RECRUITMENT & SELECTION PRACTICES AT Indian Oil (IOCL)

Project Report On RECRUITMENT & SELECTION PRACTICES AT

SUBMITTED BY~ RATUL SONOWAL INDUSTRIAL RELATION AND PERSONNEL MANAGEMENT R/NO- M3/30

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TABLE OF CONTENTS Certificate Acknowledgement Executive Summary TOPICS

PAGE NO

 Introduction

1

 Recruitment and Selection –An Overview

22

 Rationale of Study

31

 Research Methodology

33

 Company Profile

34

 Analysis

42

 Limitations of Study

51

 Conclusion

52

References Annexures

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EXECUTIVE SUMMARY This project is a study on the recruitment and selection practices followed in Indian Oil Corporation Limited. Since today the successful organizatiaons are those who like to grow their Human resources and build on their talent this project was chosen. Considering the fact the Human resources function begins with a healthy recruitment process, which ensures good efficiency and performance of the organization. The project proceeds in a systematic manner. It begins by defining the concepts involved in the recruitment and selection process by any organization. This is followed by overview of the Indian industry, pertaining to recruitment and selection retention strategies, with inputs about the trends in the west. The rationale to the study and the research methodology adopted is the defined. The results of

the survey are then analyzed and discussed for

company. The limitations are given to towards the end followed by conclusion.

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the

INTRODUCTION THEORETICAL CONCEPTS RECRUITMENT Before an organization can fill a job vacancy, it must find people who not only are qualified for the position but also who want a job. Recruitment refers to organizational activities that influence the number and type of applicants who apply for a job and whether the applicants accept the jobs if offered.

Thus recruitment is directly related to both human resource

planning and selection. Although it can be quite expensive, organizations have not always viewed recruitment as systematically as other HR functions such as selection. During the coming years, however the importance of recruitment will increase for many organization's for atleast two reasons : 

A majority of companies think that they will face shortage of employees who posses the necessary skills for the jobs.



The downsizing and cost saving measures undertaken by many companies in recent years have left recruitment budgets much smaller than before.

Thus recruiters will have to become acquainted with new and more costeffective ways of attracting qualified applicants. A DIAGNOSTIC APPROACH TO RECRUITMENT - the process Various factors in the environment affect the recruitment process.

The

recruitment process begins with an attempt to find employee with the abilities and attitudes desired by the organization and to match them with the tasks to be performed.

Whether potential employee will respond to the

recruiting efforts will depend on the attitudes they have developed towards 4

those tasks and the organization on the basis of there past social and working experiences. Their perception of the task will also be affected by the work climate in the organization. How difficult the recruiting job is depends on a number of factors: external influences such as government and union restrictions and the labor market, plus the employer's requirements and candidates preferences. External influences Government and union restrictions Government regulations prohibiting discrimination in employment and hiring have a direct impact on recruiting practices. Although there is no guaranteed way to avoid legal entanglements associated with recruiting, some basic principles of sound recruiting practices can be followed. a)

Post notices regarding the availability of a job.

b)

Publish a list of qualifications necessary to fill the job. Distinguish between essential qualifications and desirable ones.

c)

Use recruiting sources that will reach the greatest number of potential applicants in the job market.

d)

Be wary of establishing qualifications that might directly or indirectly exclude members of protected groups.

e)

Be sure the job qualifications are applied to every applicant in a consistent manner.

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DIAGNOSTIC MODEL

External Environmental Influences • Govt.Regulations & Laws • The Union • Economic Conditions :domestic & International • Composition Of labor force

Internal Environmental Influences • Strategy • Goals • Organisational Culture • Nature Of the task • Work group • Leader’s style & experience

HUMAN RESOURCE PROCESSES Acquiring Human Resources • HR planning • Job Analysis & design • Recruitment & Selection

Rewarding Human resources • Performanc e Evaluation • Compensati on • Benefits & Services

Developing Human Resources • Orientation & Training • Developme nt • Career Planning

Protecting and Evaluating • Safety, health & wellness • Evaluation

Desirable End Results Socially responsible & high Ethical practices

Competitive, high quality

Competitive,

products

quality services

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Composition of labor force and location of organization As the number of legal requirements has increased, it has become more important for an organization to analyze the composition of workforce. Such analysis is done to determine whether the firm's employment practices are discriminatory. The location of the organization and the relevant market will play a major role in the composition of the work force. Therefore, government and union restrictions labor market conditions, the make up of the work force and the location of the organization are external forces that affect each other. None of these forces are necessarily more important than any other force.

Each of them must be considered in

developing a sound recruitment plan that results in an effectively functioning organization. INTERACTIONS OF THE RECRUITAND THE ORGANIZATION The nature of the organization and the goals of the manager are highlighted in the above diagram, as is the nature of the task. The techniques used and the sources of recruits vary with the job.

As afar as the applicants are

concerned, their abilities and past work experience affect how they go about seeking a job. The organization's view of recruiting Several aspects affect recruiting from organization's view point

: the

recruiting requirements set, organization policies and procedures, and the organizational image. Recruiting requirements The recruiting process necessarily begins with a detailed job description and job specification. Without these, it is impossible for recruiters to determine how well any particular applicant's fits the job. It should be made clear to the recruiter which requirements are absolutely essential and which ones are merely desirable. This can help the organization avoid having unrealistic 7

expectations of potential employees : an employer might expect applicants who stand first in their class, are president of all extra curricular activities, have worked their way through school, have 10 years of experience and are willing to work for long hours. Contrasted with this unrealistic approach, the effective organization examines the specifications that are absolutely necessary for the job. Then it uses these as its beginning expectations for recruits. Finding applicants who possess the needed skills for a job is the "science" of recruiting. Beyond determining whether an applicant has the skills needed for the job, recruitment in the coming years will also have to determine whether the applicant will function well within the culture and value system of the organization. Interview performances in terms of interpersonal styles is one of the most critical factors used by recruiters to evaluate prospective job candidates. Organization policies and practices In some organization's, HRM policies and practices affect recruiting and who is recruited. One of the most significant of these is promotion from within. This policy means that organization's recruit from outside the organization only at the initial hiring level. They feel this is fair to present loyal employees and assures them a secure future and a fair chance of promotion, and most employees favor this approach.

Some employers also feel this practice

helps protect trade secrets. Organizational image The image of the employer generally held by the public can also affect the recruitment. all else being equal it is easier for the organization with a positive corporate image to attract and retain employees than an organization with a negative image.

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The good or bad, well-known or unknown images of these organization's will affect how they are viewed by the job recruits. The organizations image is complex, but it is probably based on what the organization does and whether it is perceived as providing a good place of work.

The larger the

organization, the more likely it is to have a well-developed image. A firm that produces a product or service the potential employee knows about or uses is also more likely to have an image for the applicant. The organization's image is also affected by its industry. These images change.

Job applicants can seldom have interviews with all the

organizations that have job openings of interest to them. Because there are time and energy limits to the job search, they do some preliminary screening. One of these screens is the image the applicants have of the organization, which can attract or repel them. In sum, the ideal job specifications preferred by an organization may have to be adjusted to meet the realities of the labor market, government or union restrictions, the limitations of its policies and practices and its image. If an adequate number of quality people apply, the organization may have to adjust the job to fit the best applicant or increase its recruiting efforts. The potential employees view of recruiting The applicants have abilities, attitudes and preferences based on past work experiences and influences by parents, teachers and others. These factors affect recruits in two ways: how they set their job preferences and how they go about seeking a job. Preferences of recruits for organization and jobs Recruits have a set of preferences for a job. The recruit also faces the limitation of labor market, government and union restrictions and the limits og organizational policies and practices. compromises just as the organization does.

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The recruit must anticipate the

What factors affect the organization decision? A more educated set knows the labor market better, have higher expectations of work and find organization's that pay more and provide and more stable employment. Job search and finding a job: the recruit It is not always enough to be simply in the right place at the right time. The effective job searcher creates opportunities in a systematic way. Effective job search involves several steps including self-assessment, information gathering

and

networking,

targeting

specific

jobs

and

successful

presentation. The job search process begins with self-assessment. The purpose of self assessment is for job searchers to recognize their career goals, their strength's and weaknesses, interests values and preferred life styles. This information is later used in the search process to help the applicant assess whether there is a fit with a particular job offer. The assessment is similar to what organizational recruiters will be doing, only from the perspective of the applicant. Information gathering and networking are methods for generating lists of potential employers and jobs, information sources include newspapers, trade publications, college recruitment offices and organizational insiders. METHODS OF RECRUITING Most job openings are filled with people from within the organization and entry level positions are the most likely to be filled by external sources. Methods for internal recruiting include job posting, skill inventories, job bidding and referrals.

Methods of external recruiting include school and

college recruiting, advertising, and using employment agencies and executive research firms and the lnternet.

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Internal versus external recruiting methods Internal recruiting methods include posting position openings, distributing memos within the organization and searching organizational databases for a match between the skills required to perform the job and the skills held by the current employees. This method of recruiting looks to internal sources to fill positions and encourages promotions from within. External recruiting methods include advertising position. Whether managers choose internal or external recruiting methods depends on the degree to which organization's strategy encourages promotions and transfers from within the organization. Recruiting from within can lead to job satisfaction and motivation if employees see new career opportunities available.

In addition filling

positions with existing employees ensures to large ext6ent that these employees are socialized as to the organization's culture and personality. However problems can arise if the internal promotion system is not viewed as fair. The best way to avoid negative backlash when hiring or promoting from within is to install fair practices and procedures. If steps are taken to ensure a fair internal promotional process, most people will accept their loss and remain productive and useful organizational citizen.

External recruiting

method helps bring new ideas and approaches to the organization. Internal recruiting methods Job positing Many position can be filled as a result of posting the job opening on the bulletin boards, announcing the opening in a company newsletter or posting announcement on the companies intranet. A job posting procedure enables employees to strive for a better position within the company. Notices of important openings should include all-important information about the job.

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Some firms have turned to computers to make their job posting more fruitful. All employees who wish to participate complete questionnaires about themselves, which include items concerning relocation willingness and preferences as well as training and educational backgrounds. A few skills are selected out of the total that best represent their functional skills. When a position needs to be filled the requirements are matched and candidates selected. Although positing jobs can be an efficient method of recruiting, number of problems have been associated. Example it can lead to personal bias and stiff competition. Skills inventory Another recruiting method is the use of skill inventories. Essentially a skills inventory includes a list of employee names, their education, training, present position, work experience, relevant job skills and abilities and other qualifications.

The organization can search through the company skill

inventory to identify potential candidates for the position opening. Job bidding These procedures typically specify that all jobs covered by the agreement must be fitted by qualified applicants from within the bargaining unit. Those interested in the vacancy bid for the job by applying if they are qualified. The individual fills the position with the highest seniority from among the qualified applicants.

In some cases applicants take competitive examinations.

However only current employees are eligible. Using a job bidding system is normally very easy. However it can present some difficulties.

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Referrals An excellent source of information is current employees who may know someone who would be qualified and interested in the open position. To entice employees to make job referrals, some companies offer a referral bonus.

People tend to associate with people like themselves, if the

employee fits the organization, chances are his or her referrals will be good. Employees, whose referrals are hired, are often willing to serve as a mentor to ensure their referrals succeed in the company. EXTERNAL RECRUITING METHOD School and college recruiting Recruiting at high school or vocational schools is often a strategic approach adopted by organizations with position openings at the entry level or internal training programs. Recruiting at the college level serves as a major source for acquiring managerial, professional and technical skills. The gap that exists between the skills that organizations will need over the next several years and those currently possessed by potential employees is growing. The number of jobs requiring a college degree is on the increase. Unfortunately for the organization it is a very time consuming and expensive exercise. But pressures from the external environment will continue to force organizations to be highly visible and active in this kind of recruiting. In college recruiting the organization sends an employee usually called a recruiter, to a campus interview candidates and describes the organization to them. Coinciding with the visit, brochures and other literature about the organization are often distributed. The organization also runs ads to attract the candidates. In the typical procedure, those seeking employment register at the college placement service.

This placement service is a labor market exchange

providing opportunities for students and employers to meet and discuss 13

potential hiring. Preliminary interview with employers is done. Students are given detailed influence about the job and the profile.

Salaries are

negotiated.

Many of the

The expenses are borne by the organization.

changes are designed to reduce overall recruiting costs while maintaining a strong applicant's flow into the organization. The trend seems to be for an organization to develop a stronger, ongoing relationship with a relatively select number of schools. Advertising Advertising job openings in newspapers, magazines, newsletters and other media sources is a relatively inexpensive recruiting mechanism. Advertising is useful for filling open position quickly. Advertising usually does not target a specific audience. Specified defined advertisements will attract qualified applicants, dissuade unqualified ones from applying and make the recruitment process more efficient. Private employment agencies Private employment agencies vary considerably in size and effectiveness as good sources of employee and mufst be chosen carefully by employers and job seeking alike. A preliminary interview is conducted for the applicants. Unfortunately some agencies are more concerned with placing employees quickly than in effecting a good match between the employee and the organization. The discrepancy can be reduced if the HR managers give detailed and specific requirements. The lnternet and the WWW One of the fastest growing recruitment methods is the lnternet and the WWW. Companies who do use the lnternet as a recruiting source appear to be happy with the process and the results. It allows access to broader set of people and hence broader set of expertise and skills. It is also faster and convenient. However it may not be accessible to all.

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UTILIZING RECRUITING RESOURCES Companies frequently use a variety of internal and external recruiting strategies to locate and hire their workers. Although one technique may work well for some organizations, the same technique may prove ineffective for others.

Some technique may mesh well with the organization's

competitive strategy, but others do not. By integrating both internal and external recruiting techniques, a company can develop an overall recruiting plan that is specifically tailored to support its overall strategy and result in selection of highly qualified applicants. Exactly how many recruits are needed can be determined from past recruitment efforts. Specifically a yield ratio can be developed for each position to be filled. A yield ratio is the number of candidates who pass a particular recruitment hurdle divided by the number who attempted the hurdle. It is important to keep in mind that the plan should support the companies overall strategic approach. Re- Recruitment strategies Re-Recruitment strategy is a series of steps a company can take and retain key employees. Re-Recruitment strategies are a good idea, but essential in turbulent times such as after downsizing or a major organizational restructuring. Key employees are defined as employees whose loss would have a most detrimental effect on the organization. Once the key employers have been located, the next step is to determine what can be done to motivate them to remain with the organization. A flexible work arrangement will mean something different to every employee, so it is important to dearly delineate what key employees want and need with respect to flexibility.

Flexibility can also be offered by introducing

compressed work weeks, flexible starting times and comp time where 15

workers can leave work for an hour or two to deal with family matters. An increase in the compensation can also help retain a key employee. Retention bonuses have also been used successfully as a means of getting technical staffers.

Without a salary adjustment key employees may be

stolen away by competitors, Career development opportunities College graduates entering work force for the first time are clear about their expectations and are less willing to adapt their values and work styles to accommodate to their employers. The following factors entice first careerist to stay with the job and the company: 1.

Immediate involvement in the essential work of the firm.

2.

The ability to apply newly learned knowledge and skills.

3.

The opportunity to understand the big picture of the firm.

4.

Rapid career development.

5.

Rapid salary advancement.

6.

The opportunity to learn new skills.

Companies are responding to these needs by offering a variety of programs for new employees. One factor that should be considered prior to selection is the "fit" between the individual career objectives and the career path that can be realistically offered by the firm. Career plateauing

which refers to

the point in a career where future hierarchical movement is unlikely, has become a real problem in organization's today.

Downsizing and

restructuring has severely restricted the potential for vertical movement in many managerial career paths.

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ALTERNATIVES TO RECRUITMENT Another strategic business decision can be made is not to recruit. Instead they can rely on alternative staffing options. Common alternative staffing options 

Traditional temporary help A potential employee is recruited, tested, screened and employed by a temporary staffing agency. They assign qualified individuals to work at a clients site, generally to support or supplement the current work force.



Long term temporary assignments It is becoming increasing popular for an organization to staff part of its work force with temporary workers on an ongoing basis.

These

individuals are not considered short-term replacements, but more a part of the regular work force. 

Part time employees Workers who work less than 40 hours a week are considered part time employees. They can be organization's pay roll or assigned via a temporary agency.



Employee leasing A Company will transfer some of its employees to a leasing firm. The leasing firm then leases back the workers to perform the same job they did for the Client Company. However the leasing firm is now responsible for cost and work associated with the typical HR functions such as Payroll, benefits and record keeping.

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

Independent contractors Independent contractors are self-employed individuals who market a specific skill they posses to a variety of companies. A Company will hire them for a specific project or contract. Payment is usually based on the time and effort the individuals put forth on the project and expenses are frequently reimbursed.



Outsourcing services An independent company with expertise area will contract with a firm to take full responsibility for that specific function in the organization.

EVALUATING THE RECRUITING METHODS Given the importance of recruiting to the organization the method used in recruiting should be evaluated periodically.

One of the most important

reasons to evaluate recruiting method is to determine the cost versus benefits of various methods. When recruiting method do not attract enough applicants many organizations's respond by raising the salaries. Although some job applicants may be enticed by money, this may not be a costeffective method of recruiting. Further employees within the organization may perceive inequity if new employees are brought in at a similar or even higher salary. Recruiting costs include factors such as the cost of advertising, the salaries and travel expenses of recruiters, travel expenses of potential job applicants and recruiting agencies. These costs must be weighed against factors such as the potion of acceptance offers. At a minimum, organizations should compare the length of time applicants from each recruiting source stay with the organization with the cost of hiring from a particular source.

The

effectiveness of recruiting method varies among organizations and even jobs within the same organization.

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THE SELECTION PROCESS Selection is the process of choosing individuals who have the qualifications to perform a particular job well. Organization differs as to the complexity of their selection systems. Some organization's make a strategic decision to fill positions quickly and inexpensively by scanning application forms and hiring individuals based on this information alone. Other organization's however makes a strategic decision to choose the best person possible by having an elaborate and sometimes costly selection system.

These systems may

require potential employees to fill out application forms and provide information for a background check, take a number of job related tests, and perform well through a series of interviews. Most organization's have. more than one selection process. Application blanks and resumes The initial screening of potential employees is usually done by examining resumes and 1 or having applicants fill out an application blank. Items that should be requested on an application include general biographical information. Much of information gathered on application blanks is objective so that the human resources manager can verify it.

Verification of

information on an application is becoming increasingly important to avoid claims of negligent hiring. An employer is guilty of negligent hiring if he or she failed to perform a thorough background check on an employee whose infliction of harm could have been predicted. Once the application has been verified, it can be numerically scored to make it comparable to others. The process of qualifying an application is called weighting an application.

The use of a weighted application blank

involves placing a value or score for the items on the application that have been found to predict successful job performance. Applicants receive points according to the information they report on the form and can then be ranked based on their total points.

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Although weighted applicants blanks have been found to be predictive of future performance, the time and cost of developing an effective are often prohibitive. Resumes are often instead of application blanks. Job applicants develop their own resumes, which should include essentially standard information. TYPES OF SELECTION TESTS A number of selection tests have been developed to aid the human resources manager in hiring employees.

The following section covers

mental ability test, work sample tests, trainability tests, personality and interest inventories and honesty tests as selection devices. Mental ability tests Paper and pencil tests have been developed by psychologists and are used by organization's to measure mental ability and aptitude. Ability and aptitude tests examine a variety of tests such as general intelligence, an understanding of spatial relationships, numerical skills, reasoning and comprehension. Work samples Also called performance tests, work sample tests measure the ability to do something rather than the ability to know something.

These tests may

measure motor skills or verbal skills. Work sample tests should test the important aspects of the job. Since job applicants are actually performing a small portion of the job, it is difficult to "fake" ones ability on these tests. One of the most effective ways to design work sample tests is by using the results of a job analysis, because the results of a job analysis indicate which tasks are most critical and which are required for successful completition of the task. It is easy to determine which activities need to be represented on the tests.

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Trainability tests For jobs in which training is necessary due to 1.

The skills level of the job applicants

2.

Changing nature of the job, trainability tests are useful.

Essentially the goal is to determine the trainability of the candidate. In the first step of the process, the trainer demonstrates how to perform a particular task. Then the job applicants are asked to perform the task while the trainer helps to coach him or her through the process several t8mes. Finally the candidate monitors the performance, recording any errors, to determine the overall trainability of the job applicant. But work sample tests and trainability test have shown to have high to moderate success predicting job performance. Personality and general interest inventories Personality and general interest inventories are tests that have no "correct" or "incorrect" answers. Interest tests are used to measure an individual's work and career orientations. Personality tests focus on identifying traits or typical behaviors of individuals and are used to measure a variety of traits including aggression, self-esteem and type A behavior. Although personality and general interest inventories are tests that have no "correct" or "incorrect" answers. Interest tests are used to measure an individual's work and career orientations. Personality tests focus on identifying traits or typical behaviors of individuals and are used to measure a variety of traits including aggression, self-esteem and type A behavior. Although personality tests can be costly, they can help human resources manager's determiner individual characteristics opt obtained from a resume, thus increasing the likelihood of finding a go "fit" between the job position and the employee. A serious criticism of personality inventories is their tendency to be invasive in that they seek to "uncover” revealing data about a person's psyche. 21

Companies that use this type of pre employment tests must therefore ensure that the information they seek and the way they use this information are relevant to the job in order to prevent lawsuits by rejected applicants. THE INTERVIEW Most

organization's, regardless of size, use interviewing as a selection

method. Interestingly, interviews have been criticized for being unreliable sources of information due to perceptual and judgment errors on the part of the interviewer. Example interviewers often form a first impression of the job applicant based on the influence obtained on the application blank or the first two minutes of the interview. Another type of perceptual error is called the Halo effect. In this case, one characteristic or behavior of the job applicant overrides all or most other characteristics. Contrast effects have also been found to distort interviewer judgments about job applicants. Contrast effects occur when the interviewer evaluates a job applicant by comparing this person to previous job applicants. Other perceptual errors can distort an interviewers evaluation include stereotyping, leniency, strictness and central tendency errors. Establishing a system for conducting an interview can improve the reliability and validity of interview assessments. Types of interviews Interviews can be classified into three general categories: structured, semi structured and unstructured. 

Structured When conducting a structured interview, the interviewer asks questions from a prepared list and does not deviate from it except for some follow

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up questions. During the interview, the interviewer records his or her thoughts and reactions on a standard organizational form.

When

different interviewer reach the same or similar conclusion about a given candidate, the interrater reliability is high. Unfortunately this type of interview is very restricted. Two most common types of structured interviews are the behavioral description interview and the situational interview. The behavioral description interview allows you to gather and evaluate information about what candidates have done in the past to predict how they will act in the future. A thorough job analysis of the job is done for which the interview is being developed. The specific KSA0s are uncovered, required by the job as well as appropriate and important behaviors performed by the job incumbents. Next questions will have to be designed which elicit the behaviors. The second type of structured interview is the situational interview. In this job experts develop questions that focus on situations that might arise in the actual job. It is conducted with a panel of interviewers, each of whom independently rate the applicants. This type of interview is kinder to the applicant because a past example does not have to be provided. 

Semi structured Here only the major questions are prepared in advance and are recorded on a standardized form. This type of interview involves some planning on the part of the interviewer but allows for some flexibility regarding exactly what and how questions are asked. Although the inter rater reliability is not so high as with structured interview, the information obtained may be richer and possibly more relevant

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

Unstructured interview The unstructured interview involves little planning or no planning on the part of the interviewer. Due to lack of planning, the interviews tend to vary greatly between interviewers and also between interviewees. Unstructured interviews have low reliability and seldom yield valid and useful information.

MANAGERIAL SELECTION DEVICES Selection devices for managers can differ from non-managerial employee selection.

Assessment centers were developed to tap these numerous

managerial skills by collecting work sample information. an assessment center is not a place but a process. In this process trained professional evaluators, called assessors, observe and record and evaluate how a candidate performs in simulated job situations. Although the validity of assessment center tends to be high, some problems recently have been identified with this selection device.

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RECRUITMENT AND SELECTION - OVERVIEW Till recently the rules of recruitment were very retrogressive. Companies simply hired fresh graduates or MBAs - seeking out the top rankers - started them off as trainees, paternally oversaw their vertical progress and repeated the process every year. On the rare occasions that they had to recruit at higher levels, they advertised - the discreetness of the address matching the stature of the company as a coveted employer - or used services of a head hunter and chose on the basis of a track record. Job hoppers were never favored and companies hired everyone for lifetime. Now a recruitment revolution is beginning. And the people whom company will soon compete for most fiercely will be those who have earned their spurs in different functions, companies, industries- and not one company, one function specialist. Having succeeded in hiring them, CE0s must not expect all of them to stay.

Some will leave the company when the company

changes its operational focus - as it must to stay ahead of change and needs different kind of people. Others will opt for entrepreneural careers in favor of -,employment.

Yet others will go back to school to restrictions

-educate themselves and proceed to the next phase of their portfolio careers' Abandoning their old policies of hiring only at the bottom, therefore companies will have to induct new talent at every level, including those where internal promotions were once developed rigueur. Even the search for CE0s will intensify as new competitors look for team captains and existing companies feel the need for new qualities - not available in house in their CE0s. lnfact the search for the right people at every level will pick up pace. And while companies will have to develop innovative techniques to beat the competition at recruitment hotspots like campuses, they must also look outside their conventional hunting grounds. For that is where people with unorthodox Winning ideas will come from CE0s looking for breakthrough 25

marketers will have to recruit them from other industries since everyone already in the sector will only offer tired ideas.

Hunting for knowledge

workers, company va have to raid research laboratories, non-governmental organization's, college staff-rooms and even sports fields. And the quest for managers with the ability to lead mega projects will have to be global and not limited to the country. At the organizational level, companies must tailor their manpower recruitment plan to corporate objectives, drawing up the profiles of suitable fires accordingly. Company focusing

on new business development will

have to seek entrepreneurial abilities; companies planning to withdraw from diversification's must look for pragmatists; companies chasing growth through alliances should hire people comfortable in different cultural backgrounds. Above all companies must hire for the future, anticipating jobs that may not be in existence yet. So recruitment of managers must focus not on functional expertise, but for attitudes and approaches that fit the corporate goals and culture. Among the qualities that companies will have to screen, therefore will be interests, disposition, attainments, general intelligence, special aptitudes are even physical make-up. For every job that a company seeks to fill therefore the must prepare psychological profiles of the ideal candidate.

And to test

candidates for a fit with that profile, companies will increasingly have to use psychographics testing techniques such as Thomas Profiling. Myers- Bdgg Type irdicator, or the particular preference

Inventory that draw up the

complete psychological and behavioral characteristics of an individual. The test for personality traits will involve using unconventional tools like graphology.

Also on test will be candidates result orientation analytical

ability, initiative, communication skills and innovativeness, giving employers as much information as possible with which they decide whether an individual will be appropriate for the job. To validate the conclusions of the tests, line managers and human resources personnel who conduct

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interviews will have to be trained interviewing skills. And companies will have to use multi-session depth interviews ad of one off interactions to explore different facets of a candidate under different circumstances and varying degrees of pressure. What are the elements which companies must use to entice top talent'.? Compensation will be crucial only till it isn't absurdly below. the competitor offer. Instead recruiting teams will have to market their company as a place where employees have fun working, particularly to people that the company is trying to hire from old fashioned organization's. A corporate culture that cares for people and gives them room to grow will be a company's strongest magnet for attracting good people. CEOs will have to ensure that their line managers and human resources department design unconventional jobs and daring responsibilities to create offers that their targets cannot refuse. And if pursuing the right person and convincing him to agree takes time, the companies should be willing for it. In the knowledge economy the corporate quest for intellectual capital will be a continuous process. Recruitment costs Low cost per hire may affect the quality of recruiting. Companies may think that the cost of hire may be high but if the company is able to attract the best talent, the company is successful.

Quality of hire is a useful metric. to

assess the strength of the recruiting process. Some companies evaluate candidates through multiple interviewers, assessment tests, reference and credit checks, background and educational verifications.

Even with all of these techniques companies continue to

realize the same "bell curve" distribution of employee performance. Others are smarter, they apply the technique of position, profiling to identify top performers and to change the bell curve.

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Companies can design a brief performance evaluation process and use it on new entrants, within six and 18 months of joining.

The quality of

performance puts the recruiting process to test. While filling internal positions, the recruiting manager responds to his internal customer - the line manager.

Measure of customer satisfaction

proves to be a precious technique for fine tuning the system. Recruiting managers use post hire surveys and evaluations for this purpose. It is important for companies to document pre hire requirements and conduct objective post hire evaluations. candidates themselves.

Managers also seek feedback from the

Such data could give insights into further

streamlining the recruiting process. How long before they are in? Recruitment cycle time is measured by the time taken to fill a vacancy. Another metric is staffing time ratio - the ratio of actual time in days to start to pre-contracted time to start. The contracted time to start is agreed upon between the hiring manager and the recruiter and it can be changed during the recruiting process with mutual consent. Internal hiring a more viable option Corporate recruiters have a dangerous bias towards hiring from an outside source. Industry giants like HLL and Tata's believe in homegrown talent. More often than not heavy recruitment happens at entry level and incumbents move along a structured career path as they grow with the company. The pool of talent keeps widening and gains richness with time. As a result it is never a daunting task to fill roles created out of unexpected situations. On the other hand fast growing, innovative relatively newer firms tend to focus more on external hires, a strategy guided partly by default and partly by design. By and large all companies end up using a mixed strategy. 28

Some companies believe that external hiring give facts about the competitors.

External

hiring

brings

in

new

ideas,

perspectives,

competencies and readymade skills that do away with the need for much investment on training. On the other hand internal recruitment works fine, sometimes better. The culture of certain companies may be such so as to mould the existing employees for further vacancies. Such companies boast of low employee turnover rate. Internal recruitment may have its benefits but it also demands a great deal from the HR of the company. Internal hiring cut out on downsizing Building an internal talent pool works as an innovative answer to overstaffing, especially if the company is wary of downsizing as the option. Internal hiring : more than just filling a slot Recruiting by itself serves a single purpose filling a slot.

But when a

company favors internal over external sources, it also addresses the critical issue of succession planning. It does not cater to executive replacement alone, it underlines a commitment to leadership development. A greater pool of talent can be harnessed at a short notice without the hassles of an elaborate search externally and without investing in further hiring and training costs. The above kind of a process involves psychometric profilers, offsite interactive workshops, multi rater feedback processes, management games and options as simple as observation and past performance records. Recruiting ... inspite of odds. Recruitment business has dropped by almost 40% lately and the situation may remain low profile at least for the coming months. There is general reduction in intake, recruiters are shying away from taking freshers or even people from cross-functional industries so that there is less investment in training.

Organization's are trying to reallocate jobs, add portfolios to

29

existing positions even considering outsourcing.

Jobs are diminishing,

merging or even disappearing altogether. While there are definite signs of conventional recruitment activity having slowed down, there are strong signals that organization's are successfully experimenting with more innovative techniques of talent scouting and sourcing of requisite skills need to be replenished. Innovative sourcing .... Its happening 70% of recruitment in India happens through the direct advertising route. Use of recruitment consultants is the second most favorite technique. Head hunting is very much in demand along with in depth interviewing. The Indian recruiter may have access to the best of Indian recruitment consultancy firms as well as the cream of international search firms, all fiercely competing on grounds of quality and value added service.

But he has

started looking for different sourcing options. Employee referrals, for one is gaining popularity. Employee referrals Reliance on personal contacts is still a strong source of recruitment worldwide and is being capitalized in more sophisticated ways by many organization's. Hewlett Packard in the computing sector is reported to have adopted "company-opting schemes" whereby employees are promoted to recruitment positions and rewarded for their ability to become good recruiters. Recruiters have accepted the fact that recruitment advertising is an intricate process, involving a psychic attitude change. Its not about a simple job announcement in a newspaper. It is about attracting quality people who are not desperately looking for a job. An international restaurant chain realize that the candidates need to have a feel of the company before they decide to apply for a job. The company planned a two day event for potential recruits to walk in and meet managers personally, see videos and slide shows about the company. The open days also marked a change in direction as far as the recruiting process was concerned. Instead of screening for basic skills 30

and past experience, the company concentrates on recruiting people for their personality, so that people could fit in.

31

A new selection aid All India Management Association (AIMA) has taken a useful initiative by introducing an all India level test for the employability of prospective management employees (TEM). The test is administered to candidates who are in the second 1 final year of MBA programs or an equivalent course or have less than 2 years of post qualification work experience. Candidates are tested on parameters like general management skills, thinking skills, awareness of current business and economic environment and on their functional areas like marketing, finance, HRD, operations. Etc. TEM has been endorsed by 62 companies like HLL, Ceat LTD, ITC Ltd, Labor&T, GEC Alsthom Ltd, DCM Shriram etc. the scores achieved by the candidates in this test along with other details are sent to corporates to be shortlisted for 'Interviews and subsequent placement. Corporate houses get access to scientifically evaluated candidates from allover the country without having to visit each and every campus, thus saving time and effort. On the other hand, the candidates get access to a host of companies without individually applying to them. A suitable recruitment strategy An effective recruitment system like any other HR sub-system needs to be sync with the business strategy and objectives of the organization. Organization’s adopt specific recruiting strategies tailored to their business needs. These business needs may change depending on the stage of growth of the organization.

32

Recruitment strategy varied with stage of growth of the organization Business situation Starting a new business

Turnaround

New acquisitions

Liquidation of business

Redeployment

Characteristics of business situation Financial risk No systems/procedures / organization Operational experience base is lacking. Limited relation with Suppliers, customers. Need for rapid decision making. Weak competitive position. Low esteem/morale. Bureaucratic organization structure. Incompetent/inefficient personnel. New management proving themselves Existing management defensive about change Need to integrate acquired company with parent Weak competitive positions Low returns Low morale, deficiency of skills Need to cut losses and make decisions Low short term/long term risks Resistance to change Mismatch of organization resources and need Lack of strategic plan for quite some time.

33

Characteristics of candidate Vision In-depth knowledge Staffing Organizing and team Building.

Strong leader Strong analytical skills Business strategist Good crisis management Skills. Credibility. Analytical ability Relationship building skills Credibility.

Determination Highly analytical in case of cost/benefits Willing to do dirty jobs Wants to be respected not just liked Good manager of change. Highly persuasive. Supportive. Risk taker.

What are the skill sets Process skills are being given more importance as compared to solely technical skills. Recruiters are keenly selecting for general attributes like ability

to

cope

management,

with

change,

tolerance

of

leadership, uncertainty,

entrepreneurship, management

skills

project and

communication ability. The five top skills sought in entry level candidates on campus are communication skills, team working, listening and problem solving.

34

RATIONALE TO THE STUDY Recruiting and screening is the first line of defense when it comes to bringing the right people into the organization. Determining who the right people are should not end with experience and education, but with personality,

attitude,

communication

abilities,

and

other

behavioral

characteristics that fit the organization The overall aim of the recruitment & selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company. Hitting the hiring bull's eye is one of an executive most important and most difficult responsibilities. Using interviews, reference checks and sometimeseven personality tests, they try to infuse logic and predictability into hiring. Still, success remains elusive. If hiring has always been a daunting task, today's economy makes it more so. The global scope of business has increased the demand for talented senior executives in the corporate ranks. Meanwhile supply is shrinking as more and more people-in particular promising MBA's choose to work for start up ventures or go Into businesses for themselves. At the same time the nature of work itself is in flux. Until the 1990s, jobs were pretty uniform.

In the classic, functional

organization cultures were relatively comparable, too - formal, hierarchical, and based on individual achievement.

But with the advent of new

organizational forms such as joint ventures and strategic alliances and with growing prevalence of teams, free agents and networking, finding the right person to fill a job has become more complex. What competencies, after all these new kinds - of companies and cultures require? Nowadays the CEO's of two companies in the exact same industry may need entirely different skills and personal styles to succeed. 35

Many talented people leave their organizations because senior managers don't understand the psychology of work satisfaction; they assume that people who excel at their work are necessarily happy in their jobs. Strong skills do not always reflect or lead to job satisfaction. Many professionals, particularly the leagues of 20-30 something's streaming out of today's MBA programs, are so well educated and achievement oriented that they could succeed in virtually any job. But will they stay? The answer is, only if the job matches their deeply embedded life interests. Personal values have changed with workers of the new millennium. Employee/ employer loyalty has diminished and work environment and a "work/life" balance are more important than ever. It is clearly evident that as we move into the new millennium, only companies

than

ever.

It is clearly evident that as we move into new millennium ,only companies that have a world-class recruitment, placement and retention solution will survive . Considering the above scenario studying the recruitment and retention strategies was the most appropriate topic for my end term project. Since successful practices of HR begin with an appropriate selection process and retaining the best talent within the company is another challenge. Industry chosen: The Indian Oil Corporation Limited Companies like IOCL have always received awards for their best practices in the field of human resources. Also these PSU's are undergoing a flux and would soon be under the umbrella of a major change of being privatized. To study the recruitment and Selection practices seemed a challenging and interesting task. .

36

under such situations

RESEARCH METHODOLOGY RESEARCH OBJECTIVE UNDERTAKEN: 

To study the Recruitment & Selection Practices at IOCL

SCOPE OF THE PROJECT: 

To identify the various factors companies undertake prior to the

recruitment process. 

To study how the companies establish a fit between their business

strategy and recruitment strategy. 

To study how the companies have coped with change in the market

vis a vis its recruitment process. SOURCES OF DATA COLLECTION Primary Sources The primary data was obtained on wide scale ranging from pre designed formats to open ended interviews. The primary means were: 

Questionnaires were administered across the top-level managers in

the HR department of the chosen organizations. 

Discussions were held with some employees in order to obtain their

view on the recruitment strategies followed. Secondary Sources Data was also screened from secondary sources for further inputs. Also data was obtained from various journals in order to supplement details of recruitment trends globally and locally. SAMPLE DESIGN Type of sampling : Random sampling method was used to obtain data. Sample extent : New Delhi 37

COMPANY PROFILE OF INDIAN OIL CORPORATION LIMITED IndianOil, the largest commercial enterprise of India (by sales turnover), is the only Indian company to find a place in Fortune’s "Global 500" of the world's largest industries (Rank 278 in 1998). Among Petroleum Refining companies, it has a global ranking of 16 by sales and profits. IndianOil touches every Indian’s heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India. With the backing of over 32% of the country’s refining capacity (as of 1st April 2000) and 6260 kms of crude/product pipelines across the length and breadth of the country, IndianOil’s vast distribution network ensures that essential petroleum products reach the customer at the "right place and right time". IndianOil's refineries and pipelines have been consistently achieving more than 100% capacity utilisation and our marketing share is about 55% in India. IndianOil’s activities are backed by its "Research and Development Centre", the first such centre established in India. This centre has over the years grown into a major technological development centre of international repute.. IndianOil also has four overseas offices in Kuwait , Malaysia, Dubai and Mauritius. As the premier National Oil Company, our endeavour is to serve the national economy and the people of India. They also have a "vision beyond tomorrow" – of becoming an integrated and diversified "Global Energy Corporation". They are continuously innovating and strengthening areas of core competence. At the same time, they are exploiting opportunities offered in the new liberalised scenario by globalising and diversifying into related areas.

38

Operational Performance (1st April 1999 to 31st March 2000) Record performance in the three core areas of Business :  Refinery thruput of 32.39 million tonnes - up from 30.36 million tonnes in 1998-99  Pipeline thruput of 39.50 million tonnes - up from 34.05 million tonnes in 1998-99  Sales of 49.17 million tonnes - up from 46.05 million tonnes in 1998-99 Financial :Performance (Ist April 1999 to 31st December 1999) Gross turnover of Rs.66,492 crore (US$ 15.95 billion approx.) - 28% growth over corresponding period last year.  Net profit of Rs. 2,140 crore (US$ 0.51 billion approx.) - a growth of 23.7% over corresponding period last year.  35% interim dividend declared for the year 1999-2000  Equity of Corporation rises to Rs. 778.67 crore with declaration of bonus shares in the ratio of 1:1  More than 83% of fixed assets from internally generated resources (Rs. 1 crore = US$ 0.24 million approx.)

39

VISION A major diversified , transnational , integrated

energy company , with

national leadership and a strong environment

conscience , playing a

national role in oil securityand public distribution.

MISSION •

To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services and cost reduction.

•

To maximise creation of wealth, value and satisfaction for the stakeholders.

•

To attain leadership in developing, adopting and assimilating state-ofthe-art technology for competitive advantage.

•

To provide technology and services through sustained Research and Development.

•

To foster a culture of participation and innovation for employee growth and contribution.

•

To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.

•

To help enrich quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

40

CORPORATE HISTORY

The Formation of IndianOil was a major step towards economic freedom of the country. Its growth and success are synonymous with the growth and development of the petroleum industry in independent India. In the year 1964, the Government of India took the decision to merge Indian Refineries Ltd. (Incorporated in 1958) with Indian Oil Company Limited (Incorporated in 1959). The merger took effect from September 1st 1964, with the new name, IndianOil Corporation Ltd., with its Registered office at Bombay (Mumbai). In 1981, refining and marketing rights of the erstwhile Assam Oil

Company were vested in IndianOil.

At the time of formation, Indian Oil Corporation Ltd, the authorised capital of the Indian Refineries Ltd. was Rs. 60 crore and that of Indian Oil Company Ltd. was Rs. 12 crore. Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by the first Prime Minister of India, Pandit JawaharLal Nehru, on 1st January 1962. As on 1st April, 2000 IndianOil owns and operates 7 of the country's 15 refineries with a refining share of 32%. IndianOil's seventh refinery at Panipat was

41

commissioned in 1998 .IndianOil's total refining capacity is now 35.6 Million Tonnesper Annum. IndianOil commissioned India's first product pipeline, the Guwahati -Siliguri pipeline in 1965. The 435-km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0.818 MMT of oil per year. Today IndianOil operates the country's largest network of 6453 kms of crude and product pipelines with a total capacity of 43.7 million tones per annum. From a small beginning with a sale of 0.032 million kilo litres, IndianOil achieved sales of 10 million kilo litres with a turnover of Rs. 635 crore and profit Rs.22.5 crore by the late 60's . From then on, the company has grown from strength to strength and presently holds about 55 % market share with sales of about 49.17 million tonnes during the financial year ending March 2000@. During 1998-99, IndianOil's profit after tax stood at Rs.2214 crore as compared to the profit of Rs. 22.5 crores in the late 60's. The Net profit during the period August 1999-December 1999 has been Rs.2140 crore IndianOil is the largest commercial undertaking in India(in terms of turnover) and the only Indian company in Fortune's "Global 500" listing with a ranking of 278 for fiscal 1998. IndianOil is ready to offer the world a host of technoparticipation and consultancy capability and share this expertise with other oil companies in the world, through Strategic Alliances and Joint Ventures in the areas of Refining, Pipeline, Trasportation, Marketing, R&D and Training/Consultancy. Major plans have been drawn up to augment infrastructure and expand into exploration & production of crude oil, petrochemicals, power generation and LNG. The company is also globalising its R&D activities, training and consultancy services, and marketing of products, including lubricants.

42

Capabilities IndianOil's capabilities in the downstream sector of operations in the oil sector include: •

Technical services

•

Operation and Maintenance

•

Techno-economic feasibility / special studies

•

Turn around maintenance- Planning, Monitoring & Execution

•

Inspection

•

Quality Control : Bench-marking

•

Shipping and Commercial

•

Research and Development

•

Safety and Industrial Hygiene

•

Quality Auditing/ Management

•

Materials Mangement

•

Training

Human Resorces IndianOil's unique work culture is based on trust, openness and a commitment to creativity and consultation. The organisation identifies each and everyone of its 33,000 employees as an achiever who will make a difference. The experience and the knowledge gained by its people in building this mammoth organisation is now sought after by other developing countries.

43

Career

growth

opportunities

IndianOil inducts officers at the junior-most level of the management hierarchy. First division professional degree holders and post-graduates from relevant disciplines are recruited as management/ engineer trainees , accounts

officers,

medical

officers,

lab

officers,

systems

officers,

communications officers, scientists, etc. Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth. IndianOil's top executives have grown from within --- a testimony to the unlimited opportunities for growth available to the meritorious. Welfare of Employees Apart from attractive scales and perks, IndianOil provides its employees many facilities and welfare measures which are continuously upgraded. The medical facilities extended to the employees are rated amongst the best in the country. Apart from fully equipped hospitals at refinery townships, the Corporation also has nominated hospitals at various locations to meet employee needs. Holiday homes at select locations throughout the country help employees and their families unwind. Entrepreneurial culture IndianOil encourages employee participation in management and suitably rewards innovative suggestions. Participative forums in the form of joint management councils, quality circles , suggestions scheme, etc. enrich its work culture. IndianOil today has one of the best records in the industry for accident free man-hours.

44

Training and Development IndianOil conducts structured training programmes for its employees both in general management and functional management disciplines. It also provides them opportunities to avail of membership of professional bodies. Monetary incentives are also available for those acquiring additional qualifications. IndianOil Institute of Petroleum Management at Gurgaon conducts roundthe-year management development programmes on organisational goals and strategies, diversification and globalisation plans. It has also provided specialised training to employees of other international oil companies having strategic alliances with IndianOil, besides consultancy services in the area of petroleum management. IIPM offers a one-year, post-experience International MBA Programme with specialisation

in

Petroleum

Management

in

collaboration

with

the

International Centre for Promotion of Enterprises, Ljubljana and University of Ljubljana, Slovenia. Initially starting with IndianOil’s own employees in 199697, this institute has now extended this facility to other companies in India and abroad. Products & Services Price Regulated

Deregulated

Liquified Petroleum Gas (LPG)

Fuel and Feedstock

Motor Spirit (Gasoline)

Lubes and Greases

Aviation Turbine Fuel (Jet Kero)

Petrochemicals and Specialities

Superior Kerosene Oil (Kero) High speed diesel (Gas Oil)

ANALYSIS 45

MANPOWER PLANNING AND BUSINESS PLANS IOCL IOCL follows a details manpower planning process. However this planning or the recruitment for any positions have to be sanctioned by the top management. It does not follow a system of projections for the 5 years since they believe that it is too long a period

considering the fast changing

environment. As a result it does not allow them to keep a focused approach eventually affecting the recruitment quality and process. The projections are drawn for 2 years. Infact the projections are yearly where a detailed plan is drawn up, a budget is made and a sanction obtained for the same. Also the requirements are identified for the next year, which then in the coming year is drawn in detail . Hence the blue print of the next year is prepared. The budget is prepared extensively, which holds an important process in the entire function. The data from all centers all over the country and regions are taken. The data is then assessed in terms of the type of the type of people needed how many of each is needed, the qualifications and the number of years of experience needed. How

many employees are expected to retire

that year, how many are expected to resign. What is the debt levels etc, the financial and market situation of the company is judged. Following which the board sanctions the manpower plan and the recruitment process begins. This also allows IOCL to tailor its manpower plans to its corporate objectives since the profiles of each are drawn up in consultations with the line management,

top management

( depending whether

managerial or non managerial ) and the experience of the past years . The linkages developed as a consequence of the above are above are strong between the manpower plans and business plans. It helps to assess the number of employees redundant. Considering the competitive scenario it is imperative for the company to keep a tab on its requirememts and invest

46

in the making of its manpower plans. The result are evident in the success of IOCL, the fact that it leads the market. The company has a well-laid out succession plan which forms an essential backbone of the company. This ensures that any person leaving the organization at a middle or senior level, the work does not come to a stop nor is their chaos. A well-defined succession planning ensures a lot more than this. The company does situations. This instills a feeling of security amongst the employees at the lower level. The relevance of merit and performance becomes accentuated and helps them perform better. Role of job definition in recruitment The job definition plays a crucial role in the recruitment process since it helps define the expected qualifications and background for the concerned job. The requirements markedly differ for the managerial and nonmanagerial level. The job definition does take place prior to the recruitment process, which involve the line manager largely judging the job profile. This helps recruit the right person for the right place, but the jobs profile of only technical people follow the path. Incase of general managerial level etc the job definition outlines a sketch of required competence. The person is then molded along the career path. The image built by IOCL and the reviews of the analyst are a reinforcing factor in the minds of the prospective employees. IOCL is also leading the market and is ahead of Reliance . Recruitment patterns – Internal and external IOCL IOCL follows both internal & external recruitment processes for managerial and non-managerial level.

47

Procedure of Recruitment The following are the sources of recruitment: •

Employment exchange

•

Direct recruitment (through advertisement, etc.)

•

Internal promotion/selection

•

Transfer on deputation from public sector undertakings

IOCL – The internal hiring is a common feature amongst the PSU’s. IOCL indulges in internal hiring for the staff and the managerial level. In both cases promotion on basis of performance is a common factor. In fact in the managerial level the merit is the only basis of internal recruitment. In case of the non-managerial level it may be promotion or if the employee has added some qualification to his skill set. The internal hiring definitely is dependent upon the next level vacancy. As the employee moves higher up the ladder up the ladder the recruitment at the senior level becomes strictly merit based. Hence the promotions are tougher. Also the success of succession planning is more relevant for the senior people. In IOCL, Promotion involves a movement from a post in the higher grade alongwith respective promotion channels specified for the purpose. Employees are eligible for consideration for promotion within the same cadre/discipline on completion of the prescribed eligibility period and attainment of satisfactory standards in conduct & performance.

48

Promotions are effected based on the following criteria: •

Performance of reflected in appraisal/confidential reports.

•

Qualification

•

Seniority

•

Discipline viz. clearance from vigilance and disciplinary angle.

Transfer The services of all employees are transferable to any place in India in the service of the corporation at the discretion of the Management. In IOC, main considerations and need for transfer of officers •

Organisational recruitment in terms of functional and managerial skill for manning various positions;

•

Exigencies of corporation’s work;

•

Filling in vacancies consequent upon promotion of officers or on creation of new posts;

•

Rotational assignment aimed at career development of officers;

•

Demand at a particular location requiring specialized knowledge or experience.

•

Officers having direct public dealings are also normally considered for transfer after 3-4 years on a particular post etc.

Direct recruitment to officer’s posts in various disciplines at the lowest inducting level is made on all-India basis through competitive tests once in two years at the Headquarters of Refineries Division at New Delhi. Selection of candidates is made through written test, group discussion/group task and 49

personal interview. The selected candidates are distributed among the separate Division of IOC (It has 3 Divisions viz. Refineries Division, Marketing Division & Pipelines Division) depending upon manpower requirements. An outside professional agency in the recruitment field is engaged for conducting written test on behalf of IOC. Similarly faculty members at the level of professors are drawn from Delhi University for Conducting GD/GT. The selection committees comprising senior executives of IOC are constituted for conducting personal interviews. Various activities undertaken for conducting recruitment exercises Nomination of professional agency •

Preparation of scope of activities pertaining to written test to be performed by the Agency

•

Constitution of Tender Committee for deciding nomination of Agency.

•

Calling of quotation from the concerned parties

•

Preparation of comparative statement of quotations

•

Final nomination of the Agency

Release of Advertisements •

Preparation of draft advertisements

•

Handling over the advertisement material to the Agency.

•

Publication of Advertisement in selective newspapers throughout India as well as the employment news through the Advertising Agency.

50

Pre-written Test Activities by Agency •

Receipt of Applications through

post box from Post Office.

Applications are invited from all parts of India Generally 3-4 weeks time is given so that response is maximum. Also there are some remote areas in India where courier service is not available hence postal service takes normal 7 days time. •

Screening of Application

•

Entry / processing of bio-data of candidates in computers in the proforma prescribed by IOC.

•

Printout of candidates eligible for appearing in written test-location wise and discipline wise

•

List of Ineligible candidates (Rejected Applications)

Setting of Question papers •

Setting of objective – type questions papers – one for General Aptitude and one for concerned discipline. The question paper for General Aptitude is common for all candidates.

•

Printing of question papers (under tight security)

•

Sealing and dispatch of question booklets to various test centers (under tight security)

Admit cards for written test •

Preparation of material for Admit cards.

•

Computer printing of Admit cards

•

Despatch of Admit cards to eligible candidates

51

Nomination of supervisors / officers •

Nomination of various supervisors and officers by the Agency as well as TOC for supervision/irrigation at test centers.

•

Preparation of Instruction Manual for information and guidance of nominated officers.

•

Setting up of a central room at Headquarters

Conducting of Written Test •

Written test of 2 hrs. duration is conducted at all the venues in 16 different cities (as on date) throughout India on a specified date the number of venues / cities vary depending upon the number of candidates appearing in the test & other related factors.

•

Feedback about attendance of candidates in Written Test is given to Control Room.

•

Correction and dispatch of Answer sheets under sealed by the Agency to its Headquarter at New Delhi.

Evaluation of Answer Sheets •

Evaluation of answer sheets for respective discipline by the Agency.

•

Despatch of results of writer test in order of merit to TOC for deciding cut-off marks for short listing the candidates for GD/GT and interview.

Despatch of letters for GD/GT & Interview •

Handling of craft letter for printing by the Agencies

•

Despatch of call letters to candidates for GD/GT and interview in 4 metro cities viz – Delhi, Mumbai, Chennai, Kolkota.

52

Conducting of GD/GT & Interview •

Simultaneous conducting of GD/GT and interview in 4 metro cities.

•

The certificate and other documents of the candidates are verified on the specified interview date at the venue itself.

•

Declaration Forms duly filled in by the candidates along with copies of relevant documents are make over to the selection committee members before interview.

•

Candidates appearing in GD/GT and Interview are reimbursed rail are limited to Ist class/II ties AC by the shortest route at the venue on production of documentary proof thereof.

Selection Procedure : The selection methodology comprises three stage process written test, GD/GT & personal interview for judging different faults of knowledge, skills, attitude and aptitude. Candidates will have to pass through each stage successfully before being judged suitable for selection. Each stage of selection is treated as qualifying/elimination at the stage of written test, the cut-off percentages of marks for each deceptive and category are decided taking into account the number of vacancies, reservation requirements and of candidates in the concerned disruptive. These candidates are required to appear both GD/GT & interview respective of their performance, since these two stages of selection are conducted independent of each other. However, they are required to score minimum presented markets both in GD/GT and interview acting, which they are disqualified at the tune of preparing the select panel. Preparation of Overall Results •

Compilation of marks obtained in written test, GD/GT and interview.

•

Preparation of select panel of candidates in order of merit for each discipline and category. 53

•

Distribution of selected candidate among different dimension of TOC, depending upon manpower requirements.

Role of Top Management IOCL’s top management takes a lot of initiative in the interview process . The management also makes efforts to contribute to an efficient recruitment process. In order to encash on the experience and skills of the Ex Executive directors or retired directors, the company involves them in the recruitment process . Not only does it save the energy and effort of the company but also allows the inputs of the more experienced set of Top level people . For the staff level the regional head or the line management is involved in the recruitment process. In case of recruitment through advertisement the top management plays a significant role in the final interview process. Organizational and environmental factors affecting recruitment Factors like organizational image do not effect the recruitment process a great deal because as it the companies have a limited budget allotted for the recruitment process. Relations with labor unions have little affect on the recruitment process. The cost associated with recruitment is a very important factor. The budgets allotted at the beginning of the recruitment process are an in depth evaluation of the financial situation of the company . Hence in case of recruitment through advertisements the cost incurred is very high. Government deciding on the quotas for Scheduled Cast/Scheduled Tribe /Other backward classes definitely affects the manpower planning & hence the quality of people being recruited.

54

LIMITATIONS OF STUDY The study on recruitment and selection practices at Indian Oil Corporation Limited (IOCL) involve the study of all the divisions of IOCL due to time constrain the study was not extended to the recruitment and selection of division IOCL outside Delhi, Gwahati, Baroda etc. Due to time constrains a discussions could not be held with other employees as to their personnel level of satisfaction from the recruitment and selection practices and procedures. Also there is a lot of heavy bias attached with the responses because of personnel experience. The people interview there is from GM's to Executive directors to head personnel. Hence the inputs would vary greatly amongst them due to the difference in level of authority and experience.

55

CONCLUSIONS With the liberalization bringing in new talent and increased competition , recruitment has taken strategic dimensions . The overall aim of the recruitment & selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company. It is evident from the study that organisation ‘s which have responded to the change in the environment by reviewing its functions have attained success . IOCL draw their manpower extensively . These manpower plans have close linkages with the corporate objectives and business plans . These are drawn after a detailed analysis following a sanction. The budget and the sanctions heavily determine the recruitment pattern in the PSU’s . Being a PSU also limits its strategies undertaken to market the image of the company . Also it has to meet the quotas set for SC/ST by government. Till a year back Campus recruitment was very much there but it has been discontinued as it was felt there was some biasedness attached to it as IOCL visits only Premier Institutes. In case of recruitment through advertisement the candidates are screened via written test which is outsourced to an agency . This agency is only broadly communicated about the requirements . The final interview is held by the organisation. Internal hiring is there for managerial level which may or may not involve the written test The Top management is involved in the recruitment process . The evaluation process involves the assessment of all factors from Education to experience , mobility etc, the weightage differs depending upon the nature of the job.

56

IOCl also has taken lead to make its recruitment & Selection procedure more efficient. It is in the process of making it on –line registration & also results of the examination can been seen by candidates on internet.

57

REFRENCES •

Robins, D ( 1998) : HUMAN RESOURCE MANAGEMENT. Prentice Hall, New York.

•

John M Ivancevich : HUMAN RESIRCE MANGEMENT, Irvin Chicago, London

•

Jose P Abraham, 1998, "To Grapple With Attrition" , Human Capital

•

J.M.Rao, 1998, "Scouting for Talent " , Human Capital

•

Raymond A.Noe, John R. Hollenbeck, Bary Gerhart, Patrick M Wright : HUMAN RESORCE MANAGEMENT "

•

Tojo Jose, 1999, "Heading Towards the Best"

•

Wendell L.French, 1994 : HUMAN RESORCE MANAGEMENT

•

Findings of the BT - MBL - RCG qualitative survey, 1996, "the Business Today -Experimental Guide To Recruitment" Business Today, Jan 7-21

58

QUESTIONAIRE 1.What all methods of recruitment being adopted at IOCL

  

 

Direct Recruitment Employee exchange

Employee Referral Transfers

All the above

2. What kind of a recruitment process gives you the best results according to you ? 3. How do you tailor your manpower plan and companies business plans? 4.Do you think there has been a change in recruitment process over the years in IOCL.



Yes



No

5. Do you think the direct recruitment process is quite long ?



Yes



No

6. Internal hiring helps in motivating the employees



Yes



No

7. Do you think IOCL recruitment & selection process is quite rigid in terms of eligibility criteria's



Yes



No

8. In selection Process , do you think innovative techniques ( like stress level test , pschyometric Test ) should be adopted .



Yes



No

9. Has Government interference in deciding the quotas for SC/ST affected the manpower planning ?



Yes



No

10. What techniques are used to gauge the capabilities and aptitudes of candidates?

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11. Who and which levels form the interviewing panel? On what basis is the above chosen? 12. How are resumes screened and filtered? 13. On what factors is the candidate assessed in terms of fit for a job?

  

  

Education Career expectations Compensation

Experience National mobility All the above

14. Does the company undertake subjective assessments of personality and communication ability? 15. What are the organizational factors which effect the recruitment process in your organisation:

 

 

Organisational Image Cost associated with recruitment

Relations with labor unions Others…..

16. How do think the environmental factors have affected your recruitment process: - Labor market - Economic trends - Social attitudes - Regulations - Unions 17. Does the company propagate ideas like “ Come Grow with us” , “ learning environment”? 18.How important is job definition in the recruitment process? Does it precede it? 19.Are the success factors and fatal flaws considered such as • • •

Ability to lead people lack of perseverance and drive tendency to loose control under pressure

20. What measures are taken to propagate “ career development “ within and outside the organisation ?

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