Analysis of HR Strategies and Policies Idea Cellular

RECRUITMENT According to Edwin B. Flippo, Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment is the activity that links the employers and the job seekers. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy. However, Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. RECRUITMENT Process

Identify vacancy

Prepare job description and person specification Conducting interview and decision making

Advertising the vacancy

Managing the response

Arrange interviews

Short-listing

SOURCES OF RECRUITMENT

INTERNAL
1. 2. 3. 4. 5. 6. Transfers. Promotions. Upgrading. Retired Employees. Retrenched Employees. Dependants and Relatives of Deceased Employees. 7. Acquisitions and Mergers

EXTERNAL
1. Press Advertisements. 2. Educational Institutes. 3. Placement Agencies / Outsourcing. 4. Employment Exchanges. 5. Labor Contractors. 6. Unsolicited Applicants. 7. Employee Referrals. 8. Job Portals

Latest Trends in Recruitment 1. OUTSOURCING

The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organizations for their services. 2. POACHING/RAIDING

Buying talent (rather than developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm. 3. E- Recruitment

Many big organizations use Internet as a source of recruitment. E- recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CVs in worldwide web, which can be drawn by prospective employees depending upon their requirements. Top 5 Job Sites 1 www.naukri.com

www.monsterindia.com

www.clickjobs.com

www.jobstreet.com

in.jobs.yahoo.com

9 Recruitment Trends 1) Bigger paychecks, say 80 percent of the survey respondents. Of those expecting to increase wages, 64 percent say it will be at least 3 percent, and 17 percent say 5 percent or more. 2) Flexible work arrangements are on the rise. Sixty percent of employers offer flexible work plans now usually alternative schedules (shifted start and quit times), condensed work weeks or telecommuting, while 39 percent expect to offer some form of flex-time in 08. 3) Online candidate screening will grow, and not only the use of qualifying pre-application questions, but full-blown searching of social networking sites and search engine checks. 4) Video & audio Resume will be preferred as is a way for job seekers to showcase their abilities beyond the capabilities of a traditional paper resume. The video resume allows prospective employers to see, hear and get a feel for how the applicant presents themselves. 5) Retiree rehiring will increase as companies remain pressured from the loss of more experienced workers. Twenty-one percent say they are likely to rehire retirees from other companies in 2008; another 14 percent plan to provide incentives for workers at or approaching retirement age to stay on with the company longer. The numbers here arent large, but this trend wont go away. 6) Recruiting diversity workers, especially workers bilingual, will continue to be an important focus of recruiters. Survey respondents particularly noted mature workers. 7) Freelance or contract hiring will continue to be a key part of the workforce mix, with 31 percent of employers anticipating a working relationship with freelancers or contractors this year. 8) Perks and benefits will receive more attention from companies wanting to remain competitive in attracting and keeping workers. In light of rising healthcare costs, nearly one-in-five employers (19 percent) report their companies plan to offer more comprehensive or better health benefits to employees in 2008. Ten percent plan to enhance or add perks such as bonuses, discounts, company cars, stock options, free childcare, educational reimbursement, transit passes and wellness programs. 9) One in four (26 percent) of the surveyed companies are likely to provide more promotions and career advancement opportunities in 2008. More than half of workers stated that a companys ability to offer career advancement is more important than salary, so employers are taking action to carve out career paths for employees.

Loved by more customers Targeted by top talent Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more Business Divisions

MOBILE SERVICES

GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.

ENTERPRISE SERVICES ( CORPORATES ) AIRTEL TELEMEDIA SERVICES ENTERPRISE SERVICES (CARRIER SERVICES)

delivering telecommunications services as an integrated offering including mobile, broadband & telephone, national and international to enterprises.

high speed broadband internet with a best in class network & Landline services in 94 cities

The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fibre on its national long distance network.

MANTRA: Focus on Core Competencies and outsource the rest

Product Innovation

Pricing

Core Competencies

VAS

Marketing and Branding

Airtel partnered with leading players in telecommunication players across the globe. It has managed to work with the best of domain specialists globally and emerge as a world class entity. Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants. Warburg Pincus a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages. Vodafone was a strategic investor in Airtel. Temasek the Singapore based investor holds a considerable stake in it. Was also affiliated with Singapore Telecom.

Future Strategies Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.

Infrastructure Sharing

Rural Telephony

Growth Factors

Managed Services

Enterprise Telecom

Road Map Growth Path

SWOT Strengths

Largest Telecom Player in India - ~80Mn, 22.6% Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel Pan India Presence Strong Financials Weakness Outsourcing of Core Systems Lack of emerging market investment opportunity

Opportunities Bharti Inratel Cutting Down cost in Rural area Match Box Strategy Scale of Penetration Current Tele-Density 30.6 is still low among developing countries Low Broadband Penetration, Rural Telephoney Threats India centric Major revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth

Business Strength Current market share Brand image Brand equity Production capacity Corporate image

Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness

PORTER'S GENERIC COMPETITIVE STRATEGIES Cost Leadership Strategy A firm gains cost leadership in an industry when its cost of production is lower than that of its competitors. Airtel has gain cost leadership by managing its processes and resources efficiently and effectively. By bringing down its operational costs, an Airtel has offer its products and services at lower prices. It has also earn higher profits because either the profit margins are greater or the sales volume has increased.

Operational margin company Bharti Rcom IDEA MTNL

NET MARGIN

Sep 10 Sep 11 Sep 10 Sp 11 43% 38% 26.4% 19.30%

37.90% 31.60% 23.90% 13.20% 32.80% 26.60% 14.10% 6.50% 23.70% 22.90% 7% 6.80%

A cost leadership strategy works well for Airtel in the event of a price war in the industry. Since the firm is already working on a low price strategy, it has reap profits while the competitors ( mtnl / reliance/ tata) are bound to make losses.

Top players The top players based on cellular subscriber (in millions) base were

Idea cellula r , 24 Bharti, 62 BSNL, 41

Vodafone, 44

Reliance, 46

Reasons for growth

The two major reasons that have fuelled this growth are 1. 2. low tariffs falling handset prices.