CONTENTS

chapter Particulars Page

number
Certificate

Declaration

Acknowledgement

Executive summary

1 Introduction

2 Research Methodology

3 Review of Literature

4 Results and Discussion

5 Suggestions and Conclusion

Reference

1
 INTRODUCTION
Human Resource Management in its simplest definition means management of
organization’s manpower or workforce or human resources. Human Resource has evolved from
many terms and functions such as human capital, laborers, personnel and currently human
resources. The evolution of human Resource Management has progressed through the ages from
times when people were abused in slavery working conditions to the modern environment where
people are valued and respected and viewed as strategic partners to business. The term Human
resource management has to a larger extent replaced the term personnel management
from around the late 20th century.

Human Resource Management (HRM) are the policies and practices involved in
carrying out the “people” of human resource aspects of managing position, including recruiting,
screening, training, rewarding and appraising. The shorter meaning of HRM is the act of
managing the process of recruitment and selection, compensation and benefits as well as
employee’s safety and health in an organization. In today’s competitive global world, hiring the
right people & retaining them has become the greatest challenge faced by any organization. With
increased job opportunities and business developments, Attrition has become the major problem
faced by organizations. Retaining the key talent is essential for an organization’s sustainable
growth and hence, countering & controlling attrition has become one of the major concerns in
the business world.

Recruitment and selection:

Recruitment and selection are two of the most important functions of personnel
management. Recruitment precedes selection and helps in selecting a right candidate.
Recruitment is a process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of efficient personnel.

Staffing is one basic function of management. All managers have responsibility of

staffing function by selecting the chief executive and even the foremen and supervisors have a
staffing responsibility when they select the rank and file workers. However, the personnel
manager and his personnel department is mainly concerned with the staffing function.

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 Every organization needs to look after recruitment and selection in the initial period
and thereafter as and when additional manpower is required due to expansion and development
of business activities.

‘Right person for the right job’ is the basic principle in recruitment and selection. Ever
organization should give attention to the selection of its manpower, especially its managers. The
operative manpower is equally important and essential for the orderly working of an enterprise.
Every business organization/unit needs manpower for carrying different business activities
smoothly and efficiently and for this recruitment and selection of suitable candidates are
essential. Human resource management in an organization will not be possible if unsuitable
persons are selected and employment in a business unit.

Today, in every organization personnel planning as an activity is necessary. It is an

important part of an organization. Human Resource Planning is a vital ingredient for the success
of the organization in the long run. There are certain ways that are to be followed by every
organization, which ensures that it has right number and kind of people, at the right place and
right time, so that organization can achieve its planned objective.

The objectives of Human Resource Department are Human Resource Planning,

Recruitment and Selection, Training and Development, Career planning, Transfer and
Promotion, Risk Management, Performance Appraisal and so on. Each objective needs special
attention and proper planning and implementation. For every organization it is important to have
a right person on a right job. Recruitment and Selection plays a vital role in this situation.
Shortage of skills and the use of new technology are putting considerable pressure on how
employers go about Recruiting and Selecting staff. It is recommended to carry out a strategic
analysis of Recruitment and Selection procedure.

Brief Introduction About Dairy Industry:

Dairying has been of life in India since the ancient Vedic times. The modern dairy
industry took roots in 1950 with the sale of bottled milk in Bombay from array milk colony. The
first large scale milk products factory was started in 1945 at An and a cooperative venture, with
the assistance of UNICEF, for the production of milk powder, table butter and ghee. These
products were made from the buffalo milk.

3
 The world's largest development program over undertaken, the operation flood undertook
the gigantic task of upgrading and modernizing with production, procurement, processing and
marketing with the assistance provided by the world bank and other external agencies, designed
and implanted by the National Dairy Development Board(NDDB) and the Indian dairy
corporation. The project was launched in July 1970. Its basic concept compromises the
establishment of co-operative structure on An and pattern.
 OPERATION FLOOD-1:
Operation flood-1 also referred to as white revolution is a gigantic project profounder by
government of India for developing Dairy industry in the country. The operation flood-2
originally meant to be completed in 1975 for its completion at total cost of about Mrs. 16 crores.
The operation flood-1 was wholly financed by setting in India’s free metric tones of bottle oil
donated out of the surpluses of European Economic Community
ANAND PATTERN-1:
Under the operation flood-1 the program for increasing milk production was taken up in
ice hinterlands of various breeding tracks on Anand pattern and loudly proclaimed with a
trample. The co-operative were started originally in 18 of Indian milk shed districts and later on
mine more milk shed areas were added to make a total of 27 in 10 states of the country viz,
Maharashtra, Tamilnadu, Andhra Pradesh , West Bengal, Bihar, Hariyana , Punjab, Uttar
Pradesh and Rajasthan.
Those dairy co-operatives are based on a model known as Anand pattern of dairy co-
operative. Under Anand pattern concept rural co-operative infrastructure was to be built in the
village, the milk producers were and keep their animals. In each participating village, the milk
producers were to form their own village dairy co-operative. Thus Anand pattern dairy co-
operative union organizes mobile veterinary and artificial insemination counters.
In the sphere of co-operativisation the no of Anand pattern organized societies under operation
flood was 63121 on April 1st 1991 as age INST 60753 a year ago indicate one that years as
many as 2368 new dairy co-operatives were formed.
 OPERATION FLOOD-2:
The operation flood-2 which was started in July 1978 is scheduled to be completed in 1985 at
a cost of 483 crores.

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 A humble attempt has been made in it sufficient appraisal of the achievements made in some
sufficient field during operation flood-1. These achievements if as all made particularly the
anand pattern dairy co-operative unions are to serve now bedrock of operation flood. Their
unions are to act to the starting. Nucleuses for co-operative cluster federation. The main
instrument for this gigantic project operation food-2. The average nucleus cluster federation
would six districts unions registered and unregistered.
The Indian dairy co-operative, National possible are not required to indicate the basis
on which the state wise allocations were made in operation flood-2 up to end of the 11,979
Gujarat state alone got the lion's shares of 1666. 70,00,000 five states Haryana, Bihar, Rajasthan
and Andhra Pradesh put together the total disbursement in their case was 1732 lakhs only. This
trend is going to be maintained in operation flood-2.
 OPERATION FLOOD-3:
The Indian dairy industry is growing rapidly and may become a string competitor to world
dairy powder. The milk sector is the second largest contribution to the agricultural economy in
terms of produce phenomenal growth is a result of national airy development board through the
operation Flood programs.
Operation flood-2 now in its closing phase only consolidated the procurement affords to
boost production. The projection for milk output for 200 AD is nearly 90 tones at on 5% growth
rate. It is now 5-8% dairy factories established under operation flood, which cover 170 milk
sheds can handle 14.3 millions liters milk daily. They have a milk drying capacity of about 696
tones per day.
The rapid growth in milk production did way with import of milk powder except for a (26400
tones) during the brought years

NATIONAL DAIRY DEVELOPMENT BOARD:

At the time of industrialization at cattle feed factory at kanjari in October 1964. the late
sri LALBAHADUR SHASTRY , the Prime Minister of India paid unscheduled visit producers
co-operative societies and stated there overnight .He was impressed by the social economic
changes brought milk co-operatives in Krishna district and desired to have a National level
organization to milk producers co-operative societies replicate anansin other part of the country.

5
Thus the National Dairy Development Board was set up under the empowerment of ministry of
agriculture and irrigation, Govt of India in Sep 1965 under the society registration act 1860 and
the Bombay trust act 1950.
The president of India nominates the board of directors including chairman, secretary;
National Dairy Development Board is the chief of the organization.
ANAND PATTERN DAIRY DEVELOPMENT:
The information Anand pattern of milk co-operative was launched with the organization
of Krishna district co-operative milk producer's union ltd. In this pattern the function of dairy is
milk procurement, processing and marketing are controlled by the milk producers themselves.
PLANNING INVESTMENT:
1. 33.43 Crores 4. 349.00 Crores
2. 247.53 Crores 5. 116.00 Crores
3. 187.00 Crores 6. 600.00 Crores
DAIRY INDUSTRY IN ANDHRA PRADESH
The program dairy industry was mooted with commendable help of the united national
international children's emergency fund, food and agriculture organization and freedom from
hunger company campaign Organization of the U.K. these organization insisted lot of the
establishment of the dairy units at hydria and vijayawada in 1967 and 1969 respectively, which
led to pioneer dairy development program in Andhra Pradesh? Later to set cooling and chilling
centers have been set up to feed these two gigantic units.
The government of Andhra Pradesh started dairy development corporation to interest
of milk producers and ensuring adequate supply of fresh milk at reasonable price to the urban
consumers as A.P.D.D.C ., come in to the existence on 2nd April 1974. A.P.D.D.C ., providing
employment to nearly 20 employees and organism easy many as 87 dairy units including seven
milk factories , 13 district dairies, 22 chilling centers , 18 cooling centers and 15 mini cooling
centers.
In addition to that the private units have been contributing their little mite in the
development of dairy industry M/s Hindustan milk foods that has started a malted milk product
factory in Rajahmundry. Further to enhance working efficiency and to increase the turnover, the
government has constituted on autonomous dairy development corporation on the

6
recommendation measure the dairy industry improving towards massive milk production and
milk collection.
DAIRY DEVELOPMENT:
In 1960 pilot milk supply scheme was started in the state for the dairy development. Its
initial capacity was 100 liters a day at the time of starting. Now its daily collection increased to
11 lakhs liters per day. It is also working as alien between milk producers of the towns by
providing reasonable price to the producers to maintain stable market.
A.P.DAIRY DEVELOPMENT CO-OPERTIVE FEDERATION (A.P.D.D.C.F):
A.P.D.D.C.F was formed in October, in 1981 to implement operation flood-2 program
through active involvement of producers in organization milk production, procurements,
processing and marketing on "three-tier". Co-operative structure as per the national government
of India. The three-tier system consists of primary dairy cooperatives societies 13 village level,
cooperative unions at district level and federation at state level.

OPERATION FLOOD:
In our state operation flood was divided in three types "Anand level".
1. Village level - D.C.S
2. District level - M.P.C.V
3. State level - A.P.D.D.C.F
OPERATION FLOOD PROGRAMME:
Indian dairy development corporation own the responsibility of implementations of
operation flood programs, which provides money assistance put 70% towards loans and 30% as
subsidy. National Dairy Development Corporation selected district of the state for
implementation of operation flood. It divided the districts into ten milk collecting mandals.
DISTRICT SELECTED UNDER OPERATION
District Milk sheds/unions
Krishna Krishna
Srikakulam Vishaka
Vijayanagaram Vishaka
Visakapatnam Vishaka
East Godavari Godavari
West Godavari Godavari
Chitoor Chitoor
Kurnool Kurnool

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Cuddapah Cuddapah
Nalgonda Nalgonda
Rangareddy Rangareddy
Medak Medak
Nizamabad Nizamabad

Brief Introduction About Company

Model Dairy Pvt Ltd is a Private incorporated on 15 April 1994. It is classified as Non-
govt company and is registered at Registrar of Companies, Hyderabad. Its authorized share
capital is Rs. 60,000,000 and its paid up capital is Rs. 35,321,800. It is inolved in Manufacture of
dairy product [production of raw milk is classified in class. Model Dairy Pvt Ltd's Annual
General Meeting (AGM) was last held on 27 September 2018 and as per records from Ministry
of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2018.
Directors of Model Dairy Pvt Ltd are Dhana Prakash Pinnamaneni, Ganga Kumari Pinnamaneni
and Pinnamaneni Sai Kiran.
Company Details
Company Name: MODEL DAIRY PVT LTD
Company Status: Active
RoCv RoC-Hyderabad
Registration Number: 17374
Company Category: Company limited by Shares
Company Sub Category: Non-govt company
Class of Company: Private
Date of Incorporation: 15 April 1994
Age of Company: 25 years, 3 month, 24 days
Activity: Manufacture of dairy product [production of raw milk is
classified in
 COMPANY'S MISSION:
Farmer's prosperity through technical innovations and customer orientation with specific
focus on quality and cost.
 COMPANY'S VISION:
Dairying in the district to be the major instrument of strengthening rural economy & making
available safe milk and milk products.
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SAILENT FEATURES:
1. Daily average milk procurement: 163794 litres.
2. Turnover of business has reached to 200 crores.
3. Daily milk sales average reached to 1600001itres.
4. Obtained ISO 9001:2000, 14000 and H.A.C.C.P certification.
5. Earning profits and distributing bonus to its members
6. Paying RS.68 crores per year to farmer as cost of milk procured from them.
7. Strengthened the rural economy by avoiding middlemen and making available safe milk
and milk products to the consumer.
8. Provided self employment to the rural women.
COMPANY PRIDE:
o First powder plant established in south India
o Largest democratic functionary in the district serving the farming community
o Having more than RS. 1000 crores grass root level production base.
o Providing direct and indirect employment to people
o First dairy to introduce five varieties of liquid milk.
o Fist dairy to introduce liquid ice cream in tetra brick pack.
o First dairy cooperative to introduce curd in cups in south India
o First dairy to introduce butter milk and lassie in tetra brick pack
o Annual turnover more than RS.121 crores with a continuous growth rate.
o First dairy to introduce Basundi in cups and milk cake.
MILK – PROCUREMENT:
Milk is being procured twice a day from about 830 villages in the district organized
through 29 routes and 6 chilling centers besides getting raw milk directly to the factory from
certain villages in a radius of 50 km around Vijayawada. Among 480 centers, about 431 are
registered societies as under Anand pattern.
 DATA SPECIFICATION
Area occupied by the factory 27.3 acres
Value of factory building 400 lakhs
Money given by UNICEF 53 lakhs

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  Machinery
Investment on equipment 600 lakhs
 Buildings
Opened on 11-4-1969
Workers 1538
Date of formation of union 6-7-1983
Date of transfer of management 8-2-1985
Of the union Annual turnover 60 crores
 Production power:
Milk 500001ts/day
Ghee 5 tonnes
Butter 7tonnes
Milk powder 4tonnes
Packet filling 160000packets/day
Refrigeration capacity 1.5tonnes
Contracted maximum demand 900 chilling
Processing 150000
 UNIQUE ACHIEVEMENTS:
 The company got ISO 9001 and ISO 14000 trademark for its quality of milk.
 The company recently made record sales of 1.64 lakh Its/day where as its previous sales
record was 1.45m lakh Its/ day.

S.W.O.T ANALYSIS
STRENGTHS
1. Milk production potential in Krishna district substantial.
2. Ability to handle highly perishable product milk.
3. Adequate infrastructure facilities available.
4. Availability of well experienced professionals.
5. Ability to meet any consumer demand for milk and milk products.
6. Ability to offer quality aseptic products with high profitability.
7. Established bondage with farmers.
8. Access to developmental funds and grants.

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 9. Access to other co-operatives.
WEAKNESSES
1. 1 High fixed costs occupyingl 5% of business turnover.
2. Milk and milk products are high priced using competitive edge.
3. Product manufacturing facilities are outdated due to lack of modern facilities.
4. Work culture not compatible with growing for customer service.
5. Employee's skills at various levels require upgradation.
6. Business systems and modern management culture is yet to be adopted.
7. Managers lack of business experience.

OPPORTUNITIES:
1. Increased purchasing capacity.
2. Rapid urbanization.
3. Growing food service sector.
4. Responsive state government.
5. Export opportunities for long life aseptic milk.
6. Responsive milk producer base.

THREATS:
 Intense competition in liquid milk market.
 Entry of organized private sector.
 Increasing competition for the marketable surplus milk in rural areas.
 Employee's resistance to change.

SUCCESS STORY:
District Krishna is on the river rain track of Krishna a butting Bay of Bengal. Krishna District
is known for its quality cattle. In milk cattle population it ranks second in the state.
Organized dairying in Krishna commenced in 1965 with integrated Milk product assisted by
the UNICEF, a milk conservation plant 1.25 LL Pd was commenced in April, 1969 at
VIJAYAWADA. The dairy industry in the District had its beginning under state govt as part of
animal husbandry activity. It was integrated milk project (1960), dairy development department

11
(1971), Andhra Pradesh dairy development corporation (1974) and A.P. Dairy Development Co-
operative Federation (1981).
Union collects milk from about 1 lakh milk producers covering 800 villages organized
through 20 routes. District union has 6 milk chilling centers one each operating at Pamarru,
Hanuman Junction, Veerankilock, Gudlavalleru, Chillakollu and Tiruvuru with total processing
capacity of 1,22 lakh Its/day.
It has milk products factory with the facilities to manufacture different milk products.
Milk Processing 2.5 lakhs Its/day
Milk Drying 22 MT/day
Butter 22 MT/day
Ghee 18 MT/day
The milk products factory at Vijayawada handles surplus milk from all coastal districts.
About 1.73 lakh kgs/day with peak touching 3.18 lakh kgs/day. The factory conserves fat in the
shape of white butter usually to the extent of 1000 MTs per year.
An Aseptic Packing Station (APS) was set up in the, Milk Products Factory to pack
50000 liters of long the milk (UHT MILK) per day. Union has also 2 cattle feed mixing plants
with a total capacity of 50 Mt/day.
 RANKING OF THE DISTRICT IN ANDHRA PRADESH:
Milk production 3rd
Processing 4th
Marketing 3rd
Krishna district has milk procurement ranging from 45000 kgs to 105000 kgs per day
from 1969 to 1998 District being buffalo concentrated has wide procurement fluctuations. The
District Co-operative Milk Union provides the following inputs to the farmers for increasing
milk production.
 Premixed cattle feed.
 Cattle insurance at 2/3 subsidies.
 Veternity first aid facilities.
 Fodder seeds at subsidized rates.
 Animal vaccines & medicines at subsidize prices.
 AI facilities.

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  Breeding bulls
 Extension services.
 GROWTH OF THE FACTORY:
As an integral part of the above project the milk products factory, Vijayawada was
commissioned on 11-4-1969. The factory has got an initial handing capacity of 125000 liters in
the first stage with provision to handle 250000 liters milk in the second stage. It has crossed the
mark of 100000 liters in the very first year of its operation getting admiration form the UNICEF
officials.
The women has been playing a greater role in the rural dairying i.e. feeding of animals,
washing and milking etc To encourage this activity in an organized way the APDCFL of
foundation three district viz., Nalgonda, Krishna and Chittoor already 8 women co-operative
societies are organized and 200 new members have been enrolled a part from 1000 women
members enrolled in other societies.
 CHILLING CENTERS:
The milk products factory Vijayawada has set up 10 chilling centers which are given under
centre have been producing chilled milk for the composition of the various segments of the
consumers. Chilling centers are very useful to milk products factory following centers are in
Krishna District under the location of milk products factory, Vijayawada.
1. Pamarru
2. Hanuman Junction
3. Veerankilock
4. Gudlavalleru
5. ChillakoJdu
6. Tiruvuru
7. Gannavaram
8. Vuyyuru
9. Kaikaluru
10. Kankipadu

13
 Town No of selling booths Daily sales(in liters)
Vijayawada 185 68000
Machilipatnam 42 4000
Gudivada 25 1200
Total 252 73200

 INFRASTRUCTURE AND FACILITIES:

Milk products factory Vijayawada is located on 27.3 acres of land which houses of dairy
plant, Aseptic packing station, Administration office, effluent treatment plant, electrical
substation and residential quarters.
Following are the facilities available in Milk products factory Vijayawada and its field centers.
A. Milk products factory Vijayawada:
S.NO Name of the Facility Unit Capacity
1 Milk processing Lakh Its/day 2.5
2 Milk drying MTs/day 22.0
3 Ghee manufacturing MTs/day 18.0
4 Butter manufacturing MTs/day 22.0
5 UHT Milk packing Its/day 45000
6 Milk packing Its/day 200000
7 Go down space MTs 3000
8 Butter cold store MTs 500

B. FIELD:
S.NO Name of the Centre Unit Capacity
1 MCC Pamarru Lts/day 50000
2 MCC Veerankilock Lts/day 18000
3 MCC Gudlavalleru Lts/day 18000
4 MCC Hanuman Junction Lts/day 18000
5 MCC Chillakallu Lts/day 12000
6 MCC Tiruvuru Lts/day 12000

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 Total 128000
7 No of computerized milk
Collection and testing centers 25
8 No. of bulk coolers operating 6
(planned to establish ten more)

9 DCS having electronic milk testers 450

10 No. of A.I centers 56
11 No. of V.F.A centers 240
12 No. of DCS Organized 630
13 No. ofMPAs 320
14 Exclusive women DCSs 103
15 Farmer members 118689
16 Women members 23347
17 No. of milk routes 35
18 No of DCS having its own buildings 400

C. CATTLE FEED:
S.NO Name of the plant Unit Capacity
1 FMP Buddavaram M.T.s/day 30.0
2 FMP Gudlavalleru M.T.s/day 18.0

 MILK PROCESSING AND PRODUCTION:

Dairy Manager (I/c production) is heading the production division supported by four dairy
managers, 11 Asst. Dairy Managers and other production staff engaged in milk reception , milk
processing , Butter making, Ghee making , powder making bi- produc its manufacturing and
finished goods section. Production operations begin with milk reception at the dairy dock and
continued round the clock.

15
 MILK RECEPTION:
As soon as milk is arrived at the reception dock either through cans or tankers, the laboratory
authorities conduct all the platform / Bacteriological/ Chemical tests and after its quality
confirmation the milk is received and sent to storage.
 RAW MILK:
Milk products factory Vijayawada is directly connected by around 175 villages a radius of
around 50 kms around Vijayawada. The milk collected from these villages is collected directly at
milk products factory, Vijayawada for which it equipped with a can conveyer, an electrical
weighting machine, a dump tank and a straight through can washer with cleaning capacity of 600
cons per hr.

16
 Chilled Milk :
Cilled milk from chilling centers and other stations through milk tankers is received at the
and after receiving quality confirmation from laboratory the milk is sent for storage.
 MILK PROCESSING SECTION:
It has 12 storage tanks each of 15000 Its. Four creams vats each of 5000 Its capacity. It is
equipped with 3 milk pasteurizer of 20000 Its. Capacity / hour 15000 Its / hour and 10000 Its/
hour respectively. It also has cream pasteurizers with a capacity of 5000 Its/ hour. Altogether it
has milk storage capacity of four lakh Its.
OPERATIONS:
Separation of required quantity of whole milk to the extent of demand and with admixture of
whole milk /cream and skim milk in required proportions, milk is standardized according to their
composition and sent them to the packing or products manufacturing divisions.
 BUTTER SECTION:
It is equipped with three butter churns with drum capacity of 1500 Its each. The cream
loaded in the drums is churned for about three hours for separation of liquid butter milk from
cream after setting of butter; it was washed with chilled water to remove solids from it. The
butter formed is collected and sent back to processing section while the solids in liquid form of
butter milk is sent back to processing section for further usage.
 GHEE SECTION:
There are 7 ghee boilers in ghee section each with 1000 Its capacity in which butter is malted
for 3 hours at 120° c. After attaining satisfactory flavor, colour etc the ghee is pumped to ghee
setting tanks where it is allowed for eight hours for setting of sediment at the bottom of the tank.
There are settling tanks each 8000 Its capacity and two storage tanks each 3000 les capacity.
Then the ghee is clarified and filtered with fine filters. After obtaining satisfactory report from
lab authorities the final filtered ghee is packed in 51t, 21t, lit and 54 It etc. The total capacity of
ghee packing is 18.0 M.T per day.
 BI-PRODUCTS SECTION:
All the fresh milk products like butter milk, sweet lassie. Khova, paneer, yoghurt, milk cake are
manufactured and packed under strict hygienic and aseptic conditions in this section.
 POWDER SECTION: It has two powder plants. An alia level makes single effects gravity
flow milk evaporator plant with drying capacity of 8. M.T s per day and another valcan level

17
 double effect gravity flow milk evaporator plant with drying capacity of 14. M.TS per day
are under operation. Fine and superior quality ISI grade SMP is packed in 25 kg, 1 kg and Vi
kg packs.
 MILK PACKING:
It has the capacity to pack 200000 Its of various varieties of milk per day. It is equipped with
eight sachet packing machines each capacity is 150 tubs per hour. Five varieties of milk in Vi It
sachets for direct consumers. Cans for institutions are being packed.
 ASEPTIC PACKAGING STATION (APS):
Special officer is heading the APS unit. The APS was established in 1988 with the financial
assistance of NDDB in the existing campus of milk products factory, Vijayawada with a total
outlay of 22 crores. Milk is treated in high temperature plant for 2-3 seconds at about 1400 C
under low pressure followed by rapid cooling. This enables milk to be free of micro organisms
which are liable to proliferate during storage. Tetra Brick is a compact, sterile; pilfer proof,
unbreakable and long shelf life pack that retains freshness and goodness of milk for 3-4 months.
 SALES AND MARKETING:
Dy.Director (S&M) is heading the sales and marketing wing supported by a sales manager
and three Asst. sales Managers with a network of 700 booths, 300 round the clock cold chain
parlors. The sales and marketing wing of the union functions round the clock for the distribution
and marketing of milk and milk production.
DISTRIBUTION NETWORK:
1) LIQUID MILK DISTRIBUTION:
Vijayawada city is divided into 24 zones. Each zone is connected by a separate milk route
operating both morning and evening to distribute the milk to the commission agents and cold
chain points.
2) PRODUCT DISTRIBUTION:
a) Local distribution with in the district: Through distributors, stockiest and retailers.
Products are delivered to these Distributors /stockiest /retailers.
b) Distribution to outside district: Through stockiest and EX-factory direct sales through
out the country.
 PERSONNEL AND HRD: Personnel officer is heading the personnel department. HRD
activities are carried out for the benefit of the employees. It is looking after the service/

18
 administration matter of the staff of this union besides implementation of the following Acts
for their welfare.
1. 1 Industrial Dispute Act 1947
2. 2 Payment of wages Act 1936
3. 3 Minimum Wage Act 1948
4. 4 Equal Remuneration Act
5. 5 Gratuity 1972
6. 6 Workmen Compensation Act
7. 7 ESI Act 1948
8. 8 Trade Union Act 1926 etc.,
FINANCE:
Sr. Accounts officer is heading the finance who is assisted by four Asst. Account
Superintendent and finance staff. The union has started its operations independently from 8-02-
1985 on wards after taking the fixed assets from the state federation at their book values as on
that date.
 SHARE CAPITAL:
Authorized share capital Rs. 500 lakhs. The unions paid up share capital at present are Rs.
106.24 lakhs and Rs. 31.87 lakhs are share suspense waiting for conversion.
 LONG TERM LOANS:
The National dairy development board has provided loans to the union under O.F.2/3
program for capital projects in the union total R.s707.20 lakhs was financed for various projects
to the union under70:30 loans cum grant basis.
 ORGANIZATIONAL STRUCTURE:
STAFF POSITION:
Managing Director 1
Deputy Director 2
Sr. Accounts officer 1
Dairy Managers 6
Asst. Dairy Engineers 2
Quality Control Officers 1
Asst. Dairy Manager 15

19
Fodder Development Officers 1
Junior Engineers 4
Technical Staff 58
Transport 30
Finance 20
Administration 70
Field Staff 55
Others (Non Technical) 304

TOTAL 570

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OBJECTIVES OF THE STUDY:
The aim of this study is to investigate into employee recruitment and selection practices by
contractors in the Ghanaian construction industry. Specific objectives Consequently, the research
sought to undertake these specific objectives:
a) To identify existing recruitment practices adopted by construction companies in engaging
workers in the Ashanti Region.
b) To identify existing selection practices adopted by construction companies in engaging
workers in the Ashanti Region.
c) To determine which of the recruitment and selection practices influence the performance of
workers.
d) To identify challenges contractors encounter in the recruitment and selection of workers
NEED FOR THE STUDY:
The present study is a part and parcel in MBA curriculum, after completion of 1st year
during the summer I have undergone project work at this juncture I have decided to do my
project in HR area for that the present topic has been selected. It is my duty to fulfill the
curriculum which will helps us to new look inside of the learning that has been processed or
taken into consideration therefore, as per the norms and regulations of the ADIKAVI
NANNAYA UNIVERSITY. I have opted to do research project according to my interest in the
field of HR the main reason behind for choosing this topic is to get an in depth of study of the
Recruitment And Selection Process
 The success of any organization depends largely on the workers.
 The study was mainly undertaken to identify the level of employee’s attitude, the
dissatisfaction factors they face in the organization and for what reason they prefer to
change their job.
 Once the levels of Employee’s attitude are identified, it would be possible for the
management to take necessary action to increase retention level.
 Since employees are considered as backbone of the Company, their progression will lead
to the success of the Company for the long run.
 It is important to the organization to retain their human assets as they hold the key to
build organization culture and its productivity.

21
Limitations of the Study:
 Every research has its own challenges. Notwithstanding, this research had its own
limitations. During data collection, most of the workers were on site so it was quite
difficult getting in touch with them.
 Some senior members were reluctant in releasing vital information about recruitment and
selection in their respective organizations.
 Due to the combination of studies and work the researcher also did had limited time, but
these limitations did not affect the validity of the study.
 The survey was conducted within limited time frame and hence a few short comings may
be expected.
 The respondent’s personal basis may be another factor which is beyond my control.
 The finding of the survey is based on the responses of employees.
 The factory functions in shift system so all shift workers did not take part in the sample.
 Due to lack of time, the survey was conducted with 100 Respondents.

22
Chapter-2

23
 RESEARCH METHODOLOGY

RESEARCH:
Research is defined as a careful consideration of study regarding a particular concern or a
problem using scientific methods. According to the American sociologist Earl Robert Babbie,
“Research is a systematic inquiry to describe, explain, predict and control the observed
phenomenon. Research involves inductive and deductive methods.”
Inductive research methods are used to analyze the observed phenomenon whereas,
deductive methods are used to verify the observed phenomenon. Inductive approaches are
associated with qualitative research and deductive methods are more commonly associated
with quantitative research.
One of the most important aspects of research is the statistics associated with it,
conclusion or result. It is about the “thought” that goes behind the research. Research is
conducted with a purpose to understand:
 What do organizations or businesses really want to find out?
 What are the processes that need to be followed to chase the idea?
 What are the arguments that need to be built around a concept?
 What is the evidence that will be required that people believe in the idea or concept?
Characteristics of Research
1. A systematic approach is followed in research. Rules and procedures are an integral part of
research that set the objective of a research process. Researchers need to practice ethics and code
of conduct while making observations or drawing conclusions.
2. Research is based on logical reasoning and involves both inductive and deductive methods.
3. The data or knowledge that is derived is in real time, actual observations in the natural
settings.

4. There is an in-depth analysis of all the data collected from research so that there are no
anomalies associated with it.

5. Research creates a path for generating new questions. More research opportunity can be
generated from existing research.

24
6. Research is analytical in nature. It makes use of all the available data so that there is no
ambiguity in inference.

7. Accuracy is one of the important character of research, the information that is obtained while
conducting the research should be accurate and true to its nature. For example, research
conducted in a controlled environment like a laboratory. Here accuracy is measured of
instruments used, calibrations, and the final result of the experiment.
Basic Research:
Basic research is mostly conducted to enhance knowledge. It covers fundamental
aspects of research. The main motivation of this research is knowledge expansion. It is a non-
commercial research and doesn’t facilitate in creating or inventing anything. For example, an
experiment is a good example of basic research.
Applied Research:
Applied research focuses on analyzing and solving real-life problems. This type of research
refers to the study that helps solve practical problems using scientific methods. This research
plays an important role in solving issues that impact the overall well-being of humans. For
example, finding a specific cure for a disease.
Problem Oriented Research:
As the name suggests, problem-oriented research is conducted to understand the exact
nature of the problem to find out relevant solutions. The term “problem” refers to having issues
or two thoughts while making any decisions.
For e.g Revenue of a car company has decreased by 12% in the last year. The following could be
the probable causes: There is no optimum production, poor quality of a product, no advertising,
economic conditions etc.
Problem Solving Research:
This type of research is conducted by companies to understand and resolve their own
problems. The problem-solving research uses applied research to find solutions to the existing
problems.

25
 Qualitative Research:
Qualitative research is a process that is about inquiry, that helps in-depth understanding of
the problems or issues in their natural settings. This is a non- statistical research method.
Methodology is an intensive and purposeful search for knowledge and for the understanding
of social and physical phenomenon. It is the method for the discovery of true values in a scientific
way. There are two sources of data,

 Primary Sources and

 Secondary Sources

Primary Data:
The data which is collected at first hand for the purpose of the study is known as primary data.
Primary data which is collected through interaction with the assistant financial manager of KCP
company.

Primary sources:

It is also called as first handed information; the data is collected through the observation in the
organization and interview with officials. By asking question with the accounts and other persons in the
financial department. Apart from these some information is collected through the seminars, which were
held by KCP company.
Secondary Data:
The data which is corrected by some one previously is called secondary Data. It is already available in
the form of internal records of the company and other publications.
Secondary sources:
The secondary data have been collected through the various books, magazines, broachers &
websites
SAMPLE: The sample size is 100 employees are taken.

26
CHAPTER-3

27
 REVIEW OF LITERATURE
The Concept of Recruitment and Selection According to Windolf (1986), the choice of a
particular recruitment strategy by a firm is specific to the resources available to the organization
at hand and its environmental dynamics. Boxall, Purcell and Wright (2007), highlight five
different questions an organization has to answer to have an effective recruitment strategy in
order to pursue its survival and success. Those questions are “Whom to recruit?”, “Where to
recruit?”, “What recruitment sources to use?”, “When to recruit?” and “What message to
communicate?” The notion of effectiveness in this study relates to the manner by which
organizations implements its employment policies.

The essence is to understand whether such policies are applied appropriately in the
way they have been designed. As discussed by Jackson et al. (2009), human resource
management approaches in any business organization are developed to meet corporate objectives
and materialization of strategic plans. The nature of recruitment and selection for a company that
is pursuing HRM approach is influenced by the state of the labor market and their strength within
it. Furthermore, it is necessary for such companies to monitor how the state of labor market
connects with potential recruits via the projection of an image, which will have an effect on and
reinforce applicant expectations. Bratton & Gold (1999), were of the view that organizations are
now developing models of the kind of employees they desire to recruit, and 9 to recognize how
far applicants correspond to their models by means of reliable and valid techniques of selection.
Also related to the success of a recruitment and selection process are the strategies an
organization is prepared to employ in order to identify and select the best candidates for its
developing pool of human resources.

Organizations seeking recruits for base-level entry positions often require minimum
qualifications and experiences. These applicants are usually recent high school or
university/technical/college graduates many of whom have not yet made clear decisions about
future careers or are contemplating on engaging in advanced academic activity. At the middle
levels, senior administrative, technical and junior executive positions are often filled internally.
The push for scarce, high-quality talent, often recruited from external sources, has usually been
at the senior executive levels. Most organizations utilize both mechanisms to effect recruitment
to all levels. The focus of recruitment and selection according to Montgomery (1996), is on

28
matching the capabilities and inclinations of prospective candidates against the demands and
rewards inherent in a given job. Edirne (1984), postulated that the quality of recruitment
practices put in place by an organization is a function of the quantity of application that will be
received; he stated further that the relative effectiveness of the next human resources phase
(selection) is inherently dependent upon the quality of applicant attracted.

Furthermore, Smith and Robertson (1993), agreed with the above assertion by stating
that the more effectively the recruitment phase is implemented and carried out, the easier and
accurate the selection process becomes in making decisions on which applicant to select.
Odiorne (1984), added that the result of effective recruitment and selection are the reduction on
labour turnover, good employee morale and improves organisation performance.

Definitions of Recruitment:

Various researchers have contributed to the field of HRM, and have offered intensive and
profound knowledge on the branches of HRM especially on recruitment and selection. Below is
some of the different definitions of recruitment;

 Recruitment is the process of generating a pool of capable candidates applying to an 

organization for employment (Gold, 2007). This suggests that applicants with experience
and qualifications most closely related to job specifications may eventually be selected.
Organizations become concerned when the cost of a mistake in recruitment is high.
According to Armstrong (2006), the aim is to obtain, at a minimum cost, the number of
suitable and qualified candidates to satisfy the needs of the organization. The
organization attracts candidates by means of identifying, evaluating and using the most
appropriate sources of applicants. El-Kot and Leat (2008), observation is that recruitment
begins with advertising existing vacancies.
 According to Eze (2002), recruitment is the process of finding and attempting to attract
job candidates who are suitably qualified and therefore capable of filling vacancies in job
positions effectively. The purpose is to encourage them to apply for the vacant position.
Costello (2006), affirm that recruitment is a set of activities and processes used to legally
obtain adequate number of qualified applicant at the right place and time to enable
applicant and the organization to select each other for their own optimum interest.

29
  Furthermore in (2007), the chartered institute of personnel management of Nigeria
(CIPM) gave the definition of recruitment as the process of identifying and attracting or
encouraging individuals with the requisite skills and profile (potential candidates) to
apply to fill existing or future vacant positions in the organization by making them aware
that such vacancies exist. 11 Figure 2.1 Sources of Recruitment Source: Prashant (2009)
 Another scholar Jovanovic (2004), augured that recruitment is a process of attracting a
great pool of high quality applicants to select the best among them. Omale (1992), in
“past practice in personnel management in the Nigeria civil service: issues and
procedures” detained recruitment as the process which starts from getting an applicant
interested enough in a job and in a particular organization to write an application and the
process stops when his application has been received in the organization.

Judging from the above various definition of recruitment as given by professional

and scholars, it is apparent that recruitment borders or deals with the plan advertisement of
exiting vacant position in an organization in order to wool or attract suitable and qualify
applicant to apply for the vacant position or offices for employment in the said organization.
Based on the above recruitment is a very specialized field in Human Resources practices as it
involves techniques that will adequately identify the pool of skilled and quality applicants.

Sources of Recruitment:

Full-cycle recruiting is a term used by human resources specialists who manage the recruitment
process from start to finish as shown in Figure 2.1. Full-cycle recruiting begins with sourcing
candidates, which means looking for prospective applicants whose qualifications might be
suitable for the job openings you have.

Sources of Recruitment Internal sources External Sources Promotion, Transfer Advertisement,

E-Recruitment, Job Posting, Job Bidding Employee referrals, Labour Offices Employment
Agencies Education and training establishment 12 Sourcing has evolved in the past several years
with the proliferation of job and career sites.

30
 Every organisation has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources within the
organisation itself (like transfer of employees from one department to other, promotions) to fill a
position are known as the internal sources of recruitment. Recruiting candidates from all the
other sources (such as outsourcing agencies etc.) are known as the external sources of
recruitment.

1 Internal Sources of recruitment :

Internal sources refer to recruiting employees from within the organization. In deciding
requirement of employees, initial consideration should be given to a company's current
employees, which is concerned with internal recruitment. They include those who are already
available on the pay roll of the company. This is important source of recruitment as it provides
opportunities for better development and utilization of existing human resources in the
organization. Armstrong (2000a), proposed that first consideration should be given to internal
candidates, although some organizations with powerful equal opportunity policies (often local
authorities) insist that all internal candidates should apply for vacancies on the same footing as
external candidates.

Aspects of recruitment under internal sources are as follows:

 Promotions:
It refers to promoting or upgrading an employee who is already existed in the
pay roll and contributed to the organizational performance. It is shifting an employee to a
higher position with high responsibilities, facilities, status and pay. Usually, many
companies fill higher job vacancies by promoting employees who are considered fit for
such positions. This is due to fact that it has a great psychological impact over other
employees for their motivation towards better performance. Internal recruitment efforts
13 very often result in promotions.
Promotion signifies reward for past performance and encourages employees in
their efforts (Sherman, Bohlander, & Snell, 1998). Transfers: Transfer is a lateral shift
causing movement of individuals from one position to another. Langseth (1995),
consider transfers as being effected when the need for people in one job or department is

31
 reduced or increased, if the work load reduced employees would want to relocate to other
areas where they can have enough tasks to perform. Under it, employees are recruited
internally through transfer from one work place to another.It refers to the process of
interchanging the job duties and responsibilities of employees from one place to another
or from one department to another without any promotion in their position or grade. It is
a good source of generating qualified employees from over-staffed departments (Keshav,
2013).
 Job Posting:
Job posting is an open invitation to all employees in an organization to apply for
the vacant position. It provides an equal opportunity to all employees currently working
in the organization. Today it has become a very common practice in many organizations
across the world. Under this, vacancy announcement is made through bulletin boards or
in lists available to all employees. Interested employees, then apply for the post being
advertised. In this way, it has become one of the cost saving techniques of recruitment
(Keshav, 2013).
 Job bidding:
Is more effective when it is part of a career development program in which
employees are made aware of opportunities available to them within the organization. For
example, HR departments may provide new employees with literature on job progression
that describes the lines of job advancement, training requirements for each job, and skills
and abilities needed as they move up the job-progression ladder.
There are number of key advantages in using internal recruitment and these include:
 Labour Turnover: The turnover of valuable employees is reduced through internal
placement. Here, star employees within the company can be reassigned to an area within
the organization where the need is greater. Restricting the vacancy to internal candidate
can also help retain employees who might otherwise have left the organisation
(Sunderland & Canwell, 2008).
 Performance:
Internal recruitment might offer cost saving in the human resource management
process because of the record of performance available to recruiters. An internal
candidate has developed a record of accomplishment of performance during employment

32
 that provides the most accurate assessment of her on the job professional skills and
experience. If the company conducts formal performance reviews, the employee
performance and goal-setting information will give valuable insight to recruiters when
assessing internal candidates (Keshav, 2013).
 Time Value:
When qualified candidates exist internally, recruiting candidates internally can
decrease the time it takes to fill a position. This is particularly useful in a tight job
market, when the number of external candidates applying for a given job opening can
become astronomical. In such cases, selecting among qualified internal candidates may
be efficient because it offers costs savings, such as those associated with advertising and
from using staffing resources to interview numerous external candidates (Keshav, 2013).
Corporate Culture: Corporate culture might formally relate to the goals and objectives of
the company as articulated in its vision and mission statement. It informally includes the
business attitude, customs and etiquette. An external candidate that fulfills the
experience and skills needed for a position might not fit into the organizational culture.
Internal candidates are already familiar with the company's culture, policies and
procedures. For example, this might manifest itself in how meetings are conducted,
projects are organized or the use of consensus building in the decision-making process
(Keshav, 2013).
The principal disadvantages of internal recruitment are:
 Limited Choice: Internal recruitment provides limited choice of talent available in the
organization as it avoids the arrival of fresh candidates. Internal recruitment does not tap
any candidate from outside the organization; hence, the number of potential candidates
for the post is limited to those from within the organisation. There may be far better
external candidates who have more experience and better qualifications (Sunderland &
Canwell, 2008). Implementation of Traditional System: Internal recruitment requires
the implementation of traditional form, system, process and procedures. In addition, this
limits the scope of fresh talent in the organization (Keshav, 2013).
 Position: In using internal recruitment, existing employees, whether competent or not,
will feel that they have an automatic right to be given a more senior post (Sunderland &
Canwell, 2008).

33
  Costly: Taking into consideration that when an employee is promoted, instantly vacancy
instantly arises. In this regard, another employee is to be recruited to fill that position,
which may be costly affair (Sunderland & Canwell, 2008).
 Limited Internal Sources: The source of supply of manpower is limited in internal
recruitment method. When an employee is promoted, his/her previous position will be vacant
and another personnel is to be recruited to fill that vacant position (Keshav, 2013)
 External Sources of recruitment
External sources of recruitment refer to attracting applicants from outside a particular
organization to fill vacant positions. Like internal sources, they are useful to attracting
competent applicants to apply for advertised positions in various organizations. Broad varieties
of methods are available for external recruiting. Organizations should fully assess the kinds of
positions they want to fill and select the recruiting methods that are likely to reduce the best
results.
External source of recruitment include advertisement,e-recruitment, employment agencies,
labour office, education and training establishment (Beardwell, 2007; Cober & Brown, 2006).
Details of these sources are discussed in this section.
 Advertisement: is the most common form of external sources of recruitment
Organizations advertise vacant position on both electronic print and media to access a
larger pool of applicants. As cited by Nel et al. (2009:226), an advertisement has
communication as its basic underlying principle and it should be worded in a manner that
triggers responses from job seekers. Recruiters should formulate the wording of
advertisements in a manner that is not discriminatory. Advertisements are expensive but
attract a larger pool of applicants than internal recruitment processes. It is, however, more
difficult to evaluate external applicant than those that are already employed within the
organizations. According to Armstrong (2006), the objectives of an advertisement should
be to: 17 Attract attention – it must compete for the interest of potential candidates
against other employers; Create and maintain interest – it has to communicate in an
attractive and interesting way information about the job, the company, the terms and
conditions of employment and the qualifications required; Stimulate action – the message
needs to be conveyed in a manner that will not only focus people‟s eyes on the

34
 advertisement but also encourage them to read to the end, as well as prompt a sufficient
number of replies from good candidates (Armstrong, 2006).
 E-Recruitment: or online recruitment uses web-based tools such as a firm’s public
internet site or its own intranet to recruit staff. The processes of e-recruitment consist of
attracting, screening and tracking applicants, selecting, and offering jobs or rejecting
candidates. Cappelli (2001), has estimated it that it costs only about one-twentieth, as
much to hire someone online. The internet has become a way for employers to display
company image and advantages over competitors (Rotella, 2000). Many internet users
know the difficulty, frustration and inefficiencies of sorting through information to find
applicable and useful material. However, many companies find it difficult to integrate the
Internet with their existing systems (Brake & Lawrence 2000).
 Employee Referrals: An employee referral program is a system where existing
employees recommend prospective candidates for the job offered, and in some
organizations if the suggested candidate is hired, the employee receives a cash bonus.
Under this method, a candidate is appointed on the recommendation of some currently
working employees. Hence, the HR managers of various companies depend on the
present employees for reference of the candidates for various jobs. This source reduces
the cost 18 and time required for recruitment. Further, this source enhances the
effectiveness 9of recruitment. HR managers offer various incentives/rewards including
cash incentives to the current employees for referring the best candidates (Rajarao, 2010).
 Employment Agencies: Employment agencies, sometimes referred to as labour brokers,
even though they can face criticism from labour unions in Ghana, tend to be fast and
efficient in recruiting applicants for specialized positions. For a fee collected from either
the employee or the employer, usually the employer, these agencies do some preliminary
screening for the organization and put that organization in touch with applicants. Private
employment agencies differ considerably in the level of service, costs, policies, and types
of applicants they provide. Employers can reduce the range of possible problems from
these sources by giving a precise definition of the position to be filled (Sims, 2002).
 Labour Offices: are sources of certain types of workers. In some industries, such as
construction, unions have traditionally supplied workers to employers. A labor pool is
generally available through a union, and workers can be dispatched to particular jobs to

35
 meet the needs of the employers. In some instances, the union can control or influence
recruiting and staffing needs. An organization with a strong union may have less
flexibility than a nonunion company in deciding who will be hired and where that person
will be placed. Unions also can work to an employer’s advantage through cooperative
staffing programs, as they do in the building and printing industries (Keshav, 2013).
 Educational and Training Establishments:
Managers of organizations may visit educational institutions such as universities
and colleges to attract top students, especially during their final years of study to apply
for vacant positions. This method of recruitment 19 is also referred to as campus
recruiting and is one of the cheapest methods of recruitment. It introduces final year
students to the institution. The recruiter normally makes a presentation to final year
students and invites desirable students to visit public institutions exposing them to
different areas within the organization (Nel et al., 2009:227).

As with any recruiting method, hiring from outside an organization instead of promoting from
within the company carries both advantages and disadvantages. Some of the advantages are:

 When an organization recruits externally, it opens the organization up to a larger pool of

applicants, which increases its chance to find the right person for the job.
 Looking outside the organization also allows a company to target the key players that
may make its competition successful.
 Hiring a candidate with a proven record of accomplishment for the competition allows
the company to get an insider's view as to what the competition is doing to be successful.
This gives the organization a chance to stay a step ahead of the competition.
 External recruitment provides an opportunity for a fresh outlook on the industry that a
company may need to stay competitive. Bringing in fresh talent from the outside can
help motivate the current employees to produce and achieve more in hopes of obtaining
the next promotional opportunity.
 Hiring an external candidate also opens up many opportunities to find experienced and
highly qualified and skilled candidates who will help a company meet its diversity
requirements. The biggest advantage of external recruitment is that the company has no

36
 limited supply of candidates and can choose employees all over the world. 20 According
to Duggan & Croy (2004) external recruitment in an organization can face challenges:
 External recruitment requires an employee to adapt to the new environment and if the
new recruit is in management, the employees may tend to resist change that he or she
tries to implement because these changes may work against the organizational culture.
 This method of recruitment can indicate that the management of the organization fails to
train or motivate their staff through promotion opportunities and career advancement.
 In addition, external recruitment can lead to a high rate of labor turn over when
employees realize that there is no room for career advancement in the organization
(Manyonyi, 2011).

Definition of Selection :

Refers to selection as „the process of choosing from a group of applicants those individuals
best suited for a particular position in an organization.‟ Whereas the recruitment process is
aligned to encourage individuals to seek employment with the organisation, the selection process
is to identify and employ the best-qualified and suitable individuals for specific positions.
Traditionally, it was assumed that organizations could choose amongst applicants and that they
would accept all job offers. However, attracting a large number of applicants was not the
problem, but recruiting the right applicants became the main concern amongst employers
(Branine, 2008). With the oversupply of unskilled applicants (Nzukuma & Bussin, 2011), it can
be assumed that employers would be very careful before selecting any applicants. Employer
decisions about the selection of employees 21 are central to the operation of organizations and to
a series of outcomes that matter to individuals, organizations, and society.

Amos et al. (2004), as well as Mathis and Jackson (2006), define selection as the process
of selecting the most suitable applicants. The process, according to them, is guided by
predetermined selection criteria such as job descriptions, job specifications and job profiling and
commences after the recruitment process has been completed. Robbins et al. (2001), point out
that the objective of the selection process is to match the applicants‟ ability, knowledge, skills
and experience with job requirements in a fair and legal manner. This means that selection
panels, in their quest to select applicants with potential. Perhaps the most basic question in this
area is why employers engage in selection efforts at all.

37
Selection Process

Employer decisions about the selection of employees are central to the operation of
organizations and to a series of outcomes that matter to individuals, organizations, and society.
Perhaps the most basic question in this area is why employers engage in selection efforts at all.
Managers who are involved in hiring employees need to understand the skills and abilities that
are required in a particular job and determine which candidates have those capabilities.
Interviews, reference checks, tests, applications and résumés can all help identify differences
among candidates. Managers can make their selection decisions with a fuller awareness of the
applicants‟ strengths and weaknesses (Tjosvold and Newman, 2003).

 Screening: Screening, popularly known as short listing, is the first step after the
recruitment process is completed and applications received. In this step, all the
applications received by the due date 22 are screened and those that do not correspond to
the requirements stipulated in the advertisement are immediately eliminated in this step.
As Cuming (1994) and Nel et al. (2009), caution, selection panels have to be careful not
to discriminate against applicants with potential. Their decisions should be guided by
short-listing criteria that is developed against the job requirements stipulated in the
advertisements. Furthermore, they need to ensure that enough time is set aside for short-
listing.
 Selection tests: Selection tests are often used as part of a selection procedure for
occupations where a large number of recruits are required, and where it is not possible to
rely entirely on examination results or information about previous experience as the basis
for predicting future performance. Tests usually form part of an assessment centre
procedure. Intelligence tests are particularly helpful in situations where intelligence is a
key factor, but there is no other reliable method of measuring it. Aptitude and attainment
tests are most useful for jobs where specific and measurable skills are required, such as
typing or computer programming.
Personality tests are potentially of greatest value in jobs such as selling where
„personality‟ is important, and where it is not too difficult to obtain quantifiable criteria
for validation purposes. It is essential to evaluate all tests by comparing the results at the
interview stage with later achievements. To be statistically significant, these evaluation

38
 should be carried out over a reasonable period and cover as large a number of candidates
as possible. In some situations a battery of tests may be used, including various types of
intelligence, aptitude and personality tests. These may be a standard battery supplied by a
test agency, or a custom-built battery may be developed. The biggest pitfall to avoid is
adding extra tests just for the sake of it, without ensuring that they make a proper
contribution to the success of the predictions for which the battery is being used (Philipo,
2008).
 Reference & background check: Usually advertisements require that applicants
provide the names and contact details of people who can serve as referees to them in case
their applications are considered. Reference checks are used to verify the information that
is supplied by applicant and are usually done telephonically. Although most referees are
reluctant to respond to certain questions (Mathis and Jackson, 2006), reference checks
can be used to gather as much information that will be used in deciding whether to
appoint or decline to appoint the applicants.
References provide the organization with other people‟s perceptions of the
candidates professional ability. The company should contact the candidate’s previous
employers and colleagues. Questions to ask references might address the candidate's
creativity and initiative. This is mostly the reason why conditional job offers are given in
other to check the authenticity of what the candidate provided on the application form
(Snell and Bohlander, 2010). References are one of the more popular and „traditional‟
tools in the selection process. However, the validity and reliability of references has been
questioned, particularly with respect to their unstructured and often ambivalent nature
(Heraty and Morley, 1998).
 Interview: Interviews are virtually used by all organizations for selection purposes. In
support of this, Newell and Tansley (2001), indicate that interviews are by far the most
widely used personnel selection procedure. With the use of interviews, managers of
organizations get an opportunity to meet the applicants directly. The interview also
provides the applicants with an opportunity 24 to also learn more about the public
institution. The purpose of the selection interview is to gather as much information and to
use such information to arrive at a selection decision (Redman & Wilkinson, 2001:31).
During the interview, panel members (interviewers) normally pose questions to which the

39
 interviewee is expected to respond. Responses to the questions are often captured by
means of scores as determined the interviewers. The applicant that obtains the highest
score is recommended for appointment (Wilkinson, 2001:32). Because of interview
ambiguity, efforts must be made to ensure that all interviewees are being asked the same
questions (Gomez-Majia et al., 2004:175).
 Physical Examination: Applicants are often expected to undergo test(s) to determine if
they are fit to perform the job, should they be appointed. The most common example of
the employment tests that applicants often undergo is a medical examination. Medical
examination, also referred to as preplacement medical testing, is conducted only where
the applicants are required to use physical strength to successfully perform their duties
(Mathis and Jackson, 2006).
 Job Offer The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. In other words, it is the last step in the selection process.
Development of an offer via e-mail or letter is sometimes a more formal part of this
process.

Challenges of Recruitment and Selection:

According to Cooper et al. (2003) recruitment and selection of employees is the most
important job of a Human Resource person. CIPD (2009), suggest that effective recruitment is
central and crucial to the success of day-to-day functioning of any organization. The success of
recruitment depends upon finding the people with the right skills, qualification and expertise to
deliver organization objectives and the ability to make a positive contribution to the values and
aims of the organization (CIPD, 2009). Briggs (2007), identified some of the problem affecting
recruitment and selection as, the increasing pressure for employment, utilization of informal
sources of recruitment and delegation of recruitment function. These problems have resulted to
inadequate use of job description and standard employee requirement in the process of
recruitment. Kaplan and Norton (2004), indicates that a common problem in recruitment and
selection is poor Human Resource Planning (HRM). This is particularly so with recruitment and
selection policies and practices.

40
 The key goal of HR planning is to get the right number of people with the right skills,
experience and competencies in the right jobs at the right time at the right cost. Detailed and
robust recruitment and selection policies, such as recruitment and selection procedures, assessing
criteria, talents auditing and processing the information about the labour market are important in
recruiting and deploying appropriate employees at the right time. Batt (2002), affirms that
recruitment and selection experience can also impact on the likelihood that a candidate will
accept a job offer and on their subsequent commitment to remaining in the organization.
Appointment decisions are the most important ones a manager has to make; they affect the
manager’s ability to achieve targets, the quality of services or products delivered to the customer
and the well-being of the whole team.

Previous research shows that the competency level of HR managers have a major
influence on recruitment and selection and experienced HR experts within the HR department
will not only shorten vacancy duration, but also improve the quality of the applicants. Moreover,
effective recruitment and selection is possible only if there is a dedicated and competent HR
team (Kaplan and Norton, 2004). 26 Conducting a thorough job analysis and identifying the right
caliber of candidates bring about a good blend between applicants and the job. Argument has
been given that under qualified employees may not able to effectively perform their job positions
due to lack of knowledge and competencies, while on the other hand over qualified employees
tend to experience less job satisfaction due to their higher qualification than a desired level for a
given job. For every job in the organization as Armstrong (2006), identified, there are stages by
which a thorough job analysis must aim to achieve -defining requirement, preparing job
descriptions and specifications; deciding terms and conditions of employment, attracting
candidates, and reviewing and evaluating alternative sources of applicants inside and outside the
organization.

Job analysis process generates information which is converted into tangible outputs
of a job description and a person specification, that is what has to be done and who does it before
recruiting for a new or existing position. It is important to invest time in gathering information
about the nature of the job since it prescribes relevant personal qualities and attitudes as well as
skills and knowledge required for the job (Pilbeam and Corbridge, 2006). Organizations in the

41
selection process use methods such as application forms, interviews, formal tests, references,
assessment centres and official transcripts. An organization needs to choose a method that is
most appropriate to the job positions. HR experts generally drive the staffing process and the
purpose of the staffing is to fulfill the requirements of business, and the skill levels presented by
each new recruit is likely to be judged better if the line managers are involved in the recruitment
and selection process. In business strategy implementation, the involvement of line managers in
the entire staffing process (that is, drafting of job descriptions, setting selection criteria and being
on the panel of recruitment) is vital for ensuring recruitment and selection to meet business
needs. In other words, the line managers are the owner of the recruitment and selection process
along with HR playing a facilitator role.(Dess and Jason, 2001).

Organization that are less selective or hire lower-skilled employees are likely to
experience significant effects on productivity, while hiring a mismatched employee can result in
poor performance and higher turnover rates (Batt, 2002). Scholars have argued that other key
issues and controversies run through analyses of human resource management and recruitment
and selection: efficiency, control, and the difficulty of orienting practice towards social justice
are often cited. The first two problematic, as (Burton, 2001) notes, have been central to the
management of people for as long as managers have been present in organizations. The latter is
also common across all organizations, but is a particular academic and policy concern for smaller
or growing organizations (Burton, 2001).

In recruitment and selection practice, the construction of formalized selection

frameworks and norms of acceptable discrimination maybe seen as an attempt to enable
managers to navigate between efficiency, control and social justice. In their advice on how to
achieve the perfect fit of person, organization and job, they argue that selecting on the basis of
managerial opinion is „utterly unscientific and unreliable and that managers are „liable to be
turned this way and that by the most inconsequential of considerations‟. In place of this
unsatisfactory state of affairs, these scholars propose that the physical self-provide the key to
„unlocking the inner secrets‟ of the individual seeking employment, and therefore should inform
the selection process.

The underlying philosophy of this process is that everything about man indicates his
character and as much information as possible should be collected to inform a decision- making.

42
Recruitment may be conducted internally through the promotion and transfer of existing
personnel or through referrals, by current staff members, of friends and family members. Where
internal recruitment is the chosen method of filling vacancies, job openings can be advertised by
job posting, that is, a strategy of placing notices on manual and electronic bulletin boards, in
company newsletters and through office memoranda. Internal recruitment does not always
produce the number or quality of personnel needed.

According to McKenna & Beech (2002), some of the organizations traditionally taken
the employees from education institutions have operated many processes to recruit the young
people, who are in their final year or just completed their studies. In such an instance, the
organization needs to recruit from external sources, either by encouraging employee referrals;
radio advert, TV advert, newspaper advert, professional association, employment agents, door to
door, telephone, recruitment from school, job fairs, talent hunt, job proofing, initial job offer and
the use of labor office.

Impact of Recruitment and Selection Practice on Performance

Performance is an increasingly important issue for all business enterprises in developed and
developing economies in both public and private enterprises. Organizations are however not
exempted from the necessity of performance as they are continually threatened by increase
competition resulting from the increasing liberalization of the global economy. Individual
performance is topical issue in today’s business environment, to the extent that organizations go
to the length to appraise and manage it (Armstrong and Barron, 1998). Performance as defined
by Hellriegel et al. (1999), is the level of an individual‟s work achievement after having exerted
effort. Hayward (2005), stated that individual performance is a product of ability multiply by
motivation. With environmental factors influencing performance primarily through the effect of
individual determinants of performance ability and motivation.

Qureshi and Ramay (2006), argue that HR practices are positively correlated with the
profitability and suggest that management of organization must focus on these HR practices
(recruitment and selection) resulting in improved organizational profit. In order to get maximum
output from employees, it is important to consider a fit between successful candidates and the
organization. This is made possible by the use of selection criteria as basis on the questions

43
asked by the selection panel and in interview. By selecting the required candidates for positions
in respective departments, line managers could help achieve a better fit between job and
candidate (Zhuand Dowling, 2002). Other researchers Terpstra and Rozell (1993) have found a
positive relationship between the extensiveness of recruiting, selection test validation and the use
of formal selection procedures and firm profits.

Other studies have shown that implementing an effective staffing process is

positively related to organizational performance (Syed and Jama, 2012). Koch and McGrath
(1996), also found that sophisticated recruitment and selection procedures are positively related
to labor productivity as cited in Asiedu-Appiah et al. (2013). According to Foot and Hook
(1996), the primary aim of the recruitment and selection processes is to ensure that the best
applicants are appointed into positions. This implies that the recruitment and selection processes
can assist in predicting applicants‟ future performance and the period the applicant will stay as
an employee. As evidenced, human resources should be partners in strategic planning to
determine the types of skills and competencies that are required to achieve objectives (Cascio,
1991).

Inappropriate selection decisions also reduce organizational effectiveness,

invalidate reward and development strategies, are frequently 30 unfair on the individual recruit
and can be distressing for managers who have to deal with unsuitable employees”. Recruitment
and selection is very important for the survival of every organization but that does not end there,
new recruit need to be develop and appraised from time to time in order for them to be abreast
with new trends and challenges. When employees are developed it help increase their
performance and sustain the growth of the organization. Poor recruitment practices and
recruiting poor performing employees can have several negative effects on the organization some
of which are stated below:

 Employees with limited role specific capabilities take time to become productive and
need more training to build their skills, good employees hit the ground running and are
interested in learning Underperforming staff also affect the performance of many by a
multiplier effect.
 People who are not a good fit to the role require more time and attention from their
manager. The time that managers spend on developing their best people is reduced

44
  Higher human resources cost may arise as a result of time spent in recruiting poor
performing employees
 Client satisfaction is impacted through a increase in errors, poor decision making and less
effective client services

Bones (1996), remarked that “performance does not need to be managed rather needs to
be encouraged, developed, supported and sustained.” This implies that performance needs to be
designed and implemented within the context of the organizational structure. Armstrong (2009),
was also of the view that performance is the process, which contributes to the effective
management of individuals and teams in order to achieve high levels of organizational
performance.

Improving the Effectiveness of Recruitment and Selection:

An HRM approach can be adopted to recruitment, which involves taking much more
care in matching people to the requirements of the organization as a whole as well as to the
particular needs of the job. Moreover, these requirements will include commitment and ability to
work effectively as a member of a team. As described by Townley (1989), both followed a
conscious recruitment policy with rigorous selection procedures. Aptitude tests, personality
questionnaires and group exercises were used and the initial pre-screening device was a detailed
„bio data‟-type questionnaire, which enabled the qualifications and work history of candidates to
be assessed and rated systematically. Subsequent testing of those who successfully completed the
first stage was designed to assess individual attitudes as well as aptitude and ability.

The need for a more sophisticated approach to recruitment along these lines is
characteristic by HRM. The first requirement is to take great care in specifying the competences
and behavioral characteristics required of employees. At the very least, structured interviewing
techniques should be adopted. Wherever possible, psychological tests should be used to extend
the data obtained from the interview. Well-planned and administered assessment centres are the
best predictors of success in a job, but they are only practical for a limited number of more
complex or demanding jobs or for selecting graduates and entrants to training programmes.

45
Chapter-4

46
 Results And Discussion
1. Since how many years have you been working with this organization?
a. 0-5 Years
b. 5-10 Years
c. 10 to 15 Years
d. More than 15 Years

S.NO No. Of. Years NO OF RESPONDENTS PERCENTAGE (%)

1 0-5 Years 14 14

2 5-10 Years 20 20

3 10 to 15 Years 56 56

4 More than 15 Years 10 10

Total 100 100

years of experience

10 14

20 0-5 Years
5-10 Years
10 to 15 Years
56
More than 15 Years

Interpretation:

From the above analysis it is observed that in the organization 14% are in the scale of 0-5
years and 20% are in the scale of 5-10 and 56 are in the scale of 10-15 and 10% are in the
scale of more than 15 years of experience. It shows that the young talent is less in number

47
2. Does the organization clearly define the position objectives, requirements and candidate
specifications in the recruitment process ?
a. Yes
b. No

S.NO Define specification NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 64 64

2 No 36 36

Total 100 100

specifications

36

Yes
64
No

Interpretation:

From the above analysis it is observed that in the organization about 64% opted no and
36% opted yes that the organization clearly define the position objectives, requirements
and candidate specifications in the recruitment process

48
3. How well are the organization’s affirmative action needs clarified and supported in the selection
process?
a. Poor
b. Adequate
c. Excellent

S.NO Affirmativeness NO OF RESPONDENTS PERCENTAGE (%)

1 Poor 36 36

2 Adequate 28 28

3 Excellent 36 36

Total 100 100

Affirmativeness

36 36

Poor
Adequate
Excellent
28

Interpretation:

From the above analysis it is observed that in the organization about 36% feel poor , 28% feel
adequate and 36 % excellent by the organization’s affirmative action needs clarified and
supported in the selection process

49
4. Is the organization doing timeliness recruitment and Selection process.
a. Yes
b. No

S.NO LEVEL OF ATTITUDE NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 71 71

2 No 29 29

Total 100 100

Timeline recruitments

29

Yes

71 No

Interpretation:

From the above analysis it is observed that in the organization 71% agree and 29%
disagree that the organization is doing timeliness recruitment and Selection process.

50
5. Does HR provides an adequate pool of quality applicants ?
a. Yes
b. No

S.NO Quality applicants NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 59 59

2 No 41 41

Total 100 100

Sales

41
59
Yes
No

Interpretation:

From the above analysis it is observed that in the organization 59% agree and
41%disagree that the HR provides an adequate pool of quality applicants

51
6. Rate the effectiveness of the interviewing process and other selection instruments, such as
testing?
a. Poor
b. Adequate
c. Excellent

S.NO EFFECTIVENESS NO OF RESPONDENTS PERCENTAGE (%)

1 Poor 28 28

2 Adequate 36 36

3 Excellent 36 36

Total 100 100

EFFECTIVENESS

28
36

Poor
Adequate
Excellent

36

Interpretation:

From the above analysis it is observed that in the organization about 28% rated poor, 36% rated
adequate and 36% rated excellent about the effectiveness of the interviewing process and other
selection instruments, such as testing

52
7. Does the HR team act as a consultant to enhance the quality of the applicant pre-screening
process?
a. Yes
b. No

S.NO LEVEL OF ATTITUDE NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 56 56

2 No 44 44

Total 100 100

LEVEL OF ATTITUDE

44

56 Yes
No

Interpretation:

From the above analysis it is observed that in the organization about 56% opted yes and
44% opted no that the HR team act as a consultant to enhance the quality of the applicant
pre-screening process

53
8. Does HR train hiring employees to make the best hiring decisions?
a. Yes
b. No

S.NO EMPLOYEE TRAINING NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 64 64

2 No 36 36

Total 100 100

EMPLOYEE TRAINING

36

Yes
64
No

Interpretation:

From the above analysis it is observed that in the organization about 64% opted yes and
36% opted no that the HR train hiring employees to make the best hiring decisions?

54
9. Rate how well HR finds good candidates from non-traditional sources when Necessary?
a. Poor
b. Adequate
c. Excellent

S.NO NON-TRADITIONAL NO OF RESPONDENTS PERCENTAGE (%)

SOURCES
1 Poor 28 28

2 Adequate 36 36

3 Excellent 36 36

Total 100 100

Sales

28
36

Poor
Adequate
Excellent

36

Interpretation:

From the above analysis it is observed that in the organization about 28% opted poor 36%opted
adequate and 36% opted excellent that the HR finds good candidates from non-traditional
sources when Necessary

55
10. How would you rate the HR department’s performance in recruitment and selection?
a. Poor
b. Adequate
c. Excellent

S.NO HR PERFORMANCE NO OF RESPONDENTS PERCENTAGE (%)

1 Poor 25 25

2 Adequate 35 35

3 Excellent 40 40

Total 100 100

Sales

25
40

Poor
Adequate
Excellent
35

Interpretation:

From the above analysis it is observed that the organization is 25% poor 40% adequate and 35%
excellent by the hr departments performance in selection and recruitment process.

56
1. From the study, it is observed that most of the works are in the scale of 10 t0 15 years it
indicates the company is lagging with young workers which should be increased.
2. Company is recruiting the offspring of present & retired employees and trains them in
various jobs. The training period ranges from 2 to 5 months depending on the skill
required.
3. Ambulance and medical facilities are available in case of any accidents in work area.
4. The employee pay structure includes perks and production linked pay along with the
basic pay/salary.
5. Providing educational loans and primary educational benefits to the employees may
increase their engagement with their organization.
6. A green belt area is maintained inside the work place to ensure employee health & to
control the pollution.
7. From the study, it is observed that the main cause of retention is career development.

57
Chapter-5

58
Suggestions:

 In view of the above conclusions drawn from the findings, the following
recommendations were made to contribute to the practices of recruiting and selecting of
construction workers by contractors. The integral benefits of the identified recruitment
and selection practices cannot be overlooked; nevertheless, the following
recommendations must be well noted.
 Although a good number of the respondents did not have recruitment and selection
policy, to those who had it, a policy requiring recruitment and selection processes to
engage the best person for the job on merit must be put in place. Ensure that workers of
your organization or any person engaged in recruitment or selection is aware of the
policies and trained in how to interview and select in an unbiased fashion.
 Organizations with no policy should adopt formal recruitment and selection policies in a
better way. Formal recruitment and selection policies would help the firms in attracting
internal and external candidates in filling any vacant position. Existence of formal
policies can also improve the transparency and accountability in recruitment and
selection. Policies should also be changed in course of time.
 Before any recruitment and selection method will be adopted, employers should conduct
job analysis to determine job description, job specification, and job evaluation. Through
proper job analysis, firms will be able to fix up the specific duties and responsibilities of
every employee. Job analysis will help in determining skills and knowledge to be
possessed by the employees to hold various positions. It will also facilitate in providing
effective compensation packages to the employees.
 In situations of internal recruitment, ensure that the job vacancy is communicated to all
divisions of the workplace, intranet, notice boards, newsletter, team meetings etc. and
include communication to those on leave to avoid any perception that the internal
recruitment process is a formality – that is a preferred candidate has already been
identified.

59
CONCLUSION:

The overall aim of the recruitment and selection process should be to obtain at minimum cost the

number and quality of employees required to satisfy the human resource needs of the company

Hence, the management objective for recruiting workers despite the existing recruitment and

selection policy must be re-looked at to avoid critical failure in-terms of recruitment purpose

including undesirable levels of staff turnover and claims of discrimination from unsuccessful job

applicants

60
 BIBILIOGRAPHY

 Armstrong, M (2006), Strategic HRM: The key to improved business performance,

CIPD, London
 Armstrong, M (2006) - A Handbook of Human Resource Management Practice, 10th
Edition, Kogan Page, Ltd.
 El-Kot, G., & Leat, M. (2008). A survey of recruitment and selection practices in Egypt.
Contemporary Middle Eastern Issues.
 Jovanovich, D. M. (2004). Research, Evaluation, Planning and Assessment Experience.
John Tyler Community College, Midlothian, Virginia
 Keshav, P., (2013), Internal Sources And Methods Of Recruitment

61
 Questionnaire

1. Since how many years have you been working with this organization?
2. Does the organization clearly define the position objectives, requirements and candidate
specifications in the recruitment process ?
3. How well are the organization’s affirmative action needs clarified and supported in the
selection process?
4. Is the organization doing timeliness recruitment and Selection process.
5. Does HR provides an adequate pool of quality applicants ?
6. Rate the effectiveness of the interviewing process and other selection instruments, such
as testing?
7. Does the HR team act as a consultant to enhance the quality of the applicant pre-
screening process?
8. Does HR train hiring employees to make the best hiring decisions?
9. Rate how well HR finds good candidates from non-traditional sources when Necessary?
10. How would you rate the HR department’s performance in recruitment and selection?

62