Project Report OnProject Report On

RECRUITMENT & SELECTION PRAC-

TICES AT

SUBMITTED BY~

RATUL SONOWAL

INDUSTRIAL RELATION AND PERSONNEL MANAGEMENT

R/NO- M3/30

1

TABLE OF CON-TENTS

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 de-

fined.

The results of the survey are then analyzed and discussed for the com-

pany.

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

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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 appli-

cants who apply for a job and whether the applicants accept the jobs if of-

fered. 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. Dur-

ing 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 com-

panies in recent years have left recruitment budgets much smaller than

before.

Thus recruiters will have to become acquainted with new and more cost-ef-

fective ways of attracting qualified applicants.

A DIAGNOSTIC APPROACH TO RECRUITMENT - the process

Various factors in the environment affect the recruitment process. The re-

cruitment 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 those tasks

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and the organization on the basis of there past social and working experi-

ences. 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 in-

fluences 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 be-

tween 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 ex-

clude members of protected groups.

e) Be sure the job qualifications are applied to every applicant in a consis-

tent manner.

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Desirable End Results

Socially responsible & Competitive, high quality Competitive, highEthical practices products quality services

DIAGNOSTIC MODEL

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External Environmental Influences Govt.Regulations &

Laws The Union Economic

Conditions :domestic & International

Composition Of labor force

Location of the Organi-

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

ence

Rewarding Hu-man resources Perfor-

mance Eval-uation

Compensa-tion

Benefits & Services

Developing Hu-man Resources Orientation

& Training Develop-

ment Career Plan-

ning

Acquiring Hu-man Resources HR plan-

ning Job Analy-

sis & design Recruitment

& Selection

Protecting and Evaluating Safety,

health & wellness

Evaluation

HUMAN RESOURCE PROCESSES

Composition of labor force and location of organization

As the number of legal requirements has increased, it has become more im-

portant 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 im-

portant than any other force. Each of them must be considered in develop-

ing a sound recruitment plan that results in an effectively functioning organi-

zation.

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 con-

cerned, 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 recruit-

ing requirements set, organization policies and procedures, and the organi-

zational 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 ex-

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pectations 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 exam-

ines 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 posi-

tive 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 organiza-

tion, the more likely it is to have a well-developed image. A firm that pro-

duces 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 organiza-

tions 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 ad-

just 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 limi-

tation of labor market, government and union restrictions and the limits og

organizational policies and practices. The recruit must anticipate the com-

promises just as the organization does.

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What factors affect the organization decision? A more educated set knows

the labor market better, have higher expectations of work and find organiza-

tion'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 presenta-

tion.

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 po-

tential 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 en-

try level positions are the most likely to be filled by external sources. Meth-

ods for internal recruiting include job posting, skill inventories, job bidding

and referrals. Methods of external recruiting include school and college re-

cruiting, advertising, and using employment agencies and executive re-

search 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 employ-

ees see new career opportunities available. In addition filling positions with

existing employees ensures to large ext6ent that these employees are so-

cialized 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 re-

main 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 bul-

letin boards, announcing the opening in a company newsletter or posting an-

nouncement on the companies intranet. A job posting procedure enables

employees to strive for a better position within the company. Notices of im-

portant 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 them-

selves, which include items concerning relocation willingness and prefer-

ences as well as training and educational backgrounds. A few skills are se-

lected out of the total that best represent their functional skills. When a posi-

tion needs to be filled the requirements are matched and candidates se-

lected.

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 inven-

tory 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. How-

ever 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 en-

tice employees to make job referrals, some companies offer a referral

bonus. People tend to associate with people like themselves, if the em-

ployee 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 re-

cruiter, to a campus interview candidates and describes the organization to

them. Coinciding with the visit, brochures and other literature about the or-

ganization 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 pro-

viding opportunities for students and employers to meet and discuss poten-

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tial hiring. Preliminary interview with employers is done. Students are given

detailed influence about the job and the profile. Salaries are negotiated.

The expenses are borne by the organization. Many of the changes are de-

signed to reduce overall recruiting costs while maintaining a strong appli-

cant'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 ap-

plicants, 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 orga-

nization. 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 strate-

gies 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 recruit-

ment 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 re-

cruitment 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 restructur-

ing. 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 flexi-

ble work arrangement will mean something different to every employee, so it

is important to dearly delineate what key employees want and need with re-

spect to flexibility. Flexibility can also be offered by introducing compressed

work weeks, flexible starting times and comp time where workers can leave

work for an hour or two to deal with family matters. An increase in the com-

15

pensation can also help retain a key employee. Retention bonuses have

also been used successfully as a means of getting technical staffers. With-

out 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 ac-

commodate to their employers.

The following factors entice first careerist to stay with the job and the com-

pany:

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 be-

come a real problem in organization's today. Downsizing and restructuring

has severely restricted the potential for vertical movement in many manage-

rial 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 individ-

uals 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 tem-

porary 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 responsi-

ble 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 ex-

penses 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 re-

cruiting should be evaluated periodically. One of the most important reasons

to evaluate recruiting method is to determine the cost versus benefits of vari-

ous 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 cost-effective

method of recruiting. Further employees within the organization may per-

ceive 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 effec-

tiveness 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 re-

quire 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 se-

lection 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 informa-

tion. 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 per-

form 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 in-

volves 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 fu-

ture performance, the time and cost of developing an effective are often pro-

hibitive.

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 re-

sources manager in hiring employees. The following section covers mental

ability test, work sample tests, trainability tests, personality and interest in-

ventories 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 understand-

ing 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 mea-

sure motor skills or verbal skills. Work sample tests should test the impor-

tant 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.

Trainability tests

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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 mod-

erate 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 in-

cluding 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 aggres-

sion, 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. Com-

panies that use this type of pre employment tests must therefore ensure that

21

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 stereo-

typing, 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

up questions. During the interview, the interviewer records his or her

22

thoughts and reactions on a standard organizational form. When differ-

ent interviewer reach the same or similar conclusion about a given can-

didate, the interrater reliability is high. Unfortunately this type of inter-

view 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 evalu-

ate 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 re-

garding exactly what and how questions are asked. Although the inter

rater reliability is not so high as with structured interview, the informa-

tion 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. Un-

structured 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 man-

agerial 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 per-

forms in simulated job situations.

Although the validity of assessment center tends to be high, some problems

recently have been identified with this selection device.

24

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 fa-

vored 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 -edu-

cate themselves and proceed to the next phase of their portfolio careers'

Abandoning their old policies of hiring only at the bottom, therefore compa-

nies will have to induct new talent at every level, including those where inter-

nal 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 out-

side their conventional hunting grounds. For that is where people with un-

orthodox Winning ideas will come from CE0s looking for breakthrough mar-

keters will have to recruit them from other industries since everyone already

25

in the sector will only offer tired ideas. Hunting for knowledge workers, com-

pany 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 recruit-

ment 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 diversifi-

cation's must look for pragmatists; companies chasing growth through al-

liances 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, dis-

position, attainments, general intelligence, special aptitudes are even physi-

cal 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 psycho-

graphics 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 abil-

ity, 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 interviews will have

to be trained interviewing skills. And companies will have to use multi-ses-

26

sion 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 tar-

gets 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 as-

sess the strength of the recruiting process.

Some companies evaluate candidates through multiple interviewers, assess-

ment tests, reference and credit checks, background and educational verifi-

cations. 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.

Companies can design a brief performance evaluation process and use it on

new entrants, within six and 18 months of joining. The quality of perfor-

mance puts the recruiting process to test.

27

While filling internal positions, the recruiting manager responds to his inter-

nal 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. Managers also seek feedback from the can-

didates themselves. 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. An-

other 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 be-

tween 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 incum-

bents 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 fo-

cus 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.

Some companies believe that external hiring give facts about the competi-

tors. External hiring brings in new ideas, perspectives, competencies and

readymade skills that do away with the need for much investment on train-

ing. On the other hand internal recruitment works fine, sometimes better.

28

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 over-

staffing, 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 com-

pany favors internal over external sources, it also addresses the critical is-

sue 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 train-

ing costs.

The above kind of a process involves psychometric profilers, offsite interac-

tive 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 re-

duction 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 exist-

ing positions even considering outsourcing. Jobs are diminishing, merging

or even disappearing altogether. While there are definite signs of conven-

tional recruitment activity having slowed down, there are strong signals that

organization's are successfully experimenting with more innovative tech-

29

niques of talent scouting and sourcing of requisite skills need to be replen-

ished.

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 compet-

ing on grounds of quality and value added service. But he has started look-

ing for different sourcing options. Employee referrals, for one is gaining pop-

ularity.

Employee referrals

Reliance on personal contacts is still a strong source of recruitment world-

wide and is being capitalized in more sophisticated ways by many organiza-

tion'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 an-

nouncement 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

and past experience, the company concentrates on recruiting people for

their personality, so that people could fit in.

30

A new selection aid

All India Management Association (AIMA) has taken a useful initiative by in-

troducing an all India level test for the employability of prospective manage-

ment 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, aware-

ness 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, La-

bor&T, GEC Alsthom Ltd, DCM Shriram etc. the scores achieved by the can-

didates in this test along with other details are sent to corporates to be short-

listed for 'Interviews and subsequent placement. Corporate houses get ac-

cess 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 indi-

vidually 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. Organiza-

tion’s adopt specific recruiting strategies tailored to their business needs.

These business needs may change depending on the stage of growth of the

organization.

31

Recruitment strategy varied with stage of growth of the organization

Business situation Characteristics of busi-ness situation

Characteristics of candidate

Starting a new business Financial riskNo systems/procedures/ organizationOperational experience base is lacking.Limited relation withSuppliers, customers.

VisionIn-depth knowledgeStaffingOrganizing and teamBuilding.

Turnaround Need for rapid decision making.Weak competitive position.Low esteem/morale.Bureaucratic organization structure.Incompetent/inefficient per-sonnel.

Strong leaderStrong analytical skillsBusiness strategistGood crisis manage-mentSkills.Credibility.

New acquisitions New management proving themselvesExisting management de-fensive about changeNeed to integrate acquired company with parent

Analytical abilityRelationship building skillsCredibility.

Liquidation of business Weak competitive positions Low returnsLow morale, deficiency of skillsNeed to cut losses and make decisions

DeterminationHighly analytical in case of cost/benefitsWilling to do dirty jobsWants to be respected not just liked

Redeployment Low short term/long term risksResistance to changeMismatch of organization resources and needLack of strategic plan for quite some time.

Good manager of change.Highly persuasive.Supportive.Risk taker.

32

What are the skill sets

Process skills are being given more importance as compared to solely tech-

nical skills. Recruiters are keenly selecting for general attributes like ability

to cope with change, leadership, entrepreneurship, project management, tol-

erance of uncertainty, management skills and communication ability. The

five top skills sought in entry level candidates on campus are communication

skills, team working, listening and problem solving.

33

RATIONALE TO THE STUDY

Recruiting and screening is the first line of defense when it comes to bring-

ing the right people into the organization. Determining who the right people

are should not end with experience and education, but with personality, atti-

tude, 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 sometimes-

even 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 se-

nior 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 na-

ture of work itself is in flux.

Until the 1990s, jobs were pretty uniform. In the classic, functional organiza-

tion 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 preva-

lence 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.

34

Many talented people leave their organizations because senior managers

don't understand the psychology of work satisfaction; they assume that peo-

ple who excel at their work are necessarily happy in their jobs. Strong skills

do not always reflect or lead to job satisfaction. Many professionals, particu-

larly the leagues of 20-30 something's streaming out of today's MBA pro-

grams, are so well educated and achievement oriented that they could suc-

ceed 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. Em-

ployee/ 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 under such situations

seemed a challenging and interesting task. .

35

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 re-

cruitment 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 for-

mats 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

36

COMPANY PROFILE OF INDIAN OIL COR-

PORATION 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 op-

erating 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 prod-

ucts reach the customer at the "right place and right time". IndianOil's re-

fineries and pipelines have been consistently achieving more than 100% ca-

pacity 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 tomor-

row" – of becoming an integrated and diversified "Global Energy Corpora-

tion". 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 ar-

eas.

37

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.)

38

VISION

A major diversified , transnational , integrated energy company , with na-

tional 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 stakehold-

ers.

To attain leadership in developing, adopting and assimilating state-of-

the-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 Man-

agement 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.

39

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 de-

velopment 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 (In-

corporated in 1959). The merger took effect from September 1st 1964, with

the new name, IndianOil Corporation Ltd., with its Registered office at Bom-

bay (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 re-

fining share of 32%. IndianOil's seventh refinery at Panipat was commis-

40

sioned in 1998 .IndianOil's total refining capacity is now 35.6 Million Tonnes-

per Annum.

IndianOil commissioned India's first product pipeline, the Guwahati -Siliguri

pipeline in 1965. The 435-km pipeline connecting Guwahati Refinery to dif-

ferent 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 dur-

ing 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 techno-

participation 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 consul-

tancy services, and marketing of products, including lubricants.

41

Capabilities

IndianOil's capabilities in the downstream sector of operations in the oil sec-

tor 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 commit-

ment to creativity and consultation. The organisation identifies each and ev-

eryone 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.

42

Career growth opportunities

IndianOil inducts officers at the junior-most level of the management hierar-

chy. First division professional degree holders and post-graduates from rele-

vant disciplines are recruited as management/ engineer trainees , accounts

officers, medical officers, lab officers, systems officers, communications offi-

cers, scientists, etc.

Job rotation and inter-location transfers throughout the country facilitate

planned development of careers and broaden outlook. Career growth oppor-

tunities 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 em-

ployee 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.

43

Training and Development

IndianOil conducts structured training programmes for its employees both in

general management and functional management disciplines. It also pro-

vides them opportunities to avail of membership of professional bodies.

Monetary incentives are also available for those acquiring additional qualifi-

cations.

IndianOil Institute of Petroleum Management at Gurgaon conducts round-

the-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 Interna-

tional Centre for Promotion of Enterprises, Ljubljana and University of Ljubl-

jana, Slovenia. Initially starting with IndianOil’s own employees in 1996-97,

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)

44

ANALYSIS

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 man-

agement. 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 environ-

ment. As a result it does not allow them to keep a focused approach eventu-

ally 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 require-

ments 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 cor-

porate objectives since the profiles of each are drawn up in consultations

with the line management, top management ( depending whether manage-

rial 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

45

is imperative for the company to keep a tab on its requirememts and invest

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 organi-

zation 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 be-

comes 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 non-manage-

rial level. The job definition does take place prior to the recruitment process,

which involve the line manager largely judging the job profile. This helps re-

cruit 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 defini-

tion 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.

46

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 in-

dulges 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 man-

agerial 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 eli-

gible for consideration for promotion within the same cadre/discipline on

completion of the prescribed eligibility period and attainment of satisfactory

standards in conduct & performance.

47

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 cre-

ation 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 in-

ducting 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

personal interview. The selected candidates are distributed among the sepa-

48

rate Division of IOC (It has 3 Divisions viz. Refineries Division, Marketing Di-

vision & Pipelines Division) depending upon manpower requirements.

An outside professional agency in the recruitment field is engaged for con-

ducting 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 per-

formed 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 In-

dia as well as the employment news through the Advertising Agency.

49

Pre-written Test Activities by Agency

Receipt of Applications through post box from Post Office. Applica-

tions are invited from all parts of India Generally 3-4 weeks time is

given so that response is maximum. Also there are some remote ar-

eas in India where courier service is not available hence postal ser-

vice takes normal 7 days time.

Screening of Application

Entry / processing of bio-data of candidates in computers in the pro-

forma 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 Apti-

tude and one for concerned discipline. The question paper for Gen-

eral Aptitude is common for all candidates.

Printing of question papers (under tight security)

Sealing and dispatch of question booklets to various test centers (un-

der 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

Nomination of supervisors / officers

50

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 dif-

ferent cities (as on date) throughout India on a specified date the

number of venues / cities vary depending upon the number of candi-

dates 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.

Conducting of GD/GT & Interview

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

51

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 mem-

bers 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 pro-

duction 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 suc-

cessfully before being judged suitable for selection. Each stage of selection

is treated as qualifying/elimination at the stage of written test, the cut-off per-

centages of marks for each deceptive and category are decided taking into

account the number of vacancies, reservation requirements and of candi-

dates 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 in-

dependent of each other. However, they are required to score minimum pre-

sented markets both in GD/GT and interview acting, which they are disquali-

fied 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.

Distribution of selected candidate among different dimension of TOC,

depending upon manpower requirements.

52

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 al-

lotted 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.

53

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 con-

strain 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 per-

sonnel experience. The people interview there is from GM's to Executive di-

rectors to head personnel. Hence the inputs would vary greatly amongst

them due to the difference in level of authority and experience.

54

CONCLUSIONS

With the liberalization bringing in new talent and increased competition , re-

cruitment 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 gov-

ernment. 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.

55

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.

56

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

57

QUESTIONAIRE

1.What all methods of recruitment being adopted at IOCL

Direct Recruitment Employee Referral Employee exchange 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?

58

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 Experience Career expectations National mobility Compensation 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 Relations with labor unions Cost associated with recruitment 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” , “ learn-ing environment”?

18.How important is job definition in the recruitment process? Does it pre-cede 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 ?

59