Current Recruitment Process Hyundai

CURRENT RECRUITMENT & SELECTION PRACTICES - HYUNDAI

INDIAN INSTITUTE OF PLANNING & MANAGEMENT, INTERNATIONAL CAMPUS, SATBARI, CHANDAN HAULA, CHATTARPUR BHATIMINES ROAD, NEW DELHI - 110074

UNDER THE GUIDANCE OF: MR. ABINAV TIWARI (EXTERNAL GUIDE)

SUBMITTED BY: SNEHAL SNEHA THESIS ID: SS/11-13/H -40/DELHI/IIPM-D(MGU) BATCH: SS 11-13

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ACKNOWLEDGEMENT

It is well-established fact that behind every achievement lays an unfathomable sea of gratitude to those who have extended their support and without whom the project would never have come into existence. I express my gratitude to IIPM, New Delhi for providing me an opportunity to work on this thesis as a part of the curriculum. Also, I express my gratitude to Mr. Abinav Tiwari on the completion of my thesis.

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CONTENT

1.

EXECUTIVE SUMMARY.....................................................................................

2.

INTRODUCTION ..................................................................................................

3.

COMPANY PROFILE........................................................................................20

4.

RESEARCH OBJECTIVE AND METHODOLOGY........................................32

5.

LITERATURE REVIEW....................................................................................33

6.

PRIMARY FINDING AND ANALYSIS............................................................64

7.

RECOMMENDATION.......................................................................................79

8.

CONCLUSION & IMPLICATIONS..................................................................80

9.

BIBLIOGRAPHY...............................................................................................81

10. COPY OF THE QUESTIONNAIRE...................................................................82

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EXECUTIVE SUMMARY

Recruitment and Selection is a key activity of HR department in an organization. Recruitment is a process to discover the source of manpower to meet the requirement of staffing and to employ effective measures for attracting manpower in adequate number. Recruitment forms the first stage in the process, which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. Recruiting is the discovering of potential applicants for actual or anticipated organization vacancies. In other words, it is a linking activity bringing together those with jobs and those seeking jobs. The title of this research is “Current Recruitment Process –Hyundai”. The main objective of this research work is to study the current Recruitment and Selection process and its use in selecting the right candidates at Hyundai. Researcher has used both primary and secondary data to accomplish all the research objectives. The primary data was collected through questionnaire survey. Personal interviews were conducted with the HR executives of the company. The design of this study is descriptive in nature as it is based on questionnaire survey.

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INTRODUCTION Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or firm, or for a vacancy in a volunteer-based some components of the recruitment process, mid- and large-size organizations and companies often retain professional recruiters or outsource some of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization. Potential recruits should he subjected to stringent back ground investigations performed by trained investigators who might interview neighbors associates and previous employers. Checks of policies records should he performed, as well as credit and hank account checks to assess the extent and sources of income. Entry requirements would include testing for the specific skills and aptitudes. Human resources management staff in customs could undertake these tacks in house or could turn to recruitment professionals. New recruits should be advised that a career in customs involves rotation to enhance multifunctional and to avoid the development of potentially unsavory relationships with the local trading community. New recruits with no prior experience in customs related work should undergo intense training and testing to prepare those lots their new assignments. If successful, they should undergo a prohibition period before being confirmed as conscious staff. Such probationary periods often last a full year, during which the employee can be terminated for unsatisfactory performance or disciplinary problems without the complex recourse to appeals and administrative tribunals. Recruitment is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization. Selection then consists of the processes involved in choosing from applicants a suitable candidate to fill a post. The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, they need to recruit people with requisite skills, qualifications and experience. While doing so, they have to keep the present as well as the future requirements of the organization in mind. Recruitment is distinct from Employment and Selection.

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Once the required number and kind of human resources are determined, the management has to find the places where the required human resources are/will be available and also find the means of attracting them towards the organization before selecting suitable candidates for jobs. All this process is generally known as recruitment. Some people use the term “Recruitment” for employment. These two are not one and the same. Recruitment is only one of the steps in the entire employment process. Some others use the term recruitment for selection. These are not the same either. Technically speaking, the function of recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organization, whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (i.e., recruited).Formal definition of recruitment would give clear cut idea about the function of recruitment. Recruitment is a ‘linking function’-joining together those with jobs to fill and those seeking jobs. It is a ‘joining process’ in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter. In order to attract people for the jobs, the organization must communicate the position in such a way that job seekers respond. To be cost effective, the recruitment process should attract qualified applicants and provide enough information for unqualified persons to self-select themselves out. Thus, the recruitment process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. This research is based on study of current recruitment process of Hyundai. Traditional Agency: Also known as a employment agencies, recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agency’s books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a temporary ("temp") or permanent ("perm") basis. Compensation to agencies takes several forms, the most popular: 

A contingency fee paid by the company when a recommended candidate accepts a job with the client company (typically 20%-30% based and calculated of the candidates first6

year base salary - though fees as low as 12.5% can be found online), which usually has some form of guarantee (30–90 days standard), should the candidate fail to perform and is terminated within a set period of time (refundable fully or prorated) 

An advance payment that serves as a retainer, also paid by the company, non-refundable paid in full depending on outcome and success (eg. 30% up front, 30% in 90 days and the remainder once a search is completed). This form of compensation is generally reserved for high level executive search/headhunters



Hourly Compensation for temporary workers and projects. A pre-negotiated hourly fee, in which the agency is paid and pays the applicant as a consultant for services as a third party. Many contracts allow a consultant to transition to a full-time status upon completion of a certain number of hours with or without a conversion fee.

Headhunters: A "headhunter" is industry term for a third-party recruiter who seeks out candidates, often when normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have preexisting industry experience and contacts. They may use advanced sales techniques, such as initially posing as clients to gather employee contacts, as well as visiting candidate offices. They may also purchase expensive lists of names and job titles, but more often will generate their own lists. They may prepare a candidate for the interview, help negotiate the salary, and conduct closure to the search. They are frequently members in good standing of industry trade groups and associations. Headhunters will often attend trade shows and other meetings nationally or even internationally that may be attended by potential candidates and hiring managers. Headhunters are typically small operations that make high margins on candidate placements (sometimes more than 30% of the candidate’s annual compensation). Due to their higher costs, headhunters are usually employed to fill senior management and executive level roles. Headhunters are also used to recruit very specialized individuals; for example, in some fields, such as emerging scientific research areas, there may only be a handful of top-level professionals who are active in the field. In this case, since there are so few qualified candidates, it makes more sense to directly recruit them one-by-one, rather than advertise internationally for candidates. While in-house recruiters tend to attract candidates for specific jobs, headhunters will

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both attract candidates and actively seek them out as well. To do so, they may network, cultivate relationships with various companies, and maintain large databases, purchase company directories or candidate lists, and cold call prospective recruits. In-House Recruitment: Larger employers tend to undertake their own in-house recruitment, using their human resources department, front-line hiring managers and recruitment personnel who handle targeted functions and populations. In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own websites, coordinate internal employee referrals, work with external associations, trade groups and/or focus on campus graduate recruitment. While job postings are common, networking is by far the most significant approach when reaching out to fill positions. Alternatively a large employer may choose to outsource all or some of their recruitment process (recruitment process outsourcing). Passive Candidate Research Firms / Sourcing Firms: These firms provide competitive passive candidate intelligence to support company's recruiting efforts. Normally they will generate varying degrees of candidate information from those people currently engaged in the position a company is looking to fill. These firms usually charge a per hour fee or by candidate lead. Many times this uncovers names that cannot be found with other methods and will allow internal recruiters the ability to focus their efforts solely on recruiting. Process: Job Analysis: The proper start to a recruitment effort is to perform a job analysis, to document the actual or intended requirement of the job to be performed. This information is captured in a job description and provides the recruitment effort with the boundaries and objectives of the search. Oftentimes a company will have job descriptions that represent a historical collection of tasks performed in the past. These job descriptions need to be reviewed or updated prior to a recruitment effort to reflect present day requirements. Starting recruitment with an accurate job analysis and job description insures the recruitment effort starts off on a proper track for success.

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Sourcing: Sourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) recruiting research, which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research for so-called passive prospects, also called name-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened. Screening and selection: Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through résumés, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeric, and literacy, through psychological tests or employment testing. In some countries, employers are legally mandated to provide equal opportunity in hiring. Business management software is used by many recruitment agencies to automate the testing process. Many recruiters and agencies are using an Applicant tracking system to perform many of the filtering tasks, along with software tools for psychometric testing On boarding: "On boarding" is a term which describes the introduction or "induction" process. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. On boarding is included in the recruitment process for retention purposes. Many companies have on boarding campaigns in hopes to retain top talent that is new to the company, campaigns may last anywhere from 1 week to 6 months. Internet Recruitment / Websites: Such sites have two main features: job boards and a résumé/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a résumé to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed 9

candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance. The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their current companies, co-workers, customers or others might see their resumes. Job search engines: The emergence of meta-search engines, allow job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many other job search engines which index pages solely from employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow job-seekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites. Objectives of Recruitment: Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it. The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to 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.

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Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organization. In this is competitive global world and increasing flexibility in the labour market, recruitment is becoming more and more important in every business. Therefore, recruitment serves as the first step in fulfilling the needs of organizations for a competitive, motivated and flexible human resource that can help achieve its objectives. Here at Naukrihub, they attempt to provide a detailed insight into the concept of recruitments, recruitment process and its sources, recent trends in recruitment, recruitment strategies and the scenario in the industry along with the career options for recruiters. Source of Recruitment: Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of the recruitment. Sources of Recruitment

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Advantage and disadvantage of Sources

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Some Internal Sources of Recruitments are given below: 

Transfers: The employees are transferred from one department to another according to their efficiency and experience.



Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.



Others are Upgrading and Demotion of present employees according to their performance.



Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.



The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

External sources of recruitment: 

Press Advertisements: Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.



Educational Institutes: Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.



Placement Agencies: Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for

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recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing. 

Employment Exchanges: Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.



Labour Contractors: Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs.



Unsolicited Applicants: Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.



Employee Referrals / Recommendations: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.



Recruitment at Factory Gate: Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Recruiters for schools across the country are making use of both historically successful and newer sources to fill current vacancies for SLPs and to identify potential employees for the future. These sources include: 

University programs



Ads in local and national newspapers



Networking with current staff and student teachers

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

Recruitment agencies



National, state, and local speech-language-hearing associations



Job fairs



Online links among all rural, urban, and suburban schools in given districts and via special

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COMPANY PROFILE

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian customers with cutting-edge global technology, HMIL has set up a modern Hyundaiti-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one exporter of passenger car of the country for the sixth year in a row. To support its growth and expansion plans, HMIL currently has a 325 strong dealer network and 634 strong service points across India, which will see further expansion in 2011. COMPANY’S HISTORY The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung established Hyundai Auto Service in Seoul, South Korea at The age of 31 years. The name Hyundai was chosen for its meaning which in English translates to “modern.” The Hyundai logo is symbolic of The Company's desire to expand. The oval shape represents The

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Company's global expansion and The stylized "H" is symbolic of two people (The Company and customer) shaking hands. Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai Motor Company of Korea.

The

first

production

plant

was

established

in

Irrungattukotai

near Chennai, India. HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a runaway success. Within a few months of its inception HMIL became The second largest automobile manufacturer and The largest automobile exporter in India. Hyundai sells several models in India, The most popular being The Santro Xing, i10 and The i20.OTheR models

Include Getz Prime, Accent, Verna TRANSFORM, Tucson, and

The Sonata Transform. COMPANY’S VISION The company’s motto is "Innovation for Customers". The company’s vision is five core strategies: global orientation, respect for human values, customer satisfaction, technology innovation, and cultural creation. They have a desire to create an automobile culture of putting customer first via developing human–centered and environment–friendly technological innovation. The company’s strive’s to create a more affluent lifestyle for humanity, and contribute to the harmony and co-prosperity with shareholders, customers, employees and other stakeholders in The automobile industry. The spirit of creative challenge of the company has been a driving force in leading HMIL to where it is today. It is the permanent key factor for HMIL to actively respond to change in the company’s the management system and seek creative and self–innovative system. The spirit of creative challenge, creates profits, The primary objective of a private enterprise. Furthermore, the company’s takes responsibility for the environment and society and provide benefits to all stakeholders including shareholders, customers, executives, employees, suppliers, and communities. Corporate Philosophy

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With the spirit of creative challenge, we will strive to create a more affluent lifestyle for humanity, and contribute to the harmony and co-prosperity with shareholders, customers, employees and other stakeholders in the automobile industry. The spirit of creative challenge has been a driving force in leading HMC to where it is today. It is the permanent key factor for HMC to actively respond to change in the management system and seek creative and self–innovative system. With the spirit of creative challenge, we create profits, the primary objective of a private enterprise. Furthermore, we take responsibility for the environment and society we belong to, and offer sustainable mobility in order to implement our corporate philosophy and provide benefits to all stakeholders including shareholders, customers, executives, employees, suppliers, and communities.

Vision We announced "Innovation for

Customers" as our mid–to long–term vision with five core strategies: global orientation, respect for human values, customer satisfaction, technology innovation, and cultural creation. We desire to create an automobile culture of putting customer first via developing human–centered and environment–friendly technological innovation.

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Management Policy Based on a respect for human dignity, we make efforts to meet the expectations of all stakeholders including customers and business partners by building a constructive relationship amongst management, labor, executives and employees. Also, we focus on communicating our corporate values both internally and externally, and gaining confidence from all stakeholders.

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Mid-and Long-term Strategies We developed five mid–and long–term strategies: global management, higher brand values, business innovation, environmental management, and strengthening product competitiveness. Especially, we selected environmental management as one of our strategies to meet the needs of our stakeholders and the society we belong to. We also intend to promote sustainability development and preservation of the environment.

HYUNDAI IN INDIA Hyundai Motor India Limited

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The Hyundai Motor India limited (HMIL) was established in 1996 at Irrugattakottam near Chennai, constructed at a total cost of US $ 614 million. The plant has an installed capacity of 2,50,000 cars per annum production and 1,30,000 engine transmission units per annum.

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Horizons to the world of HMIL

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1999

→ Accent is launched → santro wins business standard motoring “car of the year”

2000

→ santro zip drive was launched → santro crosses 1 lakh car sales

2001

→ Hyundai launched its 2,00,000th lakh car in 32nd month → santro ranked no 1 in JD power Asia pacific “initial quality study” → both santro and accent ranked 1st in JD power Asia Pacific “Best Appeal”

2002

→ HMIL launched its 3,00,000th car. → HMIL launches Accent crdi → HMIL also launched its 3,50,000th car in the same year

2003

→ 4,00,000th car is rolled out → HMIL launches its premium SUV, Terracan → HMIL launches Santro xing “The Global car”

2004

→ launch of getz → santro crossed the 1,00,000th mark in vehicle exports and emerged as the largest exporter

2005

→ launch of sonata emberaa → sania mirza was selected as the brand ambassador of Getz.

2006

→ HMIL rolled out the fastest 10,00,000th car → Santro crosses the million mark →

plant

was

enhanced

to

6,00,000

production per annum 2007

→ Verna was awarded the car of the yearoverdrive

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→ export of 4,00,000th car 2008

→ i10 awarded the car of the year by NDTV

GLOBAL EXISTENCE-

Hyundai’s milestones –  1947:

The Hyundai Group is founded by Chung Ju-yung as a construction company.

The company, Hyundai Civil Works Co. is formally established on May 25, 1947.  1967 : Hyundai motor company founded in seoul (south korea)  1968 : licensing agreement signed with ford  1968 : cortina, first car launched  1975 : PONY first Korean car was launched  1986 : sales in U.S.A commences  1988 : Sonata Launched

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 996 : cu Hyundaiative exports surpass 4 million units, cu Hyundaiative production surpass 10 million units  1998 : Hyundai motors India limited was launched at Chennai with its plant in Irrungattukatoi.  1999 : selected as the official sponsor of 2002 FIFA world cup  2004 : Hyundai ranked as the 2 best compact car in the world  2007: I10 was launched, the much awaited car.  2009: I20 was launched.  2010:i30 was launched  2011:fluid Verna launched As per consumer report survey- U.S.A Hyundai sonata is considered “the most reliable vehicle in 2004”. With only 2 problems per 100 units. SWOT ANALYSIS OF HYUNDAI MOTORS Strengths of HMIL 

Hyundai India has such a brand equity that it is almost assumed to be an Indian brand, with lot of good accolades for being India’s second most selling brand next to



HYUNDAI in market share Hyundai Motor India limited is the largest car exporter from Asian Market which showed

 

a 10% growth compared to last FY The domestic sales is increasing at an average rate of 19.1% HMIL is known for its quality products which has better performance and it has



constantly been ahead in the race with Hyundai Motors Limited in many parameters The product length includes around 8 cars, starting from new Eon in small car segment to

 

SUV segment Santa Fe Among the automobile players only HMIL is known for its CSR activities Hyundai products never fail to win laurels in each segment from various automobile ratings ever since its operations in India

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

Hyundai , has the largest network of showrooms and service station next to Hyundai Motors in India

Weaknesses of HMIL  

HMIL took a long time to gain the market share as its not the first mover in India In terms of most reliable and trusted brand; Hyundai Motors is more strong in Indian



subcontinent Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not

 

have PAN India presence In SUV segment both Tucson and its next model Santa Fe didnt make a major impact Increase in commodity prices such as steel, aluminium and ancillary parts has affected



margins Since HMIL concentrates on both domestic and International sales there are higher risks



of exchange rate fluctuations As Hyundai majorly concentrates on quality, most of its product are in premium category in each segment. Hyundai is still struggling to make a better impact in small car segment



in terms of cost efficiency like other manufactures Hyundai doesn’t have any product match to compete in Corporate orders like Tata Indica V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most preferred in both cab segment and government booking for bulk orders

Opportunities of HMIL 

SIAM – Society of Indian automobile Manufacturers, have stated that there is steady increase in Car sales both Domestic and Indian contributing a valuable share in India’s

 

Gdp The export markets growth rate is 22.30% compared to last fiscal year The saving consumption pattern of India is an added advantage for any segment doing business in India. This was one of the major reason for Indian market to survive amidst



global recession There is more scope of HMIL to enter into small car segment as its has dedicated R&D plant in Hyderabad, India. Hyundai is one of the very few companies that has widest R&D network across the world located in Korea, Europe, India, US, Japan

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

Hyundai has very good opportunity in entering into commercial vehicles and Recreational vehicles as they are already doing well outside India. Currently HMIL has its focus only on Passenger car segment

Threats of HMIL 

Though Hyundai claims itself to have no direct competitors other than HYUNDAI, there are Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India



to expand its product category Foreign Direct Investments flowing in Indian automobile space are not good signs for



already existing Giants like HYUNDAI and Hyundai. Almost all major automobile players have started invading India to open up their market



and their manufacturing plant in India.”Chennai” is referred to as the Detroit of Asia! Hyundai faced a slight decline in market share due to tough competition from Ford’s Figo



and Volkswagen- Polo Many manufacturers have started to concentrate on small car segment as an alternative to Nano. These will slowdown the expected sales of Eon.

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RESEARCH OBJECTIVES AND METHODOLOGY

Objectives - To have an understanding of recruitment process in HYUNDAI. - To understand how the appointments are made and how to attract sufficient applications from potential candidates for appointment with the skills, qualities, abilities, experience and competencies deemed as being necessary to the job. - To find out the appropriate method of selecting the candidates. - To learn and understand the behaviour of individual client and candidate during the period of recruitment. - To understand the procedures this will assist in ensuring the appointment of the most suitable candidate Methodology Primary Data

Primary Data will be collected through Questionnaire Survey Sample Size: 60 Target Respondents: HR Executives of HYUNDAI Secondary Data: The relevant data would be collected through:



Websites through internet



Published articles in the newspapers, magazines, journals, and



Books.

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LITERATURE REVIEW

Better recruitment and selection strategies result in improved organizational outcomes. The more effectively organizations recruit and select candidates, the more likely they are to hire and retain satisfied employees.

Recruitment is the process of identifying and attracting potential candidates from within and outside an organization to begin evaluating them for future employment. Once candidates are identified, an organization can begin the selection process. This includes collecting, measuring, and evaluating information about candidates’ qualifications for specified positions. Organizations use these processes to increase the likelihood of hiring individuals who possess the right skills and abilities to be successful at their jobs. Objectives of Recruitment: Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it. The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective,

29

recruitment helps to 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. Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organization. In this is competitive global world and increasing flexibility in the labour market, recruitment is becoming more and more important in every business. Therefore, recruitment serves as the first step in fulfilling the needs of organizations for a competitive, motivated and flexible human resource that can help achieve its objectives. Here at Naukrihub, they attempt to provide a detailed insight into the concept of recruitments, recruitment process and its sources, recent trends in recruitment, recruitment strategies and the scenario in the industry along with the career options for recruiters. Source of Recruitment: Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of the recruitment. Some Internal Sources of Recruitments are given below: 

Transfers: The employees are transferred from one department to another according to their efficiency and experience.



Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.



Others are Upgrading and Demotion of present employees according to their performance.



Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and

30

costs of the organizations as the people are already aware of the organizational culture and the policies and procedures. 

The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

The advantages of internal recruitment are that: 1. Considerable savings can be made. Individuals with inside knowledge of how a business operates

will

need

shorter

periods

of

training

and

time

for

'fitting

in'.

2. The organization is unlikely to be greatly 'disrupted' by someone who is used to working with others in the organization. 3. Internal promotion acts as an incentive to all staff to work harder within the organization. 4. From the firm's point of view, the strengths and weaknesses of an insider will have been assessed. There is always a risk attached to employing an outsider who may only be a success 'on paper'. External sources of recruitment: 

Press Advertisements: Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.



Educational Institutes: Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.



Placement Agencies: Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing.

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

Employment Exchanges: Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.



Labour Contractors: Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.



Unsolicited Applicants: Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.



Employee Referrals / Recommendations: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.



Recruitment at Factory Gate: Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Job analysis is used in order to 1. Choose employees either from the ranks of your existing staff or from the recruitment of new staff. 2. Set out the training requirements of a particular job. 3. Provide information which will help in decision making about the type of equipment and materials to be employed with the job. 4. Identify and profile the experiences of employees in their work tasks (information which can be used as evidence for staff development and promotion). 5. Identify areas of risk and danger at work. 32

6. Help in setting rates of pay for job tasks. Job analysis can be carried out by direct observation of employees at work, by finding out information from interviewing job holders, or by referring to documents such as training manuals. Information can be gleaned directly from the person carrying out a task and/or from their supervisory staff. Some large organizations specifically employ 'job analysts'. In most companies, however, job analysis is expected to be part of the general skills of a training or personnel officer. Job Description A job description will set out how a particular employee will fit into the organization. It will therefore to

which

need the

to

employee

set is

out:

responsible

the for

whom

title the

of employee

the is

job

responsible

a simple description of the role and duties of the employee within the organization. A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and responsibility within the organization. Sub Systems of Recruitment The recruitment process consists of the following four sub-functions:· Finding out and developing the sources where the required number and kind of employees will be available. · Developing suitable techniques to attract the desirable candidates. · Employing the techniques to attract candidates. · Stimulating as many candidates as possible and asking them to apply for jobs irrespective of the number of candidates required. Management has to attract more candidates in order to increase the selection ratio so that the most suitable candidate can be selected out of the total candidates available. Recruitment is positive as it aims at increasing the number of applicants and selection is somewhat negative as it selects the suitable candidates in which process; the unsuitable candidates are automatically

33

eliminated. Though, the function of recruitment seems to be easy, a number of factors make performance of recruitment a complex one. Inducements Organizational inducements are all the positive features and benefits offered by an organization that serves to attract job applicants to the organization. Three inducements need specific mention here, they are:· Compensation: Starting salaries, frequency of pay increases, incentives and fringe benefits can all serve as inducements to potential employees. · Career Opportunities: These help the present employees to grow personally and professionally and also attract good people to the organization. The feeling that the company takes care of employee career aspirations serves as a powerful inducements to potential employees. · Image or Reputation: Factors that affect an organization’s reputation include its general treatment of employees, the nature and quality of its products and services and its participation in worthwhile social endeavors. Corporate Mission, Objectives, Strategies and Tactics (Most) Corporations have started linking their Mission, Objectives, Strategies and Tactics (MOST) to the functions of recruitment and selection. The economic liberalizations and consequent competition through quality and services necessitated the companies to search for and attract competent human resources. Corporations focusing on new business development will have to seek entrepreneurial abilities, companies planning to withdraw from diversifications must look for pragmatists and companies chasing growth alliances should employ people comfortable in different cultural backgrounds. Above all, companies must hire for the future, anticipating jobs that may not be in existence yet. Recruitment managers must focus for attitudes and approaches that fit the corporate goals and culture.

Recruitment Policy Recruitment policy of any organization is derived from the personnel policy of the same organization. In other words the former is a part of the latter. However, recruitment policy by 34

itself should take into consideration the government’s reservation policy, policy regarding sons of soil, etc., personnel policies of other organizations regarding merit, internal sources, social responsibility in absorbing minority sections, women, etc. Recruitment policy should commit itself to the organization’s personnel policy like enriching the organization’s human resources or servicing the community by absorbing the retrenched or laid-off employees or casual/temporary employees or dependents of present/former employees, etc. The following factors should be taken into consideration in formulating recruitment policy. They are:· Government policies · Personnel policies of other competing organizations · Organization’s personnel policies · Recruitment sources · Recruitment needs · Recruitment cost · Selection criteria and preference

RECRUITMENT- Matching the of the organization & applicants Impact of Personnel Policies on Recruitment Policies Recruitment policies are mostly drawn from personnel policies of the organization. According to Dale Yodar and Paul D. Standohar, general personnel policies provide a wide variety of 35

guidelines to be spelt out in recruitment policy. After formulation of the recruitment policies, the management has to decide whether to centralize or decentralize the recruitment function. Centralized V/S Decentralized Recruitment Recruitment practices vary from one organization to another. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian Railway resort to decentralized recruitment practices. Personnel department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel departments at unit level/zonal level perform all the functions of recruitment concerning to the jobs of the respective unit or zone. Merits of Centralized Recruitment · Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. · It would have more expertise available to it. · It can ensure broad uniformity among human resources of various units/zones in respect of education, skill, knowledge, talent, etc. · It would generally be above malpractices, abuse of powers, favoritism, bias, etc. · It would facilitate interchangeability of staff among various units/zones. · It enables the line managers of various units and zones to concentrate on their operational activities by relieving them from the recruiting functions. · It enables the organization to have centralized selection procedure, promotional and transfer procedure, etc. · It ensures the most effective and suitable placement to candidates. · It enables centralized training programs which further brings uniformity and minimizes average cost of staff. Merits of Decentralized Recruitment · The unit concerned concentrates only on those sources/places wherein normally gets the suitable candidates. As such the cost of recruitment would be relatively less. 36

· The unit gets most suitable candidates as it is well aware of the requirements of the job regarding culture, traditional, family background aspects, local factors, social factors, etc. · Units can recruit candidates as and when they are required without any delay. · The units would enjoy freedom in finding out, developing the sources, in selecting and employing the techniques to stimulate the candidates. · The unit would relatively enjoy advantage about the availability of information, control and feedback and various functions/processes of recruitment. · The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. Both the systems of recruitment would suffer from their own demerits. Hence, the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment. Alternatively management may decentralize the recruitment of certain categories of employees preferably middle and top level managerial personnel and centralize the recruitment of other categories of employee’s preferably lower level positions in view of the nature of the jobs and suitability of those systems for those categories of positions. The management has to find out and develop the sources of recruitment after deciding upon centralizing or decentralizing the recruitment function. Methods of Recruitment The following are the most commonly used methods of recruiting people Promotions and Transfers A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion, on the other hand, involves movement of employee from a lower level position to a higher level position accompanied by (usually) changes in duties, responsibilities, status and value. Organizations generally prepare badli lists or a central pool of persons from which vacancies can be filled for manual jobs. Such persons are usually passed on to various departments, depending on internal requirements. If a person remains on such rolls for 240 days or more, he gets the status of a permanent employee as per the Industrial Disputes Act and is

37

therefore entitled to all relevant benefits, including provident fund, gratuity, retrenchment compensation. Job Posting Job posting is another way of hiring people from within. In this method, the organization publicizes job opening on bulletin boards, electronic method and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company to look for growth opportunities within the company without looking for greener pastures outside. Employee Referrals Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that “it takes one to know one”. Employees working in the organization, in this case, are encouraged to recommend the names of their friends, working in other organizations for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive Information Technology industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted – after the routine screening and examining process is over – and job offers extended to the suggested candidates. As a goodwill gestures, companies also consider the names recommended by unions from time to time. Campus Recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centres. Here the recruiters visit reputed educational institutions such as IITs, IIMs, colleges and universities with a view to pick up job aspirants having requisite technical or professional skills. Job seekers are provided information about the jobs and the recruiters, in turn, get a snapshot of job seekers through constant interchange of information with respective institutions. A preliminary screening is done within the campus and the short listed students are then subjected to the remainder of the selection process. In view of the growing demand for young managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor & Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs regularly and even sponsor certain popular campus activities with a view to earn goodwill in the job market. Advantages of this method include: the placement centre helps locate applicants and provides resumes to 38

organizations; applicants can be prescreened; applicants will not have to be lured away from a current job and lower salary expectations. On the negative front, campus recruiting means hiring people with little or no work experience. The organizations will have to offer some kind of training to the applicants, almost immediately after hiring. It demands careful advance planning, looking into the placement weeks of various institutions in different parts of the country. Further, campus recruiting can be costly for organizations situated in another city (airfare, boarding and lodging expenses of recruiters, site visit of applicants if allowed, etc.). If campus recruitment is used, steps should be taken by human resource department to ensure that recruiters are knowledgeable concerning the jobs that are to be filled and the organizations and understand and employ effective interviewing skills. Guidelines for campus recruiting: companies using college campuses as recruitment source should consider the following guidelines: · Identify the potential candidates early: The earlier that candidate with top potential can be identified, the more likely the organization will be in a position to attract them. · Employ various means to attract candidates: These may include providing research grants; consulting opportunities to faculty members, funding university infrastructural requirements, internships to students, etc. in the long run these will enhance the prestige of the company in the eyes of potential job seekers. · Use effective recruitment material: Attractive brochures, films, computer diskettes, followed by enthusiastic and effective presentations by company officials, correspondence with placement offices in respective campus in a friendly way – will help in booting the company image in the eyes of the applicants. The company must provide detailed information about the characteristics of entry – level positions, especially those that have had a major positive impact on prior applicants’ decisions to join the company. · Offer training to campus interviews: Its better to devote more time and resources to train on campus interviewers to answer specific job –related questions of applicants.

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· Come out with a competitive offer: Keep the key job attributes that influence the decisions of applicants such as promotional avenues, challenging assignments, long term income potential, etc., while talking to candidates. Advertisements:These include advertisements in newspapers; trade, professional and technical journals; radio and television; etc. in recent times, this medium has become just as colorful, lively and imaginative as consumer advertising. The ads generally give a brief outline of the job responsibilities, compensation package, prospects in organizations, etc. this method is appropriate when (a) the organization intends to reach a large target group and (b) the organizations wants a fairly good number of talented people – who are geographically spread out. To apply for advertised vacancies let’s briefly examine the wide variety of alternatives available to a company - as far as ads are concerned:

· Newspaper Ads: Here it is easy to place job ads without much of a lead time. It has flexibility in terms of information and can conveniently target a specific geographic location. On the negative side, newspaper ads tend to attract only those who are actively seeking employment at that point of time, while some of the best candidates who are well paid and challenged by their current jobs may not be aware of such openings. As a result, the company may be bombarded with applications from a large number of candidates who are marginally qualified for the job – adding to its administrative burden. To maintain secrecy for various reasons (avoiding the rush, sending signals to competitors, cutting down expenses involved in responding to any individual who applies, etc.), large companies with a national reputation may also go in for blind-box ads in newspapers, especially for filling lower level positions. In a blind-box ad there is no identification of the advertising organization. Job aspirants are asked to respond to a post office box number or to an employment firm that is acting as an agent between the job seekers and the organization. · Television and radio ads: These ads are more likely to each individual who are not actively seeking employment; they are more likely to stand out distinctly, they help the organization to target the audience more selectively and they offer considerable scope for designing ads creatively. However, these ads are expensive. Also, because the television or radio is simply seen

40

or heard, potential candidates may have a tough time remembering the details, making application difficult. Private Employment Search Firms:As search firm is a private employment agency that maintains computerized lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; Ferguson Associates offers specialized employment-related services to corporate houses for a fee, especially for top and middle level executive vacancies. AT the lower end, a number of search firms operate – providing multifarious services to both recruiters and the recruitees. Employment Exchanges:AS a statutory requirement, companies are also expected to notify (wherever the Employment Exchanges Act, 1959, applies) their vacancies through the respective Employment Exchanges, created all over India for helping unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc. AS per the Act all employers are supposed to notify the vacancies arising in their establishments form time to time – with certain exemptions – to the prescribed employment exchanges before they are filled. The Act covers all establishments in public sector and nonagricultural establishments employing 25 or more workers in the private sector. However, in view of the practical difficulties involved in implementing the provisions of the Act (such as filing a quarterly return in respect of their staff strength, vacancies and shortages, returns showing occupational distribution of their employees, etc.) many organizations have successfully fought court battles when they were asked to pick up candidates from among those sponsored by the employment exchanges. Gate Hiring and Contractors:Gate hiring (where job seekers, generally blue collar employees, present themselves at the factory gate and offer their services on a daily basis), hiring through contractors, recruiting through word-of-mouth publicity are still in use – despite the many possibilities for their misuse – in the small scale sector in India. Unsolicited Applicants / Walk-ins:Companies generally receive unsolicited applications from job seekers at various points of time; the number of such applications depends on economic conditions, the image of the company and

41

the job seeker’s perception of the types of jobs that might be available etc. Such applications are generally kept in a data bank and whenever a suitable vacancy arises, the company would intimate the candidates to apply through a formal channel. One important problem with this method is that job seekers generally apply to number of organizations and when they are actually required by the organizations, either they are already employed in other organizations or are not simply interested in the position. Alternatives to Recruitment:Since recruitment and selection costs are high (search process, interviewing agency fee, etc.) firms these days are trying to look at alternatives to recruitment especially when market demand for firm’s products and services is sluggish. Moreover, once employees are placed on the payroll, it may be extremely difficult to remove them if their performance is marginal. Some of the options in this regard may be listed thus: Evaluation of Alternative Sources Companies have to evaluate the sources of recruiting carefully – looking at cost, time, flexibility, quality and other criteria – before earmarking funds for the recruitment process. They cannot afford to fill all their vacancies through a particular source. To facilitate the decision making process in this regard, companies rely on the following: Time lapse data: They show the time lag between the dates of requisition for manpower supply from a department to the actual date of filling the vacancies in that department. For example, a company’s past experience may indicate that the average number of days from application to interview is 10, from interview to offer is 7, from offer to acceptance is 10 and from acceptance to report for work is 15. Therefore, if the company starts the recruitment and selection process now it would require 42 days before the new employee joins its ranks. Armed with this information, the length of the time needed for alternative sources of recruitment can be ascertained – before pinning hopes on a particular source that meets the recruitment objectives of the company. Yield ratios: These ratios indicate the number of leads / contacts needed to generate a given number of hires at a point at time. For example, if a company needs 10 management trainees in the next six months, it has to monitor past yield ratios in order to find out the number of candidates to be contacted for this purpose. On the basis of past experience, to continue the same

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example, the company finds that to hire 10 trainees, it has to extend 20 offers. If the interview-tooffer is 3:2, then 30 interviews must be conducted. If the invitees to interview ratios are 4:3 then, as many as 40 candidates must be invited. Lastly, if contacts or leads needed to identify suitable trainees to invite are in 5:1 ratio, then 200 contacts are made. Surveys and studies: Surveys may also be conducted to find out the suitability of a particular source for certain positions. For example, as pointed out previously, employee referral has emerged as popular way of hiring people in the Information Technology industry in recent times in India. Correlation studies could also be carried out to find out the relationship between different organizational positions. Before finally identifying the sources of recruitment, the human resource managers must also look into the cost or hiring a candidate. The cost per hire can be found out by dividing the recruitment cost by the number of candidates hired. Selection The size of the labor market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection. Definition To select mean to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Purpose The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organization best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organization a great deal of money, 43

time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate ‘hot news’ and juicy bits of negative information about the company, causing incalculable harm to the company in the long run. Effective election, therefore, demands constant monitoring of the ‘fit’ between people the job. The Process Selection is usually a series of hurdles or steps. Each one must be successfully cleared before the applicant proceeds to the next one. The time and emphasis place on each step will definitely vary from one organization to another and indeed, from job to job within the same organization. The sequence of steps may also vary from job to job and organization to organization. For example some organizations may give more importance to testing while others give more emphasis to interviews and reference checks. Similarly a single brief selection interview might be enough for applicants for lower level positions, while applicants for managerial jobs might be interviewed by a number of people. Steps in Selection Process

Reception

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A company is known by the people it employs. In order to attract people with talents, skills and experience a company has to create a favorable impression on the applicants’ right from the stage of reception. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. Employment possibilities must be presented honestly and clearly. If no jobs are available at that point of time, the applicant may be asked to call back the personnel department after some time. Screening Interview A preliminary interview is generally planned by large organizations to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. A junior executive from the Personnel Department may elicit responses from the applicants on important items determining the suitability of an applicant for a job such as age, education, experience, pay expectations, aptitude, location, choice etc. this ‘courtesy interview’ as it is often called helps the department screen out obvious misfits. If the department finds the candidate suitable, a prescribed application form is given to the applicants to fill and submit. Application Blank Application blank or form is one of the most common methods used to collect information on the various aspects of the applicants’ academic, social, demographic, work related background and references. It is a brief history sheet of employee’s background, usually containing the following things: · Personal data (address, sex, telephone number) · Marital data · Educational data · Employment Experience · Extra-curricular activities · References and Recommendations Usefulness of Application Blank or Form Application blank is highly useful selection tool, in that way it serves three important purposes:

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1. It introduces the candidate to the company in a formal way. 2. It helps the company to have a cross-comparison of the applicants; the company can screen and reject candidates if they fail to meet the eligibility criteria at this stage itself. 3. It can serve as a basis to initiate a dialogue in the interview. Selection Testing In this section let’ examine the selection test or the employment test that attempts to asses intelligence, abilities, personality trait, performance simulation tests including work sampling and the tests administered at assessment centres- followed by a discussion about the polygraph test, graphology and integrity test. A test is a standardized, objective measure of a person’s behaviour, performance or attitude. It is standardized because the way the tests is carried out, the environment in which the test is administered and the way the individual scores are calculatedare uniformly applied. It is objective in that it tries to measure individual differences in a scientific way giving very little room for individual bias and interpretation. Over the years employment tests have not only gained importance but also a certain amount of inevitability in employment decisions. Since they try to objectively determine how well an applicant meets the job requirement, most companies do not hesitate to invest their time and money in selection testing in a big way. Some of the commonly used employment tests are: · Intelligence tests · Aptitude tests · Personality tests · Achievement tests · Miscellaneous tests such as graphology, polygraphy and honesty tests. 1. Intelligence Tests: These are mental ability tests. They measure the incumbent’s learning ability and the ability to understand instructions and make judgements. The basic objective of such test is to pick up employees who are alert and quick at learning things so that they can be offered adequate training to improve their skills for the benefit of the organization. These tests measure several abilities such as memory, vocabulary, verbal fluency, numerical ability,

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perception etc. Eg. Standford-Binet Test, Binet-Simon Test, The Wechsler Adult Intelligence Scale are example of standard intelligence test 2. Aptitude Test: Aptitude test measure an individual’s potential to learn certain skills clerical, mechanical, mathematical, etc. These tests indicate whether or not an individual has the capabilities to learn a given job quickly and efficiently. In order to recruit efficient office staff, aptitude tests are necessary. An aptitude tests is always administered in combination with other tests like intelligence and personality tests as it does not measure on-the-job-motivation 3. Personality Test: Of all test required for selection the personality tests have generated a lot of heat and controversy. The definition of personality, methods of measuring personality factors and the relationship between personality factors and actual job criteria has been the subject of much discussion. Researchers have also questioned whether applicants answer all the items truthfully or whether they try to respond in a socially desirable manner. Regardless of these objections, many people still consider personality as an important component of job success. 4. Achievement Tests: These are designed to measure what the applicant can do on the job currently, i.e., whether the testee actually knows what he or she claims to know. A typing test tests shows the typing proficiency, a short hand tests measures the testee ability to take dictation and transcribe, etc. Such proficiency tests are also known as work sampling test. Work sampling is a selection tests wherein the job applicant’s ability to do a small portion of the job is tested. These tests are of two types; Motor, involving physical manipulations of things(e.g., trade tests for carpenters, electricians, plumbers) or Verbal, involving problem situation that are primarily language-oriented or people-oriented(e.g., situational tests for supervisory jobs). 5. Simulation Tests: Simulation exercise is a tests which duplicate many of the activities and problems an employee faces while at work. Such exercises are commonly used while hiring managers at various levels in an organization. To asses the potential of a candidate for managerial positions assessment centres are commonly used. 6. Assessment Centre: An assessment centre is an extended work sample. It uses procedures that incorporate group and individual exercises. These exercises are designed to stimulate the type of work which the candidate will be expected to do. Initially a small batch of applicants comes to the assessment centre (a separate room). Their performance in the situational exercise is

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observed and evaluated by a team of 6-8 assessors. The assessors’ judgement on each exercise are complied and combined to have a summary rating for each candidate being assessed. Difference between Work Sample method and Assessment Centre

Evaluation of Assessment Centre Technique: The assessment centre technique has a number of advantages. The flexibility of form and content, the use of variety of techniques, standardized way of interpreting behavior and pooled assessor judgements accounts for its acceptance as a valuable selection tool for managerial jobs. It is praised for content validity and wide acceptance in corporate circles. By providing a realistic job preview, the techniques helps an candidate make an appropriate career choice. The performance ratings are more objective in nature and could be used for promotions and career development decisions readily. However, the method is expensive to design and administer. Blind acceptance of assessment data without considering other information on candidates (past and current performance) is always not advisable. 7. Graphology Test: Graphology involves using a trained evaluator to examine the lines, loops, hooks, stokes, curves and flourishes in a person’s handwriting to assess the person’s personality

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and emotional make-up. The recruiting company, may, for example, ask the applicants to complete the application forms and write about why they want a job. These samples may be finally sent to graphologist for analysis and the result may be put use while selecting a person. The use of graphology, however, is dependent on the training and expertise of the person doing the analysis. In the actual practice, questions of validity and just plain skepticism have limited in use. 8. Polygraph (Lie-Detector) tests: the polygraph records physical changes in the body as the tests subject answers a series of questions. It records fluctuations in respiration, blood pressure and perspiration on a moving roll of graph paper. The polygraph operator forms a judgement as to whether the subject’s response was truthful or deceptive by examining the biological movements recorded on the paper. Critic, however, questions the appropriateness of the polygraphs in establishing the truth about an applicant’s behavior. The fact is that the polygraph records the biological reaction in response to stress and does not record lying or even conditions necessarily accompanying lying. Is it possible to prove that the responses recorded by the polygraph occur only because a lie has been told? What about those situations in which a person lies without guilt (pathological liar) or lies believing the responses to be true? The fact of the matter is that polygraphs are neither reliable nor valid. Since they invade the privacy of those tested, many applicants vehemently oppose the use of polygraph as a selection tool. 9. Integrity Test: These are designed to measure employees honestly to predict those who are more likely to steal from an employer or otherwise act in a manner unacceptable to the organization. The applicants who take these tests are expected to answer several ‘yes’ or ‘no’ type questions such as: Typical Integrity Questions

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Often these tests contain questions that repeat themselves in some way and the evaluator then examines the consistency in responses. Companies that have used integrity tests have reported success in tracking employees who indulge in ‘theft’. However, these tests ultimately suffer from the same weakness as polygraph and graphology test. Tests as Selection Tool: Test are useful selection devices in that they unover qualifications and talents that can’t be detected otherwise. They can be used to predict how well one would perform if one is hired, why one behaves the way one does, what situational factors influence employee productivity, etc. Tests also provide unbiased information that can be put to scientific and statistical analysis. However, tests suffer from sizeable errors of estimate. Most psychological tests also have one common weakness, that is, we can’t use scales which have a know zero point and equal intervals. An intelligence test, for example starts at an arbitrary point, where a person may not be able to answer question properly. This does not mean that the person is totally lacking in intelligence. Likewise, a person who is able to answer all the 10 questions correctly cannot be called twice as intelligent as the one who was able to answer only 5. If the test has commenced at some other point, where there easier questions, their score might have been different. Test also fails to elicit truthful responses from testees. To compound the problem further, test results are interpreted in a subjective was by testers and unless these testers do their homework well, the results may not be reliable. Standards for Selection Tests

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To be useful as predictive and diagnostic selection tools, test must satisfy certain basic requirements: · Reliability: Test scores should not vary widely under repeated conditions. If a test is administered to the same individual repeatedly, he should get approximately identical score. Reliability is the confidence that an indicator will measure the same thing every time. · Validity: Validity is the extent to which an instrument measures what it intends to measure. In a typing test validity measures a typist’s speed and accuracy. To determine whether it really measures the speed and accuracy of a typist is to demonstrate its validity. The question if determining the validity of a selection test, thus, has a lot to do with later performance on the job. · Qualified People: Test require a high level of professional skills in their administration and interpretation. Professional technicians are needed for skilled judgmental interpretations of test scores. · Preparation: A test should be well prepared. It should be easy to understand and simple to administer. · Suitability: a test must fit the nature of the group on which it is applied. A written test comprising difficult words would be fruitless when it is administered on less educated workers. · Usefulness: Exclusive reliance on any single test should be avoided, since the results in such a case are likely to be criticized. To be useful, it is always better to use a battery of test. · Standardization: Norms for finalizing test scores should be established. There must be prescribed methods and procedures for administering the test and for scoring or interpreting it. Selection Interview: Interview is the oral examination of candidates for employment. This is the most essential step in the selection process. In this step the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through his own observations during the interview. Interview gives the recruiter an opportunity 

To size up the candidate personally;



To ask question that are not covered in the tests;

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

To make judgments on candidates enthusiasm and intelligence;



To assess subjective aspects of the candidate – facial expressions, appearance, nervousness and so forth;



To give facts to the candidates regarding the company, its policies, etc. and promote goodwill towards the company.

Types of interviews: Several types of interviews are commonly used depending on the nature and importance of the position to be filled within an organization. In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as they come to mind. There is no specific format to be followed. In a PATTERNED INTERVIEW, the employer follows a pre-determined sequence of questions. Here the interviewee is given a special form containing questions regarding his technical competence, personality traits, attitudes, motivation, etc. In a STRUCTURED OR SITUATIONAL INTERVIEW, there are fixed job related questions that are presented to each applicant. In a PANEL INTERVIEW several interviewers question and seek answers from one applicant. The panel members can ask new and incisive questions based on their expertise and experience and elicit deeper and more meaningful expertise from candidates. Interviews can also be designed to create a difficult environment where the applicant’s confidence level and the ability to stand erect in difficult situations are put to test. These are referred to as the STRESS INTERVIEW. This is basically an interview in which the applicant is made uncomfortable by a series of, often, rude, annoying or embarrassing questions. In the final category, there is the APPRAISAL INTERVIEW, where a superior and subordinate sit together after the performance appraisal to discuss the subordinate’s rating and possible remedial actions. Steps in interview process:

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Interview is an art. It demands a positive frame of mind on part of the interviewers. Interviewers must be treated properly so as to leave a good impression about the company in their minds. HR experts have identified certain steps to be followed while conducting interviews: PREPARATION: Establishing the objective of the interview Receiving the candidates application and resume Keeping tests score ready, along with interview assessment forms Selecting the interview method to be followed Choosing the panel of experts who would interview the candidates Identifying proper room for environment RECEPTION: The candidate should be properly received and led into the interview room. Start the interview on time.

INFORMATION EXCHANGE: State the purpose of the interview, how the qualifications are going to be matched with skills needed to handle the job. Begin with open ended questions where the candidate gets enough freedom to express himself. Focus on the applicant’s education, training, work experience, etc. Find unexplained gaps in applicants past work or college record and elicit facts that are not mentioned in the resume. EVALUATION: Evaluation is done on basis of answers and justification given by the applicant in the interview. PHYSICAL EXAMINATION: After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate being declared fit after the physical examination. Medical examination:

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Certain jobs require physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. Reference Checks Once the interview and medical examination of the candidate is over, the personnel department will engage in checking references. Candidates are required to give the names of 2 or 3 references in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievements or from the applicant’s previous employer, who is well versed with the applicant’s job performance and sometimes from the co-workers. In case the reference check is from the previous employer, information in the following areas may be obtained. They are job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of previous employer to employ the candidate again, etc. Further, information regarding candidate’s regularity at work, character, progress, etc. can be obtained. Often a telephone call is much quicker. The method of mail query provides detailed information about the candidate’s performance, character and behavior. However, a personal visit is superior to the mail or telephone methods and is used where it is highly essential to get a detailed, first hand information which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organizations. But a good reference check, when used sincerely, will fetch useful and reliable information to the organization. Hiring decision: The line manager has to make the final decision now – whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier. The line manager has to take adequate care in taking the final decision because of economic, behavioral and social implications of the selection decisions. A careless decision of rejecting a candidate would impair the morale of the people and they suspect the selection procedure and the very basis of selection in a particular organization. A true understanding between line managers and personnel managers should be established so as to facilitate good selection decisions. After taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization sends the appointment order to the successful candidates either immediately or after sometime depending upon its time schedule.

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Interviewing Mistakes: 

Favors applicants who share his own attitudes;



Not be asking right questions and hence not getting relevant responses;



Resort to snap judgments, making a decision as to the applicant’s suitability in the first few minutes of the interview. Too often interviewers form on early impression and spend the balance of interview looking for evidence to support it;



May have been influenced by ‘cultural noise.’ To get the job, the applicants try to get by the interviewer. If they reveal wrong things about themselves, they may not get the job, so they try to give the interviewer responses that are socially acceptable, but not very revealing. These types of responses are known as cultural noise – responses the applicant believes are socially acceptable rather than facts;



May have allowed him to be unduly influenced by associating a particular personality trait

with

a

person’s

origin

or

cultural

background

and

that

kind

of

stereotyping/generalizing ultimately determining the score of a candidate. For example, he may feel that candidate from Bihar may find it difficult to read, write and speak English language and hence not select them at all; 

May conclude that a poorly dressed candidate is not intelligent, attractive females are good for public dealings, etc. This is known as ‘Halo Effect’ where a single important trait of a candidate affects the judgment of the rather. The halo effect is present if an interviewer allows a candidate’s accomplishments in athletics overshadow other aspects and leads the interviewer to like the applicant because ‘athletes make good sales people’;



Have been influenced more by unfavorable than favorable information about or from the candidate. Unfavorable information is given roughly twice the weight of favorable information. According to Dobmeyer and Dunette, a single negative characteristic may bar an individual from being accepted, while no amount of positive features will guarantee a candidate’s acceptance;



Have been under pressure to hire candidates at short notice;

55



Have been influenced by the behavior of the candidates (how he has answered, his body language), his or her dress (especially in case of female candidates) and other physical factors that are not job related.

Barriers to effective selection: The main objective of selection is to hire people having competence and commitment. This objective is often defeated because of certain barriers. The impediments which check effectiveness of selection are perception, fairness, validity, reliability, and pressure. PERCEPTION: Our inability to understand others accurately is probably the most fundamental barrier to selecting right candidate. Selection demands an individual or a group to assess and compare the respective competencies of others, with the aim of choosing the right persons for the jobs. But our views are highly personalized. We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. FAIRNESS: Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. But the low number of women and other less privileged sections of society in the middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective. VALIDITY: Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has been validated can differentiate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success. RELIABILITY: A reliable method is one which will produce consistent results when repeated in similar situations. Like a validated test, a reliable test may fall to predict job performance with precision. PRESSURE: Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends, and peers to select particular candidate. Candidates selected because of compulsions are obviously not the right ones. Appointments to public sector undertakings generally take place under such pressure.

56

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FINDINGS AND ANALYSIS Q1. From how many years you have been working in Hyundai?

58

Q2. Hyundai mostly prefer ads/jobs sites as a source of recruitment

32% respondents were strongly agreed however 9% respondents were disagreed with the above statement

59

Q3. Hyundai mostly prefer employee referrals as a source of recruitment

26% respondents were strongly agreed however 15% respondents were disagreed with the above statement

60

Q4. Hyundai mostly prefer consultants as a source of recruitment

25% respondents were strongly agreed however 19% respondents were disagreed with the above statement

61

Q5. Hyundai mostly called outstation candidates for interview

27% respondents were strongly agreed however 18% respondents were disagreed with the above statement

62

Q6. Hyundai mostly called local candidates for interview

22% respondents were strongly agreed however 17% respondents were disagreed with the above statement

63

Q7. Hyundai inform the candidates about its policy and rules before the interview

29% respondents were strongly agreed however 12% respondents were disagreed with the above statement

64

Q8. Hyundai inform the candidates about its products & services before the interview

25% respondents were strongly agreed however 12% respondents were disagreed with the above statement

65

Q9. Reputation of the Hyundai mostly attracted the candidates towards the company

20% respondents were strongly agreed however 20% respondents were disagreed with the above statement

66

Q10. Working environment of the Hyundai mostly attracted the candidates towards the company

29% respondents were strongly agreed however 12% respondents were disagreed with the above statement

67

Q11. Salary package of the Hyundai mostly attracted the candidates towards the company

26% respondents were strongly agreed however 20% respondents were disagreed with the above statement

68

Q12. Hyundai mostly follows written exam, GD and interview for recruitment & selection

28% respondents were strongly agreed however 12% respondents were disagreed with the above statement

69

Q13. Hyundai mostly follows written exam, GD and interview for recruitment & selection

32% respondents were strongly agreed however 10% respondents were disagreed with the above statement

70

Q14. Hyundai mostly hires fresh graduates

20% respondents were strongly agreed however 11% respondents were disagreed with the above statement

71

Q15. Hyundai mostly hires graduates with experience

29% respondents were strongly agreed however 11% respondents were disagreed with the above statement

72

RECOMMENDATION From the study, it is found that majority of the employees prefer to post their resume in companies website. So the company can have exclusive career link in its website to post resume. By using a separate link with resume screening software, the resumes can be screened and managed effectively. From the study, it is found that newspaper is the effective medium to advertise for recruitment. Since this company focus on candidates from Chennai, they can advertise for mass recruitment. Relocation is the main problem for a candidate’s rejecting an offer. So by providing a good salary and accommodation, relocation problem can be solved. Thus the recruitment process can be made effective by retaining the recruited candidate. Some of the employees said that the response given after recruitment is not satisfactory. If the recruitment feedback mechanism is not effective, there is high risk of losing good candidates to other companies. So they can give the response for candidates immediately whether they are short listed or rejected. It is found that the company is not conducting the medical examination for employees during selection process. They can conduct medical examination in order to prevail themselves if any problem happens to the employees.

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CONCLUSION Today’s tight labor market is making it more difficult for organizations to find, recruit, and select talented people. The competition for talent is intensifying, as there are fewer qualified applicants available. This shortage of applicants makes it all the more important for organizations to be able to effectively attract, select, and retain quality candidates. As results from this survey indicate, organizations need to offer more than an attractive wage to entice qualified candidates. With the number of job opportunities currently available, candidates can afford to be choosy when searching for their ideal job. They are looking for more than just an attractive salary; candidates are seeking organizations that can offer them various kinds of benefits, the potential to advance, and an environment in which they can learn and thrive. If an organization cannot offer these, job seekers will find one that does. Thus, it is important for organizations to know exactly what they have to offer potential employees, then highlight their best features when recruiting candidates. Once organizations have successfully recruited candidates, they must select the best ones for the positions under consideration. Organizations use various tools to help them select individuals. Results from this study indicate that selection tools designed to obtain behavioral and motivational information about candidates contribute to effective selection systems. For example, behavioral interviewing is a popular selection activity among organizations with highly effective selection systems. In the future even more organizations plan to use this and similar tools more extensively to select employees. Organizations realize that having an effective, legally sound system in place is crucial to helping them select the right people for the right jobs; to do so, many organizations are planning to increase their use of various tools and devote more money to the process. Finally, better recruitment and selection strategies result in improved organizational outcomes. The more effectively organizations recruit and select candidates, the more likely they are to hire and retain satisfied employees. In addition, the effectiveness of an organization’s selection system can influence bottom-line business outcomes, such as productivity and financial performance. Hence, investing in the development of a comprehensive and valid selection system is money well spent.

BIBLIOGRAPHY

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1. Al-Qirim, N. (2007a). A research trilogy into e-commerce adoption in small businesses in New Zealand. Electronic Markets, 17(4), 263-285. 2. Avery, C., Resnick, P., and Zeckhauser, R. 2006. The Market for Evaluations. American Economic Review, 89(3): pp. 564-583. 3. Anderson N. (2003). ‘Applicant and Recruiter Reactions to New Technology in Selection: A Critical Review and Agenda for Future Research’, International Journal of Selection and Assessment, Vol. 11(2), pp. 121-136. 4. Alaniz, Scott and Robin Roberts, 1999, E-Procurement: A Guide to Buy-Side Applications, Stephens Inc, December 27. 5. Berry

M.

(2005).

Top

companies

lead

online

recruitment

revolution.

www.personneltoday.com. 6. Bartram D. (2005). Testing through the internet: Mapping the issues for managing the future. A practitioner workshop. Practitioner forum at the Division of Occupational Psychology Conference, Winchester, UK. 7. Blattberg, R. C., and J. Deighton. (2006). Interactive marketing: exploiting the age of addressability. Sloan 8. Berry, L. L., and A. Parasuraman. 2004. Listening to the customer--the concept of a service-quality information system. Sloan Management Review 38 (3):65-76. 9. Balabanovic,

M.,

and

Shoham,

Y. 2008.

Fab:

Content-based,

collaborative

recommendation. Communications of the ACM, 40(3): pp. 66-72. 10. Bakos, J. Y. 2003. Reducing buyer search costs: implications for electronic marketplaces. Management Science 43 (12):1676-1692. 11. Cappeli P. (2007). ‘Making the Most of Online Recruiting’, Harvard Business Review, Vol. 70(3).

COPY OF THE QUESTIONNAIRE Q1. From how many years you have been working in Hyundai? Less than 2 Years 2 to less than 4 Years 75

4 to less than 6 Years More than 6 Years Q2. Hyundai mostly prefer ads/jobs sites as a source of recruitment 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q3. Hyundai mostly prefer employee referrals as a source of recruitment 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q4. Hyundai mostly prefer consultants as a source of recruitment 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q5. Hyundai mostly called outstation candidates for interview 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q6. Hyundai mostly called local candidates for interview 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q7. Hyundai inform the candidates about its policy and rules before the interview 5 Strongly Agree

4 Agree

3 Neutral

2 Disagree

1 Strongly Disagree

Q8. Hyundai inform the candidates about its products & services before the interview 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q9. Reputation of the Hyundai mostly attracted the candidates towards the company 5

4

3

2

76

1

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Q10. Working environment of the Hyundai mostly attracted the candidates towards the company 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q11. Salary package of the Hyundai mostly attracted the candidates towards the company 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q12. Hyundai mostly follows written exam, GD and interview for recruitment & selection 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q13. Hyundai mostly hires fresh graduates 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

1 Strongly Disagree

Q14. Hyundai mostly hires graduates with experience 5 Strongly Agree

4 Agree

3

2

Neutral

Disagree

77

1 Strongly Disagree