RESEARCH PROJECT REPORT ON

RECRUITMENT & SELECTION PROCESS OF AN ORGANISATION CASE STUDY

In partial fulfillment of the requirement for the degree of

Master in Commerce (2002 - 2003)

of Punjab University Chandigarh

Submitted by:Mr Pardeep Singh Chaudhary

Enrolment no: - 16628 Year:-2002 - 2003 Class:-M.com I

PUNJAB UNIVERSITY, DEPARTMENT OF CORRESPONDENCE

CHANDIGARH.

CERTIFICATE

Certified that the project entitled RECRUITMENT & SELECTION PROCESS OF AN ORGANISATION submitted by Mr Pardeep Singh Chaudhary is his own work and has been done under my supervision. It is recommended that this project be placed before the examiner for evaluation.

(Signature of the supervisor)

Name: _________________ Date: __________________

PREFACE

Competitive forces with the unleashing of the liberalization policies have made corporate restructuring a sine quo non for survival and growth. Operational, financial and managerial strategies are employed to maintain completive edge and turnaround a sickened performance. Financial restriction involves either internal or external restricting. In the internal restructuring an existing firm undergoes through a series of changes in terms of composition of assets and liabilities. In the todays competitive market every one needs to reduce the cost of the product that is only possible through control on all five factors of production that are : Human resources : Material : Capital : Entrepreneur : Machines.

Out of these Human resources is not a fixed so we can change it or alter it through our managing skills so this all depends on our skill. This entire Project is mainly on recruitment and selection process. This is the basic first step to recruit a new person in the organization. I have already concluded my research on many companies on this topic.

EXECUTIVE SUMMARY

This project report attempts to bring out an anatomical study of recruitment procedure in MNC as well as local companies. Recruitment

Plays an important role in todays industry . In todays Market the cost of the product can be controlled through only this mean. This project is mainly on the recruitment procedure and selection of in a company. Recruitment is a form of business competition. Just as corporations complete to develop, manufacture, and market the best product or service, so they must also compete to identify, attract, and hire the most qualified people. Recruitment is a business, and it is a big business. The object of manpower selection is to ascertain clearly the type of person required and to secure an appropriate candidate for filling that position. Hiring or procurement of human resources in any organization is a continuous process. It is performed when employees leave the organization for better opportunities elsewhere or they retire or die. Hiring of suitable employees assume great importance when organizations grow, diversify and take over other units. Hiring consists of two functions, namely recruitment and selection. Here, we shall focus on recruitment only.

Recruitment

Recruitment is a form of business competition. Just as corporations complete to develop, manufacture, and market the best product or service, so they must also compete to identify, attract, and hire the most qualified people. Recruitment is a business, and it is a big business.

The object of manpower selection is to ascertain clearly the type of person required and to secure an appropriate candidate for filling that position.

In the majority of companies in India, the selection procedure starts without a job analysis. For example, whist selecting a salesman, the company decides that a salesman is required. No one bothers to find out what the salesman is expected to do, the difficulties he is likely to face, and the qualities that will be required in him for performing the job satisfactorily. The companys management thus starts looking for a man without having a clear picture of the type of person required expect that he has to be a salesman. Besides, the techniques for predicting were very crude until very recently. For

example, the jaw line was supposed to indicate strength of character; the close-setting of the eyes was supposed to indicate stupidity or dishonesty; a physically impressive personality was taken as indication a good salesman and so on. Now many organizations in India have begun to have more sophistication in their selection process.

Hiring or procurement of human resources in any organization is a continuous process. It is performed when employees leave the organization for better opportunities elsewhere or they retire or die. Hiring of suitable employees assume great importance when organizations grow, diversify and take over other units. Hiring consists of two functions, namely recruitment and selection. Here, we shall focus on recruitment only.

Recruitment begins by specifying human resource requirements-in terms of numbers, skill-mix, levels, timeframe- and these are the typical results of job analysis and human resource planning activities.

WHAT IS RECRUTIMENT?

Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is a passive function as it seeks to develop a pool of eligible persons from which most suitable ones can be selected. In practice, recruitment is a two-way process-prospective employee and managers seek out organizations just as organizations seek them out.

THE SELECTION PROCESS

The steps in the selection process are the following:

after job analysis, preparing the job description and man specification; determine the source of recruitment; preparation of the application form; conducting the interview; putting the applicant through tests where considered necessary; checking the references; conducting the medical examination of the applicant, where deemed desirable, and The final selection interview with the applicant ultimately selected.

The detail explanation is as follows:-

JOB ANALYSIS TO MAN SPECIFICATION

The job must be studied and analyzed with a view to ascertain the knowledge, experience and skills required to perform it effectively. Thus, unless a proper study is made in detail of the job to be done, the manager concerned to fill that job. This is because the selection process is intended to measure the individuals capacity against the job requirements.

Job Study, Description and Specification

A job analysis or job study is the beginning of identifying ultimately the man description or qualities which will be required in the man to fill the job. The component parts of the job must be identified. The basic information required for the job study can be collected through:

1. Observation 2. Discussion

3. Checklists or questionnaires completed by holders of the jobs involved;

4. Consultation with higher management by persons from the personnel department; 5. Study of existing job descriptions and training manuals, and 6.findings of psychological tests, if any. The selecting officer is at this stage attempting to describe the job and is therefore keen on collecting as much information as possible from persons who can supply it. Discussions with a person holding the same type of job or a similar job as well as observing on the site whilst the work is being checking can be done by observation of the information which emanated through the discussion.

The Resultants of a Job Study

A job study should result in: 1. information on the most significant aspects or critical incidents of the job;

2. The different components of the job; 3. The likes and dislikes generally attached to the job;

4. The authority and responsibility associated with the job; 5. The knowledge and skills required for executing the job satisfactorily; and 6. The accurate man specification or description.

The Man Specification

Once the job description or specification is prepared, its analysis would result in an outline description of the type of candidates sought for the appointment. The following are the areas in which a detailed man specification can be delineated :

1.His Physical Make-up, Here may be stated details of the physical make-up such as height,appearance, speech, poise, and age range.

2.Education and Experience, Here should be stated the type of education and work experience required which would be useful in performing the job. 3.Level of General Intelligence , Here must be stated the level of general intellectual capacity or intelligence required, which is distinct from the knowledge and skill he may have attained through education and experience. 4.Special Apritudes, Here must be detailed the extent of mechanical aptitude, manual dexterity, facility in mathematics or use of words,etc. desirable in the candidate. 5.The Disposition Required, Here should be stated the degree of acceptability of the candidate to others, his extent of dependability, self-reliance and other qualities such as dominance or reserved, relaxed or suspicious, as may be needed. 6.Other Relevant Specifications, Here should be mentioned other aspects such as whether a married man and a family man would be more desirable, whether willingness to travel is necessary and the levels of motivation such as security, prestige, belongingness, etc. which the job will satify. Skills Requird It should however be remembered that it is at times difficult to pinpoint the skills required, particularly in case

of an executive. As an illustration, the skills required of top level executives operating at the top management level in large companies would necessarily be different from those required of managers who are more concerned with the execution aspects. After the man specification is prepared, the job content confirmed, the job rate fixed and the recruitment salary range determined, it becomes necessary to consider the source from where such employees will be forthcoming. Basically, these sources can be divided into two: 1.internal, and2,external. Internal Sources

The best employees can often be found from within the organization itself. Many organizations in India therefore do give preference to people within the company. For example, at the National Machinary Manufacturers Ltd, Whenever a clear vacancy exists in a department, as far as practicable such vacancy is filled in by promoting a suitable employees from the lower cadre from the same department. When so promoting, the employees seniority, merits, initiative, accuracy of work, job knowledge and personnel record are taken into considerartion. Again, at Telco outside reqritment is

resorted to only when the requirements for trained personnel cannot be met from the resources generated by the companys training scheme or by internal promotion.

Some organizations even maintain a file for recording voluntary applications which can be refered to in the future. The modern belief is that it is better to search first within the company by examing the existing stock or inventory of personnel for appointments being considered. Besides, an announcement of the vacancy can be made on the notice board. It can then be left to the individual candidate within the company to apply to improve his own career. This type of Internal,Advertising is resorted for all vacancies in manual,technical, clerical or supervisory positions. Such vacancies are notified on the notice board (besides informing employment exchanges when necessary and advertising in local newspapers). Thereagter, selection is done on the basis of merit. Besides, present employees are also good sources of suggestions for job applications.

Thus, when there is a specific opening in an organization, it is first desirable to look for applicants from within the organization itself. Vacancies can be filled through transfers and promotions which again will provide

further entry level positions for which external recruitment can be done. For there to be a good internal transfer and promotion system, one requires a good communication system, and an employee information system or manpower skills inventory. Internal advertising, as already mentioned, can be done as far as the communication system is concerned. This may be through bulletin boards, employee newspapers or special cyclostyled announcements circulated in departments. Whatever be the method used, it is likely to boost the morale and develop loyal, good employees.

However, it is necessary to inform immediately such applicants the decision as to whether they were successful or not in aspiring for the new opening. In the case of unsuccessful employees, it may be necessary to inform them tactfully why they could not be selected. They can further be advised on how they can develop themselves further for future openings. External Sources

The external sources of recruitment include the following:1.Recruitment of advertising, i.e. receiving of applications by mail or personally in response to an advertisement by the company; 2.reference to employment exchanges; 3.recruitment from colleges; 4.a sudy of a central applicaions file maintained of past applicants not selected at that time; and 5.use of special consultants for recriting. Some organizations entice persons away from other companies. This is particularly so in case of appointments like that of a sales representative. The employment exchange has unfortunately been found to be an unpopular source of recruitment by our companies in India. In case of recruitment advertising, i.e., advertisements inviting applications from outside, the important question is as to what medium is appropriate for recruitment advertising. Whilst many types of media have been tried, particularly abroad, including the television, press advertising has still been found to be the chief and the most effective medium for recruitment advertising. The

objective behind such advertising is to solve the recruitment problem speedily and economically. Speed and economy are however often incompatible. Generally, speed is the more important as using the established forum for similar advertising. For example, there are certain areas fixed like classified advertisement in the Times of India and certain days fixed on which a majority of recruitment advertising is incorporated in certain papers like the Times of India which probably constitute the best forum for this purpose. The advertisement must also be well drafted as it can constitute the best filter against unlikely applicants thereby saving the company the unnecessary expense and trouble of having to handle a flood of useless applications.

New Vs. Old Blood

As already indicated, from a motivational angle, importing new blood is undesirable particularly when

existing personnel can be absorbed into higher positions. There are however cases where the inside candidates are unfit. They may be too advanced in age or may not have the requisite skills. In such cases, new employees have to be selected from outside the company. A peculiar trend at times noticed is that where the chief executive(e.g.the managing director)is new to the company, he decides to bring with him one or two of his own former close and capable associates. Thus in the case of two of top executives, very often on a change in the chief executive, the new chief executive brings in his own team of members who in his opinion are impartial and reliable and are not distorted by previous loyalties. However, this has a bad effect from the motivation angle on the existing senior executives. A well organized system of management development activities can materially obviate the necessity of importing new blood.

On the other hand, an exclusive policy of promoting from within can lead to inbreeding resulting in promotion of people who have imitated their superiors. Even wellknown organizations in India have at times developed this straight jacket thinking. Particularly in some large organizations in India, the author has seen the development of the attitude that the type of thinking prevailing in that

particular organization is the best from the management angle. This overlooks a truth, namely, that no organization has a monopoly on ideas. Every enterprise, to be dynamic, must be able to introduce new blood in the form of ideas into the organization. Thus a right balance has to 1 be struck between inbreeding and new blood.

Benefits of Recruiting from Within There are some advantages of recruiting from within the company: The valuable contacts with major suppliers are kept. It builds loyalty among the employees. It creates a sense of secutrity among the employees. It encourages other executives and employees in the lower ranks to look forward to rising to higher levels. It ensures stability from continuity of employment. The persons are already familiar with the organisations activities and requirements. The valuable contacts with existing major customers are materialized. In short, selecting an employees from within the company can enhace the general morale of the companys employees.

As an illustration, at Sandoz(India) Ltd., before fillig up any new job, preference is given by the company to applicants who are presently employed in the company in a lower job provided they are found suitable. Another interesting facet, though slightly different from purely internal source, is the fact that this company also gives preference in selection in case of permanent posts to the past employees who had worked in the company on a temporary basis in similar posts and who were found to be good on those jobs. Benefits of Using External Sources

The following are some of the advantages of selecting from outside: 1.Fresh viewpoints are attracted. 2.The employees posses varied and broader experience. 3.The employees develop the ability to change old habits. It us however dangerous to be dogmatic as to which is better, i.e., selecting from within or from within has its origin in the laudable desire of management to be fair and to encourage people within the company can serve as a great morale builder within the organizations. Besides, it can constitute a self-generating source of candidates not only for the top management positions but also for all

management levels. In short, such a policy affords a very powerful form of employees motivation.

Sources of Recruitment Commonly Used in India

In India, in both the public and private sectors, several sources of recruitment are used for securing employees. Public sector undertakings generally adopt formalized and institutionalized selection procedures. Whilst their policies are generally similar, there are variations. For example, some of them give preference to the corporations employees sons whilst others use a number of sources. According to Prof. Rudrabasavarajs study, a public sector undertaking in heavy engineering, recruited its non-supervisory staff through: 1.employment exchange, 2.external advertisement, 3.internal advertisemet, 4.Central Training Institute (the men being recruited for training in the CTI and for employment under an agreement), 5.introduction by liaison officer of the corporation, 6.deputation personnel, and

7.transfers from other public undertakings. In another public sector undertaking (steel), first preference was given to displaced persons but was limited to one person for each family. According to this survey, the major sources of recruitment in the public sector were, in the order of preference , as follows: 1.casual callers or employment seekers, 2.newspaper advertisements, 3.scheduled tribes and scheduled castes, 4.employment exchanges, 5.other public undertakings, 6.internal advertisement, 7.displaced persons, 8.relatives and friends, 9.employee recommendations, and 10.schools. In case of the private sector , the disclosed that the procedures though formulated, were not unstitutionalised in character. In some organizations, preference was given to sons and relatives of employees and to local people. The major

sources of recruitment for the private sector, in the order of preference, were: 1.advertisements, 2.employment exchange, 3.relatives and friends, 4.casual callers, and 5.employee recommendations. Emoloyment exchanges are used as a source. Legislation in India requires employers to notify vacancies to employment exchanges. It is , however, reported by many organizations that they have not found this source effective particulary for certain skilled and highly skilled categories. The two most effective sources of recruitment, in the relatives and friends. The recruitment practices of a few companies in India will now be highlighted. MANPOWER RECRUITMENT AT IOC

In the Indian Oil Corporation Ltd., scientific workstudies are conducted to eliminate manpower imbalance at various units performing like functions. Recommendations are made by the Efficiency Research experts on the

withdrawal of surplus manpower wherever available. This type of manpower planning coupled with scientific work studies have helped the Corporation to ensure maximum utilization of its available manpower. Sources of Recruitment. The manpower needs of the Marketing Divison of IOC are met from two basic sources: 1. Internal Promotions, and 2. Direct recruitment from external sources. The Corporations policy is to accept a very limited number of officers on deputation from Government offices or Socio-Economic Service Departments, in order to meet certain specific requirements. Direct recruitment of employees is done by giving adequate notification of the needs. In case of Unionised Staff, (i.e. Clerical and Labour) the following are the notification sources: a.Local Papers(i.e. advertising); b.Regional Employment Exchange; c.Refinery Division of IOC for their surplus staff; and d.Foreign oil companies for their surplus staff. In case of officers, the sources are: a.All India Press (i.e. advertising), b.Directorate of Resettlement and Training; c.Refinary Division of IOC for their surplus staff; and

d.Foreign oil companies for their surplus staff.

JUNIOR OFFICERSRECRUITMENT IN CMI For managerial positions the practice of recruiting from graduate M.B.A.s or graduates who have acquired management qualifications or bias is increasing in India. For example, the Cement Marketing Company of India Pvt . Ltd.,(CMI), which was the sales organization of ACC Ltd. Until it was amalgamated, prefers to recruit for its junior officers, graduates who 1.have completed their Masters degree in Business Administration, 2. Are Indians, and 3. posses a certain extent of practical experience. For securing such graduates, visits are made by the management staff of the company to Institutes of Management. This results in establishing live contacts with such institues and appreciating exactly what they are doing through discussions with eventhe professors on the campus. A review is made of the cumulative performance indexes of the candidates who are then invited for interviews to the Head Office. If selected, they are placed on probation for one year on a three years contract with guaranteed minimum increments. According to the company, the objective of this recruitment is to put into the managerial stream bright, intellectual, young men with promise.

EXECUTIVE RECRUITMENT AT HINDUSTAN LEVER Hindustan Lever Ltd. Adopts a planned approach to recruitment of executives. The recruitment follows a forecast of the management manpower requirements over the future five years, which would indicate the possible vacancies. After the forcast, the step is to determine which of these vacancies will have to be filled during the next year. A recruitment plan for the year is prepared. This indicates the specific posts on the different sides of the business for which recruitment will have to be done. As a general rule, Hindustan Lever believes in recruiting young graduates between the ages of twenty and twenty-five straight from the teaching institutions under their Management Training Scheme. This sheme covers all sides of their business-commercial, accounts and technical. However, for specific vacancies which require specialized skills and experience are recruited. In the light of the dearth of skilled managerial personnel in India, Hindustan Lever has deliberately adopted a policy of recruiting as far as possible through this Management Training Scheme and restricting direct recruitment to those jobs which by their nature require specialists with long experience in certain

disciplines. The companys experience has however shown that even for placement under specialists to give them onthe-job training provided they posses the required academic attainments and aptitudes. This company places considerable importance on recruitment which is considered an important link in the chain of events by which the organization acquires managers. A deliberate scouting for talent is accordingly done by approaching universities and institutions of learning to tap young persons showing promise with the help of their through advertisements highlighting the demands of the job in terms of technical knowledge and skills required for its performance as well as the challenge and future prospects offered by the job. PREPARING THE APPLICATION FORM In the selection process, the Application Form or Application Blank is an important weeding-out device. Where it is drafted properly, it would supply enough information about the applicant to help the removal from consideration of applicants to help the removal from consideration of applicants who obviously do not meet the requirements. In this way, the number of persons who have applied can be reduced to a manageable few who can then

be called to an interview. Many types of application forms are used in practice. Some are belief being used as preliminary applications for a rapid initial screening of the applicants. Thereafter more detailed ones are used with special questions. Weight age can be given to the answers in the Application Blank according to their importance and the total score of points can then be calculated. In this way, at times even a mathematical approach is adopted for weeding out the undesirable applicants. The application form generally provides the following type of information: 1. Identifying Information, relating to aspects such as sex, age, height and weight; 2. Educational Information, regarding the applicants background, grade secured in school and college, and academic qualifications; 3.Experience Information , detailing past jobs, periods involved, designation and job responsibilities; and 4.Information regarding Community Activities, detailing extra-curricular activities, hobbies and positions held in organizations and associations other than where he was employed such as management associations, productivity councils and clubs, Weeding out Undesirables

Thus the completed Application Blank, if properly constructed, can give valuable information regarding how far the applicant is suitable in terms of the man specification prescribed earlier. The application blank can also constitute a history sheet giving the employees background which may be useful for future reference. A careful scrutiny of the application blanks received can result in the rejection of many of the applicants. This can save considerable time and consequently costs in the later stages of the selection process.

INTERVIEWING THE CANDIDATE The interview is perhaps the most intricate and difficult part of the selection procedure. Despite this, in practice, interviews are often conducted by persons who are most unqualified for the purpose, void of the required skill or experience or background. Types of Interviews Group interviews are gaining in popularity in India. They are used extensively without the realization that in such interviews everyone may not get a chance to speak and that good candidates might be overlooked. In this area, the personnel department with its experts, or an outside duly selected consultant, can render an important service.

In a short period of time of, say, about half an hour to one hour, inferences have to be drawn regarding the attitudes, behavour patterns and motivations built up over a lifetime of the applicant. Therefore, hasty judgements must be avoided. The interview must be pre-planned. For example, the interviewer must decide in advance on the appropriate type of interview. He must decide whether he will adopt a Preliminary Interview as well as an Extensive Interview. He must determine whether he will use the Stress Interview Method. Here the applicant is deliberately placed in a position of stress by devices such as interruptions, criticisms and keeping silence for long periods of time. This type of interview requires very careful handling. It can be dangerous when used without skill. The interviewer has also to decide whether he will be using the Discussion Interview technique or the Depth Interview techniques; whether his interview will be structured or Non-Structured and whether he will be using the Group Interview technique or individual interviews or both. Eliciting Information Besides deciding the type of interviews, the interviewer must also decide the areas which have to be covered in terms of the man specification already established for the job. In addition to securing information through a discussion, a good interviewer can also note

other qualities through observation such as the applicants quickness of reaction, manners, poise, and appearance, sense of humors, mannerisms and cultural level.

Art of Conducting the Interview The interviewer must also know how to conduct the interview. He must avoid discourtesy and rudeness. He must not ask questions mechanically. He must know how to open the interview. The first few minutes are critical. During this short period, the interviewer should trry to put the applicant at ease. He must be very careful of the way in which he words his questions. He must avoid leading questions. The interview must also end in a pleasant way. A good interviewer not only secures the necessary information, but also gives the desired information to the applicant. During the interview, the interviewer can also look for signs of truthfulness and other physical and mental characteristics. He can also assess faulty memory. He should however avoid probing in areas which are irrelevant for the employment although they may be interesting to the interviewer.

Concluding the Interview

Once the interviewer has secured a clear idea of the applicants basic strengths and limitations, he should bring the interview to a close with a brief summary of what has been discussed and give indications to the applicant of the next step in the selection process. If the applicant is to be rejected, generally it is better not to inform him at the interview as that might unnecessarily prolong the interview. The first few minutes are critical. During this short period, the interviewer should fill up his Evaluation Form. Sometimes interview rating forms are used which require evaluation of factors relevant to the job and which could be observed in the interview, besides asking for an overall evaluation. Qualities of a Good Interviewer Briefly, it may be said that the following are the qualities of a good interviewer: 1. Interest in the applicant, as an interviewer without interest will not listen to the applicant; 2. Alertness, so that the interviewer can pick up the relevant phrases used by the applicant which he should ask the applicant to explain further to be sure of the information secured at the interview;

3. Patience, as the interviewer must allow the interviewee time to think before answering questions posed by the interviewer; 4. Deliberation, that is, withholding evaluation of the applicant until all the information has been secured and under steed; 5. Concentration, as the interviewer is required to listen not merely to the facts but to the main ideas emanating from the interview. Above all, the greatest quality is the art of listening. Interviewers who are not good listeners generally suffer from intolerance and impulsiveness. An intolerant nature tends to make the interviewer impatient and unwilling to listen or pay attention to what the applicant is saying. Impulsiveness results in interruption of the applicant instead of listening to him attentively. The interviewer must have patience and must wait till the answer is completed before posing the next question. A tendency to anticipate what the applicant will say also results in impatience and lack of listening. CONDUCTING OF TESTS Even in India, the uses of psychological and other tests are gaining in popularity as a part of the selection process. Their utility is however controversial. These tests, if

appropriately used, can lesson the selection costs by reducing large groups of applicants into smaller ones. However, excessive reliance on such tests can lead to overlooking of more suitable candidates who unfortunately performed poorly at such tests. Tests should not be used as a final device. They should merely be considered as an extra tool or aid in evaluating the applicant. In this area, a good personnel department can guide and help determine and use the type of tests appropriate for a particular selection. There are different types of tests, such as: 1. Knoeledge Tests designed to test the applicants knowledge, which are useful for positions such as accounting, engineering and the trades, i.e. the mastery of a particular subject; 2.Apritude and Trade Tests aimed at measuring the applicants potential rather than past achievement , which are more useful for entrance level clerical and trade positions; 3.Judgement Tests which seek to evaluate the applicants ability to apply knowledge judiciously in solving a problem; 4.Learning Ability Tests or Intelligence Tests which measure verbal reasoning, abstract reasoning and quantitative reasoning;

5.Projective Tests using the projective tenchinque under which the applicant projects his personality into free responses about ambiguous pictures shown to him, the administration of which requires great skill; and 6.Personality Tests designed to determine the existence in the applicant of characteristics such as cooperativeness as against dominance. The use of tests is becoming more popular even in India in connection with personnel selection. If conducted appropriately, a test can save considerable money. For example, intelligence tests can indicate the cut-off point so that people of intelligence of less than the standard required are not accepted. As an illustration, trade tests, measuring degree of manipulative skill possessed by the applicant, can help weed out applicants void of such dexterity. However, it should always be remembered that tests are only an aid and one of the steps n the selection procedure. For example, tests are particularly useful when supplemented by interviews and can reduce the likelihood of nepotism or favouritism in appointments. Besides, an important limitation of tests is therir interpretation which can only be done by trained and experienced persons. Interest tests are not too reliable as they usually measure interest more than ability and can easily be faked.

Therefore too much reliance or importance should not be attached to these tests when used. Although psychological tests have become more poplar in recent years in India, experience of some companies have often led them to discontinue such tests./ gor example, in ACC Ltd., psychological tests were used for five years. Management was however not happy with the results. They found that personal prejudices had entered the evaluations. Psychological tests for leadership and mental alertness, used at that time, were accordingly discontinued. However, group discussions, started by the psychologists, were retained as they were considered useful by the company. CHECKING OF REFERENCES The references provided by the applicant have to be checked. This reference checking may be done either by mail or by telephone or through a personal visit. Where it is difficult to reach the person whose opinion is required, the mail method is useful. However, the disadvantage of this method is that information provided may not be accurate as the person replying often does not desire to hurt the applicants career. Therefore , a personal visit is definitely superior to the mail and the telephone methods and is used where it is very important to get the necessary information.

At times, some candidates even bring with them an open letter addressed:To Whomsoeer It May Concern. Such a letter is not specific to the type of job for which he is applying and might even be outdated. Even where the interviewer contacts the reference and gets the replies he should realize that perhaps what is more important is what was not said. Past employers are generally reluctant to condemn in writing their past employee. Under such circumstances, perhaps the best method would be to get an up-to-date reference by telephone or orally through a personal interview. People are more inclined to speak freely as what they say is not recorded. Whatever method is used, it is necessary to verigy the information secured through the application forms and during the interviews. In many organisaions, reference checking is taken as a matter of routine and treated casually or omitted entirely. In case of a good checking of reference, there is a conversation between the recruiter or selector and a person who really knows the applicant. Reference checking also requires interviewing skills and the use of diplomacy. THE MEDICAL EXAMINATION

Medical examination is a part of the selection process for all suitable applicants in some companies. Here it is conducted after the final decision has been made to select the applicant concerned for the job. In special types of jobs, a medical may however be very necessary in the selection process itself. For example, where the ability to distinguish colours is required of the applicant, a medical can disclose whether the applicant possesses this skill. The objective of such medical examination is obvoiously to see that the applicant is medically suited for a particular job. When conducted by in-plant medical personnel, they are more valuable to the applicant than when done by a physician having less knowledge of the company and its working conditions. Such a medical examination can also often predict future major prolems involving serious surgical conditions and prolonged treatment which would involve the company into the obligation to pay the medical expenses. The medical can give information inter alia of the following types: 1.whether the applicant is medically suited for the specific job;

2.whether the applicant has health prolems or psychological attitudes likes to interfere with efficiency or future attendance; and 3.whether the applicant suffers from bad health prolems which should be corrected before he can work satisfactorily (such as need for spectacles). Expect in special cases and for special requirements, applicants are not rejected on physical grounds unless the applicant is suffering from contagious diseases incurable or complex emotional problems. THE FINAL SELECTION INTERVIEW After the applicant is selected, it is advisable to sell the job to the applicant. He should be given an idea as to his future potential within the organization. Good companies do this at the final selection interview. At this stage, many an interviewer forgets that once it is decided to select the applicant, it is an important job of the interviewer to sell the job and the company to the applicant. For example, in this interview, the interviewer can describe the company and its policies, the duties and responsibilities of the applicant as well as the opportunities available to him for future promotion. Although the interviewer need not enter into the intricacies of ,for example, incentive compensation plans, he should highlight the favorable aspects of the job.

FINDING OF THE CASE STUDY

By analyzing the case, the following findings are coming out:a) Recruitment is very strong signal to the company in the point of view of the economy, reducing cost and smooth running of the business activities. b) Recruitment is not only the process of recruiting the man kind only. It also reflects all over performance of the industry. c) Recruitment has direct relation with marinating cost and it is not fixed factor so we can alter it any time of our operation but the wise decision is that recruit only that person that is suitable for your organization. d) It also affects the capital structure of the organization and also plays an important role in the success of plans and achieving the target. e) Recruitment is as lubricant in the organization. So good recruitment effects the over all performance of the organization.

Thus the recruitment decision taken by the organization had provide some positive and negative effects .but as F.W Taylor says there is not place for imperfect persons in the industry and industry needs right persons every time .