Project report - kalpana jain

A Project Report on

Recruitment & Selection in PSSPL, a Group Company of ISPAT Group and
GSHL Group ( Global Steel Holdings Ltd )

Masters in Business Administration

Semester I

Submitted at

Premiere Supplies and Services Pvt Ltd

Submitted

By

Ms. Kalpana Jain

to

Ms. Shailaja Patil,University of Pune

Under the Guidance of

Mr Vipul Saxena, Group VP-HR : ISPAT Group and GSHL Group
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(2010- 2012)

ACKNOWLEDGEMENT

The Joy of ingenuity! This is doubtlessly what this project is
about. Before getting to brass tasks of things, I would like to add a
heartfelt word for all the people who have in their own sweet
ways helped me in bringing out the creativeness of this project.

This project would just not have been complete without the
valuable contributions from various people whom I have
interacted with in the course of its completion.

I firstly thank the University & my MIMS Director Ms. Shailaja
Patil for giving me an opportunity to learn from this project
.
I would like to take this opportunity to express my sincere
gratitude and thank my Project Guide, Mr Vipul Saxena Group
VP-HR, Ispat Group & GSHL Group and also for assistance Mr.
Ashok Sinha & one of the team member of PSSPL, Ms. Namita
Barve for humbly helping me in the project. Without them this
project would just have been an idea without form or content.

Special thanks to Respected Mr. Vipul Saxenaji & Mr. Sarodeji
for their continuous support, encouragement, & undeterred
guidance for completion of this project.

My Parents need special mentions here for their constant support
& love in my life. I also would like to thank my friends & well-
wishers who have provided their whole-hearted support to me in
this exercise.

I believe that this endeavor has prepared me for taking up new
challenging opportunities in future.

Last but not least I wish to thank all people who have lent me a
helping hand in finishing this project whose names are too
numerous to be mentioned here.

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INDEX

Sr. Page
No Table of Contents No
1 Executive Summary 4
2 Objective 5
3 Introduction 6
4 Recruitment 7
5 Purpose and Importance of Recruitment 8
6 Sources of Recruitment 9
7 Factors affecting Recruitment 12
8 Recruitment Policy of the Company 14
9 Components of Recruitment Policy 15
10 Trends in Recruitment 16
11 Selection 19
12 Organization for selection 20
13 Barriers to Effective Selection 20
14 Essential of Selection Procedure 20
15 Factors affecting Selection Decision 20
16 Recruitment vs Selection 21
17 Important aspects of Recruitment 21
18 PSSPL- Vision and Mission 35
19 Company Profile 36
20 Recruitment and Selection at PSSPL 39
21 Research Methodology 63
22 Observation and Findings 64
23 Suggestion and Conclusion 66
24 Webliography 67

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Executive Summary

People form an integral part of the organization. The efficiency and quality of its people determinesthe
fate of the organization. Hence choice of right people and placing them at right place becomes
essential. Hiring comes at this point of time in the picture. Hiring is a strategic function for HR
department

The project report is about recruitment and selection process that‘s an important part of any
organization which is considered as a necessary asset of a company. In fact, recruitment and selection
gives a home ground to the organization acumen that is needed for proper functioning of the
organization. It gives an organizational structure of the company. It‘s a methodology in which the
particular organization works and how a new candidate could be recruited in such a way that he/she
would be fitted for the right kind of career.

Recruitment and selection form the process of hiring the employees. Recruitment is the systematic
process of generating a pool of qualified applicant for organization job. The process includes the
step like HR planning attracting applicant and screening them. This step is affected by various
factors, which can be internal as well as external. The organization makes use of various
methods and sources for this purpose.

In order to learn the recruitment and selection process, vocational training was done for two months at
PSSPL, a Group Company of ISPAT Group and GSHL Group ( Global Steel Holdings Ltd ).
PSSPL stands for Premier Supplies & Services Private Limited. This is a well equipped for
faster, timely & efficient sourcing to cater to all Man power Recruitment, Training &
Development and Performance Management, Procurement, Supply related jobs assigned by Steel
Plants of ISPAT Group and GSHL Group ( Global Steel Holdings Ltd ) in India and
Overseas. They specialize in supply of all type of Spares, Consumables like Ferro Alloys,
Electrodes, etc & different kind of Raw material. Also they provide Engineering & Consultancy
Services for steel and allied Industries.

The purpose of the study was to understand the behaviors as well the techniques used in hiring a
candidate. Observations and suggestions were made so as to enhance the quality of the effort
taken. Attrition and recruitment are directly proportional to each other whereas retention and
recruitment are inversely proportionate. In the same manner the cost of the company and attrition
are directly linked with each other. Higher the attrition rate higher would be the recruitment rate
in turn increasing the company`s cost. This attribute was learnt during the course of the training.

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To study and understand the methods and procedures used for recruitment & selection in
PSSPL, a Group Company of ISPAT Group and GSHL Group ( Global Steel Holdings
Ltd )
The objective of the Recruitment Policy is to resource the best talent through
Internal and External sources to achieve the Business Objectives and Goals of the
Company
To learn what is the process of Recruitment & Selection that should be followed
Develop recommendations to overcome the barriers to the Recruitment & Selection
Procedures
This project will provide a value insight to student on the topic as well as help to get
the practical knowledge in employee hiring in the organization
To give suggestions on the basis of the observations made during the course of
vocational training at PSSPL, a Group Company of ISPAT Group and GSHL Group (
Global Steel Holdings Ltd )

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Introduction

People are integral part of any organization today. No organization can run without its human
resources. In today‘s highly complex and competitive situation, choice of right person at the
right place has far reaching implications for an organization‘s functioning. Employee well
selected and well placed would not only contribute to the efficient running of the organization
but offer significant potential for future replacement. This hiring is an important function.
The process of hiring begins with human resource planning (HRP) which helps to determine
the number and type of people on organization needs. Job analysis and job design enables to
specify the task and duties of hobs and qualification expected from prospective job HRP, job
analysis, job design helps to identify the kind of people required in an organization and hence
hiring. It should be noted that hiring is an ongoing process and not confined to formative
stages of an organization.
Employees leave the organization in search of greener pastures, some retire and some die in
the saddle. More importantly an enterprises grows, diversifies, take over the other units all
necessitating hiring of new men and women. In fact the hiring function stops only when the
organization ceases to exist.

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Recruitment

According to Edwin B. Flippo, recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization‖. Recruitment is the
activity that links the employers and the job seekers. A few definitions of recruitment are:

 Recruitment is a process of finding and attracting capable applicants for
employment. The process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applications from which new
employees are selected.
 Recruitment is the process to discover sources of manpower to meet the
requirement of staffing schedule and to employ effective
 Recruitment measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organization so that the management can select the
right candidate for the right job from this pool. The main objective of the recruitment
process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of
qualified applicants for the future human resources needs even though specific vacancies
do not exist. Usually, the recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy.

Recruitment needs are of three types:

o Planned
Planned needs are those needs arising from changes in organization and retirement policy.

o Anticipated
Anticipated needs are those movements in personnel, which an organization can predict by
studying trends in internal and external environment.

o Unexpected
Resignation, deaths, accidents, illness give rise to unexpected needs.

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Purpose & Importance Of Recruitment

The Purpose and Importance of Recruitment are given below:

 Attract and encourage more and more candidates to apply in the organization.
 Create a talent pool of candidates to enable the selection of best candidates for the
organization.
 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
 Recruitment is the process which links the employers with the employees.
 Increase the pool of job candidates at minimum cost.

This help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants. It also helps to reduce the probability that job applicants
once recruited and selected will leave the organization only after a short period of time. It meets
the organizations legal and social obligations regarding the composition of its workforce. It begins
identifying and preparing potential job applicants who will be appropriate candidates. It increases
organization and individual effectiveness of various recruiting techniques and sources for all types
of job applicants

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1) Sources of Recruitment

Every organization has the option of choosing the candidates for its recruitment processes from
two kinds of sources: internal and external sources. The sources within the organization itself (like
transfer of employees from one department to other, promotions) to fill a position are known as
the internal sources of recruitment. Recruitment candidates from all the other sources (like
outsourcing agencies etc.) are known as the external sources of the recruitment.

SOURCES OF RECRUITMENT

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1.1) Internal Sources of Recruitment

Some Internal Sources Of Recruitments are given below:

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

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

1.1.3) Upgrade /Demotion
Others are Upgrading and Demotion of present employees according to their performance.

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

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

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1.2) External Sources of Recruitment

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

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

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

1.2.4)Employment Exchanges

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

1.2.5) Labor Contractors

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

1.2.6) Unsolicited Applicants

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

1.2.7) Employee Referrals / Recommendations

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

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

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2) Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be controlled
by the organization. And the external factors are those factors which cannot be controlled by
the organization. The internal and external forces affecting recruitment function of an
organizationare:

FACTORS AFFECTING RECRUITMENT

2.1) Internal Factors Affecting Recruitment
The internal factors or forces which affecting recruitment and can be controlled by the
organization are

2.1.1) Recruitment Policy

The recruitment policy of an organization specifies the objectives of recruitment and
provides a framework for implementation of recruitment program. It may involve
organizational system to be developed for implementing recruitment programers and
procedures by filling up vacancies with best qualified people. There are certain factors which
affect the recruitment policy such as
Organizational objectives
Personnel policies of the organization and its competitors
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
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2.1.2) Human Resource Planning

Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.

2.1.3)Size of the firm

The size of the firm is an important factor in recruitment process. If the organization is
planning to increase its operations and expand its business, it will think of hiring more
personnel, which will handle its operations.

2.1.4) Cost

Recruitment incur cost to the employer, therefore, organizations try to employ that source
of recruitment which will bear a lower cost of recruitment to the organization for each
candidate.

2.1.5) Growth and Expansion

Organization will employ or think of employing more personnel if it is expanding it‘s
operations.

2.2) External Factors Affecting Recruitment

The external factors which affecting recruitment are the forces which cannot be controlled
by the organization. The major external forces are:

2.2.1)Supply and Demand

The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.

2.2.2)Labor Market

Employment conditions in the community where the organization is located willinfluence
the recruiting efforts of the organization. If there is surplus of manpower at the time of
recruitment, even informal attempts at the time of recruiting like notice boards display of
the requisition or announcement in the meeting etc will attract more than enough
applicants.

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2.2.3) Image / Goodwill

Image of the employer can work as a potential constraint for recruitment. An organization
with positive image and goodwill as an employer finds it easier to attract and retain
employees than an organization with negative image. Image of a company is based on
what organization does and affected by industry. For example finance was taken up by
fresher MBA‘s when many finance companies were coming up.

2.2.4) Political – Social – Legal Environment

Various government regulations prohibiting discrimination in hiring and employment have
direct impact on recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled tribes,
physically handicapped etc. Also, trade unions play important role in recruitment. This
restricts management freedom to select those individuals who it believes would be the best
performers. If the candidate can‘t meet criteria stipulated by the union but union
regulations can restrict recruitment sources.

2.2.5) Unemployment Rate
One of the factors that influence the availability of applicants is the growth of the
economy (whether economy is growing or not and its rate). When the company is not
creating new jobs, there is often oversupply of qualified labor which in turn leads to
unemployment.

2.2.6) Competitors

The recruitment policies of the competitors also affect the recruitment function of the
organizations. To face the competition, many a times the organizations have to change
their recruitment policies according to the policies being followed by the competitors.

3) Recruitment Policy of a Company

In today‘s rapidly changing business environment, a well defined recruitment policy is
necessary for organizations to respond to its human resource requirements in time. Therefore, it
is important to have a clear and concise recruitment policy in place, which can be executed
effectively to recruit the best talent pool for the selection of the right candidate at the right place
quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A
clear and concise recruitment policy helps ensure a sound recruitment process.

It specifies the objectives of recruitment and provides a framework for implementation of
recruitment program. It may involve organizational system to be developed for implementing
recruitment program and procedures by filling up vacancies with best qualified people.

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4) Components of the Recruitment Policy

The general recruitment policies and terms of the organization are as below:

o Recruitment services of consultants
o Recruitment of temporary employees
o Unique recruitment situations
o The selection process
o The job descriptions
o The terms and conditions of the employment

A recruitment policy of an organization should be such that:

o It should focus on recruiting the best potential people
o To ensure that every applicant and employee is treated equally with dignity and
respect
o Unbiased policy
o To aid and encourage employees in realizing their full potential
o Transparent, task oriented and merit based selection
o Weight age during selection given to factors that suit organization needs
o Optimization of manpower at the time of selection process
o Defining the competent authority to approve each selection
o Abides by relevant public policy and legislation on hiring and employment
relationship
o Integrates employee needs with the organizational needs.

Factors affecting recruitment policy

o Organizational objectives
o Personnel policies of the organization and its competitors
o Government policies on reservations
o Preferred sources of recruitment
o Need of the organization
o Recruitment costs and financial implications
o Recent Trends in Recruitment

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5) Trends in Recruitment
The following trends are being seen in recruitment:

5.1)Outsourcing
In India, the HR processes are being outsourced from more than a decade now. A company may
draw required personnel from outsourcing firms. The outsourcing firms help the organization by
the initial screening of the candidates according to the needs of the organizationand creating a
suitable pool of talent for the final selection by the organization. Outsourcing firms develop their
human resource pool by employing people for them and make available personnel to various
companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the
organizations for their services.

Advantages of outsourcing are:

o Company need not plan for human resources much in advance
o Value creation, operational flexibility and competitive advantage
o turning the management's focus to strategic level processes of HRM
o Company is free from salary negotiations, weeding the unsuitable resumes/candidates
o Company can save a lot of its resources and time

5.2) Poaching / Raiding

―Buying talent‖ (rather than developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and experienced person already
working with another reputed company in the same or different industry; the organization
might be a competitor in the industry. A company can attract talent from another firm by
offering attractive pay packages and other terms and conditions, better than the current
employer of the candidate. But it is seen as an unethical practice and not openly talked about.
Indian software and the retail sector are the sectors facing the most severe brunt of poaching
today. It has become a challenge for human resource managers to face and tackle poaching, as
it weakens the competitive strength of the firm.

5.3) E- Recruitment

Many big organizations use Internet as a source of recruitment. E-recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through worldwide
web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using
the Internet. Alternatively job seekers place their CV‘s in worldwide web, which can be drawn
by prospective employees depending upon their requirements.
Advantages of recruitment are:

o Low cost
o No intermediaries
o Reduction in time for recruitment
o Recruitment of right type of people
o Efficiency of recruitment process.
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E-Recruitment

The buzzword and the latest trends in recruitment is the ―E-Recruitment‖. Also known as ―Online
recruitment‖, it is the use of technology or the web based tools to assist the recruitment processes.
The tool can be either a job website like naukri.com, the organization‘s corporate web site or its
own intranet. Many big and small organizations are using Internet as a source of recruitment.
They advertise job vacancies through worldwide web. The job seekers send their applications or
curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their
CV‘s in worldwide web, which can be drawn by prospective employees depending upon their
requirements.
The internet penetration in India is increasing and has tremendous potential. According to a study
by NASSCOM – ―Jobs is among the top reasons why new users will come on to the internet,
besides e-mail.‖ There are more than 18 million resume‘s floating online across the world.
The two kinds of e-recruitment that an organization can use is –

5.3.1) Job portals – i.e. posting the position with the job description and the job specification on
the job portal and also searching for the suitable resumes posted on the site corresponding to the
opening in the organization.

Creating a complete online recruitment/application section in the company‘s own website. -
Companies have added an application system to its website, where the ‗passive‘ job seekers can
submit their resumes into the database of the organization for consideration in future, as and when
the roles become available.

5.3.2) Resume Scanners: Resume scanner is one major benefit provided by the job portals to the
organizations. It enables the employees to screen and filter the resumes through pre-defined
criteria‘s and requirements (skills, qualifications, experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the
just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost
immediately and is also cheaper than advertising in the employment newspapers.
Sometimescompanies can get valuable references through the ―passers-by‖ applicants. Online
recruitment helps the organizations to automate the recruitment process, save their time and costs
on recruitments.

5.3.3) Online recruitment techniques

Giving a detailed job description and job specifications in the job postings to attract
candidates with the right skill sets and qualifications at the first stage
E-recruitment should be incorporated into the overall recruitment strategy of the
organization
A well defined and structured applicant tracking system should be integrated and the
system should have a back-end support
Along with the back-office support a comprehensive website to receive and process job
applications (through direct or online advertising) should be developed

Therefore, to conclude, it can be said that e-recruitment is the ―Evolving face of recruitment.‖
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5.3.4) Advantages & Disadvantages of E-Recruitment

There are many benefits – both to the employers and the job seekers but the e-recruitment is not
free from a few shortcomings. Some of the advantages and the disadvantages of e-recruitment are
as follows:

Advantages of E-Recruitment are:

Lower costs to the organization. Also, posting jobs online is cheaper than advertising in
the newspapers.
No intermediaries.
Reduction in the time for recruitment (over 65 percent of the hiring time).
Facilitatesthe recruitment of right type of people with the required skills.
Improved efficiency of recruitment process.
Gives a 24*7access to an online collection of resumes.

Online recruitment helps the organizations to weed out the unqualified candidates in an
automated way.

Recruitment websites also provide valuable data and information regarding the compensation
offered by the competitors etc. which helps the HR managers to take various HR decisions like
promotions, salary trends in industry etc

5.3.5) Disadvantages of E-Recruitment

Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:

Screening and checking the skill mapping and authenticity of million of resumes is a
problem and time consuming exercise for organizations.
There is low Internet penetration and no access and lack of awareness of internet in many
locations across India.
Organizations cannot be dependant solely and totally on the online recruitment methods.
In India, the employers and the employees still prefer a face-to-face interaction rather than
sending e-mails.

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Selection

Selection is a negative process and involves the elimination of candidates who do not have the
required skills and qualification for the job proposed. Also it is a process of differentiating between
applicants in order to identify and hire those with grater likelihood of success in job.

The objective of selection decision is to choose the individual who can most successfully perform the
job from the pool of qualified candidates. It is the system of function and devise adopted in a given
company to ascertain whether the candidate’s specifications are matched with the job specifications
and recruitment or not.

Selection process or activities typically follow a standard patter, beginning with an initial screening
interview and concluding with final employment decision. The traditional selection process includes:
preliminary screening interview, completion of application form, employment test, comprehensive
interview, background investigation, physical examination and final employment decision to hire.

Organization for selection

Until recently the basic hiring process was performed in a rather unplanned manner in many
organizations. In some companies, each department screened and hired its own employees. Many
mangers insisted on screening their own employees as they thought no one else could do that as
efficiently as they themselves.

But now selection is centralized and handled by the Human Resource Department. This type of
arrangement is also preferred due to some of these advantages:
- It is easier for the application because they can send their applications to a single centralized
department.
- It facilitates contact with applicants because issues pertaining to employment can be cleared through
one central location.
- It helps operating managers to concentrate on their operating responsibilities. This is especially
helpful during the chief hiring period.
- It can provide for better selection because hiring is done by specialist trained in staffing techniques.
- The applicant is better assured of consideration for a greater variety of jobs.
- Hiring cost is cut because duplication of efforts is reduced.
- With increased governmental regulation on selection process, it is important that people who know
about these rules handle a major part of the selection process.

Ideally, a selection process involves mutually decision making. The organization decides whether or
not to make a job offer and how attractive the job offer should be.

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Barriers to Effective Selection

The main objective of selection process is to hire people having competence and commitment
towards the given job profile. But due to some reason the main purpose of effectively selecting
candidates is defeated. These reasons are:

1: Perception or the Halo effect: Many a times the interviewer selects a candidate according to
the perception he has or he made up while talking or looking at the individual. This way he does
not see through the caliber or the efficiency of the individual and many times it leads to the
selection of the wrong candidates.

2: Fairness: During the selection process the interviewer does not select the individual on the
basis of his knowledge and hence the right type of the candidates is not selected.

3: Pressure: The people from the HR department and also have a lot of pressure from the top
management and from other top class people for selecting the candidates they want. This ways
the purpose of effective selection process of effective selection process is defeated as they have
to select that individual whether or not he is capable of the job. that is being offered.

Essential of Selection Procedure

 Someone should have the authority to select.
 There must be sufficient number of applicants from whom the required number of employees to
be selected.
 Theremust be some standards of personnel with which a prospective employee may be compared.

Factors affecting Selection Decision
Includes:

Profile matching
Organization and social environment
Multi correlations
Successive hurdles

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6) Recruitment Vs Selection

Both recruitment and selection are the two phases of the employment process. The differences
between the two are:

The recruitment is the process of searching the candidates for employment and stimulating them
to apply for jobs in the organization WHEREAS selection involves the series of steps by which
the candidates are screened for choosing the most suitable persons for vacant posts.
The basic purpose of recruitments is to create a talent pool of candidates to enable the selection
of best candidates for the organization, by attracting more and more employees to apply in the
organization WHEREAS the basic purpose of selection process is to choose the right candidate
to fill the various positions in the organization.

Recruitment is a positive process i.e. encouraging more and more employees to apply
WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.

Recruitment is concerned with tapping the sources of human resources WHEREAS selection is
concerned with selecting the most suitable candidate through various interviews and tests.

There is no contract of recruitment established in recruitment WHEREAS selection results in a
contract of service between the employer and the selected employee.

7) Important aspects of Recruitment

7.1 ) Types of Job Seekers

7.1.1) Quid Pro Que
These are the people who say that ― I can do this for you, what can you give me‖ These people
value high responsibilities, higher risks, and expect higher rewards, personal development and
company profiles doesn‘t matter to them.

7.1.2) I will be with you
These people like to be with big brands. Importance is given to brands. They are not bothered
about work ethic, culture mission etc.

7.1.3) I will do you what you want
These people are concerned about how meaningful the job is and they define meaning
parameters criteria known by previous job.

7.1.4)where do you want me to come
These people observe things like where is your office, what atmosphere do you offer. Career
prospects and exciting projects don‘t entice them as much. It is the responsibility of the recruiter
to decide what the employee might face in given job and thus take decision. A good decision
will help cut down employee retention costs and future recruitment costs.

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7.2) Recruitment Management System

Recruitment management system is the comprehensive tool to manage the entire recruitment
processes of an organization. It is one of the technological tools facilitated by the information
management systems to the HR of organizations. Just like performance management, payroll and
other systems, Recruitment management system helps to contour the recruitment processes and
effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management system are explained
below:

Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and reliable
processing of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.
Recruitment management system helps to incorporate and integrate the various links like
the application system on the official website of the company, the unsolicited applications,
outsourcing recruitment, the final decision making to the main recruitment process.
Recruitment management system maintains an automated active database of the applicants
facilitating the talent management and increasing the efficiency of the recruitment
processes.
Recruitment management system provides and a flexible, automated and interactive
interface between the online application system, the recruitment department of the
company and the job seeker.
Offers tolls and support to enhance productivity, solutions and optimizing the recruitment
processes to ensure improved ROI.
Recruitment management system helps to communicate and create healthy relationships
with the candidates through the entire recruitment process.

The Recruitment Management System (RMS) is an innovative information system tool which
helps to sane the time and costs of the recruiters and improving the recruitment processes.

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7.3) ROI on Recruitment
Before making any investment, every organization would want to evaluate the investment by
answering the following questions in quantifiable terms:

What are the costs and the corresponding and related risks on the investment?
What are the expected returns of the investment?
What is the expected pay-back period of the investment?

An organization makes a tremendous amount of investment in its recruitment processes.
A lot of resources like time and money are spent on recruitment processes of an organization. But
assessing or quantifying the returns on the recruitment process, or, calculating the return on
investment (ROI) on recruitment is a complicated task for an organization. Indeed, it is difficult to
judge the success of their recruitment processes. Instead, recruitment is one activity that continues
in an organization without anyone ever realizing its worth or measuring its impact on the
organization‘s business.

According to a survey, 38 % of organizations do not prepare or produce any kind of documents or
reports on theirrecruitment processes, and there is no accountability of the HR department for the
costs incurred and the opportunities missed.

With the increasing strategic focus on the human resources, more and more organizations are
adopting one or the other way for calculating the ROI on its recruitments. Many organizations are
examining their HR functions and processes and are trying to quantify their results and returns.

A recruitment professional or manager can calculate and maximize the return on investments on
its organization‘s recruitment by-

Clear definition of the results to be achieved from recruitment.
Developing methods and ways measuring the results like the time – to – hire, cost-Per-
Hire and effectiveness of the recruitment source etc.
Estimating the costs associated with the recruitment project
Estimating the tangible and intangible benefits to the organization including the payback
period of the recruitments.
Providing and ensuring proper training and development of the recruitment professionals

Assessing the ROI on recruitments can assist an organization to strengthen its HR
processes, improving its recruitment function and to build a strategic human resource
advantage for the organization.

23

7.4)Outsourcing Recruitment
Outsourcing Recruitment is the human resource (HR) processes is the latest practice being
followed by middle and large sized organizations. It is being witnessed across all the industries. In
India, the HR processes are being outsourced from nearly a decade now. Outsourcing industry is
growing at a high rate.

Human Resource Outsourcing refers to the process in which an organization uses the expert
services of a third party (generally professional consultants) to take care of its HR functions while
HR management can focus on the strategic dimension of their function. The functions that are
typically outsourced are the functions that need expertise, relevant experience, knowledge and
best methods and practices. This has given rise to outsourcing the various HR functions of an
organization. HR Consultancies such as Ma Foi and Planman Consulting provide such services
through expert professional consultants. Human resources business process outsourcing (HR
BPO) is a major component of the worldwide BPO market. Performance management outsourcing
involves all the performance monitoring, measurement, management being outsourced from a
third party or an external organization.

Many organizations have started outsourcing its recruitment process i.e. transferring all or some
part of its recruitment process to an external consultant providing the recruitment services. It is
commonly known as RPO i.e. recruitment process outsourcing. More and more medium and large
sized organizations are outsourcing their recruitment process right from the entry level jobs to the
C-level jobs.
The present value of the recruitment process outsourcing industry (RPO) in India is estimated to
be $2.5 billion and it is expected to grow at the annual rate of 30-40 per cent for the next couple
of years. According to a recent survey, only 8-10 per cent of the Indian companies are complete
recruitment processes. However, the number of companies outsourcing their recruitment
processes is increasing at a very fast rate and so is the percentage of their total recruitment
processes being outsourced.

Outsourcing organizations strive for providing cost saving benefits to their clients. One of the
major advantages to organizations, who outsource their recruitment process, is that it helps to save
up to as much as 40 per cent of their recruitment costs. With the experience, expertise and the
economies of scale of the third party, organizations are able to improve the quality of the recruits
and the speed of the whole process. Also, outsourcing enables the human resource professionals
of organizations to focus on the core and other HR and strategic issues. Outsourcing also gives a
structured approach to the whole process of recruitment, with the ultimate power of decision
making of recruiting with the organization itself. The portion of the recruitment cycle that is
outsourced range from preparing job descriptions to arranging interviews, the activities that
consume almost 70 per cent of the time of the whole recruitment process.

Outsourcing the recruitment processes for a sector like BPO, which faces an attrition of almost
50-60 per cent, can help the companies in BPO sector to save costs tremendously and focus on
other issues like retention. The job seekers are also availing the services of the third parties
(consultants) for accessing the latest job opportunities. In India, the trend of outsourcing
recruitment is also catching up fast. For example: Vodafone outsources its recruitment activities
to Alexander Mann Solutions (RPO service provider). Wipro has outsourced its recruitment

24

process to MeritTrac. Yes bank is also known to outsource 50 per cent of its recruitment
processes.

7.4.1)Advantage of Outsourcing Recruitment

Traditionally, recruitment is seen as the cost incurring process in an organization. HR
outsourcing helps the HR professionals of the organizations to concentrate on the strategic
functions and processes of human resource management rather than wasting their efforts, time
and money on the routine work.

Outsourcing the recruitment processes helps to cut the recruitment costs to 20 % and also provide
economies of scale to the large sized organizations.

The major advantages of outsourcing recruitment performance management are:

Outsourcing is beneficial for both the corporate organizations that use the outsourcing services as
well as the consultancies that provide the service to the corporate. Apart from increasing their
revenues, outsourcing Process provides business opportunities to the service providers, enhancing
the skill set of the service providers and exposure to the different corporate experiences thereby
increasing their expertise. The advantages accruing to the corporate are:

turning the management's focus to strategic level processes of HRM
accessibility to the expertise of the service providers
freedom from red tape and adhering to strict rules and regulations
optimal resource utilization
Structured and fair performance management.
a satisfied and, hence, highly productive employees
value creation, operational flexibility and competitive advantage

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7.5) Changing Role of Recruitment Intermediaries
Recruitment intermediaries, consultancies or agencies are witnessing a boom in the demand of
their services, both by the employers and the job seekers. With an already saturated job market,
the recruitment intermediaries have gained a vital position acting as a link between the job
seekers and the employers.

But at the same time, one of the major threats faced by this industry is the growing popularity of
e-recruitment. With the changing demand, technologies and the penetration and increasing use
of internet, the recruitment consultancies or the intermediaries are facing tough competition. To
retain and maintain their position in the recruitment market, the recruitment intermediaries or
consultants (as they arecommonly known) are witnessing and incorporating various changes in
terms of their role, functions and the services.

According to a survey amongst top employers, most of them agree with the growing influence of
technology and the Internet on the recruitment processes. 70 per cent of employers reported the
use of application portal on their company‘s official website. Apart from that, the emerging
popularity of the job portals is also growing.

But the fact that the intermediaries or the consultants are able to provide their expert services,
economies of scale, up to 40 percent savings in the recruitment costs, knowledge of the market,
the candidates, understanding of the requirements, and most importantly, the assess to the
suitable and talented candidates and the structured recruitment processes. The recruitment
intermediaries save the organizations from the tedious of weeding out unsuitable resumes, co-
coordinating interviews, posting vacancies etc. give them an edge over the other sources of
recruitment.

To retain their position as the service providers in the recruitment market, the recruitment
intermediaries are providing vale added services to the organizations. They are incorporating the
use of internet and job portals, making their services more efficient.

Despite of the growing use of the internet, the recruitment intermediaries are predicted to
continue dominating the recruitment market in the anticipated future.

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7.6) Outsourcing Process

27

7.7) How to Select A Recruitment Consultant

If an organization decides to outsource its recruitment processes or activities, it is very
important to find and select a suitable recruitment consultant or consultancies, which can deliver
results according to the needs of the organization. Today, there are thousands of consulting firms
(consultancies) as well as freelance consultants working independently. An organization looks for
various considerations and qualities before selecting the suitable recruitment consultant.

 Thereputation of the consulting firm in the job market (based on expertise and experience).

 Whoare the consultant‘s or firm‘s past and present clients?

Consultant‘s expertise and experience (from how long has he/firm been in the business)
Does the recruitment consultant have the requisite resources to complete the targets on
time?
Get the idea of the effectiveness and the services of the recruitment consultant from its
current and past clients.

Qualities of an independent recruitment consultant.

Some of the qualities or characteristics looked in recruitment consultants are:

Marketing skills
Flexibility and adaptability
Wisdom
Exuberance
Ability to prioritize
Ambition
Resourcefulness
Diplomacy/ delicacy

Selecting the right recruitment consultant is essential for the effective recruitment processes. A
successful Recruitment consultant is someone who is determinative, focused, and able to create
opportunities for him, works harder and smarter than competitors and continually set and achieve
higher standards.

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7.8) Recruitment Strategies
Recruitment is of the most crucial roles of the human resource professionals. The level of
performance of and organization depends on the effectiveness of its recruitment function.
Organizations have developed and follow recruitment strategies to hire the best talent for their
organization and to utilize their resources optimally. A successful recruitment strategy should be
well planned and practical to attract more and good talent to apply in the organization.
For formulating an effective and successful recruitment strategy, the strategy should cover the
following elements:

7.8.1) Identifying and prioritizing jobs

Recruitment keep arising at various levels in every organization; it is almost a never-ending
process. It is impossible to fill all the positions immediately. Therefore, there is a need to identify
the positions requiring immediate attention and action. To maintain the quality of the recruitment
activities, it is useful to prioritize the vacancies whether to focus on all vacancies equally or
focusing on key jobs first.

7.8.2) Candidates to target

The recruitment process can be effective only if the organization completely understands the
requirements of the type of candidates that are required and will be beneficial for the organization.
This covers the following parameters as well.

o Performance level required: Different strategies are required for focusing on hiring
high performers and average performers.
o Experience level required: the strategy should be clear as to what is the experience
level required by the organization. The candidate‘s experience can range from
being a fresher to experienced senior professionals.
o Category of the candidate: the strategy should clearly define the target candidate.
He/she can be from the same industry, different industry, unemployed, top
performers of the industry etc.

7.8.3) Sources of recruitment

The strategy should define various sources (external and internal) of recruitment. Which are the
sources to be used and focused for the recruitment purposes for various positions. Employee
referral is one of the most effective sources of recruitment.

7.8.4) Trained recruiters

The recruitment professionals conducting the interviews and the other recruitment activities
should be well-trained and experienced to conduct the activities. They should also be aware of the
major parameters and skills (e.g.: behavioral, technical etc.) to focus while interviewing and
selecting a candidate.

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7.7.5) How to evaluate the candidates

The various parameters and the ways to judge them i.e. the entire recruitment process should be
planned in advance. Like the rounds of technical interviews, HR interviews, written tests,
psychometric tests etc.

7.9)HR Challenges In Recruitment

Recruitment is a function that requires business perspective, expertise, ability to find and match
the best potential candidate for the organization, diplomacy, marketing skills (as to sell the
position to the candidate) and wisdom to align the recruitment processes for the benefit of the
organization. The HR professionals – handling the recruitment function of the organizationare
constantly facing new challenges in Recruitment. The biggest HR challenge in Recruitment for
such professionals is to source or recruit the best people or potential candidate for the
organization.

In the last few years, the job market has undergone some fundamental changes in terms of
technologies, sources of recruitment, competition in the market etc. In an already saturated job
market, where the practices like poaching and raiding are gaining momentum.

HR professionals are constantly facing new challenges in one of their most important function-
recruitment. They have to face and conquer various challenges to find the best candidates for their
organizations.

The major challenges faced by the HR in recruitment are:

Adaptability to globalization – The HR professionals are expected and required to keep
in tune with the changing times, i.e. the changes taking place across the globe. HR should
maintain the timeliness of the process
Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organization is achieving results, HR department or professionals are not thanked for
recruiting the right employees and performers.
Process analysis – The immediacy and speed of the recruitment process are the main
concerns of the HR in recruitment. The process should be flexible, adaptive and
responsive to the immediate requirements. The recruitment process should also be cost
effective.
Strategic prioritization – The emerging new systems are both an opportunity as well as a
challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing
the tasks to meet the changes in the market has become a challenge for the recruitment
professionals.

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7.10) Recruiting Expatriates

Expatriate is a person who leaves his country to work and live in a foreign country. Generally,
expatriates are the nationals from the other countries than the host and the MNC‘s parent country,
i.e. expatriates are the third country nationals.

The unavailability of the required skills and talents takes the organization to source talent from
other countries. The procedures and processes of recruiting and selecting the human resources are
never uniform even within a single organization. The procedures vary according to the post, the
skill set required, the nature of work etc. More of it is seen in the case of recruitment of
expatriates. The recruitment and selection procedures and considerations are drastically different
for expatriates than that of the domestic employees. Recruitment of expatriates involves greater
time, monetary resources and other indirect costs. Improper recruitment and selection can cause
the expatriates to return hastily or a decline in their performance.

A mismatch between job (its requirements) and people can reduce the effectiveness of other
human resource activities and can affect the performance of the employees as well as the
organization.

Recruiting expatriates require special considerations and skills to select the best person for the
job. Except for a few expatriate selection policies, the expatriate selection criterion is generally
organization and nation specific.

The recruiters for recruiting the expatriates should be carefully selected and trained. The
recruitment strategies for expatriates should be aligned with requirements of the job. The
interviews of expatriates are designed in a manner to judge their:

Adaptability to the new culture
Intercultural interaction
Flexibility
Professional expertise
Past international work experience
Tolerance and open-mindedness
Family situation
Language ability
Attitude and motivation
Empathy towards local culture

A few researches in this field also suggest that women are moral likely to be successful in certain
positions as expatriates as they are more sensitive towards new culture and people. recruitment of
expatriates should be followed by cultural and sensitivity training, and language training.

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7.11)Head Hunting

Headhunting refers to the approach of finding and attracting the best experienced person with the
required skill set. Headhunting is also a recruitment process involves convincing the person to
join your organization.

Headhunting Process

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7.12)Forms of Recruitment
The organizations differ in terms of their size, business, processes and practices. A few decisions
by the recruitment professionals can affect the productivity and efficiency of the organization.
Organizations adopt different forms of recruitment practices according to the specific needs of the
organization. The organizations can choose from the centralized or decentralized forms of
recruitment, explained below:

Centralized Recruitment

The recruitment practices of an organization are centralized when the HR / recruitment
department at the head office performs all functions of recruitment. Recruitment decisions for all
the business verticals and departments of an organization are carried out by the one central HR
(or recruitment) department. Centralized from of recruitment is commonly seen in government
organizations.

Benefits of the centralized form of recruitment are:

Reduces administration cost
Better utilization of specialists
Uniformity in recruitment
Interchangeability of staff
Reduces favoritism
Every department sends requisitions for recruitment to their central office

 Decentralized Recruitment

Decentralized recruitment practices are most commonly seen in the case of conglomerate
operating in different and diverse business areas. With diverse and geographically spread
business areas and offices, it becomes important to understand the needs of each
department and frame the recruitment policies and procedures accordingly. Each
department carries out its own recruitment. Choice between the two will depend upon
management philosophy and needs of particular organization. In some cases combination
of both is used. Lower level staffs as well as top level executives are recruited in a
decentralized manner.

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7.13)Equal Employment Opportunity

Equal employment opportunity refers to the approach of the employers to ensure the practice of
being fair and impartial in the employment process. *The term "Equal Opportunity
Employment" was first given by President Lyndon B. Johnson when he signed Executive Order
11246 which was created to prohibit federal contractors from discriminating against employees
on the basis of race, sex, creed, religion, color, or national origin*. The scope of the order also
covered the discrimination on the basis of the minority status.

Discrimination in employment

Discrimination refers to the any kind of prejudice, biasness or favoritism on the basis of
disability, race, age, sex, sexuality, pregnancy, marital status in employmentNo person should
be treated less favorably than any other on the basis of the specified issues above. Many
countries (like SA) have already implemented Equal Opportunity Act, making it against the law
to treat anybody unfairly.

Diversity in workforce
With the globalization and the increasing size of the organizations, the diversity in the
workforce is increasing i.e. people from diverse backgrounds, educational background, age
groups, race, gender, abilities etc come together to work for one organization and common
objectives. Therefore, it is the responsibility of the employer to create an equality-based and
discrimination-free working environment and practices.

Equal opportunity means treating people equally and fairly irrespective of their race, religion,
sex, age, disability etc. Giving women an equal treatment and access to opportunities at the
workplace. Any employee should be ill-treated or harassed by the employer or other
employees.

Equal Employment Opportunity principles help to realize and respect the actual worth of the
individual on the basis of his knowledge, skills, abilities and merit. And the policy should
cover all the employees of an organization whether permanent or temporary, contractual etc.
Equal employment opportunity is necessary to ensure:

To give fair access to the people of all development opportunities
To create a fair organization, industry and society.
To encourage and give disadvantaged or disabled people a fair chance to grow with the
society.

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Our Mission

―TO MAKE PREMIER SUPPLIES & SERVICES,a Group Company of ISPAT Group
and GSHL Group ( Global Steel Holdings Ltd ) A WORLD CLASS COMPANY
HAVING TURNOVER OF RS. 200 CRORE / ANNUM, BEST PLACE TO WORK,
MOST PREFERRED SUPPLIER FOR ALL THE CLIENTS & ETHICAL, ADMIRED
COMPANY BY ALL SUPPLIERS, STAKEHOLDERS ―

Our Vision

―TO MAKE PREMIER SUPPLIES & SERVICES,a Group Company of ISPAT Group
and GSHL Group ( Global Steel Holdings Ltd ) A REPUTED NAME IN THE
TRADING BUSINESS IN INDIA & ABROAD AND REACH AMONG THE TOP 30
TRADING COMPANIES OF WORLD BY 2015‖

Contact us
Reach us
Address: 503, Casablanca, Plot 45, Sector -11, CBD Belapur, Navi
Mumbai -400614 India.

35

Phone: +91 -22-61461300

Company Profile

Premier Supplies & Services Pvt Ltd,a Group Company of ISPAT Group and GSHL
Group ( Global Steel Holdings Ltd )is a major global player in metallurgical raw
materials and products and related engineering technical services and equipment for steel
industry.From our start-up till date we have achieved a turnover of approx Rs 250 cr (USD
54mn) registering a growth acceleration of approx 25%.

Premier Supplies & Services Private Limited, abbreviated as PSSPL, a Group Company of
ISPAT Group and GSHL Group ( Global Steel Holdings Ltd ), is well equipped for
faster, timely & efficient sourcing to cater to all Man power - recruitment, training &
development, performance management, procurement, supply related jobs assigned by
different steel companies.We specialize in supply of all type of Manpower, Spares,
Consumables like Ferro Alloys, Electrodes, Refractories, etc & different kind of Raw
material. We can also offer bulk items like iron ore, iron ore fines, billets, pellets etc. and
all engineering project equipments.Also we can provide Engineering & Consultancy
Services for steel and allied Industries.

PSSPL, is not only into trading and supply but also consistently striving to create synergy
between manufacturing, trading and technology partners and to bring optimum efficiency
and expertise to its operations worldwide.

We strongly believe in computerization and have ERP System comprising a highly
professional SCM team to cope with the highly competitive environment. Our clients are
spread all over the world including India, Bosnia, Philippines, Nigeria, Libya etc. & we
also have contacts with mine owners for some of the commodities supplied by us, OEMs
of various equipments& its spares & logistics companies which enable us to supply goods
at faster pace. The SCM team of PSSPL, a Group Company of ISPAT Group and GSHL
Group ( Global Steel Holdings Ltd )consists of experienced & highly skilled technical
team having very vast experiences, backgrounds to serve to our customer‘s needs.

36

As our organization is fast growing into multi-dimensional business of supply of products,
technical & support services, management services etc. every ambitious professional gets
opportunities to exhibit his competence & leadership skills. Therefore for those who are with
PSSPL, or wish to be a part of team, the growth prospects are unlimited

PSSPL, a Group Company of ISPAT Group and GSHL Group ( Global Steel Holdings
Ltd ) is a system driven organization & striving to keep pace with best practices in the global
market. This facilitates every professional of PSSPL, to have freedom at work, decision
making & also achieving the target. The HR Policies of PSSPL, are time-tested & comply to
the global systems of employee engagement & development which ensures absolute employee
satisfaction amongst the PSSPL, team members.

PSSPL, can extend its services for HR related faculties including recruitment. PSSPL,
have their main clientele in four companies.

Libyan Iron and Steel Company (LISCO)

The Libyan Iron and Steel Company (LISCO) is one of the largest iron and steelmaking
companies operating in North Africa. Based in Misurata, it is subsidized and owned by the
Libyan government. Colonel Muammar al-Gaddafi officially laid Lisco's foundation stone
on September 18, 1979. In 2004, the online magazine Arab Steel ranked Lisco ranked third
among the largest Arab iron and steel companies.

Lisco‘s operations are primarily supplied by imported steel pellets from Brazil, Canada,
and Sweden for use as raw materials.

Delta Steel Company Limited – Warri –Nigeria

Global Steel Holdings (GSHL) has acquired a 80 per cent stake in Nigeria-based Delta
Steel Company.Delta Steel also owns a captive port with an annual material handling
capacity of 4 million tonne. The port will be used for both inbound and outbound
traffics.

37

This was formerly known as Global Infrastructure Holdings LimitedIt also manages
one steel plant in Libya (1.75 million tonnes) and another in Nigeria (2.2 million
tonnes). Besides, it owns another plant in the Philipines (3 million tonnes).GSHL was
given iron ore mining leases of the Nigerian Iron Ore Mining Company (NIOMCO).

Ispat Industries Limited (IIL) – Dolvi and Kalmeshwar,
ISPAT
Maharashtra

Ispat Industries Limited (IIL) is one of the leading integrated steel makers and the largest
private sector producer of hot rolled coils in India. Core competency is the production of
high quality steel. Ispat is the only steel maker in India and among a few in the world to
have total flexibility in choice of steel making route, be it the conventional blast furnace
route or the electric arc furnace route. Its dual technology allows Ispat the freedom to
choose its raw material feed, be it pig iron, sponge iron, iron ore, scrap or any
combination of various feeds. It also has total flexibility in choosing its energy source, be
it electricity, coal or gas.

With investments of over US $2 billion, IIL is the seventh largest Indian private sector
company in terms of fixed assets.
As it rapidly forges ahead on all these fronts, IIL has successfully reinforced its position
as market leader, while simultaneously making technological breakthroughs and setting
even higher standards for it.

Global Steel Philippines (SPV-AMC) Ltd.

Earlier this plant was known to as national steel situated at Iligan city of Philippines.
Now taken over by Indian steel group known as Ispat.

Global Steel Philippines, Incorporated (GSPI) operates and manages its business under
the umbrella company, Global Steel Holdings Limited (GSHL).

GSP is a subsidiary of Global Steel Holdings Limited (Global Steel), a global corporation
which operates and manages businesses in the iron & steel, coke, mining and minerals,
metals, energy and infrastructure sectors.

38

It also presents a clear, strong, and unified brand presence for Global Steels operations in
Asia, Africa, and Europe.The company‘s plants are located in Bosnia, Bulgaria, Libya,
Nigeria, India, and The Philippines. The Group has extensive knowledge and experience
in the steel business and has the advantage of scale, synergies, technology, and quality
people.

Recruitment & SelectionProcess at PSSPL
The Recruitment Policy at PSSPL, a Group Company of ISPAT Group and GSHL Group (
Global Steel Holdings Ltd ) aims at enriching its pool of talent through increasing skill
and functional expertise, to become a global leader through committed, motivated
and empowered employees. They also believe that it‘s not the candidate who is seeking
employment but it is the company who is seeking him. Hence, they treat each and every
candidate with full dignity and respect.

The recruitment panel at PSSPL, includes,

o Mr V. V. Jammnis- Joint Managing Director
o Mr. Vipul Saxena- Group Vice President-HR, ISPAT & GSHL Group
o Mr. Ashok Sinha- Consultant Recruitment.
o Mr. Natarajan- Consultant Project
o Mr. R N Pandey- Director (Operations)
o Mr. Mishra- Senior Manager
o Respective Units of Libya/ NigeriaPersonal Interview

Refer Annexure for Organization Chart

39

Recruitment and Selection Process Map:

Identify offer of Joining
appointment Formalities
Vacancy

Fixation of Employee
Approval
the salary Confirmation

Closure
Sources
Reference
Check of the
Vacancy

Screening of
Selection /
the
Rejection
Candidates

40

1) Identify Vacancy

When a supervisor in the particular unit of the individual companies finds need to
hire a new employee, or whether to replace a terminating employee or because of
an increase or change in workload, the first step will be to complete a Human
Resource Requisition form (HRRF). This form basically tells the details of the
requirements to be met by the candidate. These requirements differ from company
to company, position to position. A job description, detailing all essential position
functions, required education and experience should be attached. These are done so
as to verify the education qualification as well the experience criteria of the
candidate.

If either of the above is significantly different from the current position description
and level, Human Resources may recommend a more appropriate description and
title be selected from those presently available. Or, if the duties to be performed
are not consistent with any current position description, the supervisor, with the
assistance of the HR Analyst, will draft a new position description and recommend
a level for the approval of the Department Chair or Administrative Manager. Once
the new position description and level are approved, a new Position Requisition
will be filled out, and the necessary approvals obtained.

2) Approvals

Whenever a vacancy is identified, HR head freezesmanpower and the organization
structure along with respective directors. Departmental heads draw out a vacancy
list from the organization chart and get these duly approved by the directors.
HRRF on prescribed form are sent to HR head by departmental forms based on the
duly approved vacancies by the directors, divisional heads and plant HR heads.
They check against the budgeted/ approved man power plan as well as on
educational, experience parameters. The job responsibility and reporting
relationships are also checked by them. They categorize the vacancies based on the
criticality. HR Head is the certifying authority for the replacement vacancies. MD /
directors/ President / HRapprove new position as per the organization chart.

ReferHRRF in the annexure.

41

3) Sources

Reference

Internal Pehchaan

Employee
Database
Sources
Naukri.com

External Consultancy

Campus
Recruitment

3.1 Internal Sources for Recruitment

The scope of internal sources of recruitment is to find/ search right candidates from
the existing employees at all locations.The vacancies which are to be filled up
internally shall be notified under displayed on the notice boards. Eligible
employees can apply for the same in the prescribed format mentioning the
reference number along with a forwarding note by the Reporting Officer.

All applications shall be sent to the HR Head.The job opening shall be posted for a
period as decided on case to case basis but for a minimum period of one week.The
job posting shall indicate detailed Job Description, location of the job, the
minimum requirement of experience in the Company Grade and the last date of
application.

The process of selection shall include interview by panel and competency
matching for the post advertised. For any skill based vacancy, skill test shall be
administered.The decision of the panel shall be binding and final.Canvassing and

42

influencing in any form shall immediately result in disqualification of the
candidate.

3.1.A) References:

As the name suggests it‘s all about creating a reference. It mainly involves mentioning a
suitable candidate for the vacant position from a known person. This can be done by
various ways,

 Reference letter
 Email
 Telephonic Conversation
 By a candidate who is not willing to join, but give reference of the
candidate who might be interested.
 Ex-employees

3.1. B) Pehchaan

Pehchaan is an employee referral program which makes available competent
candidates through cost-effective recruiting process and in turn rewards the
employees who have referred suitable candidates.

All regular employees except the following would be eligible for the reward:
• Employees posted in Recruitment Section
• Executives who will have a direct reporting relationship to the referral
• Executives involved in the selection process
• Executives in Grades E15 and above

The scheme is applicable only for Lateral Recruits against announced Vacancies.The
HR will announce vacant positions for which employee referrals are requested. This
announcement will include the following details: designation, division, location, job
responsibilities and the type of candidates required (educational qualifications,
length and nature of required experience).

The Employee shall send the filled up Pehchaan Form and the resume of the
candidate referred along with their Name & Employee Number.All Referrals should
be sent in hardcopy submitted to the HR Department. Vacancy reference, against
which the resume has been referred, should be quoted in all correspondence.

43

The resume shall be kept in the recruitment database and shall be considered as and
when there is an opening matching with the profile of the candidate.The HR
Department shall send an E-Mail acknowledgement to the concerned employee.

In case the same resume is received from more than one employee, the date and time
of the receipt of the referral along with complete data will be the deciding factor.The
candidate shall be contacted directly if considered appropriate for any position.The
company shall not provide the employee a status update, and shall not share
information from the interview with the referring employee.

The selection of the candidate will be based on recruitment and selection norms as
specified in the company's HR Policy on recruitment. The decision of the Head of
Human Resources Department would be final in this regard.

On selection, the HR Department shall mention in the appointment letter that the
candidate has been selected under reference scheme mentioning the Name and
Employee No. of the referee.All hires through the employee referral program shall
be given a referral bonus of Rs. 5000, after the referred employee has stayed with
the company for six months.

No Referral Bonus will be paid if the candidate:

a. had directly responded to PSSPL‘s requirement, or
b. had been referred by a recruitment agency, or
c. had sent in his resume to PSSPL requesting for a suitable placement in the
past 6 months, or
d. had left the Company previously

The payment will be made only if the referring employee and the referred candidate
have not submitted their resignation nor, have separated from the company, at the
time of bonus payment. The scheme can be amended/ withdrawn at any time at the
discretion of the Management.

Refer Employee Referral Form in the annexure

3.1. C)Employee Data Base

This gives the consolidated data of the candidates, who have joined the company
earlier, giving details about their education, experience, date of joining the company,
current & previous designation, current & previous employer, etc. It‘s maintained in an
excel spreadsheet.

These details prove to be helpful at the time of reappointment of the candidate in case
there is a requirement. Reappointment is basically increasing the tenure of the existing
employee if he meets the criteria mentioned in the HRRF.

44

Recruitment and Selection at PSSPL, A GROUP COMPANY OF ISPAT GROUP AND GSHL GROUP (
GLOBAL STEEL HOLDINGS LTD )

3.2 ) External Sources for Recruitment
All vacancies in the company which need to be filled up through external
sources due to non availability of requisite talent/expertise within the
company shall be done through external recruitment. All vacancies in the
company which are to be filled externally shall be advertised throughInternet
and/ or print media inviting applications from eligible persons.

Predetermined recruitment consultants would also be intimated about the
requirement solely on need base as decided by the recruitment
department.The Potential candidates shall apply for the same in the
prescribed form.The job posting shall indicate detailed Job Description,
location of the job, the minimum requirement of Professional
experience/expertise and the competency requirements along with the last
date of application.

The process of selection shall include interview by panel. The panel would
comprise of Departmental / Sectional Head of the concerned area of
vacancy and the location HR Head.The decision of the panel shall be
binding and final.
Canvassing and influencing in any form shall immediately result in
disqualification of the candidate.

3.2. A) Naukri.com

Naukri.com is India‘s largest Internet Company. Since a humble beginning in
1997, we have come a long way. We are clearly the no.1 job site in the
country.Naukri.com revolutionized the way in which people find jobs in India.
The group has businesses spanning across three verticals – jobs, matrimony
and real estate. Theystrongly believe that people are their most valuable asset.
The main source for candidates at PSSPL is Naukri.com. In Naukri.com, there
are set number of employees who sort out the candidates profiles and match
them with the available job postings. The HRRF plays a vital role in selecting
the candidates.

Naukri.com was mainly used for Job postings& Searchresumesfor PSSPL.
The portal is for finding the right candidate in terms of knowledge, experience,
education & more importantly Company‘s requirement. This Job portal has
different subscription charges according to the options selected.

45


3. 2. A. a ) Job Posting

The process of Job posting can also be taken as a part of Advertising. In order to
post a
Job on this portal the procedure is as follows:

Visit www.naukri.com

Click on Employers Zone

Insert the firm`s user id & pass word

46


Click on ‗POST JOB NOW‘ under the headline Job Posting

Fill the Job Posting Form

47


One has to fill the Job Posting form – Classifieds with the requirements
mentioned in HRRF. This includes Job Title / Designation, Number of Vacancies,
Job Description, Work Experience,Functional Area, Industry, Keywords,
Location(s) of Job, Annual Salary Range, Other Salary Details, Profile
Description of the Candidate, Basic/UG Qualification,PG Qualification, Company
Name, About Company, Company Website among other details. Also one has to
confirm the mode of response to be received. Only an authorized personnel can
post the job under the company`s name. In case of PSSPL, Ms. Namita Barve
handles this responsibility.

Once the Job is posted and the response is received from the candidate then the
process of screening takes place.

3. 2. A. b) Search Tool

48


After signing in into the account, click on the option Resdex- Search
Resumes

To access resume database, one again need to login as a subuser.

After singing in, various criteria‘s are to be selected so as to get right candidate
for the desired position.

The various criteria‘s includes:

 Basic Details- It includes vital information of the candidate such as Annual
salary, Experience, Current location plus any of the keywords pertaining to
the job.
 Employment Details- It includes Functional area viz., Production,
Maintenance, Operation as well as Industry type.
 Educational Details- Minimum qualification required is Graduation.

Once the criteria is selected, click on the ‗Find Resumes‘ option. A list of resumes
fulfilling the said criteria pops up instantly. Once the desired resume is clicked
and downloaded, the further procedure of screening is carried on.

49


3.2.B) Consultancies

An alternative way of finding the candidate is through other consultants across the
country apart from PSSPL.For every candidate selected a certain transaction
happensas per the agreement between the consultants and the PSSPL. This helps
in deriving the right candidate for available post.

PSSPL, a Group Company of ISPAT Group and GSHL Group ( Global Steel
Holdings Ltd )has tie-ups with the following consultants mentioned below:

 Info Synergy, Kolkata

Talent search being our main line of business, we are into providing
Pan-India Permanent Staffing Solutions- regular Contingency Search
and Retained Search Services.

Synergy now provides permanent staffing solutions to industry
verticals covering FMCG, Consumer Durable, Retail, Engineering &
Manufacturing and Pharmaceutical & Healthcare. With the growth of
the economy, day by day, we will be including more & more industry
verticals to increase our service area.

We screen candidates not only for education qualifications and work
experience, we also try to assess the psychological and cultural match
between the candidate and the organization which ensures longer
retention and directly impacts the productivity and growth of your
organization.

 IFCM Human Assets management Pvt Ltd, Mumbai

Executive Search/ Strategic Management Solutions, Navi MumbaiWe aspire to deliver
high quality, timely and cost competitive HR solutions as the single
source solution provider for all aspects of HR management.

50


Our services have been built to help you meet your business goals
better by taking care of all your HR needs so that you can focus on the
things that you are best at doing. We ensure this by providing
integrated human resource services for your enterprise and managing it
seamlessly across the organization. Our extensive knowledge of
various industries helps us partner your HR needs through a
customized approach that best fits your business need.

We are committed to this vision of building value for our clients by
providing the best practices and services in human asset management.

 Haresh Spot, Mumbai

 Nijja Executive Search India (Nilima Jobs), Mumbai
NIJJAAESI has successfully completed management recruitment and
executive searches for clients that span an array of companies, public
and private corporations, start-up to well-established, not-for-profit
organizations, educational institutions and more.
NIJJAAESI recognizes well-suited, superior caliber executives are
critical for success in a sector faced with increasing globalization,
rapidly advancing technology, and evolving customer needs.
We serve companies large and small, both domestic and global.
Our construction and engineering management recruiter and executive
search practice is respected throughout the industry and has earned a
reputation for excellence. Our daily involvement with construction and
engineering executives and other professionals keeps us abreast of
industry trends as well as the current talent pool.

 SG Solutions, Bangalore
Around 100+ clients all over India-Improving in terms of quality &
practices-Expanded its service portfolio and is well known for its
Focused, Responsive and Unparallel recruitment solutions to wide
range of Industries like Automotive, Oil and Gas, Aerospace Process,
Engineering, Pharma, Infrastructure, ,Financial consultants, IT.

 Alchemist HR Services Pvt Ltd, Hyderabad
A mandate search is performed, on candidates with specific skill sets
and expertise levels based on very specific criteria laid down by the
client. This service is essentially provided for middle and senior
management positions across industry verticals.

 CRS Indo, Mumbai

 Mass Management Services Pvt Ltd, Delhi

51


Mass Placement Management Services (MMCS) is a leading
independent organization in the field of Manpower Solution,
Recruitments, General Placement, Outsourcing Manpower Services,
HR Solutions, and Training Programs. The other businesses of group
are in the field of Entertainment & Event management, Constructions,
Security Services, Facility Management, Export and Dealing in Herbal
Products.

Refer Consultancy List in the annexure

3. 2. C) Campus Recruitment

Campus recruitment is to recruit who have proper blend of skill and knowledge in
the respective fields from the campuses itself. It also ensuresthat balance is
maintained in terms of age-mix, qualification-mix & skill-mix. This includes all
final year students from the top 50 engineering & management institutions across India
scoring aggregate marks of 60% or above.

This recruitment process shall be coordinated by Human Resource
department.The requirements from various functions shall be
assimilated in the beginning of the financial year. The institutes shall
be identified from where recruitment is to be done. The institutes shall
be identified amongst top 50 (engineering & management) institutes.

The Selection committee shall be formed upon the approval of a competent
authority.Approval of the competent authority will be taken on the
requirements of GETs & MTs, institutions to be visited, number of
GETs/MTs to be recruited from each institution and the panel to visit each
institution.

The Campus Visit for recruitment shall be done in November-December
each year.The process of selection shall include group discussion, interview
and any such method as deemed fit by the panel including on the spot short
listing of candidates on the basis of aggregate marks in case the number of
applicants is quite high.

The candidates selected will be given a Selection Letter on the spot,
indicating the date of joining; and their consent will be taken for acceptance
of the same.The trainees will undergo a one year training period as detailed
under GEMS and shall be absorbed in regular grades. 5% to 10 % of the
vacancies would be filled up with the local engineering college
candidates who would be taken as Trainee Engineers .

52


4) Screening of Candidates profile

The process of screening candidates takes time and effort. The objective is to
make a big pile of candidates a little pile. There are no real shortcuts. There is
however some techniques and pointers that make the process go quicker and
reveal the better candidates faster.

There are 4 steps in the screening candidate‘s process,reviewing resumes and
cover letters, the phone interviews and sorting for the top candidates, and then the
final step is Personal Interview.

Reviewing

Sorting

Telephonic Panel Interview

Personal Interviews

53


Each step has a number of dependencies and tradeoffs. For example, when
reviewing resumes, many use a scanning process, some just use a keyword search,
others still read the full resume, cover letter and supporting material.

The Benefits or Features of the Screening

It is legitimate and reliable.
It controls the flow of the interview.
It addresses the employee's particular concerns.
It makes the interview the same for every interviewee, and this ensures equal
opportunity.
Similar competencies are evaluated in each meeting, which controls reliability.
Questions are pre-written, reducing nervousness for the interviewer.
It maximizes the interviewer's time and company expense.

4.1) Reviewing

Reviewing is to evaluate the resumes and cover letters. This is the major step in
recognizing the caliber of the candidate. One has to go through the following procedure
for reviewing the cover letter:

Read the customized cover letter. One needs to look especially for a flawless
presentation, correct spelling and grammar, and the applicant‘s attention to detail.
One thing to note is that receiving countless, usually unqualified, applicant
resumes occurs following every job posting. Usually, unqualified applicants fail
to write a cover letter. Therefore a person having a cover letter has an added
advantage against the person who does not have a cover letter.

The resume is scanned in order to obtain an overall impression of the applicant.
One has to look especially for a flawless presentation, correct spelling and
grammar, and their attention to detail. Paper resumes must pass the ―feel‖ test.
That is, in the first skim, one has to look for the easy-to-find qualifications. As an
example, if you are requiring a college degree, does the applicant have one? If
not, then the resume is either rejected or it is placed it in the ―maybe‖ meets
qualifications pile or electronic folder.

Then one reads the description of what the candidate says they are looking for in
their next job. One sees whether the statement is customized to our job or does it
describe any job in the world? This gives us more insight of how focused the
candidate is. This helps in narrowing down the selection list.

54

Project report - kalpana jain

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