A STUDY ON IMPORTANCE OF RECRUITMENT AND

SELECTION PROCESS
AT
MANASI SYSTEMS TCHNOLOGIES PVT.LTD
A Project report submitted to Jawaharlal Nehru Technological University, Hyderabad, in
partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

M.ANOOSHA
Reg. No. 10241E0030

Under the Guidance of

Prof K.SURYA NARAYANA
Professor

Department of Management Studies

Gokaraju Rangaraju Institute of Engineering & Technology
(Affiliated to Jawaharlal Technological University, Hyderabad)
1

Hyderabad
2010-2012

CERTIFICATE
This is to certify that the project entitled A Study on importance of
Recruit ment and Selection Process has been submitted by Ms.M.ANOOSHA (Reg.
No.10241E0030) in partial fulfillment of the requirements for the award of Master
of Business Administration from Jawaharlal Nehru Technological University,
Hyderabad. The results embodied in the project has not been submitted to any
other University or Institution for the award of any Degree or Diploma.

(K.SURYA NARAYANA)
Internal Guide
Professor
Department of Management Studies
GRIET

(KVS Raju)
Professor & HOD
Department of Management Studies
GRIET

(S. Ravindra Chary)

(Project Coordinator)
Associate Professor
Department of Management Studies
2

GRIET

DECLARATION

I hereby declare that the project entitled A Study on importance of

Recruitment And Selection Process at Manasi Systems technologies Pvt Ltd

submitted in partial fulfillment of the requirements for award of the degree of MBA at
Gokaraju Rangaraju Institute of Engineering and Technology, affiliated to
Jawaharlal Nehru Technological University, Hyderabad, is an authentic work and has not
been submitted to any other University/Institute for award of any degree/diploma.

M.ANOOSHA
(10241E0030)
MBA, GRIET
HYDERABAD

ACKNOWLEDGEMENT

Firstly I would like to express our immense gratitude towards our institution Gokaraju
Rangaraju Institute of Engineering & Technology, which created a great platform to attain
profound technical skills in the field of MBA, thereby fulfilling our most cherished goal.
I would thank all the HR department of Manasi Systems technologies Pvt Ltd specially
Mr. Srinivas reddy -CEO, and the employees in the HR department for guiding me and helping
me in successful completion of the project
I am very much thankful to our k.Surya narayana(Internal Guide) sir for extending his
cooperation in doing this project.
I am also thankful to our project coordinator Mr. S. Ravindra Chary for extending his
cooperation in completion of Project.

I convey my thanks to my beloved parents and my faculty who helped me directly or

indirectly in bringing this project successfully.

M ANOOSHA
(10241E0030)

SR. NO
1

CONTENT

PG.NO

CHAPTER

1-5

1.1INTRODUCTION
1.2OBJECTIVES
1.3RESEARCH METHODOLOGY
1.4LIMITATIONS
2

CHAPTER

6-36

2.1 RECRUITMENT
2.1.1 PURPOSES AND IMPORTANCE
2.1.2 RECRUITMENT PROCESS
2.1.3 FACTORS AND SOURCES
2.1.4 RECRUITMENT POLICIES
2.1.5METHODS OF RECRUITMENT
2.1.6RECRUITMENT STRATEGIES

2.2 SELECTION
2.2.1 STEPS INVOLVED IN SELECTION PROCESS
2.2.2SELECTION TECHNIQUES
2.2.3TRENDS IN RECRUITMENT AND SELECTION
3

CHAPTER

37-64

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE
4

CHAPTER
5

4.1DATA ANALYSIS

65-78

CHAPTER

79-82

5.1FINDINGS
5.2SUGGESTION
5.3CONCLUSION

BIBLIOGROPHY

Chapter - 1
INTRODUCTION

Chapter 2

Literature review

Chapter - 3
INDUSTRY PROFILE
&
COMPANY PROFILE

10

Chapter 4
DATA ANALYSIS
&
INTERPRETATION

11

Chapter 5
SUMMARY & CONCLUSIONS

1.1 INTRODUCTION

12

IMPORTANCE OF RECRUITMENT & SELECTION PROCESS:

Human Resources Management is concerned with human beings, who are the
energetic elements of management. The success of any organization or an enterprise will depend
upon the ability, strength and motivation of persons working in it.
The Human Resources Management refers to the systematic approach to the problems in any
organization. It is concerned with recruitment, training and Development of personnel. Human
resource is the most important asset of an organization. It ensures sufficient supply, proper
quantity and as well as effective utilization of human resources.
In order to meet human resources needs, and organization will have to plan in advance about the
requirement and the sources, etc. The organization may also have to undertake recruiting
selecting and training processes. Human Resources Management includes the inventory of
present manpower in the organization. In cases sufficient number of persons is not available in
the organization then external sources are also identified for employing them. Human Resources
Management lays emphasis on better working condition and also ensures the employment of
proper work force.
A part of Human Resources Management is assigned to personnel who perform some of the
staffing function. The staffing process is a flow of events, which result in a continuous managing
organizational position at, all levels from the top management to the operatives level. This
process includes manpower-planning, authorization for planning; developing sources of
applicant evaluation of applications employment decision (selection) offers (placement)
induction and orientation, transfers, demotions, promotions and separations.
Manpowers planning is a process of analyzing the present and future vacancies as a result of
retirement, discharges, transfer, promotion, absence or other reasons.

Recruitment is concerned with the process of attracting qualified and components personnel for
different jobs. This includes the identification of existing sources of the labor market, the
13

development of new sources and the need for attracting large number potential applications so
that good selections may be possible.
Selection process is concerned with the development of selection policies and procedure and the
evaluation of potential employees in terms of job specifications. This process includes the
development of application blanks, valid and reliable tests, interview techniques employee
reversal systems, evaluations and selections of personnel in terms of jobs specifications the
making up of final recommendations to the hire management and the sending of offers and
rejection latters.

1.2 OBJECTIVES OF THE STUDY:

14

To understand the current Recruitment Policies being followed at MANASI SYSTEMS

TECHNOLOGIES PVT. LTD conducted this study and to know how effectively it is being
implemented in the organization.

To study the present Recruitment Policies MANASI SYSTEMS TECHNOLOGIES

PVT. LTD

To study the different methods of recruitment & selection depending on the requirements
of the organization.

To find the relationship whether jobs offered based on qualification to the employees
in the organization.

To study the level of job satisfaction in the organization.

To study the changes of recruitment policy in recent times in the organization.

To know how the company fulfills its manpower requirements.

1.3 RESEARCH METHODOLOGY

15

SCOPE OF STUDY:
The

study

was

confined

to

territorial

division

of

MANASI

SYSTEMS

TECHNOLOGIES PVT. LTD Hyderabad with special reference to its Recruitment policy.

SAMPLE SIZE:
The study was conducted with sample size of 60 employees selected at random from
both supervisory and management staff of MANASI SYSTEMS TECHNOLOGIES PVT.
LTD

DATA COLLECTION:

Primary data:
A detailed and well-structured questionnaire was presented to the managerial staff at
MANASI SYSTEMS TECHNOLOGIES PVT. LTD.

Copies of the questionnaire being

distributed to the employees at random to obtain their views followed this.

Further discussions regarding the recruitment policies were held with the HRD manager to have
an in-depth knowledge and future plans of the company for its effective implementation.

Secondary data:
Secondary data was gathered from academic texts and company profile from companys website.

Analysis:
The data collected through questionnaires distributed to the employees was analyzed and
interpreted using the MS-EXCEL.

1.4 LIMITATIONS:
16

The study thus conducted is restricted to the MANASI SYSTEMS TECHNOLOGIES

PVT. LTD Hyderabad only.

The accuracy of the study is based on the information given by the respondents.

Data collected cannot be asserted to be free from errors because of bias on behalf of the
respondents.

As the sample size consists size consists of only 60 employees its accuracy has its
limitations.

2.1. RECRUITMENT
17

INTRODUCTION:
Recruitment forms the first in the process, which continues with selection and ceases
with the placement of the candidate. It is the next step in the procurement function, the first
being the manpower planning, Recruitment makes it possible to acquit the number and types of
people necessary to ensure the continued operation of the organization. Recruitment is the
discovering of potential applicants for actual or anticipated organizational vacancies.
Recruitment has been regarded as the most important function of personnel administration,
because unless the right type of people is hired, even the best plans, organization charts and
control systems would not do much good.

Definition:
Recruitment is a process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
number to facilitate effective selection of an efficient working force.
- Dale Yoder
Recruitment is the process of searching the candidates for employment and stimulating them to
apply for job in the organizations recruitment is the activity that links the employers and the job
seekers.
- Edwin B.Flippo

2.1.1 PURPOSES AND IMPORTANCE:

18

Determine the present and future requirements

Increase the pool of job candidates at minimum cost
Reduce the probability of employee turn over
Increase the success rate of the selection process
Increase organizational and individuals effectiveness

EFFECTS:
Positive Recruitment Process

Attract highly qualified and competent people

Ensure that the selected candidates stay longer with the company
Make sure that there is match between cost and benefit
Help the firm create more culturally diverse work-force

Negative Recruitment Process

Failure to generate qualified applicants

There is no match between cost and benefit
Extra cost on training and supervision
Increases the entry level pay scales

2.1.2 RECRUITMENT PROCESS:

19

Planning
Strategy development
Searching
Screening
Evaluation and control

OBJECTIVES OF RECRUITMENT:
20

To attract people with multi-dimensional skills and experiences that suit the present and
future organizational strategies so as to obtain a pool of suitable candidates for vacant
posts.

To induct outsiders with a new perspective to lead the company

To infuse fresh blood at all levels of the organization.

To develop organizational culture that attracts competent people to the company.

To use a fair process.

To ensure that all recruitment activities contribute to company goals.

To search for talent globally and not just within the company.

To conduct recruitment activities in an efficient and cost effective manner.

EMPLOYEE RECRUITMENT:
In the working place is essential to a companys long term success. By hiring correctly,
an organization adds the talent it needs and can enjoy the benefits in increased productivity and
morale. However this process is not simple and if the careful process of selection is not followed:
you can be mired with poorly skilled, unmotivated and un-loyal labor force which can impact
future profits as well as other employee behavior.
Recruitment, Quite often this word stands alone when some gaming companies develop a human
resources management strategy. An organization cannot develop a recruitment strategy without
simultaneously for mulcting an employee retention plan. Simply stated, it is one thing to attract
workers, but quite another to retain them.

FACTORS EFFECTING RECRUITMENT:

All organizations whether small or large, do engage in recruiting activity, though not to the same
21

extent.
This differs with
1) The size of the organization.
2) The employment conditions in the community where the organization is located.
3) Working conditions, salary and benefit packages offered by the organization.
4) The rate of growth of the organization.
5) Future expansion program of the organization. And
6) Cultural and legal issues.
7) Organizations ability to find and retain good performing people.

2.1.3 FACTORS AND SOURCES

INTERNAL FACTORS:

Employees from within the organization are hired to fill a job vacancy.

It is normally used for higher level jobs.

The internal factors are:
1

Companys pay packages

Quality of work life

Organization culture

Career planning and growth

Companys size

Companys products/services

Geographical spread of the companys operations

Companys growth rate

Role of trade unions

10 Cost of recruitment
11 Companys name and fame.

EXTERNAL FACTORES:
The external factors are:1

Socio-economic factors
22

Supply and demand factors

Employment rate .

Labor market conditions.

Political, legal and governmental factors like reservations for SC/ST/BC and sons of soil.

Information systems like employment exchanges /Tele-recruitment like internet.

ADVANTAGES:

Benefits of new skills, new talents and new experiences to organization

Compliance with reservation policy is easy

Scope for resentment, jealousies and heartburn are avoided

DISADVANTAGES:

Better morale and motivation associated with internal recruiting is denied to the
organization

It is costly

Chances of creeping in false positive and fake negative errors

Adjustment of new employees to the organizational culture takes longer time.

EVALUATION & CONTROL:

Salaries for Recruiters

Management & professional time spent on preparing job description, job specification
advertisements, liaison etc..

Cost of advertisement

Cost of producing supporting literature

Recruitment overheads & administrative expenses

Cost of overtime & outsourcing

PHILOSOPHIES OF RECRUITING:

Traditional philosophy to get as many people to apply for a job as possible

Waiting in queues
23

Job dissatisfaction & employee turnover

Emphasis is on matching the needs of the organization to the needs of the applicants

Minimize employee turnover & enhance satisfaction

REALISTIC JOB PREVIEWS:

Provides complete job related information to the applicants so that they can make right
decision before taking up jobs

Lower rate of employee turnover

High level of job satisfaction & performance

Beneficial for organizations hiring at the entry level

JOB COMPATIBILITY QUESTIONNAIRE:

To determine applicants preference for work match the characteristics of the job

Greater the compatibility of applicants preferences & characteristics of the job greater the
probability of employee effectiveness & longer the tenure

400 item instrument

Measures job factor related to performance, satisfaction turnover and absenteeism

SOURCES OF RECRUITMENT:
The various sources of external recruitment are:
1. Advertising
2. Employment agencies
3. Employee referrals
4. Schools, colleges and professional institutions
5. Labor unions
6. Casual applicants
7. Professional organizations or recruiting firms or executive recruiters
8. Indoctrination seminars for college professors
9. Unconsolidated applications
10. Nepotism
11. Leasing
24

12. Voluntary organizations

13. Computer data banks

2.1.4. RECRUITMENT POLICIES

A recruitment policy is concerned with quantity and qualifications of manpower. A well
considered and pre-planned recruitment policy, based in corporate goals, study of environment
and the corporate needs may avoid hasty of ill-considered decisions and may go a long way to
man the organization with the tight type of personnel.
The most commonly adopted practice in an organization is to centralize the recruitment and
selection function.
A recruitment policy in its broadest sense involves a commitment by the employer to such
general principles as:1

To find and employ the best qualified persons for each job.

To retain the best and most promising to those hired.

To offer promising opportunities for the life-time working careers.

To provide programs and facilitates for personal growth on the job.

The following factors should be taken into considerations in formulating recruitment policy.
They are
1. Government policies
2. Personnel policies of other competing organization
3. Organization personnel policies
4. Recruitment sources
5. Recruitment need
6. Recruitment costs
7. Selection criteria and preferences etc.

2.1.5 METHODS OF RECRUITMENT

Recruitment can be broadly categorized under three heads. Namely, Direct method, indirect
25

method and Third method.

DIRECT METHOD:One of the widely used direct methods is that of sending of recruiters to colleges and technical
schools. Most college recruiting is done in co-operation with the placement office of a college.
The placement office usually provides help in attraction students, arranging interviews,
furnishing space, and providing student resumes. For managerial professional, and sales
professional, campus recruiting is an extensive operation. Persons reading for MBA or other
technical diplomas are picked up in this manner. Many companies have found employees contact
with the public a very effective method. Other direct methods include sending recruiters to
conventions and seminars, setting up exhibits at fairs, and using mobile offices to go to the
desired centers.

INDIRECT METHOD:Indirect method usually involves advertising in news papers, on the radio, in trade and
professional journals, technical magazines and broachers. Advertising in newspapers and
magazines, is the most frequently used methods, when qualified or experienced personnel are not
available from other sources. Senior posts are largely filled by such methods when they cannot
be filled by promotion from within.
Advertising is very useful for recruiting blue-collars and hourly workers as
well as scientific, professional, and technical employees. Local newspapers can be a good source
of blue-collar workers, clerical employees, and lower level administrative employees.

THIRD PARTY METHOD:These include the use of commercial of private employment agencies, placement offices of
schools colleges and professional associations, recruiting firms, management consulting firms,
indoctrination seminars for college for college professors and friends and relatives.

PRIVATE EMPLOYMENT AGENCIES:They are the brokers who bring employers and employees together. The specialization of these
agencies enhances their capacities to interpret the needs of their client, to seek out particular
26

types of persons, and to develop proficiency in recognizing the talent of specialized personnel.

STATE PUBLIC EMPLOYMENT AGENCIES:Also known as labor exchanges, they are the main agencies of public employment. They provide
a clearing housing for jobs and job information. These agencies provide a wide range of servicescounseling, assistance in getting jobs information about labor market, labor and wage rates.

PROFESSIONAL ORGANIZATION OR RECRUITMENT FIRMS:They maintain complete information records about employed executives. These firms are looked
up on as headhunters, raiders and pirates by organizations which loose personnel through
their efforts. However, these same organizations may employ executive search firms to help
them find executive talent. These consulting firms recommend persons of high caliber for
managerial, marketing and production engineers posts.

TRADE UNIONS:Also provide manual and skilled workers in sufficient numbers.

MODERN SOURCES AND TECHNIQUES OF RECURITMENT

A number of modern recruitment sources and techniques are being used by the
corporate in addition to traditional sources and techniques. These sources and techniques include
walk-in and consultin, head-hunting, body-shopping, business alliances, and tele-recruitment.
1. WALK-IN:
2. CONSULT-IN:
3. HEAD-HUNTING:
4. BODY-SHOPPING:
5. BUSINESS ALLIANCES:

1. TELE-RECRUITMENT:
The technological revolution in telecommunication helped
27

the organization to

use internet as a source of recruitment. Organization advertise the job vacancies through
the world wide web (WWW) internet. The job seekers send their applications through email or internet. Alternatively, job seekers place their CVS in the world wide
web/internet, which can be drawn by the perspective employers depending upon their
requirements.

ALTERNATIVES TO RECRUITMENT:
OVERTIME

When demand for product peaks

additional income for employee
It results in Fatigue, increased accidents & more absenteeism
Need to pay double wages
EMPLOYEE LEASING

Often called Staff outsourcing

Useful to small & medium sized firms
TEMPORARY EMPLOYMENT

Low labour costs

Easy access to experienced labour
Flexibility in future
DISADVANTAGE- Do not know the work culture of the firm

REFERENCE CHECK:

The reference of the person should be checked before making a final decision.

Check through a personal visit or a phone call directly to the applicants immediate
28

former supervision, if possible.

Verify that the information given to you is correct.

Consider, with judgment, any negative comments you hear and what is not said.

Checking references can bring to light significant information which may save you
money and future inconvenience.

2.1.6 Recruitment Strategies:

Findings Overview
Organizations were asked what strategies they use to recruit both managerial/professional and
non management candidates. For recruiting managerial/professional candidates, the Internet is
the most popular advertising medium, used by 76 percent of the organizations surveyed.
Organizations regularly utilize internal resources(e.g., internal job postings and employee
referrals) when recruiting both internal and external candidates. Different kinds of agencies are
used to recruit for positions at different levels. Temporary and government agencies are used
mainly to recruit non-management candidates. Employment agencies, colleges, and
professional organizations are used more often to recruit managerial/professional
candidates.

Organizational Offerings
The quality of an organizations offerings affects its ability to attract job candidates.
Organizations believe they offer candidates a strong company reputation (69 percent) and
high-quality benefits packages (65 percent) and learning opportunities (55 percent).
Many organizations do not offer stock options (37 percent) or child care options (36 percent).

Best Practices
Organizations with the most effective recruiting strategies were 15 to 19 percent more likely to
offer candidates high-quality options such as:
29

Potential for advancement.

Company reputation.

Stocks.

Benefits package.

Corporate culture.

Salary scale.

Organizations offering candidates and employees a positive culture (e.g., innovative,

diverse, potential to advance) and learning environment have more satisfied employees and more
successful at retaining them.

Barriers to Effective Recruitment and Selection:

Findings Overview r The surveyed organizations report that the top
barriers to effective recruitment of candidates are:

Shortage of qualified applicants

(62 percent).

Competition for the same applicants

(62 percent).

Difficulty in finding and identifying applicants

(48 percent).

2.2 SELECTION
Selection is the process of examining the applicants with regard to their suitability for the given
30

job or jobs, and choosing the best candidate and rejecting the others.
Good recruitment practices are only one key to generating a pool of top job candidates. Equally
important is having a strong basis from which to recruit. If an organizations policies and
practices are unattractive to candidates, the organizations ability to generate good candidates
will be limited regardless of he specific recruitment practices they employee.
But what policies and practice do good applicants find attractive? Unfortunately, there is no
easy answer to this question because not all good applicants are alike, and research shows that
organizations policies and the individuals characteristics.
Financial considerations, supply and demand, and other variables impact the recruitment process.
Looking for a qualified person for the IT department is likely to require a broader and possibly
more expensive search. Recruitment indicate that there is an increase in the use of the internet
and interactive employment websites, such as searching web databases, placing online ads at
various career sites, purchasing candidate information from resume services, sending recruitment
materials, to targeted individuals, and placing ads in newspapers can all yield positive results.
Selection is the process in which candidates for employment are divided in two classes-those
application of these tools. Qualified applicants go on to the next hurdle, while the unqualified are
eliminated. Thus, an effective selection Programe is a non-random process because those
selected have been chosen on the bases of the assumption that they are more likely to be better
employees than those who have been rejected.

SELECTION PROCESS:
The organizations can make use of more than one source for carrying out the recruitment
procedure. Once the recruiting sources are identified, suitable candidates are called for the
31

selection process.

SIGNIFICANCE OF SELECTION PROCESS:

Definition: It is the process of differentiation between applicants in order to identify (and hire)
those with a greater likelihood of success in a job. Selection of personnel to man the organization
is a crucial, complex and continuing function. The ability of an organization to attain its goals
effectively and to develop in a dynamic environment largely depends upon the effectiveness of
its selection program. If right personnel is selected the remaining functions of personnel
management becomes easier, the employee contribution and commitment will be at an optimum
level and employee- employer relations will be congenial. In an opposite situation where the
right person is not selected, the remaining functions of personnel management, employeeemployer relations will not be effective. If the right person is selected, he becomes a valuable
asset to the organization. In case of faulty selection, the employee will become a liability to the
organization.
who are to be offered employment and those who are not. The process might be called rejection,
since more candidates may be turned away than hired. For this reason, selection is frequently
described as a negative process, in contrast with the positive program of recruitment.
According to Yoder:-the hiring process is of one or many go, no-go gauges. Candidates are
screened by the

SELECTION PROCESS CHART

32

SCREENING:
33


Retention Survey found that nationally small agencies took an average of 6.84 weeks to
conduct the screening processes, while large agencies took an average of 11.51 weeks
(U.S. Department of Justice, Office of Justice Programs, Hiring and Keeping Police
Officers)

GOAL: reduce this time so that valuable candidates are still available

PRINCIPLES OF THE SCREENING:

A fair set of screening criteria

The criteria must be in line with the job content and appointment as well as advertised
requirements

Applicants should be clear on the criteria that apply

The criteria should apply to all applicants in a consistent manner

Any waivers should be fully motivated and approved

Declarations should be made of whether any candidate is related to or friends of an
official in the component where the vacancy exists

The various activities of the screening process should be documented and put on record

INITIAL REVIEWING AND TESTING:

Education And Experience Evaluation

Letters Of Recommandation

Elf-Assessment

Gaptitude Andeneral Trait Test

Perfomance Test For Specific Jobs

2.2.1 STEPS INVOLVED IN SELECTION PROCESS:

34

A scientific selection procedure completes in 10 basic steps which are as follows:

1. Application Form.
2. Written Examination.
3. Preliminary Interview.
4. Group Discussion.
5. Tests.
6. Final Interview.
7. Medical Examination.
8. Reference Checks.
9. Line Managers Decision, and
10. Employment

TESTING IN SELECTION:
Testing represents an additional tool in the kit of the employment office. It supplements direct
personal contracts in interviews of various types with a wide range of tests. All operate on the
general theory that human behavior can best be forecast by sampling it. The test creates a
situation in which the applicant reacts; reactions are regarded as useful samples of his behavior
in the work he is applying.
Formal testing programs have becomes increasingly common in modern selection. A major
reason is their convenience. Another is their relatively low cost. Perhaps unfortunately, test
results appeal to many managers because they provide quantitative measures of something. They
ate, for this reason, more easily compared. They seem to bring the personalities of applicants
down to a common denominator. Another reason for the growing use of tests is the fact that they
have been and are the subject of extensive research.

35

TYPES OF EMPLOYMENT TESTS:

A simple classification of the tests used in selection would distinguish five principal types,
including achievement, aptitude, interest, personality, and combination tests.
Achievement Tests: sample and measure the applicants accomplishments and developed
abilities. They are performance tests; they ask the applicants accomplishments and developed
abilities. They are performances tests; they ask the applicant to demonstrate certain knowledge
skills.

APTITUDE TESTS:
Measures an applicants capacity, his potential. Their simples form is the intelligence test, which
is intended to measure the ability to learn, to remember, and to reason.

INTEREST TESTS:
Use selected questions or items to identify patterns of interests-areas in which the individual
shoes special concern, fascination and involvement.

PERSONALITY TESTS:
Probe for the dominant qualities of the personality as a whole the combination of aptitudes,
interests, and usual mood and temperament. Whole the combination of aptitudes, interests, and
usual mood and temperament.

GUIDES TO TESTING:
Dale s. Beach suggested the following guidelines for the employment test.
1. Tests should be taken in addition to other selection techniques as entire can only provide
information about a part of total behavior of a candidate.
2. Test information should be taken into consideration to find out candidates weakness rather
than strength.
3. Tests are helpful in pocking a most likely successful group from a larger group rather than
successful individuals.
4. A test should be tested in ones own organization as a valid test in one that measures.
36

5. Tests can be held only in case of failure of other selection devices in providing satisfactory.
6. Test administrators should not heavily depend upon test score in making decision regarding
selection of a candidate.
Relationship between tests score and job success is not always linear. Hence, decision-makers
should use the test score judiciously.

OUTCOMES OF SELECTION DECISION:

Mainly four different types

True positive

True negative

False positive error:

Results in cost for training, transfer or terminating the service of employee.

Costs of replacing an employee with a fresh one-hiring, training, and replacement.

False negative error:

Costs associated difficult to estimate

ENVIRONMENTAL FACTORS
EXTERNAL
Supply and demand in labour market
Unemployment rate
Legal and political considerations
Companys image

INTERNAL
Companys policy
Cost of hiring

CONCEPTS OF TESTING:
1. Job analysis
2. Reliability
3. Validity

37

TYPES OF TESTS:
Intelligence tests include: sample learning, ability, the adaptabilit tests etc.
s(i) Aptitude Tests

Intelligence Test

(b)Mechanical Aptitude

Psychomotor Tests

Clerical Aptitude Tests
(ii) Achievement Test

Job Knowledge Test

Work Samples Test
(iii)Situational Test

Group Discussion

In basket
(iv) Interest Test
(v) Personality Test
(a) Objective Test
(b) Projective Test
(b) Mechanical aptitude tests
(c) Psychomotor tests
(d) Clerical aptitude tests

38

FINAL INTERVIEW:
APPLICATION OF INTERVIEWS
TYPE
Structured

TYPE OF QUESTIONS

USUAL APPLICATIONS

A predetermined checklist

Useful for valid results,

if questions, usually asked

especially when dealing

of all applicants.

with large number of

applicants.

Unstructured

Few, if any, planned

Useful when the interview

questions are made up

tries to probe personal

during the interview.

details of the candidate

analyzes why they are not
right for the job.

Mixed

A combination of structured A realistic approach that

and unstructured questions,

yields comparable answers

which resembles what is a

plus in depth insights.

usually done in practice.

Behavioral

Questions limited to

Useful to understand

hypothetical situations.

applicants reasoning and

Evaluation is based on the

analytical abilities under

solution and approach of the modest stress.

applicant.
Stress

A series of harsh, rapid fire

Useful for stressful jobs,

question intended to upset

such as handling

the applicant.

complaints.

39

BARRIERS FOR EFFECTIVE SELECTION:

Perception

Fairness

Validity

Reliability

Pressure

Evaluation and Conclusion of Selection Programme:

- Reassuring the non selected candidate.
- An Audit for evaluation.

2.2.2 SELECTION TECHNIQUES:

Interview initial or preliminary

40

PRELIMINARY INTERVIEW:

This is a short interview and is used to eliminate unqualified candidates.

Generally, there is no paper work at this stage.

If the applicant looks like he can qualify for existing job openings, he or she is given the
application blank to complete.

APPLICATION BLANK:

Application blank is used to get information from prospective applicant to help
management to make a proper selection.

It quickly collects the basic data about a candidate.

It is also useful to store information for future use.

An application forms consists of
o Biographical data
o Educational achievements
o Salary and work experience
o Personal items
o Names and addresses of previous employers, references, etc.

CHECK OF REFERENCES:

References are used in most selection processes.

During the selection process it is believed that former employers, friends and professional
personnel give reliable evaluation of applicant.

Reference checks are generally made by mail or telephone and sometimes personally
also.
PSYCHOLOGICAL TESTS:

Most organizations do not use psychological tests for selection.

But larger the size of the firm, more are the chances of using psychological tests.

Larger companies that can afford to conduct psychological tests do so to have a more
detailed and accurate selection procedure.

Smaller companies are more dependent on interviews.

41

INTERVIEWING:

Interview is the interaction between the interviewer and the applicant.

It is the most common method of selection.

It is a good method to get accurate information about the applicant.

TYPES OF INTERVIEWS:
1. Informal interview
2. Formal interview
3. Planned interview
4. Patterned interview
5. Non-directive interview
6. Depth interview
7. Stress interview
8. Group interview
9. Panel interview

TYPES OF EMPLOYMENT INTERVIEW

(i)PRELIMINARY INTERVIEW
(a)Informal interview
(b)Unstructured interview

(II)CORE INTERVIEW
(a)Background information
(b)Job and probing interview
(c)Stress interview
(d)The Group Discussion interview
(e)Formal and structured interview
(f)Panel interview
(g)Depth interview

42

(iii)DECISION-MAKING INTERVIEW
1. PRELIMINARY INTERVIEW

(a)Informal interview
(b)Unstructured interview
2. CORE INTERVIEW
(a)Background information interview
(b)job and probing interview
( c) Stress interview
(d)Group discussion interview
(e) Formal and Structured interview
(f)Panel interview
(g)Depth interview

3. DECISION-MAKING INTERVIEW
After the candidates are examined by the experts including the line managers of the
organization in the core areas of the job, the head of the department/ section concerned
interviews the candidates once again, mostly through informal discussion. The interviewer
examines the interest of the candidate in the job, organization, reaction/adaptability to the
working conditions, career planning, promotional opportunities, work adjustment and allotment
etc. the personnel Manager also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The
head of the department and the personnel manager exchange the views and then they jointly
inform their decision to the chairman of the interview board, who finally makes the decision
about the candidates performance and their ranks in the interview.

43

INTERVIEW PROCESS:
Interview is not a single step. It is a process consisting of several steps. The major steps are
grouped into four categories.

Before starting the interview, the important areas for asking questions should be worked
out.

The candidates application form should be examined to find his/her skills, incidents and
experiences which are related to important areas for asking questions.

The interviewer should make the candidate relaxed by starting with questions that are not
directly related with the job.

After the candidate is relaxed, the interviewer should ask the questions related to the job.

Now the interviewer should make a tentative decision about the candidate.

Approval by the Supervisor:

At this stage, we can reach the conclusion about which candidate should be hired.

Physical Examination:

Physical examination is done to check whether the applicants physical capabilities match
with the job requirements or not.

The three basic objectives of physical examination are:
o To determine the applicants physical capabilities.
o To protect the company from needless claims under workers compensation laws.
o To stop communicable diseases from entering the organization.

44

INDUCTION:

It is the process of introducing the new employee to the organization.

According to a report, more than half of voluntary resignations occur within the first six
months.

A good induction program helps to take care of this problem and reduce the costs
associated with it.
(a)Preparation for
The interview

Appropriate type of interview

the areas to be tested
Type and number of interview
Review the information

(b)Conduct the interview

Open the interview

Get complete and accurate
Information
Record observations and
Impressions
Guide the interview
Check the success of the interview

(c)Close the interview

(d)Evaluate interview results
(A)Preparation for the interview
(b)Conducting the interview
(c)Closing the interview
(d)Evaluation of interview results

45

EVALUATION OF APPLICATION FORMS:The are two methods of evaluating an application form, viz., clinical and method and weighted
method.
1. Clinical method
2. Weighted method
3. Biographical inventories
WRITTEN EXAMINATION:The organization have to conduct written examination for the qualified candidates after they are
screened on the basis of the application blanks so as to measure the candidates ability in
arithmetical calculations, the know the candidates attitude towards the job to measure the
candidates to know the candidates aptitude, reasoning, knowledge in various disciplines, in
various disciplines, general knowledge and English language.
PRELIMINARY INTERVIEW:
The preliminary interview is to solicit necessary information from the prospective applicants and
to assess the applicants suitability to the job.
GROUP DISCUSSION:
The technique of group is used in order to secure further information regarding the suitability of
the candidate for the job. Group discussion is a method where groups of the successful applicants
are brought around a conference table and are asked to discuss either a case study of a subject
matter.
TEST:
The next stage in the selection process is conducting different tests as given below. The objective
of tests is to solicit further information to assess the employee suitability to the job.

46

FINAL SELECTION:

Keep a list of all applicants considered for final selection.

Identify fair selection criteria for the final selection phase.

Ensure that the criteria are in line with the advertised requirements as well as the job
content.

Ensure that each selection committee member is provided with all the relevant
information pertaining to each short-listed applicant.

Ensure that the interviews are conducted in a fair and effective manner and that each
candidate is weighed comprehensively against the requirements as advertised.

Ensure that a comprehensive motivation is compiled in respect of all the applicants
interviewed.

Ensure that all applicants are informed about the outcome of the final selection phase.

Ensure that all relevant information is put on record.

CLOSING SELECTION:
1. Phone call and further clarification
2. Letter of intent
3. Completing employment forms
4. Protocols may be available for interested individuals
5. Number of candidates
6. Names, surnames and addresses of 5 top candidates
7. Recruitment and selection criteria
8. Justification of the decision

47

2.2.3 TRENDS IN RECRUITMENT AND SELECTION:

PROCEDURAL CHANGES:

Eliminating arbitrary rules and regulations that restrict the choices of hiring managers and
supervisors

Adopting flexible and appealing hiring procedures.

Screening applicants quickly

Validating entry requirements and examinations.

Instituting worker-friendly personnel policies,

Creating more flexible job descriptions
IMPROVEMENTS TO THE RECRUITMENT AND SELECTION PROCESS:

The decentralization movement "New Public Management" is known in many
quarters as devolution, often characterized by the decentralization of HR responsibility.

Aggressive outreach efforts

Current employees as recruiters
USE OF TECHNOLOGY:
 Many scholars believe that technology will be the most notable HRM trend of the next
few decades
 Many large public organizations use computer bulletin boards and electronic mail to
improve recruitment process
 Managers can have online access to applicants' test scores, qualifications and contact
information
 Software programs: to administer online examinations, track applicants, match resumes
with skill sets, expedite background checks, and shepherd job candidates through a
paperless staffing process

48

3.1INDUSTRY PROFILE
PROFILE OF THE INDUSTRY
The 15 year old software company is one of the cardinals and basic infrastructure which
enjoys core sector status and play a crucial role in the economic development and growth of a
country. Being a core sector this industry was subject to price and distribution controls almost
uninterruptedly from past 15 years.

OVERVIEW OF THE INDUSTRY

Manasi Information Technologies is a leading global provider of technology that strengthens
client innovation. We currently offer services to our clients throughout the world. Our nature of
work involves Software Development, Maintenance, Outsourcing and BPO. We have established
practices in Enterprise Applications, Customer Facing Applications, Business intelligence
Applications and E-Business Solutions. We as a professional software-development company are
highly concerned with the quality of our solutions and services. Moreover, our team constantly
works on developing and improving our service performance to satisfy our customers and
maintain long-term cooperation with them. We are totally committed to ensure highest quality
standards and to understand changing customer needs. At Manasi Information Technologies we
are striving to understand changing customer needs, and enrich their quality of life by simply
making the technology readily usable for them.
Software Industry consists of that part of computer programming activity that is traded between
software-producing organizations and corporate or individual software consumers. Traded
software represents only a fraction of domestic software activity, whose extent cannot be reliably
estimated, since much computer programming takes place within firms and its value Sis not
captured by the industrial census or software industry analysts. According to the industry analyst
INPUT, in 2010 the U.S. market for traded software was $138 billion (Table 1). The U.S.
software industry is a major exporter, and the total revenues of the top 500 U.S. software firms in
the year 2010 were $259 billion, according to the trade publication Software Magazine. The
traded software industry consists of three main sectors: programming services, enterprise
software products, and shrink-wrapped software products. These three sectors became
established in the mid-1950s, the mid-1960s, and the late 1970s, respectively, in response to the
technological opportunities and the business environment of the time. The most successful firms
developed specialized capabilities that enabled them to prosper within their sector; however, this
specialization made it difficult to move into other sectors, and very few firms have been
successful in more than one software sector. It should be noted that the software industry is not
confined to independent software vendors, but also includes computer manufacturers such as
IBM, Unisys, and NCR who supply programming services and software products alongside their
hardware offerings and are among the largest software suppliers. These are sometimes referred to
as "captive" markets because computer users have relatively little choice in the supplier of basic
operating software for corporate systems.
49

Table 1
U.S. Software Market (User Expenditures in $ millions),
19802010
1980
1985 1990
Year
Source:
Courtesy of INPUT.
Programming
744
1,352 2,985
Services
Software
250
810 2,726
Products
TOTAL
994
2,162 5,711

1995

2000

6,233

10,402 15,319 33,400

13,286

34,066 58,311 104,689

19,519

44,468 73,630 138,089

2005

2010

The United States has been the world leader in the software industry throughout its history, and
today accounts for half of global revenues overall, and an estimated three-quarters of the
software products market. A notable feature of the industry is its low concentration: there are
many thousands of software firms in the United States and throughout the world, but relatively
few mostly American global players.

50

SECTORS OF THE SOFTWARE INDUSTRY

1. PROGRAMMING SERVICES:
SOFTWARE PROGRAMMING SERVICES: Dynamic Ventures provides software
programming services. It creates user friendly solutions to very complex problems. Company
includes the work in their core product offerings.
The teams are responsible for the development of major commercial software products and
web applications. They deliver more reliable applications in shorter time frames using the
iterative "evolving milestone" process. It enables one to achieve best case results even when
they do not have specifications or their specifications start out vague and change often.
CURRENT CONDITIONS: According to Software Magazine in January 2011, "The trend of
engaging outside service firms to perform critical IT functions continues." This statement was
borne out by the specialties reported by firms in the journal's list of top 500 computer software
and services companies of 2010. The largest primary business sector--for the third year in a
row--was system integration services and IT consulting. Outsourcing services was the second
largest, followed by IT services/consulting/staffing and outsourced product
development/testing. Of companies with more than $1 billion in revenues, Salesforce.com
increased its sales by 44 percent. According to Software Magazine, "The Company "insists on
continuing its 'no software' marketing positioning even though [it] sells access to its software
through the Software-as-a-Service (SaaS) model." Hewlett-Packard also showed strong growth,
increasing its revenues by more than 50 percent, due mostly to its acquisition of former rival
Electronic Data Systems Corp. in 2008. Those providing computer programming and related
services were required to keep up with constantly changing technology. For example,
according to a report by IBIS World, in the 2010s, "Newer platforms and technologies, such as
software as a service, open source software, and cloud computing, will penetrate the industry
and change the landscape." In the meantime, services in wireless and mobile applications were
strong growth areas as the nation entered the second decade of the twenty-first century.
According to research firm Gartner, the mobile applications industry was predicted to almost
triple in 2011 to $15.1 billion.
INDUSTRY LEADERS: Custom programming services are furnished by a diverse group of
companies, including several multinational firms that provide a comprehensive set of IT
services to large businesses and government agencies. One of the largest was IBM Corp. By
2010 IBM's services unit accounted for more half of its revenues, which in 2010 were just
under $100 billion. Hewlett-Packard was another leader. The firm doubled its size when it
purchased Electronic Data Systems Corp. in 2008, and revenues in 2010 reached $125 billion.
Oracle and Computer Sciences Corp. were other significant players, registering 2010 sales of
$26.8 billion and $16.1 billion, respectively, as was Accenture, whose annual revenues
surpassed $23 billion. Smaller companies that provided programming services included
Analysts International Corp., CIBER (Consultants in Business, Engineering, and Research)
Inc., and Keane International Inc., which was acquired by NTT Data in 2011.
2. ENTERPRISE SOFTWARE PRODUCTS: Enterprise software describes a collection of
computer programs with common business applications, tools for modeling how the entire
51

organization works, and development tools for building applications unique to the
organization. The software is intended to solve an enterprise-wide problem, rather than a
departmental problem. Enterprise level software aims to improve the enterprise's productivity
and efficiency by providing business logic support functionality. According to Martin Fowler,
"Enterprise applications are about the display, manipulation, and storage of large amounts of
often complex data and the support or automation of business processes with that
data."Although there is no single, widely accepted list of enterprise software characteristics,
they generally include performance, scalability, and robustness. Furthermore, enterprise
software typically has interfaces to other enterprise software (for example LDAP to directory
services) and is centrally managed (a single admin page, for example).
ENTERPRISE APPLICATION SOFTWARE:
Enterprise application software is application software that performs business functions such as
order processing, procurement, production scheduling, customer information management,
energy management, and accounting. It is typically hosted on servers and provides simultaneous
services to a large number of users, typically over a computer network. This is in contrast to a
single-user application that is executed on a user's personal computer and serves only one user at
a time.
a. TYPES:

Enterprise software can be designed and implemented by an information technology (IT)

group within a company.
It may also be purchased from an independent enterprise software developer that often
installs and maintains the software for their customers. Installation, customization, and
maintenance can also be outsourced to an IT consulting company.
Another model is based on a concept called on-demand software, or Software as a
Service (SaaS). The on-demand model of enterprise software is made possible through
the widespread distribution of broadband access to the Internet. Software as Service
vendors maintains enterprise software on servers within their own company data center
and then provides access to the software to their enterprise customers via the Internet.
Enterprise software is often categorized by the business function that it automates - such
as accounting software or sales force automation software. Similarly for industries - for
example, there are enterprise systems devised for the health care industry, or for
manufacturing enterprises.

b. DEVELOPERS:Major organizations in the enterprise software field include SAP, IFS AB, QAD Inc,
IBM, BMC Software, HP Software Division, Redwood Software, UC4 Software, JBoss (Red Hat),
Microsoft, Adobe Systems, Oracle Corporation, Inquest Technologies, ScheduALL, CA
Technologies, Wipro Technologies, [Johnson Controls], and ASG Software Solutions but there are
thousands of competing vendors.

52

VALUATION UPDATE FOR THE ENTERPRISE SOFTWARE INDUSTRY:

Transaction volumes in the enterprise software sector increased when compared to the prior
month but decreased against the level of activity reported in March 2010. According to Capital
IQ, there were 55 deals announced in the enterprise software sector in March 2011 compared to
37 in the prior month and 63 in March 2010. Despite the moderate level of acquisition activity in
March, well-capitalized firms remain interested in strategic expansion.
3. SHRINK-WRAPPED SOFTWARE:
The invention in 1971 of the inexpensive microprocessor a computer on a single microchip
transformed the computer, creating a consumer product from what had previously been a costly
capital good. Microprocessors were used in both videogame consoles and personal computers,
and a "shrink-wrapped" or "boxed" software industry developed in the 1970s to satisfy the
demand for programs for the new computer products. Shrink-wrapped software products were
distinguished from enterprise software goods by low prices, high sales volume, and different
distribution channels. Consumer software typically sold in tens or hundreds of thousands of
units, at a price of a few hundred dollars, at most. Shrink-wrapped software was sold through
retail outlets and mail order, with little or no after-sales service, compared with the direct sales
forces and account managers employed by enterprise software vendors.
One of the first firms to catch the wave of personal computing was Microsoft, founded in
Albuquerque, New Mexico, in 1975 by Bill Gates and Paul Allen. Microsoft specialized in the
basic operating software for what were then still known as micro-computers, and which mainly
sold to hobbyists. Mass-market personal computers, such as the Apple II and the Tandy TRS-80,
arrived in 1977 1978. Within a couple of years two software applications, the word processor
and the spreadsheet, made the personal computer generally useful. The word processor concept
had existed in the corporate computer world, and many entrepreneurs simultaneously hit on the
idea of creating a product for the personal computer market. However, one product, WordStar
(produced by a San Rafael-based start-up, MicroPro International), secured a commanding share
of the market. By contrast, the first personal computer spreadsheet, VisiCalc, produced by
Software Arts of Cambridge, Massachusetts, had no clear precedent in mainframe computing,
and it took the world by storm, initially having the market entirely to itself, although within a
couple of years it was imitated by dozens of "clones."

53

BMR:
BMR is a professional service organization offering a range of Tax, Risk and M&A advisory for
businesses of all sizes, at the local, national and international levels.
BMR was found on October 1, 2004, and within a short span of time, has won the confidence of
numerous Fortune 500 clients and is the partner of choice for their advisory services.
BMR COMMENTS AND ANALYSIS:
The decision of the KHC (KARNATAKA HIGH COURT) on software purchases has gone into
the crux of the issue which has seen a divergence of views on characterization of income, not
only in Indian jurisprudence, but world over. The foundation of this ruling lies in the
interpretation of the provisions of the ICA and the KHC. The KHC has not concurred with the
view of the Delhi High Court in the case of Dynamic Vertical Private Limited, in which it was
held that payments for shrink wrap software do not constitute royalty, since the ruling was
rendered in the context of section 40a(I) of the Act. However, the KHC has not appreciated that
the substantial issue was still the same.
Internationally, the taxability of software payments as royalty has been a widely debated subject.
The 2010 update of the OECD model tax convention on income and on capital recognizes that
copying the software program onto the computers hard drive or random access memory or
making an archival copy is an essential step in utilizing the program and therefore, rights in
relation to these acts of copying, where they do no more than enable the effective operation of
the program by the user, should be disregarded in analyzing the character of the transaction for
tax purposes. However, India has reserved its position on this interpretation and has indicated
that some of the software payments may constitute royalty.
At a very practical level, companies would now need to worry about an enhanced zeal of the
Revenue Authorities in seeking to review such payments, both for the present and prior years.
The KHCs ruling would impact companies in many ways:
Issue of notices for present and past payments for software procurements Distributors and
end consumers alike would need to strategies procurements and tax
withholding strategies
There could be a huge tax and interest impact on corporate tax disallowances, owing to
non withholding of taxes
Increased cost of business, owing to the fact that most overseas vendors are passing on
the cost to the Indian consumers
Domestic software procurements could also soon come under far greater review,
considering that the definition of royalties draws reference to the same provisions under
the Act
Clearly, the last has not been said on the subject and times ahead would be interesting as well as
challenging, and the outcome of the appeals to be filed before the Supreme Court will be keenly
awaited.

54

INDIAN IT INDUSTRY:
INDIAN IT INDUSTRY PRESENT STATUS:
Information technology (IT) is defined as the design, development, implementation and
management of computer-based information systems, particularly software applications and
computer hardware. Today, it has grown to cover most aspects of computing and technology.
India is a preferred destination for companies looking to offshore their IT and back-office
functions. It also retains its low-cost advantage and is a financially attractive location when
viewed in combination with the business environment it offers and the availability of skilled
people. The countrys domestic market for business process outsourcing (BPO) is projected to
grow over 23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In
2010, the domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic
BPO market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014.
With the first quarter of the new fiscal 2011-12 offering positive business outlook, hiring
sentiments for sectors like IT, ITeS and telecom have risen by over 20 per cent, says a study by
Team Lease Services Pvt. Ltd. As per the Employment Outlook Report for the period April-June
2011, released by Team Lease Services Pvt. Ltd., hiring intent from IT and ITeS was the highest
in cities like New Delhi, Mumbai, Hyderabad and Pune. India's top technology firms like TCS,
Infosys, Wipro and HCL are readying plans to gain a bigger share of their largest market, US, by
aggressively chasing contracts being served by multinational rivals. Analysts expect the top IT
firms to grow between 23-27 per cent in the FY2012 on the back of more number of
discretionary projects, improved pricing, and robust business volumes.
PERFORMANCE:
In India, it is important to make the distinction between IT and ITES (IT enabled services). The
latter refers to services delivered over telecom networks/ Internet to a range of external business
areas (Colloquially referred to as KPO and BPO) and is treated elsewhere on this website (see
ITES industry overview). Hence, we shall focus on the IT industry here by limiting the
discussion to electronics hardware manufacturing and software development and service. Despite
the unprecedented global economic downturn, the Indian IT industry has weathered the storm
well, and will achieve sustainable growth going forward. India is expected to witness an average
8% salary increase in 2010 and ~50% of companies have strong hiring plans, according to a
survey by global HR consultancy Mercer, giving yet another indication of the high confidence
levels among the countrys corporate houses after the economy staged a faster-than-expected
recovery from the slowdown. While the larger players continue to lead growth, gradually
increasing their share in the industry aggregate, several high-performing small and medium
enterprises have also stood out.

55

GROWTH POTENTIAL:
The strong demand for electronic hardware and software in India has been fuelled by a variety of
drivers including the high growth rate of the economy, emergence of a vast domestic market
catering to the new generation of young consumers, a thriving middleclass populace with
increasing disposable incomes and a relatively low-cost work force having advanced technical
skills. Indeed, the Government has also identified growth of this sector as a thrust area as there
remains great expectation for significant growth given the fairly low levels of penetration of
technology among the 1.1 billion population; There were only 60 million Internet users in 2009,
7 million DVD players and personal computers were sold in 2008-09, and 11 million new mobile
subscribers were added every month in the same period. In this scenario there is now a big
opportunity to step up the production to gain higher global share besides meeting the domestic
demands. The Indian IT sector has also built a strong reputation for its high standards of software
development ability, service quality and information security in the foreign market- which has
been acknowledged globally and has helped enhance buyer confidence. The industry continues
its drive to set global benchmarks in quality and information security through a combination of
provider and industry-level initiatives and strengthening the overall frameworks, creating greater
awareness and facilitating wider adoption of standards and best practices.
FUTURE PROSPECTS:
The industry is likely to continue growing from strength to strength, as local players incorporate
best in class practices from global counterparts whilst retaining their edge in terms of lower cost
of labor and focused governmental investments.
New graduates with degrees in related fields such as electrical engineering and computer science
can hope to achieve significant professional growth and a healthy remuneration from companies
looking to hire the best talent available, given the high proportion who leave to pursue jobs in
this sector overseas..
Indian Software Industry:
In 2008-09, the software industry in India was worth Rs. 158.9 billion (US$ 3.9 billion). If the
value of in-house development, which is taking place at many large corporate, is added then the
figure would touch around Rs. 190 billion (US$ 4.6 billion). This phenomenal growth has not
been achieved overnight. The C.A.G.R (Compounded Annual Growth Rate) for the Indian
software industry revenues in the last five years has been 56.3 percent. Here the C.A.G.R. for the
software export industry has been 60.71 percent while that for the domestic market has been
46.05 percent.

56

Domestic Software Market:

In 2008-09, the domestic software market has been estimated at Rs. 49.5 billion (US$ 1.25
billion) and this does not include the in-house development of software by end users. The
domestic software market has shown a C.A.G.R. of 46.05 percent which has been steadily
improving in the last few year. The growth rate of the domestic software market was 41.02
percent 2008-09. The domestic software market is expected to gross Rs. 73 billion in 2011-2021.
With the rigorous enforcement of Copyright laws, increase in government spending on I.T. it is
expected that in the coming years, the domestic market for software can even register more than
50 percent annual growth rates. Also, the government has implemented zero import duty on
software. This is already having buoyant effect on the market and there is a increasing trend of
buying software through the Internet. It is expected that by 2018 revenues of Indian domestic
software market would touch US $ 37 billion. In the next few years, the prominent growth in the
domestic software market is expected to get boost by segments such as banking, E-governance,
defense, etc.
Software Export Industry:
The Indian software export industry continues to show impressive growth rates.
In terms of Indian rupees, the C.A.G.R. over the past five years has been as high as 60.71
percent. The industry exported software and services worth Rs. 0.30 billion (U.S.$ 0.03 billion)
in 1985; in 2008-09, a total export of Rs. 109 billion (U.S.$ 2.65 billion) was achieved and it is
expected that during 1999-2000, software exports will be worth Rs. 172 billion (U.S.$ 3.9
billion). The software industry in India expects to reach an export level of U.S.$ 6.3 billion by
2000-01 and U.S.$ 10 billion by 2013-14. The National IT Task Force of India has set a target of
U.S $ 50 billion of annual I.T. software and services exports by 2018. For achieving this
velocity of business, both the software industry and the Government of India are currently taking
some bold and purposeful steps. Amongst others, this exercise includes path-breaking measures
adopted by the National IT Task Force to further liberate the economy, simplification of
procedures, and development of additional resources for technical manpower development, new
marketing channels, enhancing global brand equity and providing state-of-the-art infrastructure
for software development. The thrust on I.T. services like E-commerce, Software Development,
Interactive Integration services, Application Service Providers (ASPs).
Location of Software Companies:
The mushrooming of new software companies until a couple of years ago was
limited to a few cities. The industry was mainly concentrated around Bangalore, Mumbai,
Chennai, Delhi, Pune, Hyderabad and Calcutta. However, with the InfoTech revolution sweeping
India, we have witnessed a very high growth of InfoTech companies in other cities and towns as
well. Most of the state governments have today accorded the highest priority to the development
of the InfoTech sector in their states.

57

SWOT ANALYSIS:
1. STRENGTHS
High Quality & Price Performance: Quality is the hallmark of Indian I.T. software and, services.
ISO 9000 certification and SEI Level 5 are the order of the day. High quality knowledge workers
and attractive price performance have been and will continue to be a key component of India's
value proposition.
Large Pool of Knowledge Workers: The basic raw material for any software development
activity or a dotcom start up is the availability of quality knowledge workers. India's main
competitive advantage is its abundant, high-quality and cost effective human resources.
Currently, India trains more than 73,000 professionals a year and has around 80,000 people
working in the software and services sector. This is the second largest I.T. work force in the
world. Recently, the Government of India has committed to providing computer education in
every school by year 2003.
State-of-the-art Technologies: A majority of Indian software companies use state-of-the-art
technologies, including the latest in client-networking, E-commerce, Internet, ASP, CASE tools,
communication software, ATM, protocols, GUI etc.
Flexibility and Adaptability: Indian software professionals easily adapt themselves to new
technologies. In the software industry, where technological obsolescence is the order of the day,
flexibility to adapt to new technologies a major strength
Reliability: Software programmers from India are able to provide expertise for all or large
projects with dollar savings. The motto is ultimate adherence delivery schedules and customer
satisfaction
Off-shore Development through Datacom links: Off-shore software development in India
especially through high-speed datacom (satellite links), provides immense cost and time saving.
Large Projects: Indian companies increasingly large numbers are demonstrating their ability to
handle large projects (more than 500-700 man- ears), including turnkey projects.
High Growth: Software exports as well as the domestic demand in the last few years have been
consistently growing at annual growth rate of about 50 percent.

58

Engineering Base: A strong base of national institutes, engineering college and universities has
laid a strong foundation of education in engineering skills amongst Indian software
professionals. The IITs (Indian Institute of Information Technology) in various cities are the
new institutions to join the bandwagon.
Mathematical and Logic Expertise: Indias success in providing efficient software solutions can
be also attributed to the mathematical and logical ability Indians.
High Aspirations: The Indian IT software and services industry has set itself higher aspirations
and goals. The recent aspiration is to reach annual revenues of U.S. $ 87 billion by 2008 (from a
level of U.S. $3.9 billion during 1998 99), achieve 100 percent literacy, more, employment and
entrepreneurship opportunities.
Indians in Silicon Valley: As per a recent survey, 23 of the Fortune 500 Company CEOs are of
Indian origin. It has been reported that a business plan of a dotcom company in Silicon valley,
U.S.A. receives higher priority if an Indian name associated with it. The successful India in
Silicon Valley has organize themselves under the Indus Entrepreneurs Group (TiE).
Government Encouragement: Since 1999 the Government of India has accorded thrust area
status to the software sector. The Government has amended the Copyright Law to make it one of
the toughest in the world; eliminated import duty on computer software; exempted profits
derived from software exports from Income Tax etc. The Government of India has also set up
innovative scheme like Software Technology Parks, etc., for promoting software exports.
Infrastructure: A growing number of State Governments and cities are building hi-tech buildings
and habitats to accommodate the ever increasing numbers of software companies and enterprises.
These are in the form of intelligent habitats and buildings and include infrastructural support like
high- class value-added data communication services, captive power, recreational facilities, etc.
They incorporate state-of- art facilities viz. plug-and-play features. This is assisting companies to
quickly set up their software operations in India.
Global Research & Development: More and more multinationals are setting up their global R&D
units in India, recognizing the immense power of local talent.

59

2.WEAKNESSES
Lack of Package Orientation: Although, a few companies have started making shrink-wrapped
software packages, the industry as a whole is still not oriented towards development of world
class 'shrink-wrapped' software packages. Thus, the industry is not able to take advantage of a
multiplier effect for growth in revenues.
Lack of Domestic Computerization: Lack of adequate computerization has led to a relatively
weak domestic software market. Even, the PC penetration rate is very low.
Lack of Internet Penetration: With low penetration of PCs, it is obvious that Internet penetration
is also poor. At the end of the year 1999, India could only boast of 6,10,000 Internet connections
with about 2.1 million users. The recently announced Internet Service Provider policy is
expected to improve the situation.
Original Technology: The Indian software industry possesses the expertise to absorb and use the
latest technology. However, barring a few exceptions, it has still not produced enough original
technology breakthroughs. Succinctly put, the industry has not created original operating systems
or new computer languages and technologies, which could be used globally
.
Project Management Skills: As the Indian software industry has been growing at a fast rate,
most of the project managers are becoming entrepreneurs, thus creating a gap in demand and
supply of project management skills.
Venture Capital: In building a robust venture creation process, India still faces few constraints.
To build a prolific venture community, India needs to focus on boosting all stages of venture
creation process and have simplified procedures so that the domestic Venture Capital movement
can flourish and overseas Venture Capital funds can be attracted.
Localization: With the exception of isolated cases, not much exists in providing software
applications in innumerable local languages. Thus, computer penetration in India is restricted to
merely the English speaking population.

60

3.OPPORTUNITIES
Global Market: The market is large and rapidly changing-from a mix of legacy client server to
web / package-based services. Market openings are emerging across I.T. services, software
products, I.T. enabled services and E-businesses, and creating a number of new opportunities for
Indian companies.
Domestic Demand: The corporate, government and consumer sector of the Indian domestic
market offers a U.S.$ 18 billion opportunity by 2008 to software and services companies.
Outsourcing: The global outsourcing business was worth U.S.$ 77 billion in 1997 and has been
growing at the rate of 15-18 percent per annum. A recent survey indicates that by 2002, more
than 59 percent of the Fortune 1000 companies and other multinationals will outsource some part
of their application development and maintenance activities. India can gain and corner a greater
marketplace.
E-Commerce/E-Business: India not only has a huge opportunity to service this market but also
has a unique opportunity to address the needs of the NRI community around the world.
Overseas Listings: India today commands a very high respect among investors in India and
overseas. Almost all major overseas stock exchanges -are keen for Indian software companies to
list themselves on their respective exchanges. This is a major opportunity for the Indian software
industry to attract the requisite investments.
Internet Service Provider (ISP) Policy: The recent permission to allow private ISP's operate in
India and set up their own gateways will unprecedented Internet proliferation throughout India.

61

4.THREATS
Government Interference: In the past decade, the Government and industry have worked very
well together in India for the success of the I.T. software and services industry. Now the
Government's role needs to be increasingly directed towards providing suitable infrastructure and
continuing its role in the simplification of policies. Any further plans for Government control,
restrictions or undue interference could well pose a threat to the industry.
Telecom Infrastructure: The immediate need of the hour in India is to have a world class telecom
infrastructure at globally competitive tariffs. The Department of Telecommunications has taken a
number of initiatives including the National Telecommunication Backbone, National Internet
Backbone, and plans for providing high bandwidth Internet connectivity to remote corners of
India. However, Government monopoly, lack of speed and adherence to archaic
telecommunication rules and regulations can prove to be a threat to the industry.
Lack of Speed: The world is moving at the speed of Internet. The decision- making and time
taken for implementation in India needs to be at a much faster pace so that the Indian I.T.
software and services industry does not lose any opportunities.
Infrastructure: Although, the software industry is growing at a phenomenal rate, many other
sectors in India have not yet been able to keep pace with it. Lately, almost all major cities are
building hi-tech buildings to house the software industry. These buildings have state-of-art
infrastructure, data communication facilities, captive power etc. But, lack of power, highways,
housing and international airports is some cities has become a major constraint.
Cost: Rising cost of infrastructure, basic amenities and salaries can pose a threat if not
adequately balanced with value addition.
Protectionism by Export Destinations: Many countries in North America and Western Europe are
creating protective and non-tariff trade barriers, especially with regard to the movement of
skilled manpower. Visa issues and non-tariff trade barrier may prove to be a threat. India should
insist for removal of non-trade tariff barriers at WTO.

62

3.2 COMPANY PROFILE

MANASI SYSYTEMS TECHNOLOGIES

Our mission

To provide highest and reliable quality of software solutions, Services, Globally.

To fulfill the organizational goals and Societical needs through innovation and creativity
for professional satisfaction.

The primary goal of Manasi Information Technologies would be towards acquiring the
technology and know how for product development in the fields of wireless application,
Internet/Intranet technologies, Client/Server, E-Commerce Solutions, Enterprise Resource
Planning and the embedded technologies. The major player in this field would be 'ERP'. Apart
from the above it will also act as a customized solution provider and consulting firm.

Our team
Manasi Information Technologies management team includes experienced, senior engineers and
managers with a clear understanding of the bottom line of business. They understand the need for
communication, clearly defined deliverables and the need to add real value to our clients
operations. All Manasi Information Technologies managers have advanced technical degrees and
significant experience delivering effective solutions on time.
All engineers have an ongoing training regimen that keeps us abreast of the latest
technologies.
The strength of the team is built on its diversity in core skill sets our experience
includes:

Working with start ups as well as Fortune 500 companies.

Development and management of both short term and long term projects.

Work experience around the globe including US, Europe & Far East.

Ability to Understand the real world of business & stretch your $$$ to the maximum.

Significant Operations and IT experience in a range of industries.

Get your projects done On -Time and In - Budget.

63

Technologies

Microsoft Technologies
ASP.Net, C#.Net, VB .Net and XML Web Services.
Testing
Manual Testing, Automation Testing.
Designing
CorelDraw, Flash and Photoshop.
Scripting Language
JavaScript and PHP.
Object-Oriented & Internet/E-Commerce Development Languages
C++, Java/J2EE, C#, .Net.
Web Development & Web Design
ASP. Net, JSP, D/HTML, CSS,Divtags, Photoshop, Dream weaver, Flash, JavaScript,
Perl/CGI Script,
SEO

Testing tools
Applications that do not work in production can cost companies millions of dollars. Imagine how
many potential customers would leave a web site if the links did not work properly.
Sound quality assurance programs utilizing high-quality testing tools are required to ensure
customer satisfaction.
Manasi Information Technologies delivers a wide range of quality assurance and automated
testing services featuring tools from major vendors including functional testing tools and
scripting languages with tools such as QARun from Compuware, WinRunner from Mercury
Interactive and Visual Test from Rational Software (IBM). Load testing tools and associated
scripting languages on tools such as LoadRunner from Mercury Interactive, QALoad from
Computerware, Webload from Radview Software and Traning Services.
Manasi Information Technologies consultants are also skilled at managing the testing process
with test data management tools such as File-Aid from Computerware for test data generation,
extraction and comparison and TestBytes from Mercury Interactive and whitebox testing tools
such as NuMega DevPartner for checking code complexity, code coverage and memory leaks.
64

Services
Manasi Information Technologies is committed to our clients business success. Its that simple.
Our clients need to optimize their IT investment to help them reach their business goals. Manasi
Information Technologies employees are trained to ensure that the IT systems they build
specifically are designed to help our clients achieve their goals.
We know that IT systems are a means to an end, and we work with our clients to ensure that the
systems we help them design, deploy and manage are perfect for their needs. We have
experience in many areas of IT, across many platforms and in many industries.
Our clients view us as partners. They know that we are as committed to their business success as
they are. We get involved in their IT projects right from the beginning to ensure that
requirements are clearly defined.
In many cases, our clients trust us to help them define the requirements for them based on our
years of experience and the many systems we have managed and successfully implemented. We
do not take this trust lightly and give each individual project specific and focused attention.
We do what we say we are going to do, on time and within budget. Implementing new
information systems can be a risky and difficult undertaking. We work closely with our clients to
ensure that we deliver what is expected.
Our clients look to Manasi Information Technologies for excellence in design, deployment and
implementation. Thats what we deliver.

Quality Assurance
Quality assurance is a critical concern for companies that either produce commercial software or
develop internal applications. Billions of dollars are wasted every year due to applications that
do not work, are faulty, or do not perform adequately.
In order to ensure that their people are productive and that customers are satisfied, companies
need to implement quality assurance programs.

65

It makes sense to outsource the quality assurance process to highly skilled QA professionals. The
quality assurance process includes test plan development; software requirements verification;
application integration, regression, and performance testing; and load or stress testing.

Project Management
Many companies are looking to bring on highly skilled, well trained IT consulting organizations
to manage projects for them. It makes sense to do so for economic, logistic and practical reasons.
Companies do not have time to experiment and need to ensure that their IT projects are
implemented correctly and on time. They need to design, deploy and manage the right projects
on time and under budget. This is a primary reason why companies look to Manasi Information
Technologies for superior project management.
Manasi Information Technologies creates and implements working solutions for our clients by
interacting with all levels of management where appropriate. Our consultants have extensive
hands-on experience in business and management practices to help your organization implement
projects the right way. Manasi Information Technologies consultants take a complete view of
whats needed to ensure IT projects are implemented in the most professional manner.

Normal steps in the Manasi Information Technologies project

management process may include:

Compile detailed requirement analysis and scope of the project.

Project Life-Cycle Development and Control.
Research and Development related to technology and service deliverables.
Risk analysis.
Cost analysis, estimates and financial control.
Role and responsibility planning.
Contract administration and documentation control.
Implementation planning & project procedure scheduling.
Timeframe planning.
Utilization of technical resources.
Coordination of management & progress meetings.
Coordination of outsourced consultants and entities.
Communication procedures.
Quality control.
Training & skills transfer.
Technical documentation.
66

Training services
Manasi Information Technologies is a leading Online/Onsite/In-house/ Physical classroom
training expert. Over years, our varied cost-effective, customized and time-saving training
methods in varied areas of IT.
Manasi Information Technologies E-Learning offers a varied high-end IT related courses.
Instructor-led, E-Learning offers the perfect combination of convenience, affordability, and
technology. Being online, the trainings are guaranteed to be latest (very much current) and
support is just a click away. Our online training is the masters in terms of Quality and approaches
within the time limits and is cost effective, using latest driven technologies, proven
methodologies for the Global clients.
We also provide quality In-house and Onsite training sessions for individuals as well as
corporate. These courses are tailor-made catering to your needs, considerably reducing your time
and cost involved.
Manasi Information Technologies Info has delivered a full range of IT training and business
skills training through innovative learning methods that have transformed businesses and helped
many students and corporates reach their goals.

BPO
Manasi BPO Services is an equal opportunity company providing BPO & Call centre (Customer
service) jobs. Every employee of the organization will have a challenging job to play and
perform. Performance is monitored to reward and relish the employees.
Manasi is a young organization that believes in long-term relationship with their employees. We
are looking for young and dynamic employees for our BPO, Call Centre, Web related services
and KPO jobs to grow with the company and keep the company young for many years. We
understand the contribution of employees for the companys prosperity and hence we provide
them with attractive remuneration, welfare measures and a good working atmosphere. This
installs a sense-of-belonging with them. Manasi has a friendly work culture with flat levels of
67

hierarchy. Our employees are entitled to a variety of incentives which are performance based and
are in addition to the fixed compensation structure thereby motivating the employees to perform
aggressively to the best of their capabilities.

Company
Manasi Information Technologies is a leading global provider of technology that strengthens
client innovation. We currently offer services to our clients through out the world. Our nature of
work involves Software Development, Maintenance, Outsourcing and BPO.
We have established practices in Enterprise Applications, Customer Facing Applications,
Business intelligence Applications and E-Business Solutions.
We as a professional software-development company is highly concerned with the quality of our
solutions and services.
Moreover, our team constantly works on developing and improving our service performance to
satisfy our customers and maintain long-term cooperation with them.
We are totally committed to ensure highest quality standards and to understand changing
customer needs.
At Manasi Information Technologies we are striving to understand changing customer needs,
and enrich their quality of life by simply making the technology readily usable for them.

Resource
Our clients hire and re-hire us because we provide some of the most high performing, highly
skilled IT professionals in the industry. Our employees are our major strength, which means our
clients benefit from a well trained, conscientious, and diligent work force. Manasi Information
Technologies employees are extremely talented and experienced in the IT industry, and with an
average experience level of 6+ years our people can resolve the most critical IT issues for our
clients. More than half of our employees have certifications in their respective domain areas

68

Our employees are committed to our clients success. Manasi Information Technologies
employees want to ensure that your IT systems help you meet and exceed your business goals.
With domain expertise in many vertical industries, Manasi Information Technologies
professionals understand the role that IT plays in your specific market.

Why Manasi systems Technologies

Manasi Information Technologies is committed to our clients business success. Its that simple.
Our clients need to optimize their IT investment to help them reach their business goals. Manasi
Information Technologies employees are trained to ensure that the IT systems they build
specifically are designed to help our clients achieve their goals. We know that IT systems are a
means to an end, and we work with our clients to ensure that the systems we help them design,
deploy and manage are perfect for their needs. We have experience in many areas of IT across
many platforms and in many industries.
Our clients view us as partners. They know that we are as committed to their business success as
they are. We get involved in their IT projects right from the beginning to ensure that
requirements are clearly defined. In many cases, our clients trust us to help them define the
requirements for them based on our years of experience and the many systems we have managed
and successfully implemented. We do not take this trust lightly and give each individual project
specific and focused attention.
We do what we say we are going to do, on time and within budget. Implementing new
information systems can be a risky and difficult undertaking. We work closely with our clients to
ensure that we deliver what is expected. Our clients look to Manasi Information Technologies for
excellence in design, deployment and implementation. Thats what we deliver.

Grievance handling:
Financial Investment products tend to be tricky and complex without proper guidance.
Even after the investment has been made, there are many processes and intricacies which
needtobehandledeffectively. We have tried to set in a system where you can place your queries
on our client queries and grievance redressed module which makes investing for our clients, a
simple process. In this module response is given to all queries within 1 hour. If within 36 hours a
69

client's query is not addressed, intimation is made to the management and it is personally
resolved by our CEO. We have an exclusive set of professionals taking care of client grievances.
You can view the status of your grievances online as well.

Consolidation:
If someone were to ask you your Manasi as of today, you would probably have to go
through a stack of your statements for various investments and track the income generated as of
today for those investments to ascertain the same. You have no way out other than stacking all
your documents. This not only creates paper work duplication but also makes maintaining your
investment details difficult.

Financial planning:
Whatever may be your goals, without a Financial Plan in place it's impossible to achieve
them. We help you achieve them through our proprietary Financial Planning Process - my plan.
It helps you achieve your life goals in a systematic & scientific manner.

1. Identify&Prioritize
Together we will mutually define your personal and financial goals, understand your time frame
for results and discuss, if relevant, how you feel about risk. Post that we will prioritize them and
draw up a clear picture for your financial future.

2. Collate
We will collate and review all the necessary documents such as investments, tax returns,
insurancepolicies,retirementplansetc.

3.Analyze
Well analyze your information to assess your current situation and determine what you must do
to meet your goals. This could include analyzing your assets, liabilities and cash flow, current
insurance coverage, investments or tax strategies and how these elements mayimpacteachother.

4.Recommend
Well provide recommendations that address your goals. Well also go over the
recommendations with you to help you understand them so that you can make informed
decisions. Well understand your concerns and revise the recommendations as appropriate.
70

5.Act
Mutually we will agree on how the recommendations will be carried out. We may carry out the
recommendations or serve as your "coach", coordinating the whole process with you.

6.Track
As goals and needs evolve over time, well track your progress as part of the ongoing process
and make necessary modifications.

Key executives:
S.No

Name

Designation

Vijay Marupaka

President

Hari Babu

Vice President

Rishi Khanna

Vice President (Finance)

Srinivas Reddy

CEO

Madhusudhan Reddy

Director

Products:
Product Name

Income from Operations

Year

Month

2011

03

Sales
Sales
Quantity Value(Rs.Million)
0.00

71

440.54

% of STO

100.00

MANASI PRODUCTS / SERVICES PRODUCED:

Here the products means services related to the company software Services.

MANASI MARKET RESEARCH:

Market research is one of important Methodology for finding the problem and make analyze and
interpret and solve the problem. In every area it has sharing the contribution towards successing
the projects.
In the MANASI company has also adopted this technique by Research analysts to those brokers
utilizes and understands their researches then they will moving in a right path. The research
analysts analyses the company performance and what are the companys stock are moving why
the companys scripts prices are fluctuating and what are the effect for this situations under the
circumstances. Then the company successfully operating their activities produce of good
operating Results.

MANASI OPERATING RESULTS:

The Operating Results of the MANASI company is satisfactory compare to its competitors are
Sumas IT Corp, Srihitha technologies, intershee technologies etc., They are giving quality
services to their clients and improving their retained gains. Through this they are creating new
clients through adopting different strategies for attracting the clients towards its business then its
future glorious.

72

Date of Establishment
Revenue
Market Cap
Corporate Address

1995
9.82679 ( USD in Millions )
463.86508 ( Rs. in Millions )
8-2-293/82/B/7, Road No 10C, Gayatri Hills Colony,
Jubliee Hills, Hyderabad 500 033

Business Operation
Background

US IT Staffing and Software Development.

Incorporated on December 2, 1995, Manasi
Systems Pvt. Ltd is one of the major IT staffing
company in India. Manasi offers staffing solutions to
various clients in US and also provide development
services.

Financials

Company Vice President

Total Income - Rs. 489.259175 Million ( year

ending Mar 2010)
Net Profit - Rs. -83.819899 Million ( year ending
Mar 2010)
Hari Babu

Auditors

Ram Murthy

73

ORGANIZATION STRUCTURE IN MANASI

The organization structure of MANASI is very wide and deeply rooted so as to serve its
corporate and individual clients and also to fulfill targets set by the company. If we go through
the organizational chart of MANASI, we can understand the structure, components and way of
administration. For the benefit of the study, one has to see through the organizational chart with
meticulous thinking.
As far as the overall administration of MANASI is concerned, mainly there are three categories:

Top Level Management

Middle Level Management

Operations Team
Broadly the Operational Organization Hierarchy at MANASI can be defined as follows:

President

Vice President

Vice President (Operations)

CEO

CTO

General Manager

74

HUMAN RESOURCE STRUCTURE

The personnel wing is supposed to be the flush and blood of any organization. As usual, there is
a personnel offices being assisted by assistant manager administration under his control there are
four general managers so as to handle the personnel of the organization.

RECRUITMENT
The recruitment policy in MANASI is very clear. The policy and procedure followed
towards recruitment of its employee is much depended upon merit and expertise in the
employees. The employment as provided basing upon the service rules and commissions, which
are is vague. Initially employees from animal husbandry department were given employment and
in due course employees from industrial and treasury was also preferred. As the organization
developed in its structure, by leaps and bounds there was death of efficient and sufficient
employees. So as to bridge the gap, the doors were open towards the employment of candidates
on the basis of deputation. With regards to the recruitment of the supervisor and other works un
different cadre, the federation follows the present rules and regulations. As pre the
implementations of the reservations, the federation is very meticulous and there is no co, promise
and deviation from all directions. The communication from the government of A.P with regards
to the policy of reservations.

SELECTION POLICY & PROCEDURES FOR DIFFERENT CADRES OF

EMPLOYEES.
Normally the selection of employees into this federation is by two different ways. One is through
selection committee examination and the other is through district collector selections. Normally
the application from the aspirants where analyzed and the deserving candidates would be called
for interview. Towards this purpose, a selection committee would be constituted.
After the completion of medical test and other formalities, the appointment orders would be
issued for the eligible and selected candidates.

75

INDUCTION:
Induction is also called as orientation. Induction is designed to provide a new employee with the
information that he/she needs to function comfortably and effectively in the organization.
Generally orientation contains 3 types of information.

General information about daily work routine.

A review of the organization history. Objectives, operations and products or a

service as well a how the employees job contributes to the need of the organization.

A detail presentation in the form of a brochure of the organization work rules and
benefits extended to its employees.

PLACEMENT OF PROBATION:
After the employees has been inducted & oriented, he/she must be place in his/ her right
job. Placement of understood as the allocation of people to jobs. It is the assignment or
reassignment of an employee to a new or different job. Generally placements include initial
assignment of new employee and the promotion, transfer of dermation of present employees.
Normally the probation period is one or two years. This means the period of one year of
probation is set in a continuous period of two years

76

DATA ANALYSIS AND INTERPRETATION

1. Employees were asked whether they were allocated the post opted by them, for which the
following responses to were obtained.

options

No.Of.Respondents

Percentage

Yes

48

80

No

12

20

Total

60

100

Table 1

Graph 1
INTERPRETATION:
Out of the 60 respondent whose opinion was asked
Allocation of the post, 80% of respondents said that they were allotted the post opted by them
where as 20% of the respondents said that they were no allotted the opted by them.

CONCLUSION:
Majority of the employees are satisfied with their allotted post in the organization, but still a few
employees are dissatisfied with the posts allotted to the in the organization.

77

2.Employees were asked as to how they were recruited in the company for which the
following responses were obtained.

Options

No. Of. Respondents

Percentage

Open competition

45

75

Recommendations

Employment exchange

Trade union recommendations

Consultancy

10

Campus interviews

15

Total

60

100

Table 2

Graph 2
INTERPRETATION:
Out of the 60 respondent questioned about their recruitment in the organization
75% of the respondents were recruited through open competition, 10% through
consultancy and 15% through campus interviews.

CONCLUSION:
Majority of the employees were recruited through open competition which is a
good sign of transparent recruitment policy in the company
78

3. Employees were asked about the time period, for which they were employed, for which
following the responses were obtained.

Options

No. Of. .Respondents

Percentage

Short time period

10

Long time period

48

80

Daily wages

Particular project only

10

Total

60

100

Table 3

120

100

80

60

40

20

0
Short time
period

Long time
period

Daily wages

Particular
project only

Total

Graph 3
INTREPRETAION:
Out of 60 employees who were asked about the time period for which they were
recruited, 80% of employees are recruited for long time period where as 10% of employees are
recruited only for particular projects.

CONCLUSION:
Majority of the employees have been recruited for long time periods and very few
employees are recruited for particular as well for short time periods. This shows the stability of
the organization and the satisfaction of the employees.

79

4. Employees were asked the reasons for the taking up this job, for which the response was
as follows.
Options

No. Of. .Respondents

Percentage

Good pay Scale

10

More benefits

10

Career growth

18

30

All the above

30

50

Total

60

100
Table 4

Graph 4
INTERPRETATION:

out of the 60 employees asked about the reason for taking up their respective jobs for which
30% of the employees said that they took the job for all the reasons like career growth, good
pay scale as well as more benefits., the rest 10% answered as good pay scale was the main
reason for taking up the job in APDDCF Ltd.
CONCLUSION:
Majority of the employees are of the opinion that all the factors like career growth , more
benefits , good pay scale was the main reason for taking up the job in APDDF Ltd.

80

5. Employees were asked whether they found any relations their qualifications and the job
offered to them, for which they responded in the following.

Options

No. Of. .Respondents

Percentage

Yes

48

80

No

12

20

Total

60

100
Table 5

120

100

80

Series1

60

Series2

40

20

0
Yes

No

Total

Graph 5

INTERPRETATION:
Out of 50respondents who are asked whether they found any relation between their
qualification and the jobs offered to them, 80% of the respondents said that they found a relation
where as 20% of the respondents said that they did not find any relation.
CONCLUSION:
Majority of the employees are satisfied with their jobs where as the rest of the employees
are not satisfied with their jobs as they do not find any relation between their qualification an the
job thus offered to them.

81

6. Employees were asked whether they observed any change in the recruitment process in
recent times for the which following responses were obtained.
Options

No. Of. .Respondents Percentage

Yes

15

No

51

85

Total

60

100
Table 6

Graph 6

INTERPRETATION:
Out of the 60 employees questioned regarding any change in the recruitment in recent
times,15% of the respondents did not find any change, where as 85% of the respondents found
some change.
CONCLUSION:
Majority of the employees with vast experience, found no significant change in the recruitment
policy , of the company in recent times.

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7. Employees were asked about the type of recruitment methodology used in recruitment
employees for which the responses are in the following way.

Options

No. Of. .Respondents

Percentage

Centralized

12

20

Department Recruitment

48

80

Total

60

100

Table 7
120

100

80

S eries1

60

S eries2
40

20

0
Centralized

Department Recruitment

Total

Graph 7

INTERPRETATION:
The employees were asked about the type of recruitment methodology which is prevailing in the
organization for recruiting employees 80% of the employees said that departmental recruitment
is being followed where each department on realization of the need for employees takes up the
task of recruiting them . 20% of the employees said that a centralized policy is being in the
organization to recruit the employees. .
CONCLUSION:
Majority of the employees are recruited though departmental recruitment which mean the
methodology of departmental recruitment is being followed in APDDCF Ltd.

83

8. Employees were asked if any new positions were evaluated in their company for which
the following responses were obtained.

Options

No. Of. .Respondents

Percentage

Yes

30

50

No

10

Dont know

24

40

Total

60

100
Table 8

Graph 8
INTERPRETATION:
The employees whose opinion was asked if new positions were evaluated in their
organization for which 50% of the employees answered as YES and 10% of the answered as NO
, where as 40% answered as DONT KNOW.
CONCLUSION:
Majority of the employees are not aware of any new development regarding recruitment and
evaluation of new jobs. So awareness has to be brought about among the employees so as to keep
them abreast with the current changes taking place in the organization.

84

9. The employees were asked whether the requirement of manpower is identified well in
advance considering the factors like retirement and also budgeted plans for which they
responded in the following way.

Options

No. Of. .Respondents Percentage

Yes

48

80

No

12

20

Total

60

100
Table 9

Graph 9

INTERPRETATION:
Out of 60 respondents whose opinion was asked if the requirement of the manpower in
each department/ division is identified well in advance, 80% replied in affirmative and 20% said
no.

CONCLUSION:
Majority of the employees agreed that the manpower requirement of each department was
identified well in advance.
85

10. Employees were asked whether the planning of manpower requirement is done in light
of business plans of the company for which the following responses were obtained.

Options

No. Of. .Respondents

Percentage

No

Yes

60

100

Total

60

100
Table 10

120

100
80
Series1

60

Series2

40

20
0
No

Y es

Total

Graph 10
INTERPRETATION:out of the 60 employees whose opinion was asked regarding the planning of manpower
requirement , all the employees agreed that the planning of manpower requirement is being done
in the light of the business plans of the organization.
CONCLUSION:
All the employees agreed that the requirement of manpower planning is done in the light of
business plans of the company.

86

11. Employees were selected the company by the following responses were obtained.
OPTIONS
Personnel trait
skills
Both
TOTAL

NO.OF.RESPONDENTS
11
12
37
60

PERCENTAGE
18.3
20
61.6
100

Table-11

Graph - 11

INTERPRETATION:out of the 60 employees whose opinion was asked regarding the personnel trait 18.3%
,based on the skills 20% and both includes 62% all the employees agreed for personnel and
skills are important.
CONCLUSION:
All the employees agreed that the its very important to have the personnel and skills for the
all the employees.

87

12. Employees were selected by in their company for which the following responses were
obtained.
OPTIONS
Aptitude test.
Achievement test
Situation
Interest test
Personality test
TOTAL

NO.OF.RESPONDENTS
29
0
6
12
13
60
Table-12

PERCENTAGE
48
0
10
20
22
100

120
100
80
Series1

60

Series2

40
20

TO
TA
L

te
st
Pe
r

so
na
li t
y

tt
es
t
es
In
te
r

Si
tu
at
io
n

ve
m
Ac
hi
e

Ap
t

itu
de

en
t

te

st
.

te
st

Graph-12

INTERPRETATION:
out of the 60 employees asked about the job selections test at the time of their selection time,
have given their respective jobs for which 48% of the employees said that they took through
aptitude test, 10% was told that situation test, 20% told that interest test and 22% employees
given the response like personality test so company was taken more employees through aptitude
test.
CONCLUSION:
Majority of the employees recruited through the aptitude test so this company has to give the
equality for the all the test which is mentioned in the above.
88

13. Employees were conducted by interview in their company for which the following
responses were obtained.

OPTIONS
YES
NO
TOTAL

NO.OF.RESPONDENTS PERCENTAGE
55
92
5
8
60
100
Table-13

Graph-13
INTERPRETATION:
Out of the 60 employees questioned regarding their interview process, 92% of the
respondents were recruited through interview, and 8% of the respondents recruited like
management Quota.
CONCLUSION:
Majority of the employees were recruited with the Interview of the company in recent times.

89

14 Employees were selected by type of interview in their company for which the following
responses were obtained.
OPTIONS
Panel interview
Stress interview
Formal interview
informal interview
If any other specify interview
TOTAL

NO.OF.RESPONDENTS
20
1
25
10
4
60

PERCENTAGE
33
2
41
17
7
100

Table-14

Graph-14
INTERPRETATION:Out of the 60 employees were response like 33% panel interview, 2% through stress
interview, 41% through formal interview, and 17% through informal interview 7% other kind of
interview all the employees agreed for interview important.
CONCLUSION:
All the employees agreed that the its very important to have conducted many type of
interview for the all the employees.

90

5.1. FINDINGS AND OBSERVATION

The most significant finding of the study on Recruitment strategy prevailing in the
organization is very effective. The employees are quite satisfied with the current
recruitment methods.

The study shows that 76% of the employees who have put in long year of service have
recruited via open competition. Which shows the transparency of the recruiting policies
of the company?

92% of the employees have been working in the organization for a long period which
signifies the job security and satisfaction offered by the company to its employees.

Our study shows that 44% of the employees have joined this organization aiming for
career growth, good pay scales, and more benefits which the company offers. Thus the
statistics shows that the company has a positive outlook towards the career growth of its
employees in addition to the other existing benefits.

The companys approach to its recruitment policy shows that the right person is very
essential for the right job, as nearly 88% of the employees felt that they were offered
jobs according to their qualification and experience. Thus setting a relationship between
qualification and job offered.
o The study shows that 72% of the employees were of the opinion that the
recruitment policy of the company is decentralized with each department
recruiting its own employees as per their requirement from the time to time.

The company gives utmost importance to its manpower requirements by identifying it
well in advance taking into consideration the contingencies like retirement, budgetary
plans, and attrition rate. The planning of the manpower requirement is being dont in the
light of the business plans of the company.

The company has been trying to infuse new blood in the organization by appointing fresh
graduates and technologists, to set a competitive so as to face the competitive world
91

RECOMMENDATIONS
The outcome of the study illustrates that MANASI has a good recruitment policy where the
employees are recruited by each department as per the requirement from time to time. But there
is still a scope for improvement of its recruitment policy. The following are some of the
suggestion which enables the company to enhance its recruitment methodology.

The company should focus its attention more on campus interviews to attract young

potential employees who have the zeal to achieve goal for themselves and the company.


The company can take up short-term projects with new technologies and fixed deadlines

to bring out competitiveness and cutting edge approach by the employees. This enables the
company to recruit the brightest and the best manpower for the jobs.


The company needs to further focus on talent auditions and job fairs.

Incentives and contest for employee referrals and the use of web based resources such as

job boards and job distribution services would go a long way in enhancing the recruitment
process.
The organization cannot develop a recruitment strategy without simultaneously formulating an
employee retention plan. It is one thing to attract workers, but quite another to retain them

92

5.2. SUGGESTIONS
o H.R Department should be more practical and efficient so that the recruitment and selection
become more effective.
o Stress should be given on proper maintenance of database of application for future recruitment in
the organization.
o The company should follow new traits / trends in the recruitment process.

o The stress should be given on knowledge and the experience should be the major criteria for
selection of employees.
o More stress should be given to recruit qualification & skills percentage for scrutinizing the
application of prospective candidates.

93

5.3. CONCLUSIONS
The following are the conclusions:o The source of recruitment in the organization is totally based in both the factors i.e. internal and
external.
o The recruitment of the prospective candidate for a particular post is based in experience, age,
qualification and percentage in the academic year.

o The selection process is totally based on skills, communication and technical qualities.
o The formal interview is conducted by the HRD.

o After selection the employees are inducted for 1-5 days or more than 15 days.

94

QUESTIONNAIRE ON RECRUITMENT AND SELECTION

1. Have you been allotted the post opted by you?
a. Yes

b. No
2. How are you recruited?
a. Open competition
b. Recommendations.
c. Employment exchange
d. Trade union recommendations.
e. Consultancy
f. Campus interviews
3. What kind of recruitment is it?
a. Short time period
b. Long time period
c. Daily wages
d. For a particular project only
4. Why did you opt for your job, is because of
a. Good pay scale

b. More benefits
c. Career growth
d. All the above
5. Do you find any relation between your qualification and the job offered to you?
a. Yes

b. No

6. Have you observed any change in the recruitment policy in recent times?
a. Yes
(
)
b. No
95

7. Is the recruitment policy in your company centralized or each Department / division selects its
own candidates. Select any one.
a. Centralized

b. Departmental recruitment

8. Company were generated any new positions within the employees?

a. Yes

b. No
c. Dont know
9. The manpower requirement of each department / division is identified well in advance taking
into considerations the retirement budgeted plans and other contingencies.
a. Yes

B. No.

10.

The planning of manpower requirement is done in the light of business plans of the

company.
a. Yes

b. No

QUESTIONNAIRE ON SELECTION( )
11. What are the bases for selection of prospective employees?
A. Personnel trait (attitude personality etc.)
B. Skills (communication & technical)
C. Both

96

12. What type of test do you conduct?

A. Aptitude test.
B.Achievement test
C. Situation
D. Interest test
E. Personality test
13. Interview is followed during selection?

A. Yes
B. No
14. What type of interview is conduct?

( )

A. Panel interview.
B. Stress interview.
C .Formal interview.
D. Informal interview.
E. If any other specify interview.

97

BIBLIOGRAPHY
ESSENTIALS OF HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL
RELATIONS.

 P.SUBBA RAO.
HUMAN RESOURCE AND PERSONNEL MANAGEMENT

 K.ASWATHAPPA
HUMAN RESOURCES MANAGEMENT
 PEARSON EDITION 9TH EDITION
PERSONNEL / HUMAN RESOURCE MANAGEMENT
V.S.P. RAO & P.SUBBA RAO

THROUGH INTERNET GOOGLE SEARCH ENGINE.

WWW.MANINFOTECH.COM

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