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A STUDY ON EFFECTIVENESS OF

RECRUITMENT AND SELECTION PROCESS, SPi


TECHNOLOGIES, PUDUCHERRY
SUMMER PROJECT REPORT

Submitted by
P.KAMAKSHI
REGISTER NO: 27348317

UNDER THE GUIDANCE OF


Mrs. K. VIDHYA, MBA, M.Phil
Faculty, Department Of Management Studies

in partial fulfillment for the award of the degree


Of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES


SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY
PUDUCHERRY
September 2007
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
MADAGADIPET PUDUCHERRY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “A STUDY ON EFFECTIVENESS


OF RECRUITMENT AND SELECTION PROCESS, SPi
TECHNOLOGIES,PUDUCHERRY” is a bonafide work done by P.KAMAKSHI
[ REGISTER NO: 27348317] in partial fulfillment of the requirement for the award of
Master of Business Administration by Pondicherry University during the academic year
2007 – 2008.

GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER
ACKNOWLEDGEMENT

I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY to

provide necessary and essential facilities to do this project report.

I express our sincere thanks and deep sense of gratitude to our Head of Department

Mr.S.JAYAKUMAR, Department of Management Studies for providing me with an

opportunity to study and to do this report.

I express a deep sense of gratitude to my Guide Mrs. K. VITHYA, Faculty,

Department of Management Studies, for her encouragement, support and guidance to

complete this project work successfully.

I convey my heartiest thanks to Mr. D. SRIRAM, Senior Personnel manager, SPi

technologies, Puducherry, who kindly granted permission to do this project report in his

esteemed organization.

Finally, I express my sincere thanks and deep sense of gratitude to my parents and

friends for giving timely advice in all the ways and in all aspects for doing the project
ABSTRACT

“A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION

PROCESS” in SPi technologies was used to study the existing recruitment and selection

process and various factor involved in it.

Both primary and secondary sources were used to collect data. The primary data is

collected from both employers and employees of SPi technologies through a well

constructed questionnaire.

The secondary data was collected from various journals, magazines, articles, various

sites and company records.

From the analysis it was inferred that the organization gave preference to internal

sources rather than external sources. Some of the employees felt that the company would

still fasten the process.

From the study it was found that the employers and employees are satisfied with their

present recruitment and selection process


TABLE OF CONTENTS

LIST OF TABLES
LIST OF CHARTS

CHAPTER TITLE PAGE NO.

1 INTRODUCTION 1
2 REVIEW OF LITERATURE 6
3 OBJECTIVES OF THE STUDY 13
4 RESEARCH METHODOLOGY 14
5 DATA ANALYSIS AND INTERPRETATION 17
6 FINDINGS, SUGGESTIONS AND 43
RECOMMENDATIONS OF THE STUDY
7 CONCLUSION 45
8 LIMITATION OF THE STUDY AND SCOPE 46
FOR FURTHER STUDY

ANNEXURES

1. QUESTIONNAIRE
2. BIBLIOGRAPHY
LIST OF TABLES

TABLE NO TITLE PAGE NO.

5.1.1 Respondents based on years of experience 17


5.1.2 Classification based on sources organization rely 18
heavily
5.1.3 Employees channel preference to post the resume 19
5.1.4 Employees preference of sources that reaches soon 20
5.1.5 Employees opinion about response after recruitment 21
5.1.6 Employers opinion about the process for identifying job 22
vacancies
5.1.7 Employers opinion about job analysis 23
5.1.8 Classification about sources organization use mostly 24
5.1.9 Classification regarding screening of candidates 25
5.1.10 Employees opinion about final satisfaction 26
5.1.11 Employers rating about the process 27
5.2.1 Table regarding panel member as referee and rating 28
about recruitment & selection process[observed count]
5.2.2 Table regarding panel member as referee and rating 28
about recruitment & selection process[expected count]
5.2.3 Table regarding panel member as referee and rating 29
about recruitment & selection process[Chi-square
calculation]
5.2.4 Table regarding recruitment cost and rating about 30
recruitment & selection process[observed count]
5.2.5 Table regarding recruitment cost and rating about 30
recruitment & selection process[expected count]
5.2.6 Table regarding recruitment cost and rating about 31
recruitment & selection process[chi-square calculation]
5.2.7 Table regarding medical examination and rating about 32
recruitment & selection process[observed count]
5.2.8 Table regarding medical examination and rating about 32
recruitment & selection process[expected count]
5.2.9 Table regarding medical examination and rating about 33
recruitment & selection process[chi-square calculation]
5.2.10 Table regarding recruitment sources organization use 34
and final decision about appointment[observed count]
5.2.11 Table regarding recruitment sources organization use 34
and final decision about appointment [expected count]
5.2.12 Table regarding recruitment sources organization use 35
and final decision about appointment [chi-square
calculation]
5.3.1 Table regarding recruitment sources organization use 36
and source preferred effective by the employer[rank
correlation calculation]
5.3.2 Table regarding test & interview process and 38
satisfaction about selection technique used[rank
correlation calculation]
5.3.3 Table regarding questions given prior to the interview 40
and comfortableness with the interviewer[rank
correlation calculation]
5.4.1 Table regarding employers and employees final opinion 42
about recruitment & selection process[F-test
calculation]

LIST OF CHARTS

CHARTNO TITLE PAGE NO.

5.1.1 Respondents based on years of experience 17


5.1.2 Classification based on sources organization rely 18
heavily
5.1.3 Employees channel preference to post the resume 19
5.1.4 Employees preference of sources that reaches soon 20
5.1.5 Employees opinion about response after recruitment 21
5.1.6 Employers opinion about the process for identifying job 22
vacancies
5.1.7 Employers opinion about job analysis 23
5.1.8 Classification about sources organization use mostly 24
5.1.9 Classification regarding screening of candidates 25
5.1.10 Employees opinion about final satisfaction 26
5.1.11 Employers rating about the process 27

CHAPTER-I

INTRODUCTION

1.1 COMPANY PROFILE

1.2 SPi Technologies– As an Organisation under Study


Recruitment function of HR department in BPO companies is taking much attention due
to attrition rate. SPi technologies is not out of the order in this respect. In this
organisation attrition rate is 45-50 percent. To find out the reasons for this, a study is
conducted to find the effectiveness of recruitment and selection process.
1.3 About SPi Technology
On July 10, 2006, ePLDT acquired 100 per cent of SPi's shares. Together with
ePLDT's Ventus Group, it is one of the world's largest full service BPO companies with a
wide range of voice and non-voice BPO solutions, the broadest global delivery network
with 26 locations spanning North America, Europe, and Asia ,11,000 dedicated
employees , 4,500 in voice and 6,500 in non-voice ,and 7 years of quality and customer
service .SPi deploys its core competencies across the markets, like Banking, Financial
Services and Insurance, Government, Healthcare, Information Technology, Legal, Media,
Not-for-Profit Organizations, Publishing, Retail and Travel.
1.4 Value Proposition
SPi is a leading global BPO provider with numerous locations across the United
States, Europe, and Asia. With over 6,900 employees worldwide, it delivers scalable and
innovative content outsourcing solutions to diversified markets.

1.5 Solutions. People. Innovation.


Three simple words that say who SPi is, what they do and how SPi does it.

1.6Seamless. Professional. Invaluable.


For more than 150 global BPO clients, SPi is improving operating efficiency,
lowering costs, and strengthening competitive positioning in their respective
marketplaces.
1.7 Security. Precision. Integrity.
Internationally respected standards and methodologies provide a base line for
every project it takes on (ISO 9001:2000, ISO/IEC 27001:2005, CMMi Level 5, Six
Sigma).
1.8 Specialists. Partnerships. Intelligence.
Need a strategic BPO partner? It responds to your complex content management needs
with holistic, custom-created solutions that exceed our expectations, both today and for
the long term.
1.9 Brand Story
On April 3, 2006, SPI Technologies renewed its brand and became simply SPi.
Its new brand moves us from four distinct businesses to a single brand and is designed to
showcase the growing array of high quality services we offer today in the Healthcare,
Legal, Publishing and Transaction markets. Building on its 27 year tradition of
innovative business process outsourcing (BPO) solutions, SPi brand has been broadened
to showcase their people and their values, as well as our business.
Its brand is the visual expression of what they do and how they do things. It not
only represents its brand promise: "SPi is a leading global BPO provider. It delivers
valuable and innovative content outsourcing solutions to diversified markets," it also
reflects the essence of who they are, its aspirations, and what drives its business.
1.10 Global Presence: (Global Platform. Total Quality)
Spanning the United States, Europe, and Asia, SPi has built a robust and scalable
international operating platform.
1.11 Publishing (Global Resources. Customer-Centric Solutions)
SPi seamlessly blends years of in-depth domain knowledge with global resources
and the latest technologies to offer end-to-end editorial, content production and business
process outsourcing solutions. Its clients include a wide variety of publishers, including
not-for-profits, university presses, commercial and database publishers, as well as content
aggregators.
1.12 Need a strategic content outsourcing partner?
Its unique onshore/offshore business model ensures that it can consistently deliver
high quality, cost-effective, end-to-end publisher-specific solutions in the following
areas:
• Journal Solutions
• Book Solutions
• Content & Information Solutions
SPi have a long history of partnering with its clients. Its wide array of publishing
solutions support the creation, conversion, enhancement, management and presentation of
its clients' information, whether in print, electronic, or database format.
With its broad industry and process knowledge, robust tools, time-tested
methodologies and scaleable technology and facilities, it routinely delivers results that
enhance the value of all types of published and enterprise content for our clients.

1.13 Concerned about quality


It delivers peace of mind. Our credentials speak for themselves:
• ISO 9001:2000
• CMMi Level 5

• Six Sigma

• Best In Class Business Continuity Practices

1.14 Client List


SPi has over 150 global clients, ranging from Fortune 1000 companies to
internationally respected professional societies and associations, law firms, universities,
and government agencies. Their selected client list speaks for itself. Accruent ,American
Association of Petroleum Geologists ,American Geophysical Union ,American Institute
of Physics ,American Speech-Language-Hearing Association ,Cambridge University
Press, McGraw-Hill ,Oxford University Press ,Springer ,University of Chicago Press
,University of Michigan ,Yale University Press.
1.15 SPi Technologies in India

SPi technologies entered Indian market by acquisition of KOLAM software in


Pondicherry. SPi technologies have their other subsidiary in Delhi, Chennai, Kolkata and
Coimabatore.Their clients for Indian operations are Springer,Elsavier,Tata Mcgraw Hills
and Oxford University Press.Coimbatore subsidiary deals with Medical transcription.

1.16 SPi Technologies in Pondicherry

SPi’s Indian headquarters is Pondicherry facility. The total number of employee working
in Pondicherry facility is 769, working under three shifts. The reason behind launching
their subsidiary in Pondicherry was:

• Pondicherry’s location

• Low cost of living was taken in to consideration.

• Pondicherry government’s schemes like tax holidays

• Less competition .SPi technologies has only one competitor in Pondicherry,


Integra software.

1.17 HR Team
Human resource department is in Pondicherry. It holds a centralised function for all
the other SPi technologies’ subsidiaries (except Coimbatore facility). The HR team is
lead by the senior manager . He is next to vice president – Indian operations in the
hierarchy. He leads a HR team of four managers (recruitment, Pondicherry), four
assistant manager and four executive.
1.18 HR Functions
Human resource department play a major and vital role in the company. HRD is in
Laporte Street, Pondicherry. All the HR related function for Indian operation is take care
by this department in Pondicherry. They practice a centralized function. Some of the HR
functions in SPI technologies are:

• Human resource planning


• Job analysis and design
• Recruitment
• Selection
• Orientation and placement
• Training and development
• Performance appraisal and job analysis
1.2 INTRODUCTION TO THE STUDY

The study was conducted in SPi TECHNOLOGIES, Puducherry to find

the effectiveness of recruitment and selection process.

Recruitment and selection process is a crucial factor in any organization

for selecting the right person for the right job.

The study intends to find how effectively recruitment and selection

process followed in the organization.

The study on effectiveness of recruitment and selection process provides

the organization to know how effectively the process is going on because attrition rate is

one of the major factors in call centers.


CHAPTER - II
REVIEW OF RELATED LITERATURE

2.1 Recruitment Definition


Recruitment refers to the process of finding possible candidates for a job or
function, usually undertaken by recruiters. It also may be undertaken by an employment
agency or a member of staff at the business or organization looking for recruits.
Advertising is commonly part of the recruiting process, and can occur through several
means through online, newspapers, using newspaper dedicated to job advertisement,
through professional publication, using advertisements placed in windows, through a job
center, through campus interviews, etc.

2.1.1 Recruitment Meaning


 Employing the right staff is an important human resource challenge faced by all
employers.
 Recruitment is an expensive business, which includes the cost of advertising and
the cost of current employees’ time interviewing and selecting the right candidate.
 Good recruitment and selection can result in:
a] reduced labour turnover
b] reduced absence
c] reduced stress levels
 A recruitment process should be:
a] efficient - cost effective in method and sources
b] effective - producing enough suitable candidates
c] fair - ensuring that decisions are made on merit without discrimination.

2.2 Recruitment and Selection


2.2.1 Definition
Recruitment is the process of identifying and attracting a group of potential
candidates from within and outside the organization to evaluate for employment. Once
these candidates are identified, the process of selecting appropriate employees for
employment can begin.

2.2.2 Recruitment and Selection Practices


Better recruitment and selection strategies result in improve organizational
outcomes. The more effectively organizations recruit and select candidates, the more
likely they are to hire and retain satisfied employees.

2.2.3 Purpose
a) The objectives of this study were to:
1. Identify general practices that organizations use to recruit and select
employees.
2. Determine which recruitment and selection practices are most effective.
3. Determine how the recruitment and selection practices affect organizational
outcomes.
b) Recruitment is the process of identifying and attracting potential candidates from
within and outside an organization to begin evaluating them for future employment. Once
candidates are identified, an organization can begin the selection process. This includes
collecting, measuring, and evaluating information about candidates’ qualifications for
specified positions.
The study, based on survey results from 162 members of the DDI HR Benchmark
Group, addresses the following issues.
a. General recruitment and selection profiles.
b. Recruitment strategies.
c. Organizational offerings and their impact on prospective employees.
d. Current and future selection practices.
f. Outsourcing recruitment and selection activities.
g. Barriers to effective recruitment and selection.

2.2.4 General Profile


a) Findings Overview
Although internal candidates typically stay in positions and are more successful
than external candidates, organizations fill positions with external candidates, on average,
13 percent more often than internal candidates.
In the next two years:
a.75 percent of the organizations surveyed plan to increase spending on
recruiting.
b.68 percent of the organizations plan to increase their spending on selection.
c.Almost half of the organizations plan to significantly change their current
approach to both recruitment (47 percent) and selection (41 percent) within the next two
years.

2.2.5 Recruitment Strategies


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

2.2.6 Organizational Offerings


The quality of an organization’s offerings affects its ability to attract job
candidates.
a. Organizations believe they offer candidates a strong company reputation (69
percent) and high-quality benefits packages (65 percent) and learning opportunities (55
percent).
b. Many organizations do not offer stock options (37 percent) or child care options
(36 percent).
2.2.7 Best Practices
Organizations with the most effective recruiting strategies were 15 to 19 percent
more likely to offer candidates high-quality options such as:
Potential for advancement, Company reputation, Stocks, Benefits package etc.
. 2.2.8 Current and Future Selection Practices
a) Findings Overview
Organizations were asked to indicate how extensively they use several selection
practices and how much they anticipate using them in the future.
a. Most organizations make extensive use of applications (89 percent), manual
resume screening (80 percent), and reference checks (75 percent) in their selection
systems.
b. Less than 20 percent of organizations currently use testing or assessment methods
extensively in their selection process
2.2.9 Barriers to Effective Recruitment and Selection
a) Findings Overview
The surveyed organizations report that the top barriers to effective recruitment
and selection of candidates are:
a. Shortage of qualified applicants (62 percent).
b. Competition for the same applicants (62 percent).
c. Difficulty finding and identifying applicants (48 percent).

By Sheila M. Rioux, Ph.D., and Paul Bernthal, Ph.D.

2.3 Search & Selection


2.3.1 Introduction
The search and selection process is the foundation for all future employee
relations activities. As such, a considerable amount of employee resources is rightfully
spent on working on screening committees and in hiring employees. This document has
been developed to assist hiring supervisors, committee members and others in defining
effective search and selection processes, thereby maximizing the efforts to identifying
and attracting the best candidates.
2.3.2 Planning
As will become evident in further review of this document, planning is an
essential component to nearly every step of the search and selection process. We must
plan the way the position can meet the needs of the department while appropriately using
available resources, plan a recruitment strategy, and plan a screening strategy and, finally,
a selection strategy.
a) Needs assessment
The first step in any process is to determine the goals that you would like to
accomplish. In Search and Selection, this process usually takes one of two forms:

1) An addition to staff
In the event that the job is new and has not been graded before, it will be
necessary for the supervisor to complete the Position Analysis Questionnaire, which will
identify the job responsibilities and competencies required, as well as aid in establishing
the appropriate salary grade for the position.
2) A replacement of staff.
The time when a current employee vacates an existing position can be an
optimal time to review the organization and determine if a reallocation of position
responsibilities is appropriate. Often, a juggling of responsibilities within a unit can
create promotional opportunities, new skills, job enrichment and could better match the
remaining incumbents skills with the skills required for the position.

2.3.4 Identification of minimum requirements and preferred qualities


During the posting and recruitment process, the college identifies and
announces minimum requirements for fulfilling the responsibilities of the position as well
as those qualities which the supervisor believes will lead to further success in the
position.

2.3.5 Development of Screening Materials


Once the position requirements and preferred qualities are identified, it
should be easy for the supervisor to identify the screening questions. Since the committee
should only be asking questions which related to the decision of who to forward to the
supervisor in the next step of the process, the only topics the committee needs to address
are those which have been identified by the supervisor as being either preferred or
necessary qualities (as defined in the Notice of Vacancy).
The three parts to the screening process
a) Paper review
b) Interviews with the candidates
c) Interviews with each, respective candidates references

2.3.6 The interviews with the candidates


As addressed previously, the interview questions should cover specific areas of
concern. In the previous section, sample interview questions are offered for the hiring
supervisor in developing the interview questionnaire. Similar to developing the rating
scale in the paper review process, the supervisor will assign maximum point values to
each question, based on their relative importance to other criteria being reviewed.
Qualities that could fall into this category include:
 ability to adapt to change
 ability to display a positive outlook
 ability to follow instructions

2.3.7 Development of Recruitment strategy


Even though s/he is not part of the screening process, the hiring supervisor
steers the search by developing the recruitment criteria, the position requirements and
preferred qualities, the rating scales and interview questions. The recruitment strategy
is the stage where the hiring supervisor determines, with assistance from Human
Resources, the timing for the search as well as the way that the position vacancy will
be communicated.
2.4 Recruitment Metrics
Recruitment can be an expensive and time-consuming endeavor, and
understanding the value of the results means knowing whether or not the time and money
are being used effectively. A few common recruitment metrics:
1) New Hire Quality:
Three to six months after hire, the hiring manager should complete an
evaluation of the new employee that compares expectations prior to recruiting with the
actual performance of the employee. Facets of quality to be evaluated include
knowledge and skills, performance, experience, motivation, multitasking abilities,
learning curve, customer compatibility, and organization compatibility.
2) Recruiting Cost Ratio:
The RCR is used to determine average HR spending on recruiting activities in
relation to the starting compensation of new hires (positions filled) that result from
staffing activities.This metric calculates the Total Recruiting Costs (both internal and
external) and divides it by the Total Compensation Recruited (the sum of the base annual
compensation of the positions filled through recruitment).
3) Recruiting Efficiency:
Closely related to RCR is the metric for Recruiting Efficiency. Recruiting
Efficiency gives a percentage in relation to complete efficiency, which is considered to be
100%.

CHAPTER- III

OBJECTIVES

• To study the existing recruitment and selection process the organization is using.

• To study various factors involved in recruitment and selection process.

• To study the methods and techniques used in recruitment and selection process.

• To study and identify how the present process affect organizational outcomes.

• To find employers and employees opinion about present process and provide a

suggestion for improvement.


CHAPTER - IV
RESEARCH METHODOLOGY

4.1 DATA COLLECTION:

4.1.1 Sources of data collection:

4.1.1.1 Primary data


Primary data are collected afresh and for the first time. It is the data originated by
the researcher specifically to address the research problem.
In this study, primary data is collected primarily to understand the existing
recruitment and selection process the organization is using.
4.1.1.2 Secondary Data
Secondary data is collected from internet, registers, records, journals, articles,
magazines and annual reports of the organization
4.1.1.3 Data collection Instrument:
Questionnaire Design begins with an understanding of the capabilities of a
questionnaire and how they can help in research. If it is determined that a questionnaire is
to be used, the greatest care goes into the planning of the objectives.

4.2 DATA SAMPLING:


Data sampling process includes the following steps that are sequentially shown

 Define the Target Population


 Define the Sampling frame
 Determine the sample size
 Execute the sampling process

4.2.1 Sample Size Design


It refers to the number of elements to be included in the study. A sample
design is a definite plan for obtaining a sample from a definite population. It refers to the
technique or the procedure the researchers would adopt in selecting items for the sample.
It is determined before data is collected. In this study
• 50 samples is collected from the employers.
• 50 samples is collected from employees.

4.2.2 Sampling Process


Convenience Sampling: A convenience is obtained by selecting ‘convenient’
population units. The method of convenience sampling is also called the chunk. A chunk
refers to that fraction of the population being investigated which is neither by probability
nor by judgement but by convenience.
x2= ? [O-E] 2 /E

4.3 TOOLS FOR ANALYSIS:

• Percentage Analysis
R= 1- 6 ? D2 / N3 -N
• Chi-square analysis
• Correlation
• F-test

4.3.1 Percentage Analysis:


In percentage analysis, charts like bar chart and pie charts are used to
graphically represent the results from percentage analysis of the questionnaire

4.3.2 Chi-Square Analysis

The chi-square is one of the most widely used non-parametric tests in


statistical work. The Chi-Square was first used by Karl Pearson in the year 1900.
It is defined as

Chi-square test is applicable to a very large number of problems in practice. With


the help of this test we can find out whether two or more attributes are associated or not.

4.3.3 Correlation:
Correlation analysis deals with the association between two or more variables.
Correlation does not necessarily imply causation or functional relationship though the
existence of causation always implies correlation. By itself it establishes only co
variation. In this research rank correlation was used.The formula used to finn rank
correlation is

4.3.4 F-Test
F= S12 / S22

F-test is used to find out whether the two independent estimates of population
differ significantly or whether the two samples may be regarded as drawn from the
normal populations having the same variance.

F is defined as

CHAPTER – V
DATA ANALYSIS AND INTERPRETATION

5.1 ANALYSIS USING PERCENTAGE METHOD

TABLE 5.1.1 RESPONDENTS BASED ON YEARS OF EXPERIENCE

Sl.no Years Respondent Percentage%


s
1 0-2 years 34 68
2 3-5 years 14 28
3 6-8 years 2 4
Total 50 100
Inference
34 respondents belong to 0-2 years of experience, 14 respondents belong to 3-5
years of experience and 2 respondents belong to 6-8 years of experience.

CHART 5.1.1 RESPONDENTS BASED ON YEARS OF EXPERIENCE

80

70
P
e 60
r
50
c
e 40 0-2 years
n 3-5 years
t 30
6-8 years
a 20
g
e 10

0
Years of experience

TABLE 5.1.2 CLASSIFICATION BASED ON THE SOURCES ORGANIZATION


RELY HEAVILY

Sl.no Sources Respondents Percentage%

1 Internal 30 60
2 External 20 40
Total 50 100
Inference
30 respondents said that organization rely heavily on internal sources and20
respondents said that organization rely heavily on external sources.

CHART 5.1.2 CLASSIFICATION BASED ON THE SOURCES ORGANIZATION


RELY HEAVILY

70

60
P
e 50
r
c 40
e Internalsources
n 30
Externalsources
t
a 20
g
e 10

0
Source

TABLE 5.1.3 EMPLOYEES CHANNEL PREFERENCE TO POST THE RESUME


Sl.no Channels Respondent Percentage%
s
1 Job sites 17 34
2 Company sites 20 40
3 Consultancies 9 18
4 Referrals 4 8
Total 50 100

Inference
34% of employees prefer jobsites to post the resume, 40% of employees prefer
company sites to post the resume, 18% of employees prefer consultancies to post the
resume and 8% of employees prefer employee referrals to post the resume.

CHART 5.1.3 EMPLOYEES CHANNEL PREFERENCE TO POST THE


RESUME
45
40
P
e 35
r
30
c Jobsites
e 25 Companysites
n
20 Consultancies
t
a 15 Referrals
g
10
e
5
0
Channels

TABLE 5.1.4 EMPLOYEE’S PREFERENCE OF SOURCES THAT REACHES


SOON

Sl.no Sources Respondent Percentage%


s
1 Newspaper 19 38
2 Journals/Periodicals 4 8
3 Campus Recruitment 10 20
4 Employee Referral 17 34
Total 50 100

Inference
38% of employees said that newspaper source reaches them soon, 8% of
employees said that journals/periodicals reaches them soon, 20 of employees said that
campus recruitment reaches them soon and finally 34% of employees said that employee
referral reaches them soon.

CHART 5.1.4 EMPLOYEE’S PREFERENCE OF SOURCES THAT REACHES


SOON

40

35
P
Newspaper
e 30
r Journals/Magazines
25
c Campusrecruitment
e 20
Employee Referral
n
15
t
a 10
g
e 5

0
Sources

TABLE 5.1.5 EMPLOYEE’S OPINION ABOUT RESPONSE AFTER


RECRUITMENT

Sl.no Response Respondent Percentage%


s
1 Satisfied 44 88
2 Not Satisfied 6 12
Total 50 100

Inference
44 respondents are satisfied with the response given after recruitment and 6
respondents are not satisfied with the response given after recruitment

CHART 5.1.5 EMPLOYEE’S OPINION ABOUT RESPONSE AFTER


RECRUITMENT

100
90
P
80
e
70
r
c 60 Satisfied
e 50 Not Satisfied
n 40
t 30
a 20
g 10
e 0

Response

TABLE 5.1.6 EMPLOYER’S OPINION ABOUT THE PROCESS FOR


IDENTIFYING JOB VACANCIES

Sl.no Process Respondents Percentage%

1 Step by step process 32 64


2 No step by step process 16 36

Total 50 100
Inference
32 respondents said that their organization follow a step by step process with
certain rules and regulations in identifying job vacancies and 16 respondents said that
their organization does not follow a step by step process with certain rules and
regulations in identifying job vacancies.

CHART 5.1.6 EMPLOYER’S OPINION ABOUT THE PROCESS FOR


IDENTIFYING JOB VACANCIES

70

P 60
e
r 50
c 40
e S te p b y s te p p ro ce s s
n 30
t N o s te p b y s te p
20
a p ro c e s s
g 10
e 0
Pr o c e s s

TABLE 5.1.7 EMPLOYER’S OPINION ABOUT JOB ANALYSIS

Sl.no Job analysis Respondents Percentage

1 Yes 35 70
2 No 15 30
Total 50 100

Inference
35 respondents inferred that job analysis is conducted for each position,15
respondents inferred that job analysis is not conducted for each position.

CHART 5.1.7 EMPLOYER’S OPINION ABOUT JOB ANALYSIS

80

P 70

e 60
r
50
c
Y es
e 40
No
n 30
t
20
a
g 10

e 0

Job analysis

TABLE 5.1.8 CLASSIFICATION ABOUT THE RECRUITMENT SOURCES


ORGANIZATION USE MOSTLY

Sl.no Sources Respondents Percentage%

1 Newspaper sources 15 30
2 Journals 7 14
3 Campus Recruitment 4 8
4 Employee Referral 19 38
5 Consultancies 5 10
Total 50 100
Inference
15 respondents said that their organization uses newspaper source mostly, 7
respondents said that their organization uses journals, 4 respondents said that their
organization uses campus recruitment, 5 respondents said that they use consultancies and
finally 19 respondents said that their organization uses employee referral mostly.

CHART 5.1.8 CLASSIFICATION ABOUT THE RECRUITMENT SOURCES


ORGANIZATION USE MOSTLY

40

P 35
Newspaper source
e 30
r Journals/Periodicals
25
c
Campus Recruitment
e 20
n Employee Referral
15
t
a 10 Consultancies
g 5
e
0

Sources

TABLE 5.1.9 EMPLOYER’S OPINION ABOUT SCREENING OF CANDIDATES

Sl.no Screening of Respondents Percentage%


candidates
1 Yes 35 70
2 No 15 30
Total 50 100

Inference
35 respondents said that all initial screening of candidates is performed by HR
department and 15 respondents said that all initial screening of candidates is not
performed by HR department.

CHART 5.1.9 EMPLOYER’S OPINION ABOUT SCREENING OF CANDIDATES

80

70
P
e 60
r
50
c
e 40 Yes
n No
30
t
a 20
g
10
e
0

Screening of candidates

TABLE 5.1.10 EMPLOYEES OPINION ABOUT FINAL SATISFACTION

Sl.no
54321 Highly
Highly
Dissatisfied
No
Opinion
Satisfied
Total
opinion
dissatisfied
Satisfied Respondents
21
13
50
745 42
Percentage%
100
26
10
14
8
Inference:
42% of employees are satisfied with the present process, 26% of
employees are highly satisfied with the present process, 10% of employees are
dissatisfied with the present process, 8% employees are highly dissatisfied with the
present process, and 14% employees said that they have no opinion about the process.

CHART 5.1.10 EMPLOYEES OPINION ABOUT FINAL SATISFACTION

satisfied
Highly satisfied
Dissatisfied
Highlydissatisfied
No opinion
Final opinion about the process

TABLE 5.1.11 EMPLOYERS RATING ABOUT THE PROCESS


Sl.no Opinion Respondents Percentage%
1 Effective 12 24
2 Very effective 21 42
3 Not effective 11 22
4 No opinion 6 12
Total 50 100

Inference:
24% employers rated that the process is effective, 42% of employers rated
that the process is very effective, 22% of employers rated that the process is not effective,
12% of employers said no opinion about the process.

CHART 5.1.11 EMPLOYERS RATING ABOUT THE PROCESS

Effective
Very effective
Not effective
No opinion

Final rating about the process


5.2 ANALYSIS USING CHI-SQUARE

ANALYSIS OF EMPLOYERS OPINION REGARDING PANEL MEMBER AS


REFEREE AND RATING ABOUT RECRUITMENT& SELECTION PROCESS

OBSERVED COUNT:
TABLE 5.2.1

Rating about recruitment& selection


Panel Effective Very Not Effective No opinion Total
member as Effective
referee
Yes 5 14 5 1 25
No 7 7 6 5 25
Total 12 21 11 6 50

EXPECTED COUNT
TABLE 5.2.2
Rating about recruitment & selection
Panel Effective Very Not Effective No opinion Total
member as Effective
referee
Yes 6 10.5 5.5 3 25
No 6 10.5 5.5 3 25
Total 12 21 11 6 50
CHI-SQUARE CALCULATION
TABLE 5.2.3

O E [O-E]2 [O-E]2/E
5 6 1 0.17
14 10.5 12.25 1.17
5 5.5 0.25 0.05
1 3 4 1.33
7 6 1 0.17
7 10.5 12.25 1.17
6 5.5 0.25 0.05
5 3 4 1.33
∑ = 5.44

Null Hypothesis Ho:


There is no significant difference between the referee as a panel member and final
rating about recruitment and selection process.
Inference:
Calculated value Σ [O-E] 2/E = 5.44
Degrees of freedom (m-1) (n-1) = (2-1) (4-1)
=3
The tabulated value for 3 degrees freedom at 5% level of significance is 12.98.

Rating about recruitment & selection


Recruitme Effective Very Not No opinion Total
Effective Effective
nt cost
Yes 6 11 5 2 24
No 6 10 6 4 26
Total 12 21 11 6 50

The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.

ANALYSIS OF EMPLOYERS OPINION REGARDING RECRUITMENT COST


AND FINAL RATING ABOUT RECRUITMENT AND SELECTION PROCESS

OBSERVED COUNT
TABLE 5.2.4
EXPECTED COUNT
TABLE 5.2.5

Rating about recruitment & selection


Recruitment Effective Very Not No opinion Total
Effective Effective
cost
Yes 5.8 10 5.3 2.9 24
No 6.2 11 5.7 3.1 26
Total 12 21 11 6 50

CHI-SQUARE CALCULATION
TABLE 5.2.6
O E [O-E]2 [O-E]2/E
6 5.8 0.04 0.68
11 10 1 0.1
5 5.3 0.07 0.02
2 2.9 0.81 0.28
6 6.2 0.04 0.65
10 11 1 0.09
6 5.7 0.09 0.02
4 3.1 0.81 0.26
∑= 2.11

Null Hypothesis Ho:


There is no association between the measurement of recruitment cost and final
satisfaction about recruitment and selection process.
Inference:
Calculated value Σ [O-E] 2/E = 2.11
Degrees of freedom (m-1) (n-1) = (2-1) (4-1)
=3

The tabulated value for 3 degrees freedom at 5% level of significance is 12.98.


The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
ANALYSIS OF EMPLOYERS OPINION REGARDING MEDICAL
EXAMINATION AND FINAL RATING ABOUT RECRUITMENT AND
SELECTION PROCESS

OBSERVED COUNT
Table 5.2.7

Rating about recruitment& selection


Medical Effective Very Not Effective No opinion Total
Effective
Examination
Yes 5 8 7 3 23
No 7 13 4 3 27
Total 12 21 11 6 50

EXPECTED COUNT
Table 5.2.8

Rating about recruitment& selection


Medical Effective Very Not Effective No opinion Total
Effective
Examination
Yes 5.52 9.7 5.1 2.76 23
No 6.48 11.34 5.94 3.24 27
Total 12 21 11 6 50

CHI-SQUARE CALCULATION
TABLE 5.2.9
O E [O-E]2 [O-E]2/E

5 5.52 0.27 0.05


8 9.66 2.76 0.29
7 5.06 3.76 0.74
3 2.76 0.06 0.02
7 6.48 0.27 0.42
13 11.34 2.76 0.24
4 5.94 3.76 0.63
3 3.24 0.06 0.02
∑=2.41

Null Hypothesis Ho:


There is no association between the medical examination conducted on employees
and final satisfaction about recruitment and selection process.
Inference:
Calculated value Σ [O-E] 2/E = 2.41
Degrees of freedom (m-1) (n-1) = (2-1) (4-1)
=3
The tabulated value for 3 degrees freedom at 5% level of significance is 12.98.
The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.
ANALYSIS OF EMPLOYEES OPINION REGARDING RECRUITMENT
Final decision about
appointment
Sources Yes No Total
organization rely
heavily
Internal sources 25 5 30
External sources 14 6 20
Total 39 11 50
SOURCE ORGANIZATION USE HEAVILY AND FINAL DECISIONS ABOUT
APPOINTMENT

OBSERVED COUNT
TABLE 5.2.10

EXPECTED COUNT
TABLE 5.2.11
Final decision about
appointment
Sources Yes No Total
organization rely
heavily
Internal sources 23.4 6.6 30
External sources 15.6 4.4 20
Total 39 11 50

CHI-SQUARE CALCULATION
TABLE 5.2.12

O E [O-E]2 [O-E]2/E
25 23.4 2.56 0.11
5 6.6 2.56 0.39
14 15.6 2.56 0.16
6 4.4 2.56 0.58
∑=1.24
Null Hypothesis Ho:
There is no association between sources organization rely heavily and final
decisions about appointment.
Inference:
Calculated value Σ [O-E] 2/E = 1.24
Degrees of freedom (m-1) (n-1) = (2-1) (2-1)
=1

The tabulated value for1 degrees freedom at 5% level of significance is 7.88.


The calculated value is lesser than tabulated value. Therefore hypothesis is accepted.

5.3 ANALYSIS USING RANK CORRELATION

ANALYSIS OF EMPLOYEES OPINION REGARDING TEST&INTERVIEW


PROCESS AND SATISFACTION ABOUT SELECTION TECHNIQUE USED

TABLE 5.3.1
R= 1- 6 ? D2 / N3 -N

Sl.no X Rx Y Ry [ Rx- Ry ]
D2
1 24 1 39 2 1
2 26 2 11 1 1
Σ D2 = 2

CACULATIONS:

= 1- 6 * 2
23-2

= 1- 12
6

= 1-2
R = -1

INFERENCE:

The test & interview process and satisfaction about selection technique used is
highly negatively correlated.
R= 1- 6 ? D2 / N3 -N

ANALYSIS OF EMPLOYERS OPINION REGARDING RECRUITMENT


SOURCE ORGANIZATION USE AND SOURCE PREFERRED EFFECTIVE BY
THEM
TABLE 5.3.2

Sl.no X Rx Y Ry [ Rx- Ry ]
D2
1 15 4 14 4 0
2 7 3 6 1 4
3 4 1 8 3 4
4 19 5 15 5 0
5 5 2 7 2 0
Σ D2 = 8

CACULATIONS:
R= 0.6

= 1- 6 * 8

53-5

= 1- 48

120

= 1-0.4

INFERENCE:

The recruitment source organization use and source preferred effective by


them is positively correlated.
ANALYSIS OF EMPLOYEES OPINION REGARDING QUESTIONS GAVE
PRIOR TO THE INTERVIEW AND COMFORTABLENESS WITH THE
INTERVIEWER

TABLE 5.3.3

Sl.no X Rx Y Ry [ Rx- Ry ]
D2
1 12 1 23 1 0
2 38 2 27 2 0
Σ D2 = 0

CACULATIONS:
R 1-
R= =6 1
? D2 / N3 -N

= 1- 6 * 0

23-2

= 1- 0

= 1-0

INFERENCE:

If the questions given prior to the interview means then the comfortableness
with the interviewer will be increased. So it is highly positively correlated.
5.4 ANALYSIS USING F-TEST

ANALYSIS OF EMPLOYEES AND EMPLOYERS OPINION REGARDING


FINAL SATISFACTION ABOUT RECRUITMENT AND SELECTION PROCESS

NULL HYPOTHESIS H0:

The two populations have the same variance.


Table 5.4.1

Samples1 X1 X12 Samples2 X2 X22


X1 X2

12 0.5 0.25 21 11 12
1
21 8.5 72.2 13 3 9
5
11 -1.5 2.25 5 -5 25
6 -6.5 42.2 4 -6 36
5
7 -3 9
F=1.28 F= 1.28

Σ X12 = 117 Σ X22 = 200

X1 is employee’s opinion about the process and X2 is employers rating about the process.

S12 = 50 S22 = 39

F = S12 / S22

INFERENCE:
For v1=4 and v2=5, F0.05=6.23.

The calculated value is less than the tabulated value. Therefore hypothesis is
accepted. It means the two different populations have the same variance.

CHAPTER - VI

6.1 FINDINGS OF THE STUDY

• A majority of the respondents prefer to post their resume through company web
sites and job sites.
• The percentage analysis shows that the organization relies heavily on internal
sources.
• Most of the employees said that a newspaper source reaches them soon.
• A majority of employees inferred that they are satisfied with the response given
after recruitment.
• Most of the employees said that the final decisions about appointment should be
based only on merit.
• A majority of employers inferred that there organization is following a step by
step process with certain rules and regulations in identifying job vacancies.
• The percentage analysis shows that the organization is conducting job analysis
and job description for each job position.
• A majority of employers said that there organization using newspaper and
employee referral sources mostly.
• Most of the employers inferred that they are measuring the cost for the
recruitment sources by comparing the validated budget versus approved budget.
• The correlation analysis shows that the questions asked in the interview and
comfortableness with the interviewer is positively correlated.
• Most of the employees are satisfied with the present recruitment and selection
process.
• A majority of the employers inferred that the present recruitment and selection
process is effective.

6.2 SUGGESTIONS AND RECOMMENDATIONS

 From the study, it is found that majority of the employees prefer to post their
resume in companies website. So the company can have exclusive career link in
its website to post resume.

 By using a separate link with resume screening software, the resumes can be
screened and managed effectively.

 From the study, it is found that newspaper is the effective medium to advertise for
recruitment. Since this company focus on candidates from Pondicherry, they can
advertise for mass recruitment.

 Relocation is the main problem for a candidate’s rejecting an offer. So by


providing a good salary and accommodation, relocation problem can be solved.
Thus the recruitment process can be made effective by retaining the recruited
candidate.
 Some of the employees said that the response given after recruitment is not
satisfactory. If the recruitment feedback mechanism is not effective, there is high
risk of loosing good candidates to other companies. So they can give the response
for candidates immediately whether they are short listed or rejected.

 It is found that the company is not conducting the medical examination for
employees during selection process. They can conduct medical examination in
order to prevail themselves if any problem happens to the employees.
CHAPTER-VII

CONCLUSION

This project “A STUDY ON EFFECTIVENESS OF RECRUITMENT AND

SELECTION PROCESS” was helpful to know about the recruitment and selection

process in E-Publishing Company. This study inferred that most of the employers and

employees are satisfied with the present process. This study was helpful to study the

sources of recruitment and selection techniques & methods used.

The study on recruitment and selection is more an ART rather than a process. HR

professional is having a big responsibility to hire a best person from the available talent

pool. At the same time, one needs to be cost conscious. The employer should judge on

individual merits and set the same standards for all. In the present scenario, “It is the

biggest challenge for a HR manager to hunt for talent.”

.
CHAPTER – VIII

8.1 LIMITATIONS

• The entire study applies only to the specific concern.

• The period for study is one month, so the detailed analysis about the process is

difficult.

• The study was made only with limited number of samples.

• The respondents may give false information.

8.2 SCOPE FOR FURTHER STUDY

 The Project throws light on the need for learning about recruitment and selection

process.

 This study will be useful to find out the sources and techniques used in the

recruitment and selection process.

 It will be helpful for the company to know the effective sources and techniques in

recruitment and selection process.


ANNEXURE - I

A STUDY ON EFFECTIVENESS OF RECRUITMENT AND


SELECTION PROCESS IN SPi TECHNOLOGIES

EMPLOYER PERSONAL DETAILS


1. Name :
2. Designation :
3. Age:
a) 18 -25 b) 26 – 35 c) 36 -45 d) above 45
4. Marital status:
a) Married b) unmarried
5. Educational Qualification:
a) Below Hr. Sec. b) Hr. Sec c) ITI or others d) UG OR PG
6. Years of Experience:
a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years

RECRUITMENT
1. What type of process are there for identifying job vacancies in your organization?
a) Follow step by step process with certain rules.
b) No step by step process.
c) Not aware.
2. Is job analysis conducted for each position?
a) Yes b) No
3. Do you give consideration to internal candidates for all jobs before outside
recruitment begins?
a) Yes b) No
4. Do you accept late applications?
a) Yes b) No
5. Is there any job description for each vacancy including the purpose, tasks and
responsibilities?
a) Yes b) No
6. What kind of recruitment sources does your organization use?
a) Newspaper sources
b) Professional journals/periodical
c) Campus recruitment
d) Employee referral
e) Consultancies
7. Which recruitment source do you prefer very effective from the above?

8. Does your organization measure the cost of these recruiting sources?


a) Yes b) No
If yes specify,
9. To whom are the performance measure and recruiting costs are usually communicated?
a) Finance department
b) Accounts department
c) Administration department
10. Identify any one factor which affects you to recruit best candidate?
a) Image of the organization
b) Government influence
c) Internal organizational policies
d) None of the above

SELECTION
11. Do you have any standard pattern in selection process? (From initial interview to final
placement)
a) Yes b) No
12. Does HR department perform all initial screening of candidates?
a) Yes b) No
13. How many candidates are typically interviewed before final placement?
a) 10 b) Below 10 c) Above 10 d) None of the above
14. Are panel interviews are used?
a) Yes b) No
15. Can you allow a referee as a panel member?
a) Yes b) No
16. Are reference checks considered on all candidates?
a) Yes b) No
17. Are candidate telephone interviews, teleconferencing or video conferencing
conducted before personnel interview?
a) Yes b) No
18. What type of tests are mostly used in your organization during selection process?
a) Personality tests
b) Psychometric tests
c) Judgement tests
c) Ability tests
d) Not aware
19. Do you professionally validate the tests used in selection process?
a) Yes b) No
20. What your organization will do if short listed applicant cannot be interviewed on the
scheduled day?
a) Offer another date, location.
b) Will hold the applicant and used whenever needed.
c) Consideration may be given to exclude that person from the process.
d) No opinion.
21. Does your organization conduct medical examination for employees during selection
process?
a) Yes b) No
22. Finally rate the recruitment and selection process used in your organization
a) Effective
b) Very effective
c) Not effective
d) No opinion
A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION
PROCESS IN SPi TECHNOLOGIES

EMPLOYEE PERSONAL DETAILS


1. Name :
2. Designation :
3. Age:
a) 18 -25 b) 26 – 35 c) 36 -45 d) above 45
4. Marital status:
a) Married b) unmarried
5. Educational Qualification:
a) Below Hr. Sec. b) Hr. Sec c) UG or PG d) ITI or others
6. Years of Experience:
a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years

RECRUITMENT AND SELECTION

1. Did you visit the website of this company before coming for the interview?
a) Yes b) No
2. What is your experience in this company?
a) 0 – 2 years
b) 3 – 5 years
c) 6 – 8 years
d) Above 8 years
3. Which sources your organization rely heavily for recruitment?
a) Internal sources b) External sources
4 .Which channel do you prefer easy to post your resume?
a) job sites
b) company websites
c) consultancy
d) referrals
5. Through which source did you get recruited in this company?
a) Newspaper sources
b) Professional journals/periodicals
c) College recruiting
d) Employee referral
e) Internal computerized applicant database
6. Which type of recruitment sources reaches you soon?
a) Newspaper sources
b) Professional journals/periodicals
c) College recruiting
d) Employee referral
7. Have you ever rejected an offer in any company?
a) Yes b) No
8. State the reason for rejecting the offer.
a) relocation
b) salary
c) growth
d) others
9. State the reason for accepting the offer in this organization?

10. Are you satisfied with the response given after recruitment?
a) Yes b) No
11. Are you satisfied with the selection techniques used in your organization?
a) Yes b) No
If No means give reason:

12. Do you feel that the test and the interview process is lengthy?
a) Yes b) No
13. What type questions they asked you in the interview?
a) Relaxing questions
b) Tough questions
c) Icebreaking questions
14. Did they give the questions prior to the interview?
a) Yes b) No
15. Did you felt comfortable with your interviewer?
a) Yes b) No
16. Do all people have to be interviewed in the same way?
a) Yes b) No
If No means state reason:

17. The people who are all involved in the recruitment and selection process were very
supportive to you
a) Yes b) No
18. The final decisions about the appointment should be based only on merit?
a) Yes b) No
If No means state reason:

19. Does your organization provide you induction or orientation programme after
placement?
a) Yes b) No
If yes means mention how effective and useful,

20. Finally how much you satisfied with the present recruitment and selection process
followed in your organization?
a) Satisfied
b) Highly satisfied
c) Dissatisfied
d) Highly dissatisfied
e) No opinion
If you are not satisfied with the present process means provide suggestion for
improvement:
Annexure - II

Bibliography
Books Referred
1. Christopher Mabey, “Strategic Human Resource Management” – Edition 1.
2. K. Aswathappa, “Human Resource and Personnel Management” – Edition 1.
3. Donnelly , “Managing Human Resource” – Edition 1
4. Statistical methods by S.P.Gupta
Sites Visited
1. www.spi.com
2. www.citehr.com
3. www.explorehr.com