 2=

E

O

=

Observed frequency

E

=

Expected frequency

χ 2

=

Chi square

Table 3.6.1.2 Computation Table for χ O 0 0 0 0 0 0 1 1 5

2

E 0.00 0.00 0.00 0.00 0.00 0.14 0.77 3.01 1.89

O-E 0.00 0.00 0.00 0.00 0.00 -0.14 0.23 -2.01 3.11

98

(O-E)2 0.00 0.00 0.00 0.00 0.00 0.02 0.05 4.04 9.67

(O-E)2/E 0.00 0.00 0.00 0.00 0.00 0.14 0.07 1.34 5.12

0 1 8 10 11 4 1 2 18 0 5 0 0 14 11 8

1.19 0.68 3.74 14.62 9.18 5.78 0.52 2.86 11.18 7.02 4.42 0.66 3.63 14.19 8.91 5.61

-1.19 0.32 4.26 -4.62 1.82 -1.78 0.48 -0.86 6.82 -7.02 0.58 -0.66 -3.63 -0.19 2.09 2.39

1.42 0.10 18.15 21.34 3.31 3.17 0.23 0.74 46.51 49.28 0.34 0.44 13.18 0.04 4.37 5.71

Total

1.19 0.15 4.85 1.46 0.36 0.55 0.44 0.26 4.16 7.02 0.08 0.66 3.63 0.00 0.49 1.02 32.99

STEP: 4 Level of significance α = 0.05 Degrees of freedom = (R-1) (C-1) = (5-1) (5-1) = 16 Tabulated value at 5% level of significance and degree of freedom 16 is 26.296 STEP: 5 The calculated value is greater than tabulated value: 32.99 > 26.296 RESULT Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1 INFERENCE There is significant different between employee feel about pay and employee feel about their benefits 99

4. FINDINGS, SUGGESTIONS & CONCLUSION 4.1 FINDINGS



The majority of respondents 65% are in the age between 26 – 30.



The majority of respondents 77% are male.



The majority of respondents 33% of respondents have done UG .



The majority of respondents 40% of respondents have 3 – 4 years of experience.



From the analysis it is noted that 74% have joined at Hatsun Agro Product Ltd., through referrals.



It is observed from the analysis that 41% of the respondents are quit the previous job because of no use of job skills.



It is clear from the analysis 46% of the respondents are chosen the Hatsun Agro Product Ltd., because of career development.



The most of the respondents 61% are says the rules and procedure followed in Hatsun Agro Product Ltd is average.

100



It is observed from the analysis that 54% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is Average,



It is clear from the above analysis that 54% of the respondents are selected on the basis of Technical skills.



From the analysis the majority of 78% of the respondents are find it useful having the interview date detailed in the advertisement.



It is inferred that 34% of the respondents are feel about their pay is average and 33% of the respondents are feel about their pay is poor.



Majority 82% of the respondents are says the feedback of the performance appraisal is assist to performance of their job.



Majority 52% of the respondents are says the work environment is excellent



From the above analysis it is clear that 88% of the respondents are not look at Hatsun website for recruitment.



Most 88% of the respondents are not receive adequate orientation and induction for Hatsun Agro Product Ltd.,



The majority 42% of the respondents are dissatisfaction with present recruitment and selection system.



From the above analysis it can be inferred that 67% of the respondents are motivated and acknowledged by their superior.



Majority 43% of the respondents are says that they feel about their benefit is average.



Statistical Findings:  No significant relationship between the rules and procedure followed and recruitment system

101

 There is significant different between employee feel about pay and employee feel about their benefits.



4.2 SUGGESTIONS



From the analysis it is noted that 74% have joined at Hatsun Agro Product Ltd., through referrals, The advertisement in newspaper and magazine should make more effective through advertising in standard to recruit skilled employees.



The most of the respondents 61% are says the rules and procedure followed in Hatsun Agro Product Ltd is average, The rules and procedure of Hatsun Agro Product Ltd should changed to present scenario.



It is observed from the analysis that 54% of the respondents are says that the morale and ethics followed in department at Hatsun Agro Product Ltd is Average, The morale and ethics should by improved by making effective rules and regulation.

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

It is inferred that 34% of the respondents are feel about their pay is average and 33% of the respondents are feel about their pay is poor. The salary package should be increased to the present employees as well as to the new comers to hire skilled employees.



Majority 52% of the respondents are says the work environment is excellent, the environment should be maintained well.



From the above analysis it is clear that 12% of the respondents are look at Hatsun website for recruitment and 88% of the respondents are not look at Hatsun website for recruitment. The awareness about the career on company website should be improved to reduce advertisement expenses.



From the above analysis 12% of the respondents are receive adequate orientation and induction for Hatsun Agro Product Ltd., 88% of the respondents are not receive adequate orientation and induction for Hatsun Agro Product Ltd., the induction program should be effective, the time should be allocated to the new comers.



The majority 42% of the respondents are dissatisfaction with present recruitment and selection system, the recruitment system should be improved by proper implementation of advertisement, salary package increment, making the rules and procedure for the present scenario.



From the above analysis it can be inferred that 67% of the respondents are motivated and acknowledged by their superior and 33% of respondents are not motivated and acknowledged by their superior, the time should be allocated to reward the employees.



Majority 43% of the respondents are says that they feel about their benefit is average, benefit should be improved by giving more esi, insurance, and school facility to the employees’ children.

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4.3 CONCLUSION The employees of any organization are its life blood, without doubt. With the dawn of this realization upon the present day business organizations, there appears to be a major shift towards human resource management. In fact, the employees of today are encouraged to participate in the major decisions and thus play a vital role in the management of the firm. The performance of the organization depends on the efficiency that its employees exhibit. Hence it is of crucial importance that employees with the most suitable qualifications be selected. This is where the processes of recruitment and selection come in. It is difficult to separate one from the other.

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The process of recruitment and selection has to be at its best to get suitable candidates to carry out the job. Hence each company is concentrating on recruitment and selection process. Due to the added burden on the part of the organization they go for consultancies to get their manpower. Thus in Consultancy has the responsibility to satisfy the need of the companies.

APPENDIX 1. Name

:

2. Age Below 20 years

21-25 years

31-35 years

Above 35 years

26-30 years

3. Gender Male

Female

4. Qualification Below SSLC

SSLC

UG

PG

HSC

5. Experience Below One Year

1-2 Years

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2-3 Years

3-4 Years

Above 4 years

6. How do you joined in Hatsun? Referrals

Newspaper

Walk-in

Jobsite

Consultancy

7. Why did you quit your previous company? Better use of job skills Far from house

Increase in salary

No promotion

Flexible work schedule

8. Why did you choose Hatsun Agro Ltd? Career Development

Monetary benefits

Near to home

Working condition

Appraisal system

9. How did you describe the rules and procedures followed at Hatsun Agro Ltd? Excellent Below average

Above Average

Average

Poor

10. How would you describe employee morale and ethics followed in your department? Excellent

Above Average

Below average

Poor

Average

11. On what basis you have been selected? Experience Family members

Qualification

Technical skills

References

12. Did you find it useful having the interview date detailed in the advert? Yes

No

13. How did you feel about your pay? chi-2 Excellent

Above Average

Below average

Average

Poor

14. Did your performance evaluations provide feedback to assist you in the performance of your job? Yes

No

15. How supportive was your work environment to you in your role as an Employee? Excellent Below average

Above Average

Average

Poor

16. Did you look at Hatsun Agro Product Ltd., website for recruitment? 106

Yes

No

17. Did you receive adequate orientation and induction from Hatsun Agro Product Ltd.,? Yes

No

18. Do you satisfy with the present recruitment and selection system in Hatsun Agro Product Ltd.,? Highly Satisfaction

Satisfaction

Dissatisfaction

Neutral

Highly Dissatisfaction

19. Are you motivated and acknowledged by your superior? Yes

No

20. How did you feel about your benefits? chi-2 Excellent Below average

Above Average

Average

Poor

21. Suggestions ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ….

REFERENCES BOOKS 1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008. 2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech Publication, 2007. 3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age international (P) Ltd., Publishers, Second Edition,2004. 4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan Chand & Sons Publishers, 2005.

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WEBSITE www.citehr.com www.hatsun.com www.wikepedia.in

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