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E-COPY                                                                                                             MONDAY, June 16th 2008




Recruitment Process
                                  I     N            D    A    B     U     R      I    N      D   I   A      L   T    D       .


O B J E C T I V E S :

•      Effectiveness of               FMCG growth by 16% in’09
       DIL’s Recruitment
                                                                                      and fairness and men's products too         All this has helped curb input cost
       Process                        The fast-moving consumer goods
                                                                                      are doing well. Rising incomes,             inflation, the report said. Around 220
•      Comparison with                ( F MCG ) industry is set to grow by
                                                                                      especially in urban markets, have           malls will come up in the next 5
       other FMCG giants
                                      16% at Rs 95,150 crore in fiscal
       in terms of recruit-                                                           done their bit too.                         years which will boost demand for
                                      2009, found a latest survey by the
       ment process                                                                                                               FMCG products.
                                      Federation of Indian Chambers
•      Over all industry                                                                                                          http://sify.com/finance/fullstory.php?id=14677953
                                      of Commerce and Industry
       trend of recruit-
       ment, for FMCG                 ( F icci ) .It will see an overall
       sector                         growth of 15.5% in the April-June

•      Demarcation be-                2008 period. In fiscal 2008, the                                                                   Dabur India is planning
       tween FMCG &                   industry recorded a fairly good sales                                                             global acquisitions in this
       other industries, in                                                                                -BOOM
                                      growth of 14.5%.                                                FMCG—                                  fiscal year and has
       terms of recruit-
                                                                                                                                            already identified 20
       ment process                   But what will bring about this
                                                                                                                                        target companies, Dabur
•      Their recruitment &            growth? Value added and aspira-                 Despite across-the-board price
                                                                                                                                           India had acquired a
       our retention                  tional products as also the high-end            hikes of 5-20%, consumers have                         Nigerian company
                                      segment. Categories such as skin-               upgraded to high-end products and                  African Consumer Care
                                      care and cosmetics, shampoos,                   FMCG companies have been able                       in late 2007 and set up
    I N S I D E TH I S
         I S S U E :                  deodorants, cleaners and repellents             to pass on the rise in input costs to                manufacturing in the

                                      and tooth powder would grow at                  them.                                                          country
     INTRODUCTION             9
                                      more than 20%. Anti-aging solutions                                                                                       ——PTI
                                                                                      Product mixes have also improved.
        REVIEW             10


        DESIGN             16


     DATA-ANALYSIS         18
                                        H R ’s R i s i n g S t a r i n I n d i a
     CONCLUSIONS           80
                                                                                      you ’ re in the air, ” says Marcel R.       trated by the results of a recent
                                      With the national economy growing
                                                                                      Parker, president of human re-              salary study commissioned by
RECOMMENDATIONS            86         rapidly and with growth in such
                                                                                      sources at the Raymond Group of             Hutchison Essar: Senior HR execu-
                                      industries as IT and business proc-
     BIBILOGRAPHY          87                                                         Companies in Mumbai, a leading              tives were the third-highest-paid
                                      ess outsourcing more than doubling,
                                                                                      Indian organization in textiles and         executives in the country behind
       APPENDIX            88         HR challenges are coming fast and
                                                                                      retailing with 18,000 employees.            network architecture and sales
                                      furious.
         INDEX             90                                                                                                     executives.      shrm.org/hrmagazine/
                                                                                      The generally high value placed on
                                      “ I t ’ s like building an aircraft while                                                   articles/0906/0906cover.asp
                                                                                      HR management in India is illus-
SUBMITTED BY ANGSHUMAN GHOSH, 010106097




                                CONTENTS
INTRODUCTION                                                                 8

REVIEW                                                                      10

1. RECRUITMENT PROCESS IN GENERAL                                           10
A. OBJECTIVE                                                                10
B. THE TASKS                                                                10
C. CONSTRAINS                                                               10
D. FACTORS AFFECTING RECRUITMENT                                            10
E. SOURCES                                                                  10
F. TYPES OF EXTERNAL SOURCES                                                11
G. TYPES OF INTERNAL SOURCES                                                11
H. ALTERNATIVES                                                             12
I. EVALUATION OF SOURCES OF RECRUITMENT                                     12
2. FMCG INDUSTRY                                                            12
A. WHAT IS MEANT BY FMCG?                                                   12
B. FMCG PRODUCTS & CATEGORIES                                               12
C. ADVANTAGES OF BEING IN FMCG INDUSTRY                                     12
D. CHALLENGES OF BEING IN FMCG INDUSTRY                                     13
E. SALES-OPERATION IN FMCG:                                                 13
3. RECRUITMENT PROCESS IN FMCG INDUSTRY                                     14
A. THE JOB OF A SALES PERSON IN FMCG INDUSTRY                               14
B. BACKGROUND OF THE SALES PEOPLE                                           14
C. CHALLENGES IN RECRUITING SALES PEOPLE IN FMCG INDUSTRY                   14
D. THE SOURCES WHICH ARE GENERALLY USED FOR RECRUITMENT IN FMCG INDUSTRY    14
4. COMPANY OVERVIEW                                                         15
A. DABUR INDIA LIMITED                                                      15

DESIGN (ACTION-PLAN)                                                        16

1. ACTION-PLAN                                                              16
2. DESIGN AT A GLANCE                                                       17

PRESENTATION & ANALYSIS OF DATA                                             18

DABUR INDIA’S RECRUITMENT PROCESS ANALYSIS                                  18
A. RECRUITMENT SOURCE WISE ANALYSIS                                         18
B. CONSULTANCIES’ CONTRIBUTION TOWARDS DIL’S RECRUITMENT PROCESS            20
C. STATE WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS                         21
D. DESIGNATION WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS:                  23
E. STATE WISE DESIGNATION IN DEMAND FOR RECRUITMENT IN DIL                  25
F. DIVISION WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS                      28
G. STATE-DIVISION WISE ANALYSIS OF RECRUITMENT PROCESS IN DIL               29
H. STATE WISE CONSULTANCY CONTRIBUTION TOWARDS DIL’S RECRUITMENT PROCESS    31
I. DESIGNATION WISE CONSULTANCY CONTRIBUTION TOWARDS DIL’S RECRUITMENT      32


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J. DIVISION WISE CONSULTANCY CONTRIBUTION                                        33
K. 3-WAY ANALYSIS (PLACE, DIVISION & DESIGNATION) OF DIL’S RECRUITMENT PROCESS   34
L. PREVIOUS ORGANIZATION ANALYSIS                                                36
M. INDUSTRY                                                                      38
RECRUITMENT TREND IN OTHER FMCG BIG-SHOTS                                        39
A. NESTLÉ                                                                        39
B. HUL                                                                           41
C. MARICO                                                                        43
E. HEINZ                                                                         47
F. OVER ALL INDUSTRY PREFERENCE                                                  49
G. LIMITATIONS OF THE SAMPLE                                                     51
ANALYSIS ON THE BASIS OF SURVEY                                                  52
A. FMCG INDUSTRY                                                                 52
1. HEINZ                                                                         52
2. CAVINKARE                                                                     52
3. EVEREADY                                                                      53
4. COLGATE-PALMOLIVE                                                             54
5. MARICO                                                                        54
6. HUL                                                                           55
7. CADBURY                                                                       56
8. EMAMI                                                                         56
B. OTHER INDUSTRIES                                                              57
1. RELIANCE COMMUNICATIONS                                                       57
2. SIEMENS                                                                       57
3. TATA-AIG                                                                      58
C. FINDINGS                                                                      59
1. Reasons for recruitment                                                       59
2. Is there any TREND?                                                           60
3. Existence of SBU-centric Sales-Force                                          61
4. Source-preference                                                             62
D. RECRUITMENT FROM CONSULTANCIES’ PERSPECTIVE                                   64
1. Client-Consultancy Interaction                                                64
2. Candidate-Consultancy Interaction                                             64
3. Consultancies own responsibilities                                            64
E. EXPECTATION LEVELS RELATING TO CONSULTANCIES                                  65
1. What a consultancy expects from its Client                                    65
2. According to a Consultancy, what are the client’s expectations                66
3. Candidate’s expectations from a Consultancy                                   66
WHICH ORGANIZATIONS/INDUSTRY ARE RECRUITING FROM DIL?                            67
A. WHICH ORGANIZATIONS ARE PREFERRING DIL                                        68
B. WHICH STATES ARE MORE VULNERABLE FOR DIL & PREFERABLE FOR OTHERS              73
C. WHICH DESIGNATIONS ARE MORE VULNERABLE IN DIL?                                77
D. WHICH INDUSTRIES ARE PULLING MORE CANDIDATES FROM DIL                         79

CONCLUSIONS                                                                      80

A.   EFFECTIVENESS OF DIL’S RECRUITMENT PROCESS                                  80
B.   COMPARISON WITH OTHER FMCG GIANTS                                           80
C.   OVER ALL INDUSTRY TREND FOR FMCG SECTOR                                     81
D.   DEMARCATION BETWEEN FMCG & OTHER INDUSTRIES                                 83


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E.   THEIR RECRUITMENT & OUR RETENTION                             84
F.   RECRUITMENT FROM CONSULTANCY’S VIEW POINT                     84

RECOMMENDATIONS                                                    86

BIBLIOGRAPHY                                                       87

APPENDIX                                                           88

INDEX                                                              90




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                                  INTRODUCTION°

This project is all about recruitment process in FMCG ∇ industry. But, to understand any
HR practice in FMCG industry, first one has to understand the FMCG industry as a
whole. Then in the 2nd step one has to understand sales in FMCG industry, the reason
being that in FMCG industry sales is in the centre and all other functions revolve around
it. Then one has to understand what’s the background & psyche of the sales people, to
complete the circle. All these information is given in the Review section to let you know
what you are really up to.
Any project can’t begin without any goal or objective; I’ve got five objectives for doing
this project:
    Ξ To understand the effectiveness of recruitment process in DIL Ω (east)
    Ξ To compare DIL’s recruitment process with other FMCG organizations
    Ξ To understand over all recruitment trend in FMCG industry
    Ξ To find out the main difference in recruitment process between that of FMCG
      industry & that of other industries (especially which are competing with FMCG in
      the front of recruitment)
    Ξ To find out which organizations or industries are preferring DIL to be a good
      source for recruitment
Next comes the Design part which will help the reader to comprehend what was in my
mind while doing the project.
Next comes the Analysis part, I’ve tried my level best to keep it comprehensive (which
led to the thickness) & simple so, that even a layman can understand what’s going on &
thus, can be benefitted out of it. Most of the data is of qualitative in nature & I’ve got
very less chance to use high-end statistical tools like Chi-square & ANOVA. One can say
that I avoided them intentionally but, my point is I don’t need them to show or prove
what I want to show or prove.
Then comes the climax or (in a more professional way) the Conclusion part which will
combine all the results I’ve got during the analysis part & project a symmetrical beam of
light towards certain points.
Lastly if you find it boring please forgive me, but believe me it was real fun doing the
project.




°
  I’ve done this project in my Summer Internship Program, at Dabur India Ltd at Dabur House, Kolkata
∇
   FAST MOVING GOODS
Ω
   Dabur India Ltd


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                                     REVIEW
In this section you will come to know the following:
       1. Recruitment process in general.
       2. FMCG Industry.
       3. Recruitment process in FMCG Industry.
       4. Company overview:
              a) Dabur India Limited

   1. RECRUITMENT PROCESS IN GENERAL
A. Objective of any recruitment process is to meet the future & present needs of Human
   Resource Inventory.
B. The tasks of any recruitment process can be summed-up into three main functions:
       1. LOCATE               2. ENCOURAGE                  3.DISCOURAGE
   Locate your target pool of candidates, encourage them to apply to your organization
   & lastly you have to discourage those candidates who are not in your target pool.
C. Constrains of a recruitment process would be:
              a) Poor-Image
              b) Nature of Job
              c) Policies of the Organization
              d) Budget
              e) Government Policies
D. Factors Affecting Recruitment:
              a) Political Factors
              b) Legal Factors
              c) Economic Factors
              d) Social Factors
              e) Technological Factors
E. Sources of recruitment.
   There are two broad categories of sources of recruitment are, Internal sources &
   External sources.
   The advantages of Internal sources are:
              a) Less costly
              b) More suitable


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              c) More reliable
              d) Motivates existing employees
   The disadvantages of Internal sources are:
              a) Limited pool
              b) Blockage to fresh-blood
              c) Efficiency may get lowered
              d) May cause jealousy among peers
   The advantages of External sources are:
              a) Wide pool
              b) Fresh-blood
              c) Motivates employees through positive competition
              d) More appropriate for Long-term results
   The disadvantages of External sources are:
              a) Expensive
              b) Time consuming
              c) May de-motivate existing employees
              d) Uncertainty


F. Types of External sources:
              a) Consultancy
              b) Employment exchange
              c) Job-portals
              d) Campus-visit
              e) Stake-holder referrals(including employees)
              f) Media-advertisements
              g) Walk-ins
              h) Head-hunting

G. Types of Internal sources
              a) Transfer
              b) Promotions
              c) Job-posting




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H. Alternatives of Recruitment:
                 a) Over-time
                 b) Sub-contracting
                 c) Temporary-leasing
                 d) Outsourcing
I. Evaluation of sources of recruitment.
      There are some methods of evaluating sources of recruitment, like:
                 a) T.L.D. ϒ
                 b) Yield ratios
                 c) Surveys




      2. FMCG INDUSTRY
A. What is meant by FMCG?
   FMCG means Fast Moving Consumer Goods; it includes each & every product we
   use in a day to day basis, starting with using tooth-paste in the morning till switching
   on the mosquito-repellant at night.

B. FMCG Products & Categories ψ
        I. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash(soaps)
            II. Cosmetics & toiletries, Deodorants, Perfumes, Feminine hygiene, Paper
                products
            III. House-hold Care: laundry soaps, synthetic detergents, house-hold
                 cleaners, insecticides
            IV. Food & Health beverages, branded Flour etc, Bakery products, Milk &
                diary products, beverages like tea/coffee/juices, Bottled water, Snacks,
                Chocolate, etc
            V. Frequently replaced electronic products like TV, music-systems, camera,
               laptops, refrigerator, washing machine; they are called White Goods.

C. Advantages of being in FMCG Industry
         a) Continuous Demand
             b) Automatic Sales

ϒ
    Time Lapse Data
ψ
    Taken from “THE MAJESTY OF INDIAN FMCG” by RADHA PRASAD MUNI.


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D. Challenges of being in FMCG Industry
          a) Brand-switch
          b) High-competition
          c) Less-margin
          d) Creating, maintaining & protecting Territory & Network
          e) Adopting to different geographies, demographics & political influences

E. Sales-operation in FMCG:




   Figure 1: SALES OPERATION IN FMCG


   The availability of products till the whole-seller is called primary selling & there after
   from whole-seller to the retailer is called secondary selling, and the transfer of the
   product to the end-user from retailer is termed as tertiary selling (it’s not shown
   because for an FMCG company tertiary selling doesn’t play much role as product
   take-off would be automatic if it’s available; further more it’s the responsibility of the
   retailer to sell).




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   3. Recruitment process in FMCG Industry
What is so special regarding recruitment process in FMCG Industry that we have to deal
with it separately & specifically?

A. The job of a sales person in FMCG Industry
   His real job is to make the product available in the outlets & not to sell them directly
   to the end-user. The job is monotonous by nature & laborious too.

B. Background of the sales people
   They are highly unstable if they are not married, get highly influenced by
   remuneration schemes & always in search of better opportunities of better prospect,
   growth & home-town territories.

C. Challenges in recruiting sales people in FMCG Industry
      1. The crowd or the target market is highly homogeneous; selling includes
          selling anything so the pool in bigger cities & towns is so big that we lose a
          lot of time in screening proper CV’s. This is one of the reasons that we don’t
          often see advertisements for recruiting sales people in FMCG Industry.
       2. In remote places the case is just upside-down, there is a dart of candidates, due
          to large number of competitors.
       3. It is really very hard to get stable candidates who would stick to company.

D. The sources which are generally used for recruitment in FMCG Industry for sales-
   profiles, due to the above mentioned reasons HR Department in FMCG Industry
   generally stick to:
      1. Job-portals
       2. Consultancies
       3. Stake-holder referral schemes
       4. Campus-recruitment
       5. Internal Sources




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                       DESIGN (ACTION-PLAN)
The project was of eight weeks & here is the project-design segregated on the basis of
eight weeks:

   1. Action-Plan
   1. Understand Dabur’s recruitment process                              1.5 weeks
   2. Analysis of Dabur’s recruitment process                             0.5 weeks
   3. Other Companies recruitment process                                 1.5 weeks
   4. Analysis of Other Companies recruitment process                     0.5 weeks
   5. Macro analysis of FMCG Industry                                     1 week
   6. Further Data collection from other Industries                       1 week
   7. Preparation Stage for project report & presentation                 1 week
   8. Final presentation & report evaluation                              1 week
                                                                          .
                                                                          8 weeks
To understand Dabur’s recruitment process one has to concentrate on:
   1. Basic frame-work of recruitment
   2. What & which data are available?
   3. Recruitment through consultant
   4. Recruitment through job-portal
   5. Other recruitments
   6. Data-analysis
To understand other FMCG organizations’ recruitment process one has to concentrate on:
   1. Get names of HR managers involved in recruitment, office-address & phone
      numbers.
   2. Contacting them & taking appointments
   3. Developing Questionnaire
   4. Meeting respective managers & collecting data
   5. Analysis of collected data




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      2. Design At a Glance




                             Figure 2: DESIGN AT A GLANCE

1.  Understanding the recruitment process in general
2.  Understanding the recruitment process in FMCG industry
3.  Understanding the recruitment process in DIL, East
4.  Gathering 2ndary data from DIL: list of employees who joined between 2007-2008,
    along with their name, collect their age, source of recruitment, background,
    experience & other parameters
5. With this 2ndary data start analysis for the effectiveness of recruitment process in DIL,
    East
6. Collect more 2ndary data from www.naukri.com for comparison of different FMCG
    organizations & trend-analysis of FMCG industry
7. With the collected CVs, start analysis for different parameters like, CTC Φ ,
    Experience, State, Age, Designation etc
8. Collect more CV’s from www.naukri.com to see which industries & organizations are
    preferring to recruit from DIL
9. Start analysis to find out what these organizations or industries look in a candidate &
    what is the trend of recruitment on the basis of state, designation, industry, etc
10. Locating FMCG organizations in Kolkata, locating HR-Manager involved in
    recruitment, taking appointments & doing the survey on the basis of the questionnaire
11. Locating some other organizations, & their HR-Managers, which belong to some
    industries like Telecom & Insurance, who are competing with FMCG in terms of
    recruitment
12. Doing some more survey from other organizations (from different industries, other
    than the above mentioned) to find out the specialty of FMCG recruitment & also
    interviewing some consultancies involved in FMCG recruitment.
13. Apart from the subjective points, utilizing the data which can be coded, & thus can be
    used for analysis.
14. Thus, finally doing a macro-analysis to find out over all results & conclusions
    directed towards the project objectives


Φ
    Cost To Company


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           PRESENTATION & ANALYSIS OF DATA

    DABUR INDIA’S RECRUITMENT PROCESS ANALYSIS
Data available: list of employees joined the company, in 07-08, in east zone
(Bhubaneswar, Kolkata, Guwahati, Patna & Ranchi).

A. Recruitment source wise analysis

    Table 1: DIL’s channel wise recruitment in 07-08
         Channel       NO. OF EMPLOYEES
     CONSULTANCY                              8
         DIRECT                              44
           ERS                                4
          TOTAL                              56



                             RECRUITMENT CHANNELWISE


                                       ERS             CONSULTANCY
                                       7%                  14%




                                      DIRECT
                                       79%



                           CONSULTANCY                  DIRECT          ERS


                                 Figure 3: DIL’s channel wise recruitment
        ☯ As we can see that 79% of the whole recruitment in east-zone is done through
          direct method i.e. through job-portals & internal/individual network.
            This is generally preferred as this is the most cost-effective way of recruiting
            if you can handle the Lead-Time ∏ .
            As there is no dart in DIL’s sales-force & it’s functioning smoothly,
            efficiently & effectively, we can infer two things – 1.employees don’t leave
            the organization in bulk. & 2.recruitment process is handled very efficiently &
            meticulously.
            Both are generally very preferable for any organization’s recruitment process.

∏
   LEAD-TIME IS THE TIME TAKEN BY THE HR DEPARTMENT TO FILL THE VACANCY, i.e.
time period between vacancy & placement.


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D. Designation wise analysis of DIL’s recruitment process:

       Table 4: Designation wise manpower requirement in DIL
                      DESIGNATION                  NO. OF EMPLOYEES
                     SALES OFFICER                                37
        OFFICER-PROFESSIONAL MARKETING                            11
                 SENIOR SALES OFFICER                              3
                     SALES TRAINEE                                 3
                 AREA SALES EXECUTIVE                              2
                           TOTAL                                  56




                                          DESIGNATIONWISE COMPARISON

         60                                               56

         50                                                             SALES OFFICER
                     37                                                 OFFICER-PROFESSIONAL MARKETING
         40
                                                                        SENIOR SALES OFFICER
         30
                                                                        SALES TRAINEE
         20
                             11                                         AREA SALES EXECUTIVE
         10                           3      3     2                    TOTAL
          0

                                     DESIGNATION


       Figure 7: Designation wise distribution of recruitment in DIL


       This is quite evident from the graph that SO !s are the ones who have been recruited
       the most, the reason behind this is that it’s the lowest rung in the ladder, and quite
       obviously needed in more numbers.
       The next positions goes to OPM ∗ s, who are needed only for CHD, a bit lesser in
       number as SOs include both CCD & CHD. Thus, for CHD it’s also one of the most
       recruited positions.
       Others are less recruited as you go up the ladder because requirement is less &
       commitment level increases due to seniority.




!
    Sales Officer
∗
    Officer Professional Marketing


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G. State-Division wise analysis of recruitment process in DIL
   Let us take two parameters, namely state & division, together & see what happens in
   the analysis.


   Table 11: State & division wise distribution of recruitment
                                STATE-
    DIVISION BHUBANESWAR KOLKATA GUWAHATI                                                              PATNA RANCHI
      CCD              2       4        4                                                                   7      2
      CHD              9       9        5                                                                  11      3


                                                     STATEWISE DIVISION RECRUITMENT

                                                                                                               11
      12                           9                              9
      10                                                                                           7
       8                                                                                 5                                            CCD
       6                                             4                     4
                  2                                                                                                  2            3
       4                                                                                                                              CHD
       2
       0
                      B U A E WR




                                                         K L AA




                                                                                                       PT A
                                                                                U A AI




                                                                                                                          A C I
                                                                               G WH T




                                                                                                                         RN H
                                                          OK T




                                                                                                       AN
                       H BNS A




                                                                           STATE-


   Figure 16: State wise recruitment for the 2 divisions

                                                    %WISE CCD & CHD IN EACH STATE

           100%
            80%
            60%                                                                                                                       CHD
            40%                                                                                                                       CCD
            20%
             0%
                                       B U A E WR




                                                                                                                           ACI
                                                                                                              PT A




                                                                                                                          RN H
                                                                                          U A AI
                                                                  K L AA




                                                                                         G WH T
                                        H BNS A




                                                                                                               AN
                                                                   OK T




                                                                                STATE-



     Figure 17: Recruitment % for each division in each state


   As depicted earlier, in all states recruitment rate for CHD is higher than that for CCD,
   only anomaly is GUWAHATI where it’s almost equal. In BHUBANESWAR this
   difference is huge almost 60%, then comes KOLKATA the difference being of 50%.
   The rate of recruitment for both CCD & CHD is highest in PATNA, which tallies
   with previous results.




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I. Designation wise consultancy contribution towards DIL’s recruitment

   Table 13: Designation wise consultancy contribution distribution
                            SO OPM SSO ST ASE
   NO. OF EMPLOYEES            4     2     1 0        1


                    DESIGNATIONWISE CONSULTNCY CONTRIBUTION

                                       4

                      4

                      3                          2

         EMPLOYEES 2                                       1                  1

                      1                                               0

                      0
                                               DESIGNATIONS

                                     SO    OPM       SSO   ST   ASE



   Figure 21: Designation wise consultancy contribution distribution


                  DESIGNA IONWISE CONSULT A
                         T                 NCY CONT RIBUT ION


                            ST       ASE
                            0%       13%
                      SSO
                      13%

                                                                              SO
                                                                             49%

                             OPM
                             25%



                                     SO    OPM       SSO   ST   ASE



   Figure 22: Pie chart of Designation wise consultancy contribution distribution

   It’s evident from the graph & pie-chart that consultancies’ contribution towards SO
   recruitment is the maximum, as SOs are being recruited the most. Next place goes to
   OPM recruitment, the reason being the same. Since availability of fresher is huge &
   respective recruitment is low, no help form consultancies was required in the process.
So, we reach to two conclusions:
   a) No consultancy contribution for ST recruitment
   b) Consultancy contribution is highest for SO recruitment, followed by that of OPM




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K. 3-Way analysis (Place, Division & Designation) of DIL’s Recruitment process

   Table 15: Distribution of recruitment over Place, Designation & Division
     DESIGNATION          DIVISION         BHUBANESWAR                    KOLKATA             GUWAHATI                    PATNA     RANCHI
                              CCD                        2                          3                      2                   4      1
          SO                  CHD                        6                          7                      5                   6      1
                              CCD                        0                          0                      0                   0      0
         OPM                  CHD                        3                          1                      0                   5      2
                              CCD                        0                          0                      0                   1      1
          SSO                 CHD                        0                          1                      0                   0      0
                              CCD                        0                          1                      1                   1      0
          ST                  CHD                        0                          0                      0                   0      0
                              CCD                        0                          0                      1                   1      0
          ASE                 CHD                        0                          0                      0                   0      0



                                           STATE & DIVISION WISE DESIGNATION REQUIREMENT                                            ASE CHD
                                                                                                                                    ASE CCD
                                                                                                                                    ST CHD

                                0               0                   0               0                  0                            ST CCD
                                                1                   1               1
                                                                                    1                  1
                  100%          3               0                   1               1
                                                1                   0                                                               SSO CHD
                                                                                    5
                   80%                                                                                 2                            SSO CCD
                                                7                   5
                   60%          6
                                                                                    6                                               OPM CHD
                                                                                                       1
                   40%
                                2               3                   2               4                  1                            OPM CCD
                   20%
                                                                                                                                    SO CHD
                   0%
                         BHUBANESWAR       KOLKATA           GUWAHATI          PATNA         RANCHI
                                                                                                                                    SO CCD



   Figure 24: State & division wise designation requirement in %



                                     DESIGNATION & DIVISION WISE STATE REQUIREMENT IN %


                                1          1                                            0     0                     0
                    100%                                        2
                                           6                                                  1
                                4                                         1                                         1
                     80%
                                           5                    5
                     60%        2                                                       1     1
                                           7                    0
                     40%        3                               1
                                                                          1                                         1
                                                                3                             1
                     20%        2          6
                                                     0                    0             0     0             0       0           0
                         0%
                              CCD        CHD   CCD           CHD        CCD      CHD        CCD        CHD      CCD           CHD
                                    SO               OPM                      SSO                 ST                    ASE

                                          BHUBANESWAR           KOLKATA        GUWAHATI      PATNA         RANCHI



   Figure 25: designation & division wise state requirement in %




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                            3-D VIEW OF RECRUITMENT ON THE BASIS OF 3 PARAMETERS




                              6
                    4
                        1
                                  1                   5
                        7 5                               2
                                              0
                                                                      1
  7             2
  6         3       6                     0                                        0
                                                                  1                            0
  5
  4                                                                                                        0
                                      0                                       0            1                           0
  3     2                                         0                                                                                0
  2                                                           0                                        0           1                      RANCHI
                                  0       3 1                             0            1
  1
                                                                                                                               0
  0                                                       0           1                            0           1                        PATNA
                              0                                                   1
      CCD                                                                                                                  0
                                                      0                                        0                                       GUWAHATI
       SO       CHD
                            CCD                                   0                                        0
                            OPM       CHD                                     0                                        0
                                                                                           0                                       KOLKATA
                                                  CCD
                                                  SSO         CHD                                      0
                                                                          CCD                                      0
                                                                                                                               BHUBANESWAR
                                                                           ST          CHD
                                                                                                   CCD
                                                                                                   ASE         CHD




                              BHUBANESWAR                     KOLKATA             GUWAHATI             PATNA           RANCHI



Figure 26: 3-D view of recruitment distribution over state, designation & division


OPM recruitment for CCD in all the states is nil, as OPM is a CHD centric position.
No ASE has been recruited for CHD in any state. Maximum recruitment for any
position is being done in KOLKATA for SO in CHD. In all states & for both the
divisions SOs are being recruited. In BHUBANESWAR apart from SOs in both
divisions, only OPMs have been recruited for CHD. Over all maximum recruitment is
done for SOs in CHD.




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L. Previous organization analysis

   Table 16: List of previous organizations
                       PREVIOUS EMPLOYER                           NO. OF EMPLOYEES
                                  DIL                                      18
   GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION
                                 LTD                                      2
                              CIPLA LTD.                                  2
                          CRYAN OILS LTD.                                 1
               HEALTH FOOD PRODUCTS (P)LTD.                               1
                         VISHNU SOLUTIONS                                 1
                       HIMALAYA DRUGS CO.                                 1
                       ALKEM LABORATORIES                                 1
                      VADILAL ICE-CREAM LTD.                              1
                             WIPRO LTD.                                   1
                              FRESHER                                     1
                         INDIA INFOLINE LTD                               1
                     GODREDJE SARA LEE LTD                                1
                        TOPS SECURITY LTD.                                1
            THE ZANDU PHARMACEUTICAL WORKS                                1
                        GILLETTE INDIA LTD.                               1
                           G.M. PEN (P)LTD.                               1
                     RANBAXY LABORATORIES                                 1
                                 HUL                                      1
                  PARAS PHARMACEUTICAL LTD                                1
                               TATA AIG                                   1
                SATER AGRA PRODUCT PVT. LTD.                              1
                   VALIANT HEALTH CARE LTD.                               1
                       COMPETENT CARRIER                                  1
                   DABUR AYURVEDIC CENTRE                                 1
                            ACRO PAINTS                                   1
                  HUGO’S COMMERCIALIZATION                                1
                    KARAMCHAND APPLIANCES                                 1
                      MULLAR & PHILLIPS LTD                               1
                        SHAKTI AUSADHALYA                                 1
                                HEINZ                                     1
                              KEPL(P&G)                                   1
                          KHANDELWAL LAB                                  1
                       ARISTRO PHARMA LTD.                                1
                             EMAMI LTD.                                   1
                           DEY'S MEDICAL                                  1
                WOCHARDT PARENTAL DIVISION                                1
                                TOTAL                                     56




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                                                               2%
    PREVIOUS CO. CONTRIBUTION IN %                            2%

                                                          2%

                                                         2%

                                                     2%

                                                    2%

                                                2%

                                               2%

                                              2%

                                           2%

                                          2%

                                          2%

                                         2%                                            32%
                                         2%

                                         2%
                                                                                        4%
                                         2%
                                                                                     4%
                                          2%
                                                                                  2%
                                          2%
                                                                                2%
                                           2%
                                                                             2%
                                               2%
                                                                           2%
                                               2%
                                                                        2%
                                                2%
                                                                      2%
                                                    2%

                                                     2%

                                                         2%

                                                          2%

                                                              2%

                                                               2%




     DIL                                                            GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
     CIPLA LTD.                                                     CRYAN OILS LTD.
     HEALTH FOOD PRODUCTS (P)LTD.                                   VISHNU SOLUTIONS
     HIMALAYA DRUGS CO.                                             ALKEM LABORATORIES
     VADILAL ICE-CREAM LTD.                                         WIPRO LTD.
     FRESHER                                                        INDIA INFOLINE LTD
     GODREDJE SARA LEE LTD                                          TOPS SECUIRITY LTD.
     THE ZANDU PHARMACEUTICAL WORKS                                 GILLETTE INDIA LTD.
     G.M. PEN (P)LTD.                                               RANBAXY LABORATORIES
     HUL                                                            PARAS PHARMACEUTICAL LTD
     TATA AIG                                                       SATER AGRA PRODUCT PVT. LTD.
     VALIANT HEALTH CARE LTD.                                       COMPETENT CARRIER
     DABUR AYURVEDIC CENTRE                                         ACRO PAINTS
     HUGHO'S COMMERTIALIZATION                                      KARAMCHAND APPLIENCES
     MULLAR & PHILLIPS LTD                                          SHAKTI AUSADHALYA
     HEINZ                                                          KEPL(P&G)
     KHANDELWAL LAB                                                 ARISTRO PHARMA LTD.
     EMAMI LTD.                                                     DEY'S MEDICAL
     WOCHARDT PARENTAL DIVVISSION

Figure 27: Previous organization distribution


Very clearly it can be seen that 32% of the total recruitment is done internally, which is
preferable due to the following reasons:
    a) Reliability of the candidate is very high
    b) Suitability of the candidate is very high (i.e. pre-exposed to organization culture)
    c) Less training needed
    d) Motivation to the employee
    e) Least expensive source for recruitment
GCMMFL & CIPLA both have contributed only 4% of the total recruitment. Others have
contributed only 2% each. Less company preference increases the corporate image &
relations




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C. MARICO

  Table 22: MARICO’s industry preference for recruitment
   INDUSTRY/Organization             NO. CANDIDATES
   FRESHER                                                             0
   TELE                                                                1
   PHARMA                                                              1
   FINANCE                                                             0
   FMCG (OTHERS)                                                       5
   DABUR                                                               5


                              MARICO’s industry preference for recruitment

                     FINANCE
                        0%
                                                                             FMCG (OTHERS)
                    PHARMA
                                                                                 42%
                      8%                       FMCG
                       TELE                     83%
                                                                             DABUR
                        8%                                                    42%
                   FRESHERS
                      0%

                   FRESHERS    TELE    PHARMA     FINANCE     FMCG (OTHERS)    DABUR


  Figure 33: MARICO’s industry preference for recruitment


  As we can see Marico has recruited mainly from FMCG Industry (83%) of which
  50% of the candidates were previously working with DIL. Like, HUL they haven’t
  taken any fresher at all. They have taken equally, i.e. 8% each, from Telecom &
  PHARMA. Unlikely HUL, they haven’t taken anybody from banking/insurance
  background. Intakes from PHARMA industry is also very low, but in comparison
  with others, have taken more candidates from Telecom background.




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F. Over all Industry preference
   Considering all the industries as the Universal Set & the number of recruitment done
   from each industry by each of concerned organizations, we can get the following
   results:
   Table 28: FMCG candidate’s distribution
    ORGANIZATIONS        CANDIDATES FROM FMCG
    NESTLE                                    3
    HUL                                      11
    MARICO                                   10
    RECKITT                                  13
    HEINZ                                     7


              HEINZ       NESTLE
                            7%
                                              There’s no doubt about that all being FMCG
               16%
                                       HUL
                                       25%
                                              organizations would obviously prefer
                                              recruiting from FMCG industry, Reckitt is
    RECKITT                                   the first organization to do that, followed by
      29%
                              MARICO          HUL, Marico & Heinz (in order). But, very
                               23%
                                              unlikely Nestlé has recruited only 7% from
                                              the industry.
   Figure 39: FMCG candidate’s pie-chart



   Table 29: FINANCE candidate’s distribution
    ORGANIZATIONS CANDIDATES FROM FINANCE
    NESTLE                                    0
    HUL                                       4
    MARICO                                    0
    RECKITT                                   2
    HEINZ                                     1


   We already know from the previous section that Nestlé & Marico have not recruited
                    NESTLE
                                           anyone from Finance sector, but this was
             HEINZ
               14%    0%                   not clear that HUL is the major player in
                                           recruiting from Finance sector. HUL has
                                           recruited the highest number (57%) of
    RECKITT
      29%
                                     HUL
                                     57%
                                           candidates from the respective market.
            MARICO                         Then comes the number of Reckitt,
              0%
                                           followed by Heinz.
   Figure 40: FINANCE candidate’s pie-chart




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     ANALYSIS ON THE BASIS OF SURVEY
Data collected by visiting different FMCG organizations (some non-FMCG organizations
also, to understand the specific traits of FMCG Industry Recruitment Process) & filling
up the Questionnaire with the help of respective HR-Managers (involved directly in
recruitment).

A. FMCG Industry

         1. HEINZ
            ∋   Reasons of recruitment are mainly due to promotion, resignation & new
                position (in order).
            ∋   Employees who leave the organization, majority goes to Telecom.
            ∋   Sales-force structure would be --- SO—ASM –BM ℵ -- (in order).
            ∋   SO’s recruitment is highest.
            ∋   No separate sales-force for SBUs
            ∋   Mostly internal source is used followed by Consultancy & Job-Portal (in
                order).
            ∋   Profile of sales people: 25-27 yrs old, 0-2 yrs of experience,
                graduate/MBA, from FMCG Industry
            ∋   For higher position mostly internal promotion is used
            ∋   If there is some new or very specialized department that requires
                manpower then only some external sources are used for higher positions.

         2. CAVINKARE
            ∋   Reasons of recruitment are mainly due to resignation, new position,
                termination, promotion (in order)
            ∋   People stay in this Industry only, some are going to retail
            ∋   Sales-force structure : SR ⊕ --TSO—AM(Area Manager)—RM(Regional
                Manager)
            ∋   2 SBUs – consumer goods division(cgd) & food division (fd), food is only
                present in Chennai; would be launched soon in other parts
            ∋   At this point SRs are recruited more, because it’s a new position, followed
                by TSOs
            ∋   Recruitment is higher in cgd.

ℵ
    Branch Manager
⊕
    THIS IS A VERY NEW POSITION, FOR CK, TO LAUNCH FOOD DIVISION IN EAST.


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              ∋   Internal source is used mainly for higher position recruitments, otherwise
                  consultancy is a better option than job-portal as in east search results are
                  dwindling
              ∋   Some good Job-Portals are www.naukri.com, www.monstorindia.com
              ∋   Entry sales profile would be: SR~30yrs, TSO~28yrs, 2yrs of experience,
                  graduate, strictly from FMCG background
              ∋   Lower positions are filled with help of job-portals & consultancies but,
                  higher positions are recruited internally from Head Office (HO).
              ∋   For entry level, first there is an online, then aptitude test & then interview
              ∋   FMCG attrition rate at this time would be 0-5 %

          3. EVEREADY
              ∋   Reasons of recruitment are mainly due to resignation, promotion & new
                  position (in order)
              ∋   There is no trend in employees leaving & joining to some other industry,
                  but, some are leaving to industries like telecom, IT etc.
              ∋   Sales-force structure would be: SO—Sr.SO—ASM—ZSM ♥ —RM
              ∋   No demarcated SBUs for sales force; the person who’s handling packed
                  tea is also handling flash lights
              ∋   Entry level/junior level recruitment is more
              ∋   Junior level recruitments for plant & sales are done through job-portals &
                  consultancies; for middle level, only consultancies & higher recruitments
                  are done by senior level employees at HO with the help of Executive
                  Search Agencies
              ∋   ERS & organization website is used as an internal channel
              ∋   Job-portals & consultancies are used equally on the basis of situation
                  requirements
              ∋   Though costly but, consultancies are best during bulk recruitment & tight
                  lead-time
              ∋   They use www.naukri.com, www.monstorindia.com, www.jobstreet.com
                  etc.
              ∋   Sales profile would be: 27-32yrs, graduate/MBA, 1-2yrs of experience, no
                  organizational or industrial preference
              ∋   Attrition rate of FMCG industry would be more than 30%



♥
    Zonal Sales Manager


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        4. COLGATE-PALMOLIVE
             ∋   Reasons of recruitment are mainly due to resignation, promotion & new
                 position (in order)
             ∋   Entry level people are promoted to ASMs
             ∋   There is a trend while a person resigns from FMCG industry; generally
                 he’s joining retail or telecom
             ∋   Sales-force structure would be: CDO σ —AM—RM
             ∋   3 main sources of recruitment would be: consultancies, job-portals
                 ERS/website (in order)
             ∋   Sales-force profile would be: 25-32yrs old, graduate/MBA, 2yrs or more
                 experience, strictly from FMCG industry


        5. MARICO
             ∋   Reasons of recruitment are mainly due to resignation, promotion,
                 termination & new position (in order)
             ∋   There is a trend in people leaving Marico & joining in Banking or
                 Telecom Sector
             ∋   Sales-force structure would be: TSO—TSE σ —SPE σ —ASMs
             ∋   No demarcated SBUs for sales force
             ∋   Mainly TSOs are recruited; for higher ranks internal source is used & if
                 there is any usage of external source, i.e. being done by HO
             ∋   Mainly consultancies are used as an external source, though it’s costly but
                 it saves a lot of time. Sometimes consultancies take interviews also, on
                 their behalf
             ∋   Consultancies like Madhyam, Assurance etc are used as an external source
             ∋   Sales-force profile would be: below 32yrs of age, fresher (MBA
                 trainees)/2-3yrs of experience, strictly from FMCG background, strong
                 brands like Dabur, HUL, Keventor Agro are appreciated
             ∋   Attrition rate in FMCG industry would be: 5-10%
             ∋   There is some recent changes in interview structure --- first online
                 psychometric test & then written aptitude test




σ
  Capacity Development Officer (Definition taken from internet)
σ
  Territory Executive (Definition taken from internet)
σ
  Sales Professional Executive (Definition taken from internet)


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          6. HUL
              ∋   Reasons of recruitment are mainly due to new position, resignation,
                  promotion & termination (in order)
              ∋   Employees leaving & switching to telecom & finance sector (especially
                  insurance)
              ∋   Sales-force structure would be: TSO—(CL)TSO—ACTIVATION
                  EXECUTIVE—ASCM(Area Sales Cluster Manager)—RSCM σ —GM σ
              ∋   It has got 6 SBU dependant sales-force:
                  1. HPC U1: All soaps, shampoos etc.
                  2. HPC U2: Lakme (mainly)
                  3. Rural & Shakti (suburbs): Almost all products as in U1, but for suburb
                     selling
                  4. Water Division: Purit
                  5. Vending Division: Coffee-machines (mainly)
                  6. Ice-Cream Division: Kuwality-Walls
              ∋   TSOs are recruited the most, followed by (CL)TSOs & lastly ASCMs
              ∋   Mostly recruitment occurs in HPC U1, U2 & Rural, followed by Water &
                  then by Ice-Cream Divisions
              ∋   Importance is more on ERS & official website (i.e. internal sources) as
                  they are cost-effective & always fresh.
              ∋   Job-portals & consultancies are least used as they require huge amount of
                  cost & especially consultancies are avoided as a lot of time is consumed in
                  briefing the consultancies.
              ∋   Sales-force profile would be: 25-31yrs old, 1yr of experience or fresher,
                  graduate, industry preference depends on divisions/SBUs, from branded
                  employers like Dabur is appreciated
              ∋   Higher position recruitment is done through senior panels from the HO
              ∋   Attrition is high as FMCG guys can be absorbed in any kind of sales
                  profile




σ
    Regional SCM
σ
    General Manager


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7. CADBURY
  ∋   Reasons of recruitment are mainly due to promotion, resignation, new
      position & termination (in order)
  ∋   There is no proper trend, but people leaving & joining other industries
  ∋   Sales-force structure would be: SO—SSO—ASE—ASM
  ∋   For SOs recruitment is the highest
  ∋   They are using internal & job-portals and consultancies for recruitment,
      but there is no picking order; it varies from situation to situation
  ∋   Sales-force profile would be: nearly 21yrs old, 1-2yrs of experience in
      FMCG, MBAs

8. EMAMI
  ∋   Reasons of recruitment are: resignation, promotion, new position &
      termination (in order)
  ∋   When people resign their first choice of joining would be another FMCG,
      but people are switching to telecom & insurance
  ∋   Sales-force structure would be: SO—ASM—RSM—ZSM
  ∋   Their SBUs are HCD—health care division (constituting 25% of product
      line) & CCD—consumer care division (constituting 75% of product line)
  ∋   For both SBUs recruitment rate is almost same
  ∋   As a source they don’t have ERS yet, but on the verge of launching; as
      internal source they use their official website & soft-magazines
  ∋   They mostly rely on job-portals, followed by consultancies
  ∋   Sales-force profile would be: 24-26yrs old, 1yr of experience, graduate for
      lower level positions, MBAs for middle level positions, no industry
      preference as such but, FMCG is preferred
  ∋   Till middle level recruitment is done from the zonal-office, but for higher
      positions ZSOs start the process but, HO makes the final decision
  ∋   Attrition rate in FMCG industry would be between 5 to 10%, for middle &
      smaller stature organizations this rate is higher




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B. Other Industries

          1. RELIANCE COMMUNICATIONS
              ∋   Reasons of recruitment are: resignation, new position, promotion &
                  termination (in order)
              ∋   Sales-force structure would be: (SE—SH—ZSH—RSH) σ
              ∋   There are many SBU based sales-force like, Enterprise, Wireless, PCO
                  etc.
              ∋   Quite obviously they have to recruit more for SEs
              ∋   They have to recruit more for Wireless & Enterprise divisions
              ∋   They use their internal sources but, mainly recruitment is done through
                  consultancies, followed by job-portals
              ∋   They mainly use www.naukri.com, www.monsterindia.com & ABC
                  Consultancies; there is no proper picking order, every decision is driven
                  by 2 parameters i.e. cost & lead time
              ∋   Sales-force profile would be: 20-35yrs old, 2-5yrs of experience, graduate
                  preferably MBAs, from FMCG or Telecom background
              ∋   Annual Average Budget for Recruitment would be between 10-50 lacs
              ∋   They’ve got no organizational preference

          2. SIEMENS
              ∋   In IT & Electronics Industry recruitment is divided into “Expansion” &
                  “Replacement”; mainly recruitment is of replacement in nature
              ∋   No, there is no proper trend in people leaving & joining some other
                  industries, mainly they remain in the industry but, search for niche
                  markets
              ∋   The main challenge is to stop employees moving to foreign competitors
              ∋   Some do tend to go for FMCG, Real-estate & Banking sector
              ∋   They work in 3 main sectors: Real-estate, Energy & Healthcare
              ∋   The main difference in between IT & FMCG recruitment is that in FMCG
                  industry the pool is homogeneous i.e. the main skill set is always centered
                  in selling, but in IT it’s all about multitasking in a specific technical
                  domain
              ∋   The team structure depends on 2 basic structures: Project-Matter-structure
                  & Vertical-structure
              ∋   IT organizations’ main source of recruitment is there Alumni-Channel
σ
    SE = Sales Executive, SH = Sales Head, ZSH = Zonal SH, RSH = Regional SH


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            ∋   They also use – advertisements, consultancies, job-portals & ERS, but
                there’s no picking order
            ∋   Recruitment for an IT organization is not only driven by HR needs but
                also by publicity stunts
            ∋   Below zonal heads recruitment is done from zonal-offices otherwise it’s
                done from HO; “you can’t recruit your boss”
            ∋   Generally in IT industry recruitment is always done in bulk as, if you need
                to increase your productivity you need to increase the head-count, which is
                not so in FMCG
            ∋   IT can also recruit in bulk, as IT has more budget as it has almost 35%
                profit-margin

        3. TATA-AIG
            ∋   Reasons of recruitment are mainly due to new position, resignation,
                termination & promotion (in order)
            ∋   ABDM σ —BDM—Sr.BDM—SM σ —Sr.SM—BSM σ —AM—RM—ZSM
            ∋




                                                                             ALT. CHANNEL



                                                                                         Corp.
                                                                                        AGENCY




                                                                                 BANK          UBI
                       ALT.                           BA
                     CHANNEL
                                                                                 PNB
                                           UMM
                                                            BA         UMM
                                                                                        HSBC



                Figure 45: SBU structure in TATA-AIG (full-forms are not available)




σ
  Assistant Business Development Manager
σ
  Sales Manager
σ
  Branch Sales Manager


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         ∋    As UMM is new so, lot of branches are coming-up, hence massive
              recruitment for this new position, & that’s why new position ranks first for
              recruitment
         ∋    They mainly use ERS as, the pool is reliable & fetches authentic people,
              has got at least little bit of experience, their rate of resignation is lesser
         ∋    When the recruitment is in bulk, then only they go for consultancies to
              save time, they prefer job-portals the least
         ∋    The sales-force profile would be: 25-26yrs old, 1-2yrs of experience, post-
              graduate/graduate, from any sales background, PHARMA is preferred
         ∋    For higher position recruitment they generally look for 2 criteria i.e.
              reference & track-record
         ∋    The candidates for higher positions must possess management skills &
              leadership qualities
         ∋    Attrition rate in insurance sector is very high, about 50-60%, this is due to
              high targets in insurance sector but, the truth is “less pressure” is a mirage

C. Findings

      1. Reasons for recruitment
              1. Micro-Analysis (considering only FMCG Industry)
                                             MICRO-ANALYSIS




                                  TERMINATION
                                      10%
                                                                      RESIGNATION
                     NEW-POSITION                                         38%
                         23%



                                            PROMOTION
                                               29%




                        RESIGNATION     PROMOTION      NEW-POSITION     TERMINATION


                Figure 46: Micro-analysis of data-gathered by interviewing HR managers


              As we can see from the pie-chart that the main (38%) reason for
              recruitment is resignation, next in line is promotion with 29%, which is
              generally beneficial for both the employer & the employee, employee gets
              higher package & designation & the employer gets employee commitment
              in return. Next comes new position with 23%, as these are well established
              organizations, unless & until they expand or diversify, these category will
              remain low in %, another reason being that a sales profile is a sales profile


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     you can’t add much more to it, as Cavinkare is expanding in WB, majority
     of the credit goes to it. The last position goes to termination, which is at
     only 10%, this is generally not preferable both employer & employee as
     employee loses his/her job & employer loses its image & it also points to
     the inefficiency of the recruitment process.
     2. Macro-Analysis (considering all the organizations, even non-FMCG)
                                   MA CRO-A NA LY SIS




                         TERMINA TION
                             10%
                                                               RESIGNA TION
             NEW-POSITION                                          37%
                 26%




                                       PROMOTION
                                          27%




                RESIGNA TION   PROMOTION        NEW-POSITION   TERMINA TION



      Figure 47: Macro-analysis of data-gathered by interviewing HR managers


     If we compare the previous pie-chart with this one, we’ll find that
     resignation went down by 1% & promotion went down by 2%. This 3%
     down-turn has added up to new position & it has become 26%. This
     increase is due to boom in Telecom & Insurance industry, & they are
     comparatively newer than FMCG industry, so there is a lot of scope for
     newer positions.

2. Is there any TREND?
     Is there any trend in the way people leave FMCG industry & tend to join
     industries like Telecom or Insurance?
     This is what FMCG HR-managers replied:
                                       TREND EXISTS ?




                       NO
                      38%




                                                                   YES
                                                                   62%




                                          YES    NO



      Figure 48: Is there any TREND?


     As we can see majority (62%) of the HR managers I’ve interviewed have
     voted for the existence of a trend.



                                                                               - 60 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097




3. Existence of SBU-centric Sales-Force
  There are some organizations, like Eveready, who don’t have separate sales-
  force for each division in their organization. In Eveready the same sales-
  person is responsible for the sell of all the products, which is different for
  sales-person in DIL; they have separate sales-force for CCD & CHD.
                               SALES FORCE FOR SBU'S ?




                  NO
                 40%



                                                               YES
                                                               60%




                                         YES   NO



    Figure 49: Existence of SBU centric Sales-Force


  60% of the organizations I’ve made a visit to have SBU-centric sales-force.
  This of course affects recruitment as for different divisions you have separate
  job-description, job-specifications, source, target-pool & working
  environment; though sales profiles are generally homogeneous in nature,
  there’d be small demarcations in the recruitment process.




                                                                            - 61 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097




4. Source-preference
  No source of recruitment is good or bad, each has its own limitations &
  scopes, it all depends on the situation. Some sources don’t even exist for
  certain industries, for example FMCG industry can’t use alumni channel
  whereas it’s IT industries first choice. Apart from existence & non-existence,
  certain sources you can’t use in certain situations like, when you need
  candidates in bulk, job-portal won’t be a good option as you have to find out
  each an every candidate from the portal which is tedious & time-consuming.
  Considering all the situations, following result we can arrive at, after
  interviewing the HR managers of respective organizations:
  1. Micro-Analysis (considering only FMCG Industry)

                             M I C R O - A N A L YS I S



                                                       ERS
         CONSULTANCY
                                                       23%
                 30%




                                           J OB- PORTAL
                                                 47%


                  ERS       J OB- PORTAL          CONSULTANCY



    Figure 50: Source-preference
  As we can see FMCG organizations rely mainly (47%) on job-portals, the
  reason being this that they don’t need candidates in bulk as required by other
  Industries like, IT, where people are the main constituent for expansion or
  diversification, and FMCG is stable enough for undergoing any drastic
  change. In FMCG industry, HR doesn’t have any robust structure, manpower
  & plenty resources, like IT & other industries, for ERS database maintenance
  & updates. Industries like IT have wider range of resources for HR, which can
  be utilized to make new strategies. Consultancies are the next preferred source
  with a preference % of 30%, used during tight lead-times. As stated earlier
  ERS is the least used sources of all.




                                                                            - 62 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097



2. Macro-Analysis (considering all the organizations, even non-FMCG)

                            M ACRO-ANALYSIS


                                                     ERS
     CONSULTA NCY
                                                     26%
         32%



                                         JOB-PORTA L
                                            42%

               ERS       JOB-PORTA L             CONSULTA NCY


Figure 51: Macro-Analysis of Source-Preference


If we compare this pie-chart with the one in the previous page, it’s crystal
clear that use of job-portal has decreased by 5%, which got redistributed in
consultancies preference (thus, increasing it by 2%) & in ERS preference
(thus, increasing it by 3%).IT industries use a lot of Alumni channel &
Insurance sector uses a lot of internal sources for reliability issues, hence
increasing the ERS %. In case of IT, Telecom & Insurance which are
comparatively new & unstable sectors thus they need candidates in bulk, thus
increasing the usage of consultancies.




                                                                        - 63 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097




D. Recruitment from Consultancies’ Perspective
   Data available: went for an interview with New Management Development
   Consultancies.

   1. Client-Consultancy Interaction
      The consultancy always needs to concentrate on the following points, while
      dealing with the client:
      1. deadline for the concerned vacancy, i.e. the lead-time for the given vacancy
      2. proper & thorough knowledge of Job-Description & Job-Specification
      3. proper knowledge of the remuneration-range
      4. consultancy-fees which will balance the effort put & cost bared by it
      5. it should also take into account the individual choices of the concerned HR-
         managers

   2. Candidate-Consultancy Interaction
      The consultancy always needs to concentrate on the following points, while
      dealing with the candidate:
      1. in remote areas they need to create candidates, by counseling them, as in
         FMCG sector there is a number organizations & in remote areas it’s really
         hard to find good candidates
      2. they always have to map candidates for future or present requirements
      3. they have to keep & maintain satellite agents in remote places
      4. they have to understand a candidate’s needs
      5. they need to convince the candidates so that all the 3 parties arrive at a win-
         win situation
      6. they need to find references, constantly, for head-hunting
      7. they need to follow-up both the candidates & clients

   3. Consultancies own responsibilities
      1. they are always in a sandwiched situation, acting as a bridge between the
         clients & the candidates & trying to match one’s expectation with that of the
         other
      2. generally it’s a ground level work; they don’t use any special tool for this,
         only use simple database software
      3. they need to find out CVs which the organizations don’t have any access to,
         because if the organization can find the candidates themselves they don’t get
         paid; they have their own database, they don’t search from job-portals
      4. they always maintain a stock, to meet up to the deadline & to keep the client
         interested


                                                                                     - 64 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097



       5. when they have more than one client asking for the same profile at the same
          time, when they’re short on resources, they have to prioritize & make a trade-
          off
       6. they also interview & train the candidate for final interview so, that the
          candidate gets selected
       7. sometimes they put advertisements on behalf of their clients or sometimes put
          joint-advertisements also
       8. sometimes they take the screening tests for bulk recruitment, they do this on
          behalf of their clients & for some IT firms, for entry level positions, this is a
          very common practice


E. Expectation levels relating to Consultancies
   Further data collected from consultancies by interviewing 4 consultancies; The Head
   Hunters (M/s Nilanjana), Career Point (Mr.Subrata), New Management Development
   Consultancy (Mr. Subhadip Das), Udayan Basu & Associates (M/s Dipanwita
   Sarkar).

   1. What a consultancy expects from its Client
       1. Specific, Updated & Perfect Job-Description without any confusion
       2. Intimation before the interview & after the interview from clients end
       3. Exact or proper scheduling, as the candidates are in sales & thus, highly
          mobile, if somehow the interview is not held on the appointed date, the
          candidate may not be available. Thus, a bitter relation among the two may
          crop up, the consultancy fails to achieve the targeted turnout, delayed billing
          & the organization losses the candidate
       4. Feed back or follow-up is one of the major resources which a consultancy
          needs to deliver properly. If the candidate is rejected, then on what grounds &
          if, the candidate is selected, then an insight on his qualities. This information
          is very important for the consultancy for delivering in future as every CV is
          like gold to it & it doesn’t want to waste CVs
       5. Timely payment & over all satisfaction in terms of approach & time given for
          briefing
       6. Good number vacancies, with good remuneration packages.
       7. Leading & growing organizations
       8. Pro-activity from the other end, consultancies want to work as a team with the
          clients
       9. Trust & faith on the consultancy’s abilities
       10. Transparency in terms of all the proceedings regarding the recruitment




                                                                                        - 65 -
SUBMITTED BY ANGSHUMAN GHOSH, 010106097




Which organizations/industry are recruiting from DIL?
Data collected form www.naukri.com: collected CVs of employees who had been
with DIL, but left during 06-08 & now, are working with some other organization.

Table 34: Sample set for, recruitment process of others from DIL
 SL.NO.                            CO./ORG.                          DOL DESIG.in DIL STATE in DIL
    1                     Agro Tech Foods Limited                   Feb-07   SO           WB
    2                   AIRCELL/Dishnet wireless Ltd                Jul-07  SSO          BHR
    3                   AIRCELL/Dishnet wireless Ltd                Feb-07  SSO          BHR
    4                   AIRCELL/Dishnet wireless Ltd                Nov-07   SO          JKD
    5                     Bajaj Consumer Care Ltd                   Mar-07  ASE          BHR
    6               BHARTI AIRTEL SERVICE LIMITED                   Aug-07  SSO          JKD
    7               BHARTI AIRTEL SERVICE LIMITED                   May-08   SO           NE
    8               BHARTI AIRTEL SERVICE LIMITED                   Nov-06  SSO          ORS
    9                           Cadbury Inia Ltd                    Jul-06   SO          BHR
   10                         CavinKare Pvt Ltd                     Jun-06   SO           NE
   11                      COLGATE-PALMOLIVE                        Dec-07   SO           NE
   12                      COLGATE-PALMOLIVE                        Mar-07   SO          ORS
   13                              EMAMI Ltd                        Dec-07   SO          JKD
   14                              EMAMI Ltd                        Jan-06  ASE          JKD
   15                              EMAMI Ltd                        May-07  ASE          ORS
   16                              EMAMI Ltd                        Dec-07  ASE          ORS
   17               EMCURE PHARMACEUTICALS LTD                      Sep-06  ASM           WB
   18                   FABER CASTELL (I) PVT. LTD                  Jan-07  SSO           WB
   19                                  GSK                          Sep-07   SO           WB
   20             HCL INFOSYSTEMS LTD-NOKIA SALES                   Jan-07   SO           WB
   21              Hindustan Coca Cola Beverages Pvt Ltd            May-06   SO           NE
   22                        ICI INDIA LIMITED                      Feb-07  ASE           NE
   23                          ICICI BANK LTD                       Nov-06   SO          JKD
   24                          ICICI BANK LTD                       Dec-07  SSO          ORS
   25                          ICICI BANK LTD                       Mar-06   SO           WB
   26                    KEVENTER AGRO LIMITED                      May-08   SO           WB
   27                       Kotak Life Insurance                    Apr-06  SSO           WB
   28                            KS OILS LTD                        Oct-07   SO          BHR
   29                          loreal india pvt ltd                 May-07   SO           WB
   30                           Marico Limited                      Jan-07   SO           NE
   31                           Marico Limited                      Jan-07   SO          ORS
   32                           Marico Limited                      May-06   SO           WB
   33                           Marico Limited                      May-06   SO           WB
   34                           Marico Limited                      Apr-06  SSO           WB
   35                           Marico Limited                      Sep-06   SO           WB
   36                           Marico Limited                      Jan-08   SO           WB
   37                        NESTLE INDIA LTD                       Mar-07   SO          ORS
   38                       Pepsico International                   Jun-07  SSO          JKD
   39                  PHILIPS INDIA LTD (LIGHTING)                 Dec-07   SO          BHR
   40                  PHILIPS INDIA LTD (LIGHTING)                 Feb-07   SO          JKD
   41                     Ranbaxy Laboratories Ltd                  Mar-08  OPM          BHR
   42                   Reckitt Benckiser India Limited             Apr-07  ASM          ORS
   43     Reliance Telicom Limited/Reliance Communication Limited   Aug-07   SO          BHR
   44     Reliance Telicom Limited/Reliance Communication Limited   Jul-07   SO           WB
   45     Reliance Telicom Limited/Reliance Communication Limited   Dec-07   TSI         BHR
   46     Reliance Telicom Limited/Reliance Communication Limited   Jan-07  ASM          BHR
   47     Reliance Telicom Limited/Reliance Communication Limited   Sep-07   SO          BHR
   48     Reliance Telicom Limited/Reliance Communication Limited   Mar-07  ASE          ORS
   49     Reliance Telicom Limited/Reliance Communication Limited   Jun-07   SO           WB
   50                  Roche Diagnostics India Pvt Ltd              Mar-07  SSO          BHR
   51                       Sify Technologies Ltd                   Jan-08   SO          JKD
   52                            SSL-TTK LTD                        Mar-06   SO           WB
   53                       Tata Tele Services Ltd                  Feb-06   SO          JKD
   54                       Tata Tele Services Ltd                  Feb-08   SO           WB

The above list of ex-employees of DIL is the sample set.



                                                                                               - 67 -
Abridged internship report
Abridged internship report
Abridged internship report
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Abridged internship report
Abridged internship report
Abridged internship report
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Abridged internship report

  • 1. E-COPY MONDAY, June 16th 2008 Recruitment Process I N D A B U R I N D I A L T D . O B J E C T I V E S : • Effectiveness of FMCG growth by 16% in’09 DIL’s Recruitment and fairness and men's products too All this has helped curb input cost Process The fast-moving consumer goods are doing well. Rising incomes, inflation, the report said. Around 220 • Comparison with ( F MCG ) industry is set to grow by especially in urban markets, have malls will come up in the next 5 other FMCG giants 16% at Rs 95,150 crore in fiscal in terms of recruit- done their bit too. years which will boost demand for 2009, found a latest survey by the ment process FMCG products. Federation of Indian Chambers • Over all industry http://sify.com/finance/fullstory.php?id=14677953 of Commerce and Industry trend of recruit- ment, for FMCG ( F icci ) .It will see an overall sector growth of 15.5% in the April-June • Demarcation be- 2008 period. In fiscal 2008, the Dabur India is planning tween FMCG & industry recorded a fairly good sales global acquisitions in this other industries, in -BOOM growth of 14.5%. FMCG— fiscal year and has terms of recruit- already identified 20 ment process But what will bring about this target companies, Dabur • Their recruitment & growth? Value added and aspira- Despite across-the-board price India had acquired a our retention tional products as also the high-end hikes of 5-20%, consumers have Nigerian company segment. Categories such as skin- upgraded to high-end products and African Consumer Care care and cosmetics, shampoos, FMCG companies have been able in late 2007 and set up I N S I D E TH I S I S S U E : deodorants, cleaners and repellents to pass on the rise in input costs to manufacturing in the and tooth powder would grow at them. country INTRODUCTION 9 more than 20%. Anti-aging solutions ——PTI Product mixes have also improved. REVIEW 10 DESIGN 16 DATA-ANALYSIS 18 H R ’s R i s i n g S t a r i n I n d i a CONCLUSIONS 80 you ’ re in the air, ” says Marcel R. trated by the results of a recent With the national economy growing Parker, president of human re- salary study commissioned by RECOMMENDATIONS 86 rapidly and with growth in such sources at the Raymond Group of Hutchison Essar: Senior HR execu- industries as IT and business proc- BIBILOGRAPHY 87 Companies in Mumbai, a leading tives were the third-highest-paid ess outsourcing more than doubling, Indian organization in textiles and executives in the country behind APPENDIX 88 HR challenges are coming fast and retailing with 18,000 employees. network architecture and sales furious. INDEX 90 executives. shrm.org/hrmagazine/ The generally high value placed on “ I t ’ s like building an aircraft while articles/0906/0906cover.asp HR management in India is illus-
  • 2. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 CONTENTS INTRODUCTION 8 REVIEW 10 1. RECRUITMENT PROCESS IN GENERAL 10 A. OBJECTIVE 10 B. THE TASKS 10 C. CONSTRAINS 10 D. FACTORS AFFECTING RECRUITMENT 10 E. SOURCES 10 F. TYPES OF EXTERNAL SOURCES 11 G. TYPES OF INTERNAL SOURCES 11 H. ALTERNATIVES 12 I. EVALUATION OF SOURCES OF RECRUITMENT 12 2. FMCG INDUSTRY 12 A. WHAT IS MEANT BY FMCG? 12 B. FMCG PRODUCTS & CATEGORIES 12 C. ADVANTAGES OF BEING IN FMCG INDUSTRY 12 D. CHALLENGES OF BEING IN FMCG INDUSTRY 13 E. SALES-OPERATION IN FMCG: 13 3. RECRUITMENT PROCESS IN FMCG INDUSTRY 14 A. THE JOB OF A SALES PERSON IN FMCG INDUSTRY 14 B. BACKGROUND OF THE SALES PEOPLE 14 C. CHALLENGES IN RECRUITING SALES PEOPLE IN FMCG INDUSTRY 14 D. THE SOURCES WHICH ARE GENERALLY USED FOR RECRUITMENT IN FMCG INDUSTRY 14 4. COMPANY OVERVIEW 15 A. DABUR INDIA LIMITED 15 DESIGN (ACTION-PLAN) 16 1. ACTION-PLAN 16 2. DESIGN AT A GLANCE 17 PRESENTATION & ANALYSIS OF DATA 18 DABUR INDIA’S RECRUITMENT PROCESS ANALYSIS 18 A. RECRUITMENT SOURCE WISE ANALYSIS 18 B. CONSULTANCIES’ CONTRIBUTION TOWARDS DIL’S RECRUITMENT PROCESS 20 C. STATE WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS 21 D. DESIGNATION WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS: 23 E. STATE WISE DESIGNATION IN DEMAND FOR RECRUITMENT IN DIL 25 F. DIVISION WISE ANALYSIS OF DIL’S RECRUITMENT PROCESS 28 G. STATE-DIVISION WISE ANALYSIS OF RECRUITMENT PROCESS IN DIL 29 H. STATE WISE CONSULTANCY CONTRIBUTION TOWARDS DIL’S RECRUITMENT PROCESS 31 I. DESIGNATION WISE CONSULTANCY CONTRIBUTION TOWARDS DIL’S RECRUITMENT 32 -3-
  • 3. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 J. DIVISION WISE CONSULTANCY CONTRIBUTION 33 K. 3-WAY ANALYSIS (PLACE, DIVISION & DESIGNATION) OF DIL’S RECRUITMENT PROCESS 34 L. PREVIOUS ORGANIZATION ANALYSIS 36 M. INDUSTRY 38 RECRUITMENT TREND IN OTHER FMCG BIG-SHOTS 39 A. NESTLÉ 39 B. HUL 41 C. MARICO 43 E. HEINZ 47 F. OVER ALL INDUSTRY PREFERENCE 49 G. LIMITATIONS OF THE SAMPLE 51 ANALYSIS ON THE BASIS OF SURVEY 52 A. FMCG INDUSTRY 52 1. HEINZ 52 2. CAVINKARE 52 3. EVEREADY 53 4. COLGATE-PALMOLIVE 54 5. MARICO 54 6. HUL 55 7. CADBURY 56 8. EMAMI 56 B. OTHER INDUSTRIES 57 1. RELIANCE COMMUNICATIONS 57 2. SIEMENS 57 3. TATA-AIG 58 C. FINDINGS 59 1. Reasons for recruitment 59 2. Is there any TREND? 60 3. Existence of SBU-centric Sales-Force 61 4. Source-preference 62 D. RECRUITMENT FROM CONSULTANCIES’ PERSPECTIVE 64 1. Client-Consultancy Interaction 64 2. Candidate-Consultancy Interaction 64 3. Consultancies own responsibilities 64 E. EXPECTATION LEVELS RELATING TO CONSULTANCIES 65 1. What a consultancy expects from its Client 65 2. According to a Consultancy, what are the client’s expectations 66 3. Candidate’s expectations from a Consultancy 66 WHICH ORGANIZATIONS/INDUSTRY ARE RECRUITING FROM DIL? 67 A. WHICH ORGANIZATIONS ARE PREFERRING DIL 68 B. WHICH STATES ARE MORE VULNERABLE FOR DIL & PREFERABLE FOR OTHERS 73 C. WHICH DESIGNATIONS ARE MORE VULNERABLE IN DIL? 77 D. WHICH INDUSTRIES ARE PULLING MORE CANDIDATES FROM DIL 79 CONCLUSIONS 80 A. EFFECTIVENESS OF DIL’S RECRUITMENT PROCESS 80 B. COMPARISON WITH OTHER FMCG GIANTS 80 C. OVER ALL INDUSTRY TREND FOR FMCG SECTOR 81 D. DEMARCATION BETWEEN FMCG & OTHER INDUSTRIES 83 -4-
  • 4. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 E. THEIR RECRUITMENT & OUR RETENTION 84 F. RECRUITMENT FROM CONSULTANCY’S VIEW POINT 84 RECOMMENDATIONS 86 BIBLIOGRAPHY 87 APPENDIX 88 INDEX 90 -5-
  • 5. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 INTRODUCTION° This project is all about recruitment process in FMCG ∇ industry. But, to understand any HR practice in FMCG industry, first one has to understand the FMCG industry as a whole. Then in the 2nd step one has to understand sales in FMCG industry, the reason being that in FMCG industry sales is in the centre and all other functions revolve around it. Then one has to understand what’s the background & psyche of the sales people, to complete the circle. All these information is given in the Review section to let you know what you are really up to. Any project can’t begin without any goal or objective; I’ve got five objectives for doing this project: Ξ To understand the effectiveness of recruitment process in DIL Ω (east) Ξ To compare DIL’s recruitment process with other FMCG organizations Ξ To understand over all recruitment trend in FMCG industry Ξ To find out the main difference in recruitment process between that of FMCG industry & that of other industries (especially which are competing with FMCG in the front of recruitment) Ξ To find out which organizations or industries are preferring DIL to be a good source for recruitment Next comes the Design part which will help the reader to comprehend what was in my mind while doing the project. Next comes the Analysis part, I’ve tried my level best to keep it comprehensive (which led to the thickness) & simple so, that even a layman can understand what’s going on & thus, can be benefitted out of it. Most of the data is of qualitative in nature & I’ve got very less chance to use high-end statistical tools like Chi-square & ANOVA. One can say that I avoided them intentionally but, my point is I don’t need them to show or prove what I want to show or prove. Then comes the climax or (in a more professional way) the Conclusion part which will combine all the results I’ve got during the analysis part & project a symmetrical beam of light towards certain points. Lastly if you find it boring please forgive me, but believe me it was real fun doing the project. ° I’ve done this project in my Summer Internship Program, at Dabur India Ltd at Dabur House, Kolkata ∇ FAST MOVING GOODS Ω Dabur India Ltd -9-
  • 6. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 REVIEW In this section you will come to know the following: 1. Recruitment process in general. 2. FMCG Industry. 3. Recruitment process in FMCG Industry. 4. Company overview: a) Dabur India Limited 1. RECRUITMENT PROCESS IN GENERAL A. Objective of any recruitment process is to meet the future & present needs of Human Resource Inventory. B. The tasks of any recruitment process can be summed-up into three main functions: 1. LOCATE 2. ENCOURAGE 3.DISCOURAGE Locate your target pool of candidates, encourage them to apply to your organization & lastly you have to discourage those candidates who are not in your target pool. C. Constrains of a recruitment process would be: a) Poor-Image b) Nature of Job c) Policies of the Organization d) Budget e) Government Policies D. Factors Affecting Recruitment: a) Political Factors b) Legal Factors c) Economic Factors d) Social Factors e) Technological Factors E. Sources of recruitment. There are two broad categories of sources of recruitment are, Internal sources & External sources. The advantages of Internal sources are: a) Less costly b) More suitable - 10 -
  • 7. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 c) More reliable d) Motivates existing employees The disadvantages of Internal sources are: a) Limited pool b) Blockage to fresh-blood c) Efficiency may get lowered d) May cause jealousy among peers The advantages of External sources are: a) Wide pool b) Fresh-blood c) Motivates employees through positive competition d) More appropriate for Long-term results The disadvantages of External sources are: a) Expensive b) Time consuming c) May de-motivate existing employees d) Uncertainty F. Types of External sources: a) Consultancy b) Employment exchange c) Job-portals d) Campus-visit e) Stake-holder referrals(including employees) f) Media-advertisements g) Walk-ins h) Head-hunting G. Types of Internal sources a) Transfer b) Promotions c) Job-posting - 11 -
  • 8. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 H. Alternatives of Recruitment: a) Over-time b) Sub-contracting c) Temporary-leasing d) Outsourcing I. Evaluation of sources of recruitment. There are some methods of evaluating sources of recruitment, like: a) T.L.D. ϒ b) Yield ratios c) Surveys 2. FMCG INDUSTRY A. What is meant by FMCG? FMCG means Fast Moving Consumer Goods; it includes each & every product we use in a day to day basis, starting with using tooth-paste in the morning till switching on the mosquito-repellant at night. B. FMCG Products & Categories ψ I. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash(soaps) II. Cosmetics & toiletries, Deodorants, Perfumes, Feminine hygiene, Paper products III. House-hold Care: laundry soaps, synthetic detergents, house-hold cleaners, insecticides IV. Food & Health beverages, branded Flour etc, Bakery products, Milk & diary products, beverages like tea/coffee/juices, Bottled water, Snacks, Chocolate, etc V. Frequently replaced electronic products like TV, music-systems, camera, laptops, refrigerator, washing machine; they are called White Goods. C. Advantages of being in FMCG Industry a) Continuous Demand b) Automatic Sales ϒ Time Lapse Data ψ Taken from “THE MAJESTY OF INDIAN FMCG” by RADHA PRASAD MUNI. - 12 -
  • 9. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 D. Challenges of being in FMCG Industry a) Brand-switch b) High-competition c) Less-margin d) Creating, maintaining & protecting Territory & Network e) Adopting to different geographies, demographics & political influences E. Sales-operation in FMCG: Figure 1: SALES OPERATION IN FMCG The availability of products till the whole-seller is called primary selling & there after from whole-seller to the retailer is called secondary selling, and the transfer of the product to the end-user from retailer is termed as tertiary selling (it’s not shown because for an FMCG company tertiary selling doesn’t play much role as product take-off would be automatic if it’s available; further more it’s the responsibility of the retailer to sell). - 13 -
  • 10. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 3. Recruitment process in FMCG Industry What is so special regarding recruitment process in FMCG Industry that we have to deal with it separately & specifically? A. The job of a sales person in FMCG Industry His real job is to make the product available in the outlets & not to sell them directly to the end-user. The job is monotonous by nature & laborious too. B. Background of the sales people They are highly unstable if they are not married, get highly influenced by remuneration schemes & always in search of better opportunities of better prospect, growth & home-town territories. C. Challenges in recruiting sales people in FMCG Industry 1. The crowd or the target market is highly homogeneous; selling includes selling anything so the pool in bigger cities & towns is so big that we lose a lot of time in screening proper CV’s. This is one of the reasons that we don’t often see advertisements for recruiting sales people in FMCG Industry. 2. In remote places the case is just upside-down, there is a dart of candidates, due to large number of competitors. 3. It is really very hard to get stable candidates who would stick to company. D. The sources which are generally used for recruitment in FMCG Industry for sales- profiles, due to the above mentioned reasons HR Department in FMCG Industry generally stick to: 1. Job-portals 2. Consultancies 3. Stake-holder referral schemes 4. Campus-recruitment 5. Internal Sources - 14 -
  • 11. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 DESIGN (ACTION-PLAN) The project was of eight weeks & here is the project-design segregated on the basis of eight weeks: 1. Action-Plan 1. Understand Dabur’s recruitment process 1.5 weeks 2. Analysis of Dabur’s recruitment process 0.5 weeks 3. Other Companies recruitment process 1.5 weeks 4. Analysis of Other Companies recruitment process 0.5 weeks 5. Macro analysis of FMCG Industry 1 week 6. Further Data collection from other Industries 1 week 7. Preparation Stage for project report & presentation 1 week 8. Final presentation & report evaluation 1 week . 8 weeks To understand Dabur’s recruitment process one has to concentrate on: 1. Basic frame-work of recruitment 2. What & which data are available? 3. Recruitment through consultant 4. Recruitment through job-portal 5. Other recruitments 6. Data-analysis To understand other FMCG organizations’ recruitment process one has to concentrate on: 1. Get names of HR managers involved in recruitment, office-address & phone numbers. 2. Contacting them & taking appointments 3. Developing Questionnaire 4. Meeting respective managers & collecting data 5. Analysis of collected data - 16 -
  • 12. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 2. Design At a Glance Figure 2: DESIGN AT A GLANCE 1. Understanding the recruitment process in general 2. Understanding the recruitment process in FMCG industry 3. Understanding the recruitment process in DIL, East 4. Gathering 2ndary data from DIL: list of employees who joined between 2007-2008, along with their name, collect their age, source of recruitment, background, experience & other parameters 5. With this 2ndary data start analysis for the effectiveness of recruitment process in DIL, East 6. Collect more 2ndary data from www.naukri.com for comparison of different FMCG organizations & trend-analysis of FMCG industry 7. With the collected CVs, start analysis for different parameters like, CTC Φ , Experience, State, Age, Designation etc 8. Collect more CV’s from www.naukri.com to see which industries & organizations are preferring to recruit from DIL 9. Start analysis to find out what these organizations or industries look in a candidate & what is the trend of recruitment on the basis of state, designation, industry, etc 10. Locating FMCG organizations in Kolkata, locating HR-Manager involved in recruitment, taking appointments & doing the survey on the basis of the questionnaire 11. Locating some other organizations, & their HR-Managers, which belong to some industries like Telecom & Insurance, who are competing with FMCG in terms of recruitment 12. Doing some more survey from other organizations (from different industries, other than the above mentioned) to find out the specialty of FMCG recruitment & also interviewing some consultancies involved in FMCG recruitment. 13. Apart from the subjective points, utilizing the data which can be coded, & thus can be used for analysis. 14. Thus, finally doing a macro-analysis to find out over all results & conclusions directed towards the project objectives Φ Cost To Company - 17 -
  • 13. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 PRESENTATION & ANALYSIS OF DATA DABUR INDIA’S RECRUITMENT PROCESS ANALYSIS Data available: list of employees joined the company, in 07-08, in east zone (Bhubaneswar, Kolkata, Guwahati, Patna & Ranchi). A. Recruitment source wise analysis Table 1: DIL’s channel wise recruitment in 07-08 Channel NO. OF EMPLOYEES CONSULTANCY 8 DIRECT 44 ERS 4 TOTAL 56 RECRUITMENT CHANNELWISE ERS CONSULTANCY 7% 14% DIRECT 79% CONSULTANCY DIRECT ERS Figure 3: DIL’s channel wise recruitment ☯ As we can see that 79% of the whole recruitment in east-zone is done through direct method i.e. through job-portals & internal/individual network. This is generally preferred as this is the most cost-effective way of recruiting if you can handle the Lead-Time ∏ . As there is no dart in DIL’s sales-force & it’s functioning smoothly, efficiently & effectively, we can infer two things – 1.employees don’t leave the organization in bulk. & 2.recruitment process is handled very efficiently & meticulously. Both are generally very preferable for any organization’s recruitment process. ∏ LEAD-TIME IS THE TIME TAKEN BY THE HR DEPARTMENT TO FILL THE VACANCY, i.e. time period between vacancy & placement. - 18 -
  • 14. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 D. Designation wise analysis of DIL’s recruitment process: Table 4: Designation wise manpower requirement in DIL DESIGNATION NO. OF EMPLOYEES SALES OFFICER 37 OFFICER-PROFESSIONAL MARKETING 11 SENIOR SALES OFFICER 3 SALES TRAINEE 3 AREA SALES EXECUTIVE 2 TOTAL 56 DESIGNATIONWISE COMPARISON 60 56 50 SALES OFFICER 37 OFFICER-PROFESSIONAL MARKETING 40 SENIOR SALES OFFICER 30 SALES TRAINEE 20 11 AREA SALES EXECUTIVE 10 3 3 2 TOTAL 0 DESIGNATION Figure 7: Designation wise distribution of recruitment in DIL This is quite evident from the graph that SO !s are the ones who have been recruited the most, the reason behind this is that it’s the lowest rung in the ladder, and quite obviously needed in more numbers. The next positions goes to OPM ∗ s, who are needed only for CHD, a bit lesser in number as SOs include both CCD & CHD. Thus, for CHD it’s also one of the most recruited positions. Others are less recruited as you go up the ladder because requirement is less & commitment level increases due to seniority. ! Sales Officer ∗ Officer Professional Marketing - 23 -
  • 15. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 G. State-Division wise analysis of recruitment process in DIL Let us take two parameters, namely state & division, together & see what happens in the analysis. Table 11: State & division wise distribution of recruitment STATE- DIVISION BHUBANESWAR KOLKATA GUWAHATI PATNA RANCHI CCD 2 4 4 7 2 CHD 9 9 5 11 3 STATEWISE DIVISION RECRUITMENT 11 12 9 9 10 7 8 5 CCD 6 4 4 2 2 3 4 CHD 2 0 B U A E WR K L AA PT A U A AI A C I G WH T RN H OK T AN H BNS A STATE- Figure 16: State wise recruitment for the 2 divisions %WISE CCD & CHD IN EACH STATE 100% 80% 60% CHD 40% CCD 20% 0% B U A E WR ACI PT A RN H U A AI K L AA G WH T H BNS A AN OK T STATE- Figure 17: Recruitment % for each division in each state As depicted earlier, in all states recruitment rate for CHD is higher than that for CCD, only anomaly is GUWAHATI where it’s almost equal. In BHUBANESWAR this difference is huge almost 60%, then comes KOLKATA the difference being of 50%. The rate of recruitment for both CCD & CHD is highest in PATNA, which tallies with previous results. - 29 -
  • 16. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 I. Designation wise consultancy contribution towards DIL’s recruitment Table 13: Designation wise consultancy contribution distribution SO OPM SSO ST ASE NO. OF EMPLOYEES 4 2 1 0 1 DESIGNATIONWISE CONSULTNCY CONTRIBUTION 4 4 3 2 EMPLOYEES 2 1 1 1 0 0 DESIGNATIONS SO OPM SSO ST ASE Figure 21: Designation wise consultancy contribution distribution DESIGNA IONWISE CONSULT A T NCY CONT RIBUT ION ST ASE 0% 13% SSO 13% SO 49% OPM 25% SO OPM SSO ST ASE Figure 22: Pie chart of Designation wise consultancy contribution distribution It’s evident from the graph & pie-chart that consultancies’ contribution towards SO recruitment is the maximum, as SOs are being recruited the most. Next place goes to OPM recruitment, the reason being the same. Since availability of fresher is huge & respective recruitment is low, no help form consultancies was required in the process. So, we reach to two conclusions: a) No consultancy contribution for ST recruitment b) Consultancy contribution is highest for SO recruitment, followed by that of OPM - 32 -
  • 17. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 K. 3-Way analysis (Place, Division & Designation) of DIL’s Recruitment process Table 15: Distribution of recruitment over Place, Designation & Division DESIGNATION DIVISION BHUBANESWAR KOLKATA GUWAHATI PATNA RANCHI CCD 2 3 2 4 1 SO CHD 6 7 5 6 1 CCD 0 0 0 0 0 OPM CHD 3 1 0 5 2 CCD 0 0 0 1 1 SSO CHD 0 1 0 0 0 CCD 0 1 1 1 0 ST CHD 0 0 0 0 0 CCD 0 0 1 1 0 ASE CHD 0 0 0 0 0 STATE & DIVISION WISE DESIGNATION REQUIREMENT ASE CHD ASE CCD ST CHD 0 0 0 0 0 ST CCD 1 1 1 1 1 100% 3 0 1 1 1 0 SSO CHD 5 80% 2 SSO CCD 7 5 60% 6 6 OPM CHD 1 40% 2 3 2 4 1 OPM CCD 20% SO CHD 0% BHUBANESWAR KOLKATA GUWAHATI PATNA RANCHI SO CCD Figure 24: State & division wise designation requirement in % DESIGNATION & DIVISION WISE STATE REQUIREMENT IN % 1 1 0 0 0 100% 2 6 1 4 1 1 80% 5 5 60% 2 1 1 7 0 40% 3 1 1 1 3 1 20% 2 6 0 0 0 0 0 0 0 0% CCD CHD CCD CHD CCD CHD CCD CHD CCD CHD SO OPM SSO ST ASE BHUBANESWAR KOLKATA GUWAHATI PATNA RANCHI Figure 25: designation & division wise state requirement in % - 34 -
  • 18. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 3-D VIEW OF RECRUITMENT ON THE BASIS OF 3 PARAMETERS 6 4 1 1 5 7 5 2 0 1 7 2 6 3 6 0 0 1 0 5 4 0 0 0 1 0 3 2 0 0 2 0 0 1 RANCHI 0 3 1 0 1 1 0 0 0 1 0 1 PATNA 0 1 CCD 0 0 0 GUWAHATI SO CHD CCD 0 0 OPM CHD 0 0 0 KOLKATA CCD SSO CHD 0 CCD 0 BHUBANESWAR ST CHD CCD ASE CHD BHUBANESWAR KOLKATA GUWAHATI PATNA RANCHI Figure 26: 3-D view of recruitment distribution over state, designation & division OPM recruitment for CCD in all the states is nil, as OPM is a CHD centric position. No ASE has been recruited for CHD in any state. Maximum recruitment for any position is being done in KOLKATA for SO in CHD. In all states & for both the divisions SOs are being recruited. In BHUBANESWAR apart from SOs in both divisions, only OPMs have been recruited for CHD. Over all maximum recruitment is done for SOs in CHD. - 35 -
  • 19. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 L. Previous organization analysis Table 16: List of previous organizations PREVIOUS EMPLOYER NO. OF EMPLOYEES DIL 18 GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD 2 CIPLA LTD. 2 CRYAN OILS LTD. 1 HEALTH FOOD PRODUCTS (P)LTD. 1 VISHNU SOLUTIONS 1 HIMALAYA DRUGS CO. 1 ALKEM LABORATORIES 1 VADILAL ICE-CREAM LTD. 1 WIPRO LTD. 1 FRESHER 1 INDIA INFOLINE LTD 1 GODREDJE SARA LEE LTD 1 TOPS SECURITY LTD. 1 THE ZANDU PHARMACEUTICAL WORKS 1 GILLETTE INDIA LTD. 1 G.M. PEN (P)LTD. 1 RANBAXY LABORATORIES 1 HUL 1 PARAS PHARMACEUTICAL LTD 1 TATA AIG 1 SATER AGRA PRODUCT PVT. LTD. 1 VALIANT HEALTH CARE LTD. 1 COMPETENT CARRIER 1 DABUR AYURVEDIC CENTRE 1 ACRO PAINTS 1 HUGO’S COMMERCIALIZATION 1 KARAMCHAND APPLIANCES 1 MULLAR & PHILLIPS LTD 1 SHAKTI AUSADHALYA 1 HEINZ 1 KEPL(P&G) 1 KHANDELWAL LAB 1 ARISTRO PHARMA LTD. 1 EMAMI LTD. 1 DEY'S MEDICAL 1 WOCHARDT PARENTAL DIVISION 1 TOTAL 56 - 36 -
  • 20. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 2% PREVIOUS CO. CONTRIBUTION IN % 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 32% 2% 2% 4% 2% 4% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% DIL GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD CIPLA LTD. CRYAN OILS LTD. HEALTH FOOD PRODUCTS (P)LTD. VISHNU SOLUTIONS HIMALAYA DRUGS CO. ALKEM LABORATORIES VADILAL ICE-CREAM LTD. WIPRO LTD. FRESHER INDIA INFOLINE LTD GODREDJE SARA LEE LTD TOPS SECUIRITY LTD. THE ZANDU PHARMACEUTICAL WORKS GILLETTE INDIA LTD. G.M. PEN (P)LTD. RANBAXY LABORATORIES HUL PARAS PHARMACEUTICAL LTD TATA AIG SATER AGRA PRODUCT PVT. LTD. VALIANT HEALTH CARE LTD. COMPETENT CARRIER DABUR AYURVEDIC CENTRE ACRO PAINTS HUGHO'S COMMERTIALIZATION KARAMCHAND APPLIENCES MULLAR & PHILLIPS LTD SHAKTI AUSADHALYA HEINZ KEPL(P&G) KHANDELWAL LAB ARISTRO PHARMA LTD. EMAMI LTD. DEY'S MEDICAL WOCHARDT PARENTAL DIVVISSION Figure 27: Previous organization distribution Very clearly it can be seen that 32% of the total recruitment is done internally, which is preferable due to the following reasons: a) Reliability of the candidate is very high b) Suitability of the candidate is very high (i.e. pre-exposed to organization culture) c) Less training needed d) Motivation to the employee e) Least expensive source for recruitment GCMMFL & CIPLA both have contributed only 4% of the total recruitment. Others have contributed only 2% each. Less company preference increases the corporate image & relations - 37 -
  • 21. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 C. MARICO Table 22: MARICO’s industry preference for recruitment INDUSTRY/Organization NO. CANDIDATES FRESHER 0 TELE 1 PHARMA 1 FINANCE 0 FMCG (OTHERS) 5 DABUR 5 MARICO’s industry preference for recruitment FINANCE 0% FMCG (OTHERS) PHARMA 42% 8% FMCG TELE 83% DABUR 8% 42% FRESHERS 0% FRESHERS TELE PHARMA FINANCE FMCG (OTHERS) DABUR Figure 33: MARICO’s industry preference for recruitment As we can see Marico has recruited mainly from FMCG Industry (83%) of which 50% of the candidates were previously working with DIL. Like, HUL they haven’t taken any fresher at all. They have taken equally, i.e. 8% each, from Telecom & PHARMA. Unlikely HUL, they haven’t taken anybody from banking/insurance background. Intakes from PHARMA industry is also very low, but in comparison with others, have taken more candidates from Telecom background. - 43 -
  • 22. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 F. Over all Industry preference Considering all the industries as the Universal Set & the number of recruitment done from each industry by each of concerned organizations, we can get the following results: Table 28: FMCG candidate’s distribution ORGANIZATIONS CANDIDATES FROM FMCG NESTLE 3 HUL 11 MARICO 10 RECKITT 13 HEINZ 7 HEINZ NESTLE 7% There’s no doubt about that all being FMCG 16% HUL 25% organizations would obviously prefer recruiting from FMCG industry, Reckitt is RECKITT the first organization to do that, followed by 29% MARICO HUL, Marico & Heinz (in order). But, very 23% unlikely Nestlé has recruited only 7% from the industry. Figure 39: FMCG candidate’s pie-chart Table 29: FINANCE candidate’s distribution ORGANIZATIONS CANDIDATES FROM FINANCE NESTLE 0 HUL 4 MARICO 0 RECKITT 2 HEINZ 1 We already know from the previous section that Nestlé & Marico have not recruited NESTLE anyone from Finance sector, but this was HEINZ 14% 0% not clear that HUL is the major player in recruiting from Finance sector. HUL has recruited the highest number (57%) of RECKITT 29% HUL 57% candidates from the respective market. MARICO Then comes the number of Reckitt, 0% followed by Heinz. Figure 40: FINANCE candidate’s pie-chart - 49 -
  • 23. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 ANALYSIS ON THE BASIS OF SURVEY Data collected by visiting different FMCG organizations (some non-FMCG organizations also, to understand the specific traits of FMCG Industry Recruitment Process) & filling up the Questionnaire with the help of respective HR-Managers (involved directly in recruitment). A. FMCG Industry 1. HEINZ ∋ Reasons of recruitment are mainly due to promotion, resignation & new position (in order). ∋ Employees who leave the organization, majority goes to Telecom. ∋ Sales-force structure would be --- SO—ASM –BM ℵ -- (in order). ∋ SO’s recruitment is highest. ∋ No separate sales-force for SBUs ∋ Mostly internal source is used followed by Consultancy & Job-Portal (in order). ∋ Profile of sales people: 25-27 yrs old, 0-2 yrs of experience, graduate/MBA, from FMCG Industry ∋ For higher position mostly internal promotion is used ∋ If there is some new or very specialized department that requires manpower then only some external sources are used for higher positions. 2. CAVINKARE ∋ Reasons of recruitment are mainly due to resignation, new position, termination, promotion (in order) ∋ People stay in this Industry only, some are going to retail ∋ Sales-force structure : SR ⊕ --TSO—AM(Area Manager)—RM(Regional Manager) ∋ 2 SBUs – consumer goods division(cgd) & food division (fd), food is only present in Chennai; would be launched soon in other parts ∋ At this point SRs are recruited more, because it’s a new position, followed by TSOs ∋ Recruitment is higher in cgd. ℵ Branch Manager ⊕ THIS IS A VERY NEW POSITION, FOR CK, TO LAUNCH FOOD DIVISION IN EAST. - 52 -
  • 24. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 ∋ Internal source is used mainly for higher position recruitments, otherwise consultancy is a better option than job-portal as in east search results are dwindling ∋ Some good Job-Portals are www.naukri.com, www.monstorindia.com ∋ Entry sales profile would be: SR~30yrs, TSO~28yrs, 2yrs of experience, graduate, strictly from FMCG background ∋ Lower positions are filled with help of job-portals & consultancies but, higher positions are recruited internally from Head Office (HO). ∋ For entry level, first there is an online, then aptitude test & then interview ∋ FMCG attrition rate at this time would be 0-5 % 3. EVEREADY ∋ Reasons of recruitment are mainly due to resignation, promotion & new position (in order) ∋ There is no trend in employees leaving & joining to some other industry, but, some are leaving to industries like telecom, IT etc. ∋ Sales-force structure would be: SO—Sr.SO—ASM—ZSM ♥ —RM ∋ No demarcated SBUs for sales force; the person who’s handling packed tea is also handling flash lights ∋ Entry level/junior level recruitment is more ∋ Junior level recruitments for plant & sales are done through job-portals & consultancies; for middle level, only consultancies & higher recruitments are done by senior level employees at HO with the help of Executive Search Agencies ∋ ERS & organization website is used as an internal channel ∋ Job-portals & consultancies are used equally on the basis of situation requirements ∋ Though costly but, consultancies are best during bulk recruitment & tight lead-time ∋ They use www.naukri.com, www.monstorindia.com, www.jobstreet.com etc. ∋ Sales profile would be: 27-32yrs, graduate/MBA, 1-2yrs of experience, no organizational or industrial preference ∋ Attrition rate of FMCG industry would be more than 30% ♥ Zonal Sales Manager - 53 -
  • 25. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 4. COLGATE-PALMOLIVE ∋ Reasons of recruitment are mainly due to resignation, promotion & new position (in order) ∋ Entry level people are promoted to ASMs ∋ There is a trend while a person resigns from FMCG industry; generally he’s joining retail or telecom ∋ Sales-force structure would be: CDO σ —AM—RM ∋ 3 main sources of recruitment would be: consultancies, job-portals ERS/website (in order) ∋ Sales-force profile would be: 25-32yrs old, graduate/MBA, 2yrs or more experience, strictly from FMCG industry 5. MARICO ∋ Reasons of recruitment are mainly due to resignation, promotion, termination & new position (in order) ∋ There is a trend in people leaving Marico & joining in Banking or Telecom Sector ∋ Sales-force structure would be: TSO—TSE σ —SPE σ —ASMs ∋ No demarcated SBUs for sales force ∋ Mainly TSOs are recruited; for higher ranks internal source is used & if there is any usage of external source, i.e. being done by HO ∋ Mainly consultancies are used as an external source, though it’s costly but it saves a lot of time. Sometimes consultancies take interviews also, on their behalf ∋ Consultancies like Madhyam, Assurance etc are used as an external source ∋ Sales-force profile would be: below 32yrs of age, fresher (MBA trainees)/2-3yrs of experience, strictly from FMCG background, strong brands like Dabur, HUL, Keventor Agro are appreciated ∋ Attrition rate in FMCG industry would be: 5-10% ∋ There is some recent changes in interview structure --- first online psychometric test & then written aptitude test σ Capacity Development Officer (Definition taken from internet) σ Territory Executive (Definition taken from internet) σ Sales Professional Executive (Definition taken from internet) - 54 -
  • 26. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 6. HUL ∋ Reasons of recruitment are mainly due to new position, resignation, promotion & termination (in order) ∋ Employees leaving & switching to telecom & finance sector (especially insurance) ∋ Sales-force structure would be: TSO—(CL)TSO—ACTIVATION EXECUTIVE—ASCM(Area Sales Cluster Manager)—RSCM σ —GM σ ∋ It has got 6 SBU dependant sales-force: 1. HPC U1: All soaps, shampoos etc. 2. HPC U2: Lakme (mainly) 3. Rural & Shakti (suburbs): Almost all products as in U1, but for suburb selling 4. Water Division: Purit 5. Vending Division: Coffee-machines (mainly) 6. Ice-Cream Division: Kuwality-Walls ∋ TSOs are recruited the most, followed by (CL)TSOs & lastly ASCMs ∋ Mostly recruitment occurs in HPC U1, U2 & Rural, followed by Water & then by Ice-Cream Divisions ∋ Importance is more on ERS & official website (i.e. internal sources) as they are cost-effective & always fresh. ∋ Job-portals & consultancies are least used as they require huge amount of cost & especially consultancies are avoided as a lot of time is consumed in briefing the consultancies. ∋ Sales-force profile would be: 25-31yrs old, 1yr of experience or fresher, graduate, industry preference depends on divisions/SBUs, from branded employers like Dabur is appreciated ∋ Higher position recruitment is done through senior panels from the HO ∋ Attrition is high as FMCG guys can be absorbed in any kind of sales profile σ Regional SCM σ General Manager - 55 -
  • 27. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 7. CADBURY ∋ Reasons of recruitment are mainly due to promotion, resignation, new position & termination (in order) ∋ There is no proper trend, but people leaving & joining other industries ∋ Sales-force structure would be: SO—SSO—ASE—ASM ∋ For SOs recruitment is the highest ∋ They are using internal & job-portals and consultancies for recruitment, but there is no picking order; it varies from situation to situation ∋ Sales-force profile would be: nearly 21yrs old, 1-2yrs of experience in FMCG, MBAs 8. EMAMI ∋ Reasons of recruitment are: resignation, promotion, new position & termination (in order) ∋ When people resign their first choice of joining would be another FMCG, but people are switching to telecom & insurance ∋ Sales-force structure would be: SO—ASM—RSM—ZSM ∋ Their SBUs are HCD—health care division (constituting 25% of product line) & CCD—consumer care division (constituting 75% of product line) ∋ For both SBUs recruitment rate is almost same ∋ As a source they don’t have ERS yet, but on the verge of launching; as internal source they use their official website & soft-magazines ∋ They mostly rely on job-portals, followed by consultancies ∋ Sales-force profile would be: 24-26yrs old, 1yr of experience, graduate for lower level positions, MBAs for middle level positions, no industry preference as such but, FMCG is preferred ∋ Till middle level recruitment is done from the zonal-office, but for higher positions ZSOs start the process but, HO makes the final decision ∋ Attrition rate in FMCG industry would be between 5 to 10%, for middle & smaller stature organizations this rate is higher - 56 -
  • 28. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 B. Other Industries 1. RELIANCE COMMUNICATIONS ∋ Reasons of recruitment are: resignation, new position, promotion & termination (in order) ∋ Sales-force structure would be: (SE—SH—ZSH—RSH) σ ∋ There are many SBU based sales-force like, Enterprise, Wireless, PCO etc. ∋ Quite obviously they have to recruit more for SEs ∋ They have to recruit more for Wireless & Enterprise divisions ∋ They use their internal sources but, mainly recruitment is done through consultancies, followed by job-portals ∋ They mainly use www.naukri.com, www.monsterindia.com & ABC Consultancies; there is no proper picking order, every decision is driven by 2 parameters i.e. cost & lead time ∋ Sales-force profile would be: 20-35yrs old, 2-5yrs of experience, graduate preferably MBAs, from FMCG or Telecom background ∋ Annual Average Budget for Recruitment would be between 10-50 lacs ∋ They’ve got no organizational preference 2. SIEMENS ∋ In IT & Electronics Industry recruitment is divided into “Expansion” & “Replacement”; mainly recruitment is of replacement in nature ∋ No, there is no proper trend in people leaving & joining some other industries, mainly they remain in the industry but, search for niche markets ∋ The main challenge is to stop employees moving to foreign competitors ∋ Some do tend to go for FMCG, Real-estate & Banking sector ∋ They work in 3 main sectors: Real-estate, Energy & Healthcare ∋ The main difference in between IT & FMCG recruitment is that in FMCG industry the pool is homogeneous i.e. the main skill set is always centered in selling, but in IT it’s all about multitasking in a specific technical domain ∋ The team structure depends on 2 basic structures: Project-Matter-structure & Vertical-structure ∋ IT organizations’ main source of recruitment is there Alumni-Channel σ SE = Sales Executive, SH = Sales Head, ZSH = Zonal SH, RSH = Regional SH - 57 -
  • 29. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 ∋ They also use – advertisements, consultancies, job-portals & ERS, but there’s no picking order ∋ Recruitment for an IT organization is not only driven by HR needs but also by publicity stunts ∋ Below zonal heads recruitment is done from zonal-offices otherwise it’s done from HO; “you can’t recruit your boss” ∋ Generally in IT industry recruitment is always done in bulk as, if you need to increase your productivity you need to increase the head-count, which is not so in FMCG ∋ IT can also recruit in bulk, as IT has more budget as it has almost 35% profit-margin 3. TATA-AIG ∋ Reasons of recruitment are mainly due to new position, resignation, termination & promotion (in order) ∋ ABDM σ —BDM—Sr.BDM—SM σ —Sr.SM—BSM σ —AM—RM—ZSM ∋ ALT. CHANNEL Corp. AGENCY BANK UBI ALT. BA CHANNEL PNB UMM BA UMM HSBC Figure 45: SBU structure in TATA-AIG (full-forms are not available) σ Assistant Business Development Manager σ Sales Manager σ Branch Sales Manager - 58 -
  • 30. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 ∋ As UMM is new so, lot of branches are coming-up, hence massive recruitment for this new position, & that’s why new position ranks first for recruitment ∋ They mainly use ERS as, the pool is reliable & fetches authentic people, has got at least little bit of experience, their rate of resignation is lesser ∋ When the recruitment is in bulk, then only they go for consultancies to save time, they prefer job-portals the least ∋ The sales-force profile would be: 25-26yrs old, 1-2yrs of experience, post- graduate/graduate, from any sales background, PHARMA is preferred ∋ For higher position recruitment they generally look for 2 criteria i.e. reference & track-record ∋ The candidates for higher positions must possess management skills & leadership qualities ∋ Attrition rate in insurance sector is very high, about 50-60%, this is due to high targets in insurance sector but, the truth is “less pressure” is a mirage C. Findings 1. Reasons for recruitment 1. Micro-Analysis (considering only FMCG Industry) MICRO-ANALYSIS TERMINATION 10% RESIGNATION NEW-POSITION 38% 23% PROMOTION 29% RESIGNATION PROMOTION NEW-POSITION TERMINATION Figure 46: Micro-analysis of data-gathered by interviewing HR managers As we can see from the pie-chart that the main (38%) reason for recruitment is resignation, next in line is promotion with 29%, which is generally beneficial for both the employer & the employee, employee gets higher package & designation & the employer gets employee commitment in return. Next comes new position with 23%, as these are well established organizations, unless & until they expand or diversify, these category will remain low in %, another reason being that a sales profile is a sales profile - 59 -
  • 31. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 you can’t add much more to it, as Cavinkare is expanding in WB, majority of the credit goes to it. The last position goes to termination, which is at only 10%, this is generally not preferable both employer & employee as employee loses his/her job & employer loses its image & it also points to the inefficiency of the recruitment process. 2. Macro-Analysis (considering all the organizations, even non-FMCG) MA CRO-A NA LY SIS TERMINA TION 10% RESIGNA TION NEW-POSITION 37% 26% PROMOTION 27% RESIGNA TION PROMOTION NEW-POSITION TERMINA TION Figure 47: Macro-analysis of data-gathered by interviewing HR managers If we compare the previous pie-chart with this one, we’ll find that resignation went down by 1% & promotion went down by 2%. This 3% down-turn has added up to new position & it has become 26%. This increase is due to boom in Telecom & Insurance industry, & they are comparatively newer than FMCG industry, so there is a lot of scope for newer positions. 2. Is there any TREND? Is there any trend in the way people leave FMCG industry & tend to join industries like Telecom or Insurance? This is what FMCG HR-managers replied: TREND EXISTS ? NO 38% YES 62% YES NO Figure 48: Is there any TREND? As we can see majority (62%) of the HR managers I’ve interviewed have voted for the existence of a trend. - 60 -
  • 32. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 3. Existence of SBU-centric Sales-Force There are some organizations, like Eveready, who don’t have separate sales- force for each division in their organization. In Eveready the same sales- person is responsible for the sell of all the products, which is different for sales-person in DIL; they have separate sales-force for CCD & CHD. SALES FORCE FOR SBU'S ? NO 40% YES 60% YES NO Figure 49: Existence of SBU centric Sales-Force 60% of the organizations I’ve made a visit to have SBU-centric sales-force. This of course affects recruitment as for different divisions you have separate job-description, job-specifications, source, target-pool & working environment; though sales profiles are generally homogeneous in nature, there’d be small demarcations in the recruitment process. - 61 -
  • 33. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 4. Source-preference No source of recruitment is good or bad, each has its own limitations & scopes, it all depends on the situation. Some sources don’t even exist for certain industries, for example FMCG industry can’t use alumni channel whereas it’s IT industries first choice. Apart from existence & non-existence, certain sources you can’t use in certain situations like, when you need candidates in bulk, job-portal won’t be a good option as you have to find out each an every candidate from the portal which is tedious & time-consuming. Considering all the situations, following result we can arrive at, after interviewing the HR managers of respective organizations: 1. Micro-Analysis (considering only FMCG Industry) M I C R O - A N A L YS I S ERS CONSULTANCY 23% 30% J OB- PORTAL 47% ERS J OB- PORTAL CONSULTANCY Figure 50: Source-preference As we can see FMCG organizations rely mainly (47%) on job-portals, the reason being this that they don’t need candidates in bulk as required by other Industries like, IT, where people are the main constituent for expansion or diversification, and FMCG is stable enough for undergoing any drastic change. In FMCG industry, HR doesn’t have any robust structure, manpower & plenty resources, like IT & other industries, for ERS database maintenance & updates. Industries like IT have wider range of resources for HR, which can be utilized to make new strategies. Consultancies are the next preferred source with a preference % of 30%, used during tight lead-times. As stated earlier ERS is the least used sources of all. - 62 -
  • 34. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 2. Macro-Analysis (considering all the organizations, even non-FMCG) M ACRO-ANALYSIS ERS CONSULTA NCY 26% 32% JOB-PORTA L 42% ERS JOB-PORTA L CONSULTA NCY Figure 51: Macro-Analysis of Source-Preference If we compare this pie-chart with the one in the previous page, it’s crystal clear that use of job-portal has decreased by 5%, which got redistributed in consultancies preference (thus, increasing it by 2%) & in ERS preference (thus, increasing it by 3%).IT industries use a lot of Alumni channel & Insurance sector uses a lot of internal sources for reliability issues, hence increasing the ERS %. In case of IT, Telecom & Insurance which are comparatively new & unstable sectors thus they need candidates in bulk, thus increasing the usage of consultancies. - 63 -
  • 35. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 D. Recruitment from Consultancies’ Perspective Data available: went for an interview with New Management Development Consultancies. 1. Client-Consultancy Interaction The consultancy always needs to concentrate on the following points, while dealing with the client: 1. deadline for the concerned vacancy, i.e. the lead-time for the given vacancy 2. proper & thorough knowledge of Job-Description & Job-Specification 3. proper knowledge of the remuneration-range 4. consultancy-fees which will balance the effort put & cost bared by it 5. it should also take into account the individual choices of the concerned HR- managers 2. Candidate-Consultancy Interaction The consultancy always needs to concentrate on the following points, while dealing with the candidate: 1. in remote areas they need to create candidates, by counseling them, as in FMCG sector there is a number organizations & in remote areas it’s really hard to find good candidates 2. they always have to map candidates for future or present requirements 3. they have to keep & maintain satellite agents in remote places 4. they have to understand a candidate’s needs 5. they need to convince the candidates so that all the 3 parties arrive at a win- win situation 6. they need to find references, constantly, for head-hunting 7. they need to follow-up both the candidates & clients 3. Consultancies own responsibilities 1. they are always in a sandwiched situation, acting as a bridge between the clients & the candidates & trying to match one’s expectation with that of the other 2. generally it’s a ground level work; they don’t use any special tool for this, only use simple database software 3. they need to find out CVs which the organizations don’t have any access to, because if the organization can find the candidates themselves they don’t get paid; they have their own database, they don’t search from job-portals 4. they always maintain a stock, to meet up to the deadline & to keep the client interested - 64 -
  • 36. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 5. when they have more than one client asking for the same profile at the same time, when they’re short on resources, they have to prioritize & make a trade- off 6. they also interview & train the candidate for final interview so, that the candidate gets selected 7. sometimes they put advertisements on behalf of their clients or sometimes put joint-advertisements also 8. sometimes they take the screening tests for bulk recruitment, they do this on behalf of their clients & for some IT firms, for entry level positions, this is a very common practice E. Expectation levels relating to Consultancies Further data collected from consultancies by interviewing 4 consultancies; The Head Hunters (M/s Nilanjana), Career Point (Mr.Subrata), New Management Development Consultancy (Mr. Subhadip Das), Udayan Basu & Associates (M/s Dipanwita Sarkar). 1. What a consultancy expects from its Client 1. Specific, Updated & Perfect Job-Description without any confusion 2. Intimation before the interview & after the interview from clients end 3. Exact or proper scheduling, as the candidates are in sales & thus, highly mobile, if somehow the interview is not held on the appointed date, the candidate may not be available. Thus, a bitter relation among the two may crop up, the consultancy fails to achieve the targeted turnout, delayed billing & the organization losses the candidate 4. Feed back or follow-up is one of the major resources which a consultancy needs to deliver properly. If the candidate is rejected, then on what grounds & if, the candidate is selected, then an insight on his qualities. This information is very important for the consultancy for delivering in future as every CV is like gold to it & it doesn’t want to waste CVs 5. Timely payment & over all satisfaction in terms of approach & time given for briefing 6. Good number vacancies, with good remuneration packages. 7. Leading & growing organizations 8. Pro-activity from the other end, consultancies want to work as a team with the clients 9. Trust & faith on the consultancy’s abilities 10. Transparency in terms of all the proceedings regarding the recruitment - 65 -
  • 37. SUBMITTED BY ANGSHUMAN GHOSH, 010106097 Which organizations/industry are recruiting from DIL? Data collected form www.naukri.com: collected CVs of employees who had been with DIL, but left during 06-08 & now, are working with some other organization. Table 34: Sample set for, recruitment process of others from DIL SL.NO. CO./ORG. DOL DESIG.in DIL STATE in DIL 1 Agro Tech Foods Limited Feb-07 SO WB 2 AIRCELL/Dishnet wireless Ltd Jul-07 SSO BHR 3 AIRCELL/Dishnet wireless Ltd Feb-07 SSO BHR 4 AIRCELL/Dishnet wireless Ltd Nov-07 SO JKD 5 Bajaj Consumer Care Ltd Mar-07 ASE BHR 6 BHARTI AIRTEL SERVICE LIMITED Aug-07 SSO JKD 7 BHARTI AIRTEL SERVICE LIMITED May-08 SO NE 8 BHARTI AIRTEL SERVICE LIMITED Nov-06 SSO ORS 9 Cadbury Inia Ltd Jul-06 SO BHR 10 CavinKare Pvt Ltd Jun-06 SO NE 11 COLGATE-PALMOLIVE Dec-07 SO NE 12 COLGATE-PALMOLIVE Mar-07 SO ORS 13 EMAMI Ltd Dec-07 SO JKD 14 EMAMI Ltd Jan-06 ASE JKD 15 EMAMI Ltd May-07 ASE ORS 16 EMAMI Ltd Dec-07 ASE ORS 17 EMCURE PHARMACEUTICALS LTD Sep-06 ASM WB 18 FABER CASTELL (I) PVT. LTD Jan-07 SSO WB 19 GSK Sep-07 SO WB 20 HCL INFOSYSTEMS LTD-NOKIA SALES Jan-07 SO WB 21 Hindustan Coca Cola Beverages Pvt Ltd May-06 SO NE 22 ICI INDIA LIMITED Feb-07 ASE NE 23 ICICI BANK LTD Nov-06 SO JKD 24 ICICI BANK LTD Dec-07 SSO ORS 25 ICICI BANK LTD Mar-06 SO WB 26 KEVENTER AGRO LIMITED May-08 SO WB 27 Kotak Life Insurance Apr-06 SSO WB 28 KS OILS LTD Oct-07 SO BHR 29 loreal india pvt ltd May-07 SO WB 30 Marico Limited Jan-07 SO NE 31 Marico Limited Jan-07 SO ORS 32 Marico Limited May-06 SO WB 33 Marico Limited May-06 SO WB 34 Marico Limited Apr-06 SSO WB 35 Marico Limited Sep-06 SO WB 36 Marico Limited Jan-08 SO WB 37 NESTLE INDIA LTD Mar-07 SO ORS 38 Pepsico International Jun-07 SSO JKD 39 PHILIPS INDIA LTD (LIGHTING) Dec-07 SO BHR 40 PHILIPS INDIA LTD (LIGHTING) Feb-07 SO JKD 41 Ranbaxy Laboratories Ltd Mar-08 OPM BHR 42 Reckitt Benckiser India Limited Apr-07 ASM ORS 43 Reliance Telicom Limited/Reliance Communication Limited Aug-07 SO BHR 44 Reliance Telicom Limited/Reliance Communication Limited Jul-07 SO WB 45 Reliance Telicom Limited/Reliance Communication Limited Dec-07 TSI BHR 46 Reliance Telicom Limited/Reliance Communication Limited Jan-07 ASM BHR 47 Reliance Telicom Limited/Reliance Communication Limited Sep-07 SO BHR 48 Reliance Telicom Limited/Reliance Communication Limited Mar-07 ASE ORS 49 Reliance Telicom Limited/Reliance Communication Limited Jun-07 SO WB 50 Roche Diagnostics India Pvt Ltd Mar-07 SSO BHR 51 Sify Technologies Ltd Jan-08 SO JKD 52 SSL-TTK LTD Mar-06 SO WB 53 Tata Tele Services Ltd Feb-06 SO JKD 54 Tata Tele Services Ltd Feb-08 SO WB The above list of ex-employees of DIL is the sample set. - 67 -