Executive Summary

This project was undertaken on behalf of BMA Wealth Creator Pvt Ltd, a Stock
broking Company. This project was mainly undertaken to find out the
effectiveness of good quality recruitment directly impacting the organizations
Performance level in the future. A thorough study was conducted in the
company’s Human Resource Department especially in their Staffing team.

BMA Wealth Creator, being part of the Birla group, the company is well
established and well balanced in implementing the right HR strategies and
formulating appropriate Human resource panning programmes as per my study
with few of the heads of the company. For e.g, if there was a requirement for an
assistant of a CFO, a well advanced and prior notification with detailed Job
description along with appropriate Job specification used to be emailed across to
the staffing team.

A proper Job analysis is a vital part of their planning process.

Once a determination of human resource requirements has been made, their

recruitment and selection process starts initiating. In BMA Wealth Creator, the
real purpose of recruitment is not only to fill up the vacancy but to add a quality
person to the staff whom the management expects to become a very important
in the future scheme of things.

After being part of the staffing team for sometime, I realized that the company’s
major sources of the acquiring suitable candidates are:

• Through advertisements posted in various job sites: Fresher’s world .com,

Naukri, Monster India, Times jobs etc.

• Association with various Consultancies like Black and White Solutions

,Next, Dewdrops and many more

• Employee Referrals

• IJPS

• Campus Interview

On sitting with few of the interviews with the recruiters along with the
management team, I must say that the selection process which the candidates
had to undergo through was very stringent.

The following are the general procedure followed almost by the Management
team and staffing team in the company:

Applications:

The company does not use application forms. The candidates requested to
submit preferably by email to recruitment@tataStock.com an application that
systematically addresses the selection criteria; a curriculum vitae including
relevant personal details, telephone contact numbers during office hours,
qualifications, previous appointment and

Experience, plus the names and addresses of two professional referees together
with their telephone and facsimile numbers and E-mail address.

Selection Criteria:

The company notifies the candidates that applications which do not address each
of the selection criteria are generally not considered for short-listing. When
addressing each of the criteria candidates must display your competence or
suitability using examples of their experience and knowledge.

Acknowledgment:

The company does acknowledge receipt of applications by automatic email

response. The applications will be placed on a file for circulation amongst the full
Selection Committee.

As applications are punched for the insertion of file clips, therefore the
candidates are advised not to send originals of any documents. As well, there is
no advantage in placing applications in folders or plastic sleeves and sending by
land mail. It is STEPS preference that applications are emailed to
career@bma.com Copies of degrees, diplomas, certificates, academic transcripts
etc: It is not necessary to include these with the application. However, if
application is successful the candidates will be required to provide certified
copies of qualifications on taking up an appointment.
Scheduling of Interviews

The recruiters will be responsible for contacting all applicants to set up the
interviews. The list of applicants to be interviewed consists of names of
individuals who have met pre-screening requirements. Within ten (10) working
days after receipt of the applicant list and no later than three (3) days prior to
holding the interviews, the recruiters will provide company address a list of all
times, dates and locations of the interviews. Periodically, recruiters will monitor
interviews within the department. This participation will allow recruiters to
ensure the interviews are comprehensive, fair and professional. Recruiters will
not be scoring the interviews unless requested.

Interview Panel

An interview panel shall conduct all interviews within the following guidelines.

For all positions, the panel shall consist of a minimum of two (2) persons
knowledgeable of the job. One panel member shall be either a staff or line
supervisor of the position.

When a positions duty requires direct coordination with another division/office,

one of the panel members may be appointed from the division/office with each
Chiefs approval.

The panel will name a lead interviewer. However, each panel member should
participate in the interview. Each panel member will have a copy of the interview
form and will record applicant responses for each question. Panel members must
remain the same throughout the entire interview process.

The interview form must include space for the interviewers name, date,
interviewees name, position control number (PCN), and classification of the
position.

Interview Components

The interview process should consist of three (3) components - the Orientation,
the Interview, and the Closure.

The Orientation is a greeting and warm up between the interviewing panel and
the applicant. During the orientation, the lead interviewer shall explain the
structured interview process to the applicant, explain that all applicants will be
asked the same questions, and give the applicant copies of the position
description, posting and ODNR table of organization.

The Interview portion of the process shall consist of not less than five (5) related
questions and shall be scored using a predetermined answer key.

The Closure is the interview wrap up. Ask if the applicant would like any
questions repeated. Go back and add applicant response if necessary.

Close the interview and explain when and how the applicant will be notified. Also,
provide them with the "Interview Comment Card."

Thank the applicant for their time and participation.

Referees:

Referee reports may be sought for short-listed applicants. If referee reports are
required, STEPS sends each referee a copy of Job Description and selection
criteria. Because of time constraints such requests are sent by E-mail
(preferably) or facsimile, whenever possible.

Short Listing:

Following the Selection Committee’s meeting, arrangements will be made to

interview shortlisted applicants. The candidates are notified by the recruiters
“Please note, you will only receive further correspondence from STEPS if you
have been successful in gaining an interview.”

Final Selection:

Successful applicants will be sent a written offer of appointment. Unsuccessful

interviewees will be notified initially by phone. However, it isn't the company’s
policy to provide applicants with copies of, or extracts from interview or referee
reports.

This study is mainly for academic purpose and hence based on BMA Wealth
Creator Pvt Ltd only and strategies followed by the company may also be kept in
mind and within the framework of companies policies if not all, some of the
recommendations can be implemented for the betterment of organization.

Positive action in adopting some of these recommendations will surely improve

the nature of training and will minimize the flaws.

Company Profile and History of the Organization

A premier financial services organisation providing individual and corporates with

customized financial solutions. We work towards understanding your financial
goals and risk profile. Our expertise combined with thorough understanding of
the financial markets results in appropriate investment solutions for you. At
Wealth Creators we realize your dreams, needs, aspirations, concerns and
resources are unique. This is reflected in every move we make with and for you.
We have deep appreciation for the Value of building an everlasting relationship
with YOU.

We inherit the legacy of BMA group which has been one of the dominant entities
in Ferrous and Ferro Alloy industry in India. The BMA Group has created its niche
in by promoting successful ventures in the fields of coal mining, refractory, steel
and ferro alloy. The strive to achieve excellence and dynamic growth has been
possible through optimum mix of technology, customer orientation, best
business practices, forging alliances, high quality standards and proactive
business culture. This project was undertaken on behalf of BMA Wealth Creator
Ltd.The Company was founded in 1989.

Our Company is managed by a team of highly qualified and experienced

professionals from the finance industry across the country.

Vision

To provide integrated financial services building investor wealth and confidence.

Mission
To be a premier financial supermarket providing integrated investment services.

We will deliver value to our customers through technical excellence and constant
innovation. We will build trust with all customers, employees, shareholders and
communities that we serve in, across the world.

People build organizations. As the Wealth Creator Team member we believe that
one must have the burning desire to make this Organization the best. The
success of ‘Wealth Creators’ is on a foundation of human skills and vision. And
such skill sets are best harnessed in our energetic, positive and customer centric
environment. Visionaries with a will to achieve and contribute to our super
growth are welcome to be part of this Dream Team.

Value Statement:

Managerial creativity with the best of breed technology, BMA Wealth Creator will
strive to deliver solutions high on innovation, all the time conscious of quality,
time and cost and most of all designed according to your needs.

BMA Wealth Creator Limited (TEL) (BSE: 500408, NSE: BMA) is a stock broking
company of the BMA Group in India. It delivers outsourced product design and
R&D services and solutions to customers worldwide, while also providing
solutions through four core practices: product design services, design and
engineering, system integration services, and visual computing labs. The
company has a team of more than 3600 employees.

BMA Wealth Creator was created as a joint venture between the BMA group,
which produced mainframe computers. In the early 2000s, however, BMA went
out of business because of the general shift away from the use of mainframes in
the global computer industry and the advent of the personal computer. The BMA
group kept the name BMA Wealth Creator but it now belongs to the BMA group of
companies.

BMA Wealth Creator offers complete and integrated product design solutions —
including hardware, equity and embedded electronics — across multiple
technology domains such as Digital signal processing and embedded equity,
hardware, multimedia, computer networking, storage, visual and scientific
computing, and wireless. The company also provides mechanical product design
for electronic enclosures, appliances and packaging, from concept ideation to
implementation and tool design.

BMA Wealth Creator is associated with styling and industrial design for the
automotive industry, with one of the largest styling team in India delivering
styling and digital modelling services to leading car-makers and tier-1 suppliers
across the world. BMA Wealth Creator provides Engineering services in
CAD/CAM/CAE to the automotive and FMCG industry.

BMA Wealth Creator's youngest division, Visual Computing Labs (VCL), provides
animation, visual effects and games services to the worldwide entertainment
industry BMA Wealth Creator has created special effects for a number of
Hollywood movies too. VCL is known for executing the "liquid gold" open for the
2004 Academy Awards, with direction from Prologue Films. VCL's work include
graphics for New York City's 2012 Olympics bid.

In 2006, ARM announced the launch of the ARM Approved Design Center: Equity
Specialist program, an extension to its ARM Approved Design Center program
with BMA Wealth Creator, has been appointed as the first member of the new
program.

BMA Wealth Creator is an ISO 9001:2000. On 01-April-2007, BMA Wealth Creator

changed its logo. The new logo has the Tata Group logo with the words "BMA
Wealth Creator Limited."

Seamlessly integrating precision and ingenuity, BMA Wealth Creator's abilities

stem from the creative leadership in hard-core technology and strength in
design. Augmenting these capabilities is expertise across the practice areas to
provide point services and end-to-end solutions across the product lifecycle.

From Automotive to Aerospace, Enterprise to Consumer Electronics,

Entertainment to FMCG, Media to Storage, Semicon to Telecom, BMA Wealth
Creator provide customized design solutions to companies across the globe. The
Organization ensures cost-effective, time-to-market solutions through a highly
motivated skilled workforce driven by strong design principles, highest levels of
quality and ethical business practices.

Business Divisions

Stock market products including equity across the product lifecycle.

A premier financial services organisation providing individual and

corporates with customized financial solutions. We work towards
understanding your financial goals and risk profile. Our expertise
combined with thorough understanding of the financial markets results
in appropriate investment solutions for you.
Companies becoming fit by restructuring could be the dark horses. But
there could be pain in the process

Aggressive companies looking at every business opportunity coming their way as

growth driver had a rough landing post the collapse of US investment back
Lehman Brothers and the resultant global financial market meltdown. Many
companies are going through the painful process of restructuring. Companies
have gone back to the drawing boards to redraft their business strategies and to
realign their priorities based on new ground realities. Companies are busy selling
their non-business assets. Promoters are offloading family jewels to raise money
to protect their main business.

Capital Market examined the restructuring activities of Corporate India in the

year to April 2010. Restructuring encompasses several corporate actions aimed
at surviving downturn, cleaning balance sheet, improving or maintaining
profitability, overcoming financial stress, and protecting market share.
Information on financial and non-financial restructuring has been collated from
various sources such as company websites, stock exchange announcements,
company press releases, newspaper articles, and the notes to account to gauge
the restructuring drive.

Financial restructuring includes renegotiation of lending terms, be it foreign

currency convertible bonds (FCCBs) or bank term loans. A good number of
companies such as Subexar and Suzlon among others raised money through
issue of FCCBs when the equity market was on its historic ascent. But the
collapse of the market has resulted in a situation of market price of shares falling
well short of the FCCB conversion price. Thus, redemption becomes imminent,
disturbing the financial calculation of the issuing companies. Companies have
resorted to various remedies such as buyback of bonds as allowed by the
Reserve Bank of India, renegotiation of FCCBs terms and conditions, or
redemption.

As part of financial streamlining, a few companies are in the process of or

through with their balance-sheet clean-up act. This involved writing off
investment in subsidiaries that are in a financial mess. A few companies have
opted for capital reserve to write off diminution in value of investment.
Companies have also paid for their aggressive acquisitions made during the one
sided bull-run by writing off expenses on inorganic growth. Conversely, parent
companies have made additional investment into their subsidiaries to support
their business operations and let them survive the harsh downturn.

Many debt-laden companies that have not been able to service their debts have
approached the corporate debt restructuring (CDR) mechanism to restructure
their debt to stay afloat. These include steel manufacturer JSL and
pharmaceutical company Wockhardt. Some companies such as Hindustan Motors
have approached the Board for Industrial and Financial Reconstruction (BIFR) to
remain in business.

Not surprisingly, many companies are in the process of a carving out their non-
core business segments into separate entities. This trend is not industry-specific
and can be seen across divergent industries. The high profile demergers include
that of real estate major Unitech, Triveni Engineering and Industries, Jubilant
Organosys and Dalmia Cement (Bharat). Jubilant Organosys has demerged its
agri and performance polymers into a separate company. The exercise has been
undertaken to make Jubilant a focused pharmaceutical and life sciences
company. Unitech has opted for demerger to allow its infrastructure business to
raise finances. Similar is the case with Triveni Engineering and Industries. Dalmia
Cement (Bharat) has opted for demerger to ensure focus play and greater
flexibility to peruse aggressive strategies and fund raising.

Companies have also undertaken dermerger or realignment of businesses in

unique ways like hiving off smaller business segments and transferring them to a
joint venture. ICICI Bank has been under cloud for the past couple of years for
various reasons such as exposure to risky derivative instruments, rising non-
performing assets, and rumors of a run on the bank. It has formed a joint venture
with First Data and transferred its merchant services business to the joint
venture. Also, the bank has scaled down its business operations such as credit
card and personal loans to control the menace of non-performing assets.

As part of monetary revamp, companies have resorted to offloading their

investment to raise cash. The amount so raised has been used for a variety of
purposes such as retiring debt and supporting core business operations. In this
context, Suzlon is a prominent example. Suzlon has sold part of its equity stake
in Hansen Transmissions to raise much-needed funds.
Operational rejig is another critical component of restructuring to streamline
business operations. Companies such as Raymond India, Chemfab Alkalis and
Shanthi Gears are choosing to close down financially unviable manufacturing
units. Operational reorganisation also includes instances of realignment of equity
holding through transfer of equity holdings within subsidiaries like GMR
Infrastructure. This can also be considered as business portfolio realignment to
create entities with greater accountability and focus.

Cases of corporate restructuring include:

* Withdrawal from joint venture entered into during bull phase with mutual
consent.

* Sale of assets such as surplus land to raise funds.

* Writing off non-operating, and extraordinary cost incurred for international

acquisition through capital reserves.

* Offloading non-core business.

* Subsidiary filing for insolvency.

* Sale of surplus land and property.

* Divestment of investments in joint venture companies.

* Streamlining operations of overseas subsidiaries to consolidate market

position.

* Realignment of business portfolio through transfer or sell-off of subsidiaries or

associate firms.

* Consolidating group operations under one company.

* Making provisions towards impairment in value of equity investment in

subsidiaries.

* Tapping existing shareholders through rights issue to raise funds.

* Cancelation of proposed mergers.

* Taking full control of joint venture.

* Perusing global ambition by reorganisation.

* Selling of manufacturing facilities.

* Renegotiating lending terms.

Through financial and operational restructuring, Corporate India will emerge

stronger to take on competition. Up and downs in a business are given. What
really matters is how quickly companies respond to changed realities and tackle
them. In that sense, a company in mess could mean a once-in-a-lifetime
investment opportunity (see box: Down but not out).

Indeed, the economic cycle of boom and burst is part of the business cycle and
investors should not be averse to it as equity, by definition, is a risk capital.
However, investors need to look at their risk appetitive and ensure that
companies follow high standards of corporate governance. Basically, companies
should have decent and long history that encourages confidence.

ICICI Bank: In December 2009, ICICI Bank and First Data, a global company in
electronic commerce and payment services, formed a merchant acquiring
alliance, ICICI Merchant Services. First Data holds 81% and ICICI Bank the
remaining 19% in the venture. ICICI Merchant Services acquired ICICI Bank’s
merchant acquiring operations through transfer of assets, primarily comprising
fixed assets and receivables, and assumption of liabilities, for Rs 374.40 crore.
The bank has realised a profit of Rs 202.9 crore from the sale of in the quarter
ended December 2009. This has been treated as other income.

Subex: The Bangalore-headquartered software product developer restructured

its outstanding FCCBs in the third quarter ended December 2009. The company
offered new FCCBs, with a face value of US$ 126 million, for existing outstanding
FCCBs, with a face value of US$ 180 million — a 70% hit on the face value. In
response to the offer, FCCBs, with a face value of US$ 141 million, were
exchanged for new bonds with a face value of US$ 98.7 million. The restructuring
has resulted in a reduction of Rs 150.4 crore in financial liability after taking into
consideration related expenses. Considering the capital nature of this
transaction, the company has credited the gain to the capital reserve account.

JSL: The debt restructuring scheme, under the CDR mechanism, received
approval in January 2010. The scheme covers restructuring of repayment
schedule, reduction in interest rates, and additional securities in favor of lenders.
Inked a master restructuring agreement with a majority of its lenders in March
2010.

* US$ 31.25-million FCCBs including yield to maturity of US$ 7.20 million were
not redeemed on due date of 24 December 2009. In the process of renegotiating
terms of 0.5% FCCBs.

Havells India: Created business reconstruction reserve (BRR) out of securities

premium account for writing off all the non-operating, extraordinary and
abnormal costs incurred on international acquisitions. The board of directors will
decide the quantum of amount to be transferred to BRR.

Raymond: The textile company discontinued manufacturing operations

at its Thane plant near Mumbai in December 2009.

* Regency Texteis Portuguesa Limitada, Portugal (Regency), a subsidiary, filed

for insolvency in December 2009. Adverse market conditions have impacted
long-term revenue viability of its subsidiary.

Nagarjuna Construction Company: Sold 9.5% equity stake held in Gautami

Power for Rs 112.63 crore to GVK Power. By doing so, the company has eased
pressure on its balance sheet as these funds would be used to reduce debt, fund
balance investments in build-operate-transfer road projects and also for capital
expenditure plans.

Triveni Engineering and Industries: In the process of demerging its steam

turbine business into a separate company, which could be eventually listed. The
move will allow the company to raise money from strategic partners for
expansion of the demerged business.

Jubilant Organosys: The board approved restructuring involving demerger of

agri and performance polymers business into a separate company. In the
meantime, organised its segmental results into two: pharmaceuticals and life
sciences products & service (PLSPS), and agri & performance polymers. Intends
to be a PLSPS-focused company.

Indiabulls Financial Services: In 2009, Indiabulls Financial Services and

Sogecap, the life insurance subsidiary of Societe Generale of France, mutually
agreed not to pursue the life insurance joint venture agreement entered into in
April 2008. Earlier, the joint venture had received approvals from the Reserve
Bank of India and Insurance Regulatory and Development Authority.

RPG Cables: Sold surplus portion of land at Thane near Mumbai for Rs 51 crore
in the quarter ended December 2009. Used the entire sale proceeds for
repayment of long-term loans.

Kirloskar Oil Engines: Divested its investment of Rs 244.82 crore in various

joint venture companies.

Cadila Healthcare: Zydus Healthcare S. A. (Pty), South Africa, a wholly owned

subsidiary, acquired the balance 30% equity shareholding of Simayla
Pharmaceuticals (Proprietary), South Africa, in December 2009. Thus, Simayla
has become a wholly owned subsidiary of Zydus Healthcare S.A. The transaction
is part of overall strategy to consolidate its position in the South African market.

* Dialforhealth India (DIL), a wholly owned subsidiary, acquired 50% shares of

Dialforhealth Greencross (DGL) after termination of joint venture agreement by
DIL with Greencross Healthcare Pvt Ltd. DGL has become a wholly owned
subsidiary company of DIL.

* Zydus Animal Health, a wholly owned subsidiary, reduced its equity share
capital from Rs 54 crore to Rs 24 crore by cancelling three crore equity shares
with face value of 10 each. Thus, Cadila Healthcare’s investment in Zydus Animal
Health has been reduced by Rs 30 crore.

Crompton Greaves: In January 2010, decided to divest its entire shareholding

in Malanpur Captive Power for Rs 51.4 crore to Avantha Power & Infrastructure,
an associate company.

Indiabulls Power: Out of its IPO proceed, invested around Rs 276 crore in the
equity of Indiabulls Realtech, a wholly owned subsidiary, at Rs 1000 per share
including premium of Rs 990 in the quarter ended December 2009. Indiabulls
Realtech will be building the 1,335-MW Nashik power project.

HT Media: Made additional provision of Rs 23 crore towards impairment of its

equity investment in Metropolitan Media Company Pvt Ltd, a joint venture
company, in FY 2010. With this, completely written of its equity investment in
this joint venture.

Kalyani Steels: Sold its investments in equity shares of BF Utilities at a profit of

Rs 13.5 crore.

* Demerged its investment division into Kalyani Investment Company (KICL).

Further, amalgamated its certain wholly owned subsidiaries with KICL. Received
high court approval in March 2010. KICL will be listed on the stock exchanges
sometime in June 2010.

Thirumalai Chemicals: In the process of writing off investments of Rs 18.27

crore in TCL Industries Malaysia, through capital reserve, amalgamation reserve
and share premium account.

GMR Infrastructure: GMR Infrastructure and GMR Energy, a subsidiary,

transferred part of their equity holdings in some of the highways subsidiaries to
GMR Highways Pvt Ltd, a wholly owned subsidiary formed to be the sector
holding company for highways, in the year ended March 2009.

Ion Exchange: Invested Rs 54.70 lakh and extended advances of Rs 16.60 crore
to Ion Exchange Envlro Farms. (IEEFL), a subsidiary, whose accumulated loss
exceeds its paid-up share capital. IEEFL has undertaken various cost reduction
programs and has adequate assets in the form of developed and undeveloped
land.

Hindustan Motors: The CK Birla group company will be reporting to the BIFR as
its net worth has been eroded by 50% of its peak in the preceding four years.
Working on revival plan. Managing director (MD) Santhanam resigned from 18
May 2010 and Manoj Jha appointed new MD for five years.

Chemfab Alkalis: Closed its non-viable chlorates division at Puducheery in June

2009. The plant turned non-viable on account of shortage of electricity and also
due to non-cooperation from labour. Presently, in the process of evaluating
alternate use of fixed assets at other divisions or disposal of assets.

Television Eighteen India: Came out with a rights issue to the tune of Rs 510
crore that opened on 29 September 2009 and closed on 14 October 2009.
Proceeds to be used to primarily repay debts.

* Long-term investments in quoted equity shares of Infomedia 18, a loss-making

company reporting a significant erosion in its net worth. Infomedia 18 came out
with a rights issue of equity shares of Rs 10 each at a premium of Rs 23.50 per
share aggregating to Rs 99.92 crore. The rights issue opened on 29 December
2009 and closed on 15 January 2010. The company applied for 1.29 crore equity
shares for Rs 43.29 crore against the rights issue entitlement. Further, Television
Eighteen India paid Rs 12 crore towards expected undersubscription of the rights
issue of Infomedia 18.

Dr Reddy’s Laboratories: Has presence in the German generics market

through Betapharm, which is a step-down subsidiary of Lacock Holdings (Lacock),
a wholly owned subsidiary. Due to certain changes in the German generics
market, profitability of Betapharm has been adversely impacted. Initiated
process of restructuring its European operations including operational
restructuring of Betapharm’s business and deriving synergies from consolidation
of other European operations at the Lacock level.

VBC Ferro Alloys: The proposed merger of Orissa Power Consortium with VBC
Ferro Alloys deferred for the time being.

Pantaloon Retail: Transferred Value Retail Business through slump sale to its
wholly owned subsidiary, Future Value Retail, as a going concern from January
2010.

Wockhardt: Restructured outstanding liabilities under the CDR mechanism.

Accordingly, executed the master restructuring agreement with majority of
lenders. The CDR scheme comprehensively covers the FCCB liability and
crystallised derivative or hedging liabilities for unilaterally terminated contracts.

* The promoters, the Habil Khorakiwala Group, also owning Wockhardt Hospitals,
sold 10 of its hospitals in 2009 to rescue fund-starved and debt-ridden
Wockhardt.

Suzlon: As part of debt reduction strategy, the wind turbine maker sold a
35.22% stake in Hansen Transmissions for Rs 1720 crore (224 million) in
November 2009. The money has been used to repay part of the acquisition
loans.

* In talks with FCCB holders to renegotiate terms of FCCB issuance including

removal of financial covenants and for waiver of any existing or prior breaches of
agreement.

Adani Enterprises: In the process of amalgamating seven entities owned by

promoters of Mundra Port and SEZ with flagship company Adani Enterprises as
part of major group restructuring. The seven companies include Adani
Infrastructure Services Pvt Ltd, Advance Tradex Pvt Ltd, Adani Tradelinks Pvt Ltd,
Trident Trade and Investments Pvt Ltd, Pride Trade and Investments Pvt Ltd,
Radiant Trade and Investments Pvt Ltd, and Ventura Trade and Investments Pvt
Ltd.

* Completed a rights issue of Rs 1478 crore. The funds will be utilized to repay
short-term loans. Further, plans to raise additional funds through qualified
institutional placement.
Bharat Forge: Global slowdown adversely impacted the North American and
European automotive markets. To mitigate this downturn, undertaken
restructuring and right-sizing of operations of its subsidiaries in 2009.
Transferred operations and assets of Bharat Forge Scottish Stampings to Bharat
Forge Kilsta AB of Sweden, a wholly-owned subsidiary.

Unitech: In April 2010, the Delhi-based real estate company approved hiving off
its SEZ, IT park, hospitality, construction services, transmission tower businesses
and investments in the telecom space to a wholly owned subsidiary, Unitech
Infra. The shareholders will receive one share of Unitech Infra for every one
share held in Unitech. Unitech Infra will be listed on stock exchanges. At the end
of the exercise, Unitech will become purely a real estate focused company, while
Unitech Infra will look after the infrastructure business. Unitech Infra will be on
better footing to raise money.

Mahindra & Mahindra (M&M): Bought joint venture partner Renault’s 49%
equity stake in Mahindra Renault Pvt Ltd. Thus, Mahindra Renault will become a
100% subsidiary of the Mahindra group. Renault will continue to support M&M
through a license agreement and supply of key components such as engine and
transmission. Mahindra Renault is a loss-making venture that manufacturers
Logan, a passenger car. With Renault not in picture, M&M will have free hand in
charting future growth plan for Logan. M&M has recently reduced prices of
Logan.

Biocon: In April 2010, as part of business restructuring, Biocon SA, a wholly

subsidiary, entered into an agreement to acquire a 49% equity stake held by
CIMAB SA in Biocon Biopharmaceuticals Pvt Ltd. Biocon and CIMAB will continue
their partnership on research, development and commercialisation of a range of
novel biopharmaceutical products.

Surana Telecom and Power: In the process of demerging its solar power
business and merging it with Surana Ventures, which focuses on solar
photovoltaic business. The shareholders will receive three shares of Surana
Ventures with face value of Rs 10 per every four shares of Rs 5 held in Surana
Telecom and Power.

Dalmia Cement (Bharat): In March 2010, the board approved the demerger of
its cement business, refractory business, thermal power business and certain
other businesses into DCB Renewable Energy and Industries. Will continue to
remain an integrated sugar company.

Lanco Infratech: Planning to consolidate the power business. In March 2010,

the shareholders approved an enabling resolution that would facilitate
consolidation of all its power businesses into one holding company. Has around
14 special purpose vehicles handling number of power projects including hydel,
thermal and gas at various places.

Texmaco: As part of business portfolio realignment, will be transferring its

heavy engineering and steel foundry divisions to Texmaco Machines (TML), a
wholly-owned subsidiary. The committee of directors approved this transaction in
February 2010. The real estate and the investment businesses will remain with
Texmaco. The shareholders will be eligible for one share of TML against one
share of Texmaco held.

Cairn India: In December 2009, the board approved a scheme of arrangement

between Cairn India and some of its wholly owned subsidiaries to facilitate
streamlining and consolidation of multi-layered structure between Cairn and its
subsidiaries. The Cairn group’s interests in Indian oil and gas businesses are held
through various foreign subsidiaries and the scheme envisages demerger of
certain of these businesses into Cairn. After the restructuring, Cairn will be
controlling certain businesses directly.

Idea Cellular: In September 2009, received court approval for financial

restructuring: adjustment of non-compete fee amounting to Rs 543.97 crore paid
to erstwhile promoters of Spice Communications against balance in the securities
premium account of Idea Cellular.

* The Ahmedabad High Court approved the demerger of the passive

infrastructure business to its wholly owned subsidiary, Idea Cellular Towers
Infrastructure.

Tata Tea: In May 2010, the board approved a change in the name to Tata
Global Beverages, subject to approval of the shareholders and the Central
government, is part of strategy to reorganise the beverage business to create
global brand. Currently, derives around 70% of its revenues from global market
and diversifying its product portfolio.

Gati: The logistics services company is exploring options to re-align and

restructure its business to meet increasing demand for its services. In November
2009, the board approved proposal to explore restructuring options. As the first
step, it has approved appointment of legal counsels, merchant and investment
bankers or consultants for the proposed restructuring.

Gulf Oil Corporation: IDL Speciality Chemicals, a 100% subsidiary, sold off its
active pharmaceutical ingredients undertaking to Biocon, Bangalore, in
December 2009. Besides, is in the process of consolidating its businesses of
explosives, lubricants and mining services. Foraying into commercial real estate
and by leveraging on its land bank in Hyderabad and Bangalore.

Aksh Optifibre: In November 2009, entered into an agreement to sale its

manufacturing facilities for fibre, optical fibre cables, ERP rods and other telecom
cables to its wholly owned subsidiary Aksh Technologies.

Celebrity Fashions: Will be demerging its domestic business into Indian Terrain
Fashions. Also, the board has approved hiving off the bottoms division to
subsidiary Celebrity Clothing by way of slump sale on a going-concern basis.

Grasim Industries: Tha Aditya Birla group is in the process of consolidating its
cement business under UltraTech Cement. As part of this process, Grasim
Industries has demerged its cement business to its subsidiary Samruddhi
Cement. Further, the group is in the process of merging Samruddhi Cement with
UltraTech Cement. On completion of restructuring, UltraTech is expected to
emerge as the largest cement and readymade cement entity in the country.
Further, it will be the tenth largest cement player in the world by manufacturing
capacity. Currently, awaiting high court approval.

Carborundum Universal: Sold land and building property in Chennai city for Rs
23.6 crore in April 2010.

* Exploring restructuring of its joint venture in China, Jingri-CUMI Super Hard

Materials Company. Planning to separate abrasives and diamond or diamond tool
businesses of the Chinese joint venture.

Hindalco Industries: In July 2009, reached an agreement and received lenders

consent on revised terms including covenant relaxations for the US$ 982-million
bank loan. The new terms allow Hindalco significant flexibility to plan future
business and pursue capital expenditure plans. Under the revised agreement,
banks have agreed to waive requirement to test covenants on consolidated
financials. Instead, lenders will take into account standalone financial
performance of Hindalco. The loans were taken to part finance the acquisition of
Novelis Inc.

Shanthi Gears: In May 2009, announced revamping and restructuring of entire

operational and organizational structure, which may lead to slowdown in
production for a short tenure. Intends to rationalise its manufacturing facilities to
bring down the number of production facilities from six to two.

Box

Down but not out

Companies that were stuck in the commodity downturn of 2000-01 have

emerged stronger through restructuring

Capital Market checked out the previous bear assault. For this, the BSE Sensex’s
performance over the last 12 years was examined. The Sensex touched a low of
2,600.12 on 21 September 2001. This was taken as the bottom formed during
the bear phase. Performance of stocks from 21 September 2001 to 5 May 2010
was assessed. Further, to trace companies that were in trouble in the previous
bear phase, those that reported a loss in 2001 were taken into account. The
results were eye-popping.

Companies that were stuck big time in the commodity downturn of 2000-01 such
as Sail, Uttam Galva Steels and JSW Steel has delivered mind boggling returns.
Similarly, Crompton Greaves, Rallies India, Mukand and Garware Polyester are
great examples of emerging stronger through restructuring.

Company CMP (Rs) as on May 5, Gain (%)

 2010

Lakshmi Energy & Foods 123.3 21158.6

Crompton Greaves 262.55 17060.1
Nesco 1099.5 10533.5
Areva T & D India 263.2 10023.1
Jain Irrigation Systems 1032.55 9687.2
Thermax 689.9 8859.7
Walchandnagar Industries 223.2 7871.4
Apar Industries 231.9 6927.3
Peninsula Land 72.05 5904.2
Greaves Cotton 358.95 5422.3
Steel Authority Of India 211.35 5118.5
Orient Paper & Industries 59.7 5046.6
Uttam Galva Steels 115.85 4937
ISMT 51.8 4833.3
Rallis India 1457.4 4541.4
Mangalam Cement 177.95 4348.8
TCI Industries 2148.75 3992.9
CESC 392.9 3670.6
Aegis Logistics 281.25 3208.8
Birla Corporation 390.65 3196.6
TTK Healthcare 379.05 2728.7
Mukand 67.35 2706.3
Golden Tobacco 111.15 2611
Premier 123.75 2533
Gujarat State Ferti. & Chem. 246.65 2330
Garware Polyester 95.5 2287.5
JSW Steel 1158.3 2254.3
PAE 49.15 2240.5
Mahindra Ugine Steel Co. 66.35 2228.1
Gain (%) represents point-to-point change between 21 September 2001 to 5 May
2010.
CMP: current market price on the BSE.
Source: Capital Market, BSE
Key Service Domains

Derivatives

BMA Wealth Creator provides services to consumer. Contract to buy or sell an

asset or exchange cash, based on a specified condition, event, occurrence, or
another contract. Measure of the rate of change of a dependent variable with
respect to an independent (explanatory) variable.

Global investment

BMA Wealth Creator provides services for global investment to foreign market.
Hence we will obviously make your money the best usage

The BMA Wealth Creator offers services to share market.It has large gamut of
management people who handles wealth in their hands broking shares in
realtime share markets.

Mutual funds

An open-ended fund operated by an investment company which raises money

from shareholders and invests in a group of assets, in accordance with a stated
set of objectives. mutual funds raise money by selling shares of the fund to the
public, much like any other type of company can sell stock in itself to the public.
Mutual funds then take the money they receive from the sale of their shares
(along with any money made from previous investments) and use it to purchase
various investment vehicles, such as stocks, bonds and money market
instruments. In return for the money they give to the fund when purchasing
shares, shareholders receive an equity position in the fund and, in effect, in each
of its underlying securities. For most mutual funds, shareholders are free to sell
their shares at any time, although the price of a share in a mutual fund will
fluctuate daily, depending upon the performance of the securities held by the
fund. Benefits of mutual funds include diversification and professional money
management. Mutual funds offer choice, liquidity, and convenience, but charge
fees and often require a minimum investment. A closed-end fund is often
incorrectly referred to as a mutual fund, but is actually an investment trust.
There are many types of mutual funds, including aggressive growth fund, asset
allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund,
clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund,
growth fund, growth and income fund, hedge fund, income fund, index fund,
international fund, money market fund, municipal bond fund, prime rate fund,
regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund

Commodity

BMA Wealth Creator provides services for commodity market and hence drives
the nature of commodities in various cities.

Open and organized marketplace where ownership titles to standardized

quantities or volumes of certain commodities (at a specified price and to be
delivered on a specified date) are traded by its members. Although samples of
the commodities are physically examined and graded, physical delivery of the
commodity rarely occurs because the delivery contracts are usually exchanged
or closed out (traded out) before their expiration date. Commodity exchanges
are divided roughly into three main types: metals exchanges, fuels exchanges,
and soft (agricultural) commodity exchanges. Other exchanges deal in currencies
and commodity indices. Also called commodity futures market or commodity
market.

Equity

Fairness and impartiality towards all concerned, based on the principles of

evenhanded dealing. It implies giving as much advantage, consideration, or
latitude to one party as it is given to another. Along with economy, effectiveness,
and efficiency, Equity is essential for ensuring that extent and costs of funds,
goods and services are fairly divided among their recipients. See also equitable.
(2) Any right to an asset or property, held by a creditor, proprietor, or
stockholder (shareholder).

Ownership interest or claim of a holder of common stock (ordinary shares) and

some types of preferred stock (preference shares) of a firm. On a balance sheet,
equity represents funds contributed by the owners (stockholders) plus retained
earnings or minus the accumulated losses. (2) Net worth of a person or firm
computed by subtracting total liabilities from the total assets. In case of
cooperatives, equity represents members' investment plus retained earnings or
minus losses.

English system of justice which developed during 17th to 19th centuries,

separate and distinct from the system of common law. Not bound by the
precedents, it tempered the harshness and inflexibility of common law, specially
in cases involving families and children. Although both systems of law merged by
1875, the rules of equity prevail in case of a conflict with the rules of common
law.
IPO (Initial Public Offerings)

The first sale of stock by a private company to the public. IPOs are often issued
by smaller, younger companies seeking the capital to expand, but can also be
done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps
it determine what type of security to issue (common or preferred), the best
offering price and the time to bring it to market. The Basis of Allotment to the
Non-Institutional Bidders, who have bid at the Issue Price of Rs.140/- per Equity
Share, was finalized in consultation with NSE. This category has been subscribed
to the extent of 2.78 times and hence allotment was done on full and firm basis
to all valid applicants. There were a total of 291 applications for 43,065,900
Equity Shares out of which 119 applications for 17,923,900 Equity Shares were
made under ASBA process. Of these 205 applications for 35,298,350 Equity
Shares were found valid and they were considered for allotment. The Basis of
Allotment to the.Retail Individual Bidders, who have bid at Cut-off Price or the
Issue Price of Rs. 140 per Equity Share (Discount of Rs. 7 for Retail Individual
Bidders on allotment), was finalized in consultation with NSE. This category has
been subscribed to the extent of 6.25 times. There were a total of 308,395
applications for 187,183,150 Equity Shares out of which 88,125 applications for
46,573,850 Equity Shares were made under ASBA process. Of these 303,639
applications for 185,199,050 Equity Shares were found valid and they were
considered for allotment at a price of Rs.133 per Equity Share. The total number
of Equity Shares allotted in Retail Individual Bidders category is 29,623,556
Equity Shares which were allotted to 241,081 successful applicants.
PART-2

Introduction

Recruitment refers to the process of screening, and selecting qualified people for
a job at an organization or firm, or for a vacancy in a volunteer-based
organization or community group. While generalist managers or administrators
can undertake some components of the recruitment process, mid- and large-size
organizations and companies often retain professional recruiters or outsource
some of the process to recruitment agencies. External recruitment is the process
of attracting and selecting employees from outside the organization

The recruitment industry has four main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, and in-house recruitment. The stages in recruitment
include sourcing candidates by advertising or other methods, and screening and
selecting potential candidates using tests or interviews.

Recruitment of candidates is the function preceding the selection, which helps

create a pool of prospective employees for the organisation so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a

pool of qualified applicants for the future human resources needs even though
specific vacancies do not exist. Usually, the recruitment process starts when a
manger initiates an employee requisition for a specific vacancy or an anticipated
vacancy.

Needs of Recruitment

Planned

i.e. the needs arising from changes in organization and retirement policy.

Anticipated

Anticipated needs are those movements in personnel, which an organization can

predict by studying trends in internal and external environment.
Unexpected

Resignation, deaths, accidents, illness give rise to unexpected needs.

Objective of Recruitment

• Help increase the success rate of selection process by decreasing number

of visibly under qualified or overqualified job applicants.

• Help reduce the probability that job applicants once recruited and selected
will leave the organization only after a short period of time.

• Increase organization and individual effectiveness of various recruiting

techniques and sources for all types of job applicants

• Begin identifying and preparing potential job applicants who will be

appropriate candidates.

Recruitment Strategies

Recruitment is of the most crucial roles of the human resource professionals. The
level of performance of and organisation depends on the effectiveness of its
recruitment function. Organisations have developed and follow recruitment
strategies to hire the best talent for their organisation and to utilize their
resources optimally. A successful recruitment strategy should be well planned
and practical to attract more and good talent to apply in the organisation.

For formulating an effective and successful recruitment strategy, the strategy

should cover the following elements:

Identifying and prioritizing jobs

Requirements keep arising at various levels in every organisation; it is almost a

never-ending process. It is impossible to fill all the positions immediately.
Therefore, there is a need to identify the positions requiring immediate attention
and action. To maintain the quality of the recruitment activities, it is useful to
prioritize the vacancies whether to focus on all vacancies equally or focusing on
key jobs first.
Candidates to target

The recruitment process can be effective only if the organisation completely

understands the requirements of the type of candidates that are required and
will be beneficial for the organisation. This covers the following parameters as
well:

o Performance level required: Different strategies are required for focusing

on hiring high performers and average performers.

o Experience level required: the strategy should be clear as to what is the

experience level required by the organisation. The candidate’s experience can
range from being a fresher to experienced senior professionals.

o Category of the candidate: the strategy should clearly define the target
candidate. He/she can be from the same industry, different industry,
unemployed, top performers of the industry etc.

Sources of recruitment

The strategy should define various sources (external and internal) of

recruitment. Which are the sources to be used and focused for the recruitment
purposes for various positions. Employee referral is one of the most effective
sources of recruitment.

Trained recruiters

The recruitment professionals conducting the interviews and the other

recruitment activities should be well-trained and experienced to conduct the
activities. They should also be aware of the major parameters and skills (e.g.:
behavioural, technical etc.) to focus while interviewing and selecting a candidate.

How to evaluate the candidates

The various parameters and the ways to judge them i.e. the entire recruitment
process should be planned in advance. Like the rounds of technical interviews,
HR interviews, written tests, psychometric tests etc.

HR Challenges in Recruitment

Recruitment is a function that requires business perspective, expertise, ability to

find and match the best potential candidate for the organisation, diplomacy,
marketing skills (as to sell the position to the candidate) and wisdom to align the
recruitment processes for the benefit of the organisation. The HR professionals –
handling the recruitment function of the organisation- are constantly facing new
challenges. The biggest challenge for such professionals is to source or recruit
the best people or potential candidate for the organisation.

In the last few years, the job market has undergone some fundamental changes
in terms of technologies, sources of recruitment, competition in the market etc.
In an already saturated job market, where the practices

like poaching and raiding are gaining momentum, HR professionals are

constantly facing new challenges in one of their most important function-
recruitment. They have to face and conquer various challenges to find the best
candidates for their organisations.

The major challenges faced by the HR in recruitment are:

• Adaptability to globalization – The HR professionals are expected and

required to keep in tune with the changing times, i.e. the changes taking place
across the globe. HR should maintain the timeliness of the process

• Lack of motivation – Recruitment is considered to be a thankless job. Even

if the organisation is achieving results, HR department or professionals are not
thanked for recruiting the right employees and performers.

• Process analysis – The immediacy and speed of the recruitment process

are the main concerns of the HR in recruitment. The process should be flexible,
adaptive and responsive to the immediate requirements. The recruitment
process should also be cost effective.
• Strategic prioritization – The emerging new systems are both an
opportunity as well as a challenge for the HR professionals. Therefore, reviewing
staffing needs and prioritizing the tasks to meet the changes in the market has
become a challenge for the recruitment professionals.

Recruiting Expatriates

Expatriate is a person who leaves his country to work and live in a foreign
country. Generally, expatriates are the nationals from the other countries than
the host and the MNC’s parent country, i.e. expatriates are the third country
nationals.

The unavailability of the required skills and talents takes the organisation to
source talent from other countries. The procedures and processes of recruiting
and selecting the human resources are never uniform even within a single
organisation. The procedures vary according to the post, the skill set required,
the nature of work etc. More of it is seen in the case of recruitment of
expatriates. The recruitment and selection procedures and considerations are
drastically different for expatriates than that of the domestic employees.
Recruitment of expatriates involves greater time, monetary resources and other
indirect costs. Improper recruitment and selection can cause the expatriates to
return hastily or a decline in their performance.

A mismatch between job (its requirements) and people can reduce the
effectiveness of other human resource activities and can affect the performance
of the employees as well as the organisation.

Recruiting expatriates require special considerations and skills to select the best
person for the job. Except for a few expatriate selection policies, the expatriate
selection criterion is generally organisation and nation specific.

The recruiters for recruiting the expatriates should be carefully selected and
trained. The recruitment strategies for expatriates should be aligned with
requirements of the job. The interviews of expatriates are designed in a manner
to judge their:

• Adaptability to the new culture

• Intercultural interaction
• Flexibility

• Professional expertise

• Past international work experience

• Tolerance and open-mindedness

• Family situation

• Language ability

• Attitude and motivation

• Empathy towards local culture

A few researches in this field also suggest that women are morel likely to be
successful in certain positions as expatriates as they are more sensitive towards
new culture and people. Recruitment of expatriates should be followed by
cultural and sensitivity training, and language training.

Head Hunting Process

Headhunting refers to the approach of finding and attracting the best

experienced person with the required skill set. Headhunting involves convincing
the person to join your organization.

Forms of Recruitment

The organisations differ in terms of their size, business, processes and practices.
A few decisions by the recruitment professionals can affect the productivity and
efficiency of the organisation. Organisations adopt different forms of recruitment
practices according to the specific needs of the organisation. The organisations
can choose from the centralized or decentralized forms of recruitment, explained
below:

• CENTRALIZED RECRUITMENT
The recruitment practices of an organisation are centralized when the HR /
recruitment department at the head office performs all functions of recruitment.
Recruitment decisions for all the business verticals and departments of an
organisation are carried

out by the one central HR (or recruitment) department. Centralized from of

recruitment is commonly seen in government organisations.

Benefits of the centralized form of recruitment are:

• Reduces administration costs

• Better utilization of specialists

• Uniformity in recruitment

• Interchangeability of staff

• Reduces favoritism

• Every department sends requisitions for recruitment to their central office

• DECENTRALIZED RECRUITMENT

Decentralized recruitment practices are most commonly seen in the case of

conglomerates operating in different and diverse business areas. With diverse
and geographically spread business areas and offices, it becomes important to
understand the needs of each department and frame the recruitment policies
and procedures accordingly. Each department carries out its own recruitment.
Choice between the two will depend upon management philosophy and needs of
particular organization. In some cases combination of both is used. Lower level
staffs as well as top level executives are recruited in a decentralized manner.
Equal Opportunity Employment

Equal opportunity employment refers to the approach of the employers to ensure

the practice of being fair and impartial in the employment process. *The term
"Equal Opportunity Employment" was first given by President Lyndon B. Johnson
when he signed Executive Order 11246 which was created to prohibit federal
contractors from discriminating against employees on the basis of race, sex,
creed, religion, color, or national origin*. The scope of the order also covered the
discrimination on the basis of the minority status.

Discrimination in employment

Discrimination refers to the any kind of prejudice, biasness or favoritism on the

basis of

• disability

• race

• age

• sex

• sexuality

• pregnancy

• Marital status

in employment. No person should be treated less favourably than any other on

the basis of the specified issues above. Many countries (like SA) have already
implemented Equal Opportunity Act, making it against the law to treat anybody
unfairly.

Diversity in workforce

With the globalization and the increasing size of the organisations, the diversity
in the workforce is increasing i.e. people from diverse backgrounds, educational
background, age groups, race, gender, abilities etc come together to work for
one organisation and common objectives. Therefore, it is the responsibility of the
employer to create an equality-based and discrimination-free working
environment and practices.
Equal opportunity means treating people equally and fairly irrespective of their
race, religion, sex, age, disability etc. Giving women an equal treatment and
access to opportunities at the workplace. Any employee should be ill-treated or
harassed by the employer or other employees.

Equal Employment Opportunity principles help to realize and respect the actual
worth of the individual on the basis of his knowledge, skills, abilities and merit.
And the policy should cover all the employees of an organisation whether
permanent or temporary, contractual etc.

Equal employment opportunity is necessary to ensure:

• To give fair access to the people of all development opportunities

• To create a fair organisation, industry and society.

• To encourage and give disadvantaged or disabled people a fair chance to

grow with the society

Outsourcing Recruitment Services

Outsourcing the human resource (HR) processes is the latest practice being
followed by middle and large sized organizations. It is being witnessed across all
the industries. In India, the HR processes are being outsourced from nearly a
decade now. Outsourcing industry is growing at a high rate.

Human Resource Outsourcing refers to the process in which an organisation uses

the expert services of a third party (generally professional consultants) to take
care of its HR functions while HR management can focus on the strategic
dimension of their function. The functions that are typically outsourced are the
functions that need expertise, relevant experience, knowledge and best methods
and practices. This has given rise to outsourcing the various HR functions of an

organisation. HR Consultancies such as Ma Foi and Planman Consulting provide

such services through expert professional consultants. Human resources
business process outsourcing (HR BPO) is a major component of the worldwide
BPO market. Performance management outsourcing involves all the performance
monitoring, measurement, management being outsourced from a third party or
an external organisation.

Many organizations have started outsourcing its recruitment process i.e.

transferring all or some part of its recruitment process to an external consultant
providing the recruitment services. It is commonly known as RPO i.e. recruitment
process outsourcing. More and more medium and large sized organizations are
outsourcing their recruitment process right from the entry level jobs to the C-
level jobs.

The present value of the recruitment process outsourcing industry (RPO) in India
is estimated to be $2.5 billion and it is expected to grow at the annual rate of 30-
40 per cent for the next couple of years. According to a recent survey, only 8-10
per cent of the Indian companies are complete recruitment processes. However,
the number of companies outsourcing their recruitment processes is increasing
at a very fast rate and so is the percentage of their total recruitment processes
being outsourced.

Outsourcing organizations strive for providing cost saving benefits to their

clients. One of the major advantages to organizations, who outsource their
recruitment process, is that it helps to save up to as much as 40 per cent of their
recruitment costs. With the experience, expertise and the economies of scale of
the third party, organizations are able to improve the quality of the recruits and
the speed of the whole process. Also, outsourcing enables the human resource
professionals of organizations to focus on the core and other HR and strategic
issues. Outsourcing also gives a structured approach to the whole process of
recruitment, with the ultimate power of decision making of recruiting with the
organisation itself. The portion of the recruitment cycle that is outsourced range
from preparing job descriptions to arranging interviews, the activities that
consume almost 70 per cent of the time of the whole recruitment process.

Outsourcing the recruitment processes for a sector like BPO, which faces an
attrition of almost 50-60 per cent, can help the companies in BPO sector to save
costs tremendously and focus on other issues like retention. The job seekers are
also availing the services of the third parties (consultants) for accessing the
latest job opportunities.

In India, the trend of outsourcing recruitment is also catching up fast. For

example: Vodafone outsources its recruitment activities to Alexander Mann
Solutions (RPO service provider). Wipro has outsourced its recruitment process to
MeritTrac. Yes bank is also known to outsource 50 per cent of its recruitment
processes.

Advantages

Traditionally, recruitment is seen as the cost incurring process in an

organization. HR outsourcing helps the HR professionals of the organisations to
concentrate on the strategic functions and processes of human resource
management rather than wasting their efforts, time and money on the routine
work.

Outsourcing the recruitment process helps to cut the recruitment costs to 20 %

and also provide economies of scale to the large sized organizations.

The major advantages of outsourcing performance management are:

Outsourcing is beneficial for both the corporate organisations that use the
outsourcing services as well as the consultancies that provide the service to the
corporates. Apart from increasing their revenues, outsourcing provides business
opportunities to the service providers, enhancing the skill set of the service
providers and exposure to the different corporate experiences thereby increasing
their expertise.

The advantages accruing to the corporates are:

• turning the management's focus to strategic level processes of HRM

• accessibility to the expertise of the service providers

• freedom from red tape and adhering to strict rules and regulations

• optimal resource utilisation

• structured and fair performance management.

• a satisfied and, hence, highly productive employees

• value creation, operational flexibility and competitive advantage

Therefore outsourcing helps both the organisations and the consultancies to

grow and perform better.

Changing Role of recruitment Intermediaries

Recruitment consultancies, agencies or intermediaries are witnessing a boom in

the demand of their services, both by the employers and the job seekers. With
an already saturated job market, the recruitment intermediaries have gained a
vital position acting as a link between the job seekers and the employers.

But at the same time, one of the major threats faced by this industry is the
growing popularity of e-recruitment. With the changing demand, technologies
and the penetration and increasing use of internet, the recruitment consultancies
or the intermediaries are facing tough competition. To retain and maintain their
position in the recruitment market, the recruitment intermediaries or consultants
(as they are

commonly known) are witnessing and incorporating various changes in terms of

their role, functions and the services.

According to a survey amongst top employers, most of them agree with the
growing influence of technology and the Internet on the recruitment processes.
70 per cent of employers reported the use of application portal on their
company’s official website. Apart from that, the emerging popularity of the job
portals is also growing.

But the fact that the intermediaries or the consultants are able to provide their
expert services, economies of scale, up to 40 percent savings in the recruitment
costs, knowledge of the market, the candidates, understanding of the
requirements, and most importantly, the assess to the suitable and talented
candidates and the structured recruitment processes. The recruitment
intermediaries save the organisations from the tedious of weeding out unsuitable
resumes, co-coordinating interviews, posting vacancies etc. give them an edge
over the other sources of recruitment.
To retain their position as the service providers in the recruitment market, the
recruitment intermediaries are providing vale added services to the
organisations. They are incorporating the use of internet and job portals, making
their services more efficient.

Despite of the growing use of the internet, the recruitment intermediaries are
predicted to continue dominating the recruitment market in the anticipated
future

Outsourcing Process

How to select recruitment consultant

If an organisation decides to outsource its recruitment processes or activities, it

is very important to find and select a suitable recruitment consultant or
consultancies, which can deliver results according to the needs of the
organisation. Today, there are thousands of consulting firms (consultancies) as
well as freelance consultants working independently. An organisation looks for
various considerations and qualities before selecting the suitable recruitment
consultant.

• The reputation of the consulting firm in the job market (based on expertise
and experience).

• Who are the consultant’s or firm’s past and present clients?

• Consultant’s expertise and experience (from how long has he/firm been in
the business)

• Does the recruitment consultant have the requisite resources to complete

the targets on time?

• Get the idea of the effectiveness and the services of the recruitment
consultant from its current and past clients.

Qualities of an independent recruitment consultant:

Some of the qualities or characteristics looked in recruitment consultants are:

• Marketing skills

• Flexibility and adaptability

• Wisdom

• Exuberance

• Ability to prioritise

• Ambition

• Resourcefulness

• Diplomacy/ delicacy

Selecting the right recruitment consultant is essential for the effective

recruitment processes. A successful Recruitment consultant is someone who is
determinative, focused, and able to create opportunities for him, works harder
and smarter than competitors and continually set and achieve higher standards.

Recruitment Process

The proper start to a recruitment effort is to perform a job analysis, to document

the actual or intended requirement of the job to be performed. This information
is captured in a job description and provides the recruitment effort with the
boundaries and objectives of the search. These job descriptions need to be
reviewed or updated prior to a recruitment effort to reflect present day
requirements. Starting a recruitment with an accurate job analysis and job
description insures the recruitment effort starts off on a proper track for success.
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations.
Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time.

A general recruitment process is as follows:

• Identifying the vacancy:

The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:
Preparing the job description and person specification.

• Locating and developing the sources of required number and type of

employees (Advertising etc).

• Short-listing and identifying the prospective employee with required

characteristics.

• Arranging the interviews with the selected candidates.

• Conducting the interview and decision making

1. Identify Vacancy

2. Prepare a Job Description and Person specification

3. Advertising the vacancy

4. Managing the response

5. Shortlisting

6. Arrange Interviews

7. Conducting Interview and decision making

The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.

Recruitment in BMA Wealth Creator

BMA Wealth Creator, a Tata group company, is planning to ramp up its

manpower strength to cater to the equity development requirements in the
overseas market.

The company has embarked on a massive recruitment drive and is planning to

double the existing strength of its equity professionals.

It is currently focussed on the four key segments of film and videos, CAD/CAM,
education and research and commercial/networking.

Speaking to Business Line, Mr. S. Devarajan, Chairman and CEO, said that the
company was planning to add over 400 professionals in the next 6-9 months.

The company currently has some 750 employees, of which about 400 are in the
equity development division. Since it already has a full-fledged development
centre at Bangalore, the scaling up of infrastructure to support the increased
manpower should not pose a problem, he added.

Mr. Devarajan also said that the company has begun the scaling up of its global
presence by opening six new offices in the US and Europe.

``The expansion of operations overseas is expected to provide a new impetus

and enhance the company's market for high-end design and development work.''

The company's domestic business has grown substantially in terms of value

added offerings and currently accounts for nearly 75 per cent of its turnover,
with the global business accounting for the rest.

``We are planning increase focus on the company's global operations and raise
the overseas contribution to 50 per cent.''

He added that this change in the revenue composition could also help in
improving operating profit margins. ``As more high value added equity
development work will be undertaken overseas, the higher value addition will
add to margins.''

In the past, the company had been undertaking more of support services for
Indian companies in the domestic market.

For the first quarter ended June 30, 2000, the company has recorded a 240 per
cent increase in post-tax earnings at Rs. 1.35 crores and a 21 per cent in total
turnover to Rs. 29.01 crores over the corresponding period last year.

As of March 31, 2000, BMA Wealth Creator had an order book in excess of Rs.
100 crores mainly in the film and video segment. The buoyant performance in
the first quarter current fiscal was attributable to this strong order-book position.

Commenting on customer loyalty, Mr. Devarajan said that nearly 80 per cent
were repeat customers, who were willing to work with the company on a long-
term basis.

BMA Wealth Creator has joined a select band of companies in the world after it
was recently assessed at the SEI-CMM Level 5 by KPMG for implementation of
quality management systems and equity engineering practices.

Sources Of Recruitment

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

Factors Affecting Recruitment

The recruitment function of the organisations is affected and governed by a mix

of various internal and external forces. The internal forces or factors are the
factors that can be controlled by the organisation. And the external factors are
those factors which cannot be controlled by the organisation. The internal and
external forces affecting recruitment function of an organisation are:

Influence of Recruitment on Organizational development

As defined by Richard Beckhard, "Organization development" (OD) is a planned,

top-down, organization-wide effort to increase the organization's effectiveness
and health. OD is achieved through interventions in the organization's
"processes," using behavioural science knowledge.[1] According to Warren
Bennis, OD is a complex strategy intended to change the beliefs, attitudes,
values, and structure of organizations so that they can better adapt to new
technologies, markets, and challenges. Warner Burke emphasizes that OD is not
just "anything done to better an organization"; it is a particular kind of change
process designed to bring about a particular kind of end result. OD involves
organizational reflection, system improvement, planning, and self-analysis.

The term "Organization Development" is often used interchangeably with

Organizational effectiveness, especially when used as the name of a department
or a part of the Human Resources function within an organization. Organization
Development is a growing field that is responsive to many new approaches
including Positive Adult Development.

At the core of OD is the concept of organization, defined as two or more people

working together toward one or more shared goals. Development in this context
is the notion that an organization may become more effective over time at
achieving its goals.
OD is a long range effort to improve organization's problem solving and renewal
processes, particularly through more effective and collaborative management of
organizational culture, often with the assistance of a change agent or catalyst
and the use of the theory and technology of applied behavioral science.

Organization development is a contractual relationship between a change agent

and a sponsoring organization entered into for the purpose of using applied
behavioral science in a systems context to improve organizational performance
and the capacity of the organization to improve itself.

Organizational development is an ongoing, systematic process to implement

effective change in an organization. Organizational development is known as
both a field of applied behavioral science focused on understanding and
managing organizational change and as a field of scientific study and inquiry. It
is interdisciplinary in nature and draws on sociology, psychology, and theories of
motivation, learning, and personality.

Contractual Relationship.

Although neither the sponsoring organization nor the change agent can be sure
at the outset of the exact nature of the problem or problems to be dealt with or
how long the change agents' help will be needed, it is essential that some
tentative agreement on these matters be reached. The sponsoring organization
needs to know generally what the change agent's preliminary plan is, what its
own commitments are in relation to personal commitments and responsibility for
the program, and what the change agent's fee will be. The change agent must
assure himself that the organization's, and particularly the top executives',
commitment to change is strong enough to support the kind of self-analysis and
personal involvement requisite to success of the program. Recognizing the
uncertainties lying ahead on both sides, a termination agreement permitting
either side to withdraw at any time is usually included.

Change Agent.

A change agent in the sense used here is not a technical expert skilled in such
functional areas as accounting, production, or finance. He is a behavioral
scientist who knows how to get people in an organization involved in solving
their own problems. His main strength is a comprehensive knowledge of human
behavior, supported by a number of intervention techniques (to be discussed
later). The change agent can be either external or internal to the organization.
An internal change agent is usually a staff person who has expertise in the
behavioral sciences and in the intervention technology of OD. Beckhard reports
several cases in which line people have been trained in OD and have returned to
their organizations to engage in successful change assignments. [3] In the
natural evolution of change mechanisms in organizations, this would seem to
approach the ideal arrangement. Qualified change agents can be found on some
university faculties, or they may be private consultants associated with such
organizations as the National Training Laboratories Institute for Applied
Behavioral Science (Washington, D.C.) or University Associates (San Diego,
California), and similar organizations.

The change agent may be a staff or line member of the organization who is
schooled in OD theory and technique. In such a case, the "contractual
relationship" is an in-house agreement that should probably be explicit with
respect to all of the conditions involved except the fee.

Sponsoring Organization.

The initiative for OD programs comes from an organization that has a problem.
This means that top management or someone authorized by top management is
aware that a problem exists and has decided to seek help in solving it. There is a
direct analogy here to the practice of psychotherapy: The client or patient must
actively seek help in finding a solution to his problems. This indicates a
willingness on the part of the client organization to accept help and assures the
organization that management is actively concerned..

Applied Behavioral Science.

One of the outstanding characteristics of OD that distinguishes it from most

other improvement programs is that it is based on a "helping relationship." The
change agent is not a physician to the organization's ills; he does not examine
the "patient," make a diagnosis, and write a prescription. Nor does he try to
teach organizational members a new inventory of knowledge which they then
transfer to the job situation. Using theory and methods drawn from such
behavioral sciences as [ (industrial/organizational psychology]], industrial
sociology, communication, cultural anthropology, administrative theory,
organizational behavior, economics, and political science, the change agent's
main function is to help the organization define and solve its own problems. The
basic method used is known as action research. This approach, which is
described in detail later, consists of a preliminary diagnosis, collecting data,
feedback of the data to the client, data exploration by the client group, action
planning based on the data, and taking action.

Systems Context.

OD deals with a total system — the organization as a whole, including its

relevant environment — or with a subsystem or systems — departments or work
groups — in the context of the total system. Parts of systems, for example,
individuals, cliques, structures, norms, values, and products are not considered
in isolation; the principle of interdependency, that is, that change in one part of a
system affects the other parts, is fully recognized. Thus, OD interventions focus
on the total culture and cultural processes of organizations. The focus is also on
groups, since the relevant behavior of individuals in organizations and groups is
generally a product of group influences rather than personality.

Improved Organizational Performance.

The objective of OD is to improve the organization's capacity to handle its

internal and external functioning and relationships. This would include such
things as improved interpersonal and group processes, more effective
communication, enhanced ability to cope with organizational problems of all
kinds, more effective decision processes, more appropriate leadership style,
improved skill in dealing with destructive conflict, and higher levels of trust and
cooperation among organizational members. These objectives stem from a value
system based on an optimistic view of the nature of man — that man in a
supportive environment is capable of achieving higher levels of development and
accomplishment. Also essential to organization development and effectiveness is
the scientific method — inquiry, a rigorous search for causes, experimental
testing of hypotheses, and review of results. Finally, the democratic process is
viewed as having a legitimate, and perhaps dominant, role in the highly effective
organization.

Organizational Self-Renewal.

The ultimate aim of the outside OD practitioner is to "work himself out of a job"
by leaving the client organization with a set of tools, behaviors, attitudes, and an
action plan with which to monitor its own state of health and to take corrective
steps toward its own renewal and development. This is consistent with the
systems concept of feedback as a regulatory and corrective mechanism.

Recruitment and Retention Tips

1.Strive to become the "Employer of Choice"

2."Offer flexible scheduling and work arrangements

3.Support work/life balance programs

4.Promote health and wellness

5.Clearly articulate company values

6.Individualize approaches to rewards and recognition

7.Strengthen the performance focus

8.Market your reputation, image and brand

9.Employees want to work on a winning team

10.Use creative recruiting techniques

11.Find the right people first through upfront screening

12.Use creative sourcing strategies, such as high school and college mentoring
programs

13.Provide growth and development opportunities

14.Help employees to become change-resilient

15.Structure jobs to be challenging

16.Intensify leadership training

17.Provide a "boot camp" for new hires

18.Increase performance feedback

19.Tie career growth to competency development

20.Provide flexible reward and recognition programs

21.Decentralize pay and reward systems

22.Design programs that individualize tailoring of rewards

23.Push stock programs lower in the organization

24.Train managers to effectively administer reward programs

25.Ensure that retirement and flexible benefits support people management

programs

26.Ensure retirement plans are career and age neutral, and portable

27.Increase benefit plan flexibility and choice

28.Support work/life balance programs

29.See employees as "whole" people, with lives outside of work

30.Provide more workplace and scheduling flexibility

31.Enhance work/family programs (child care referral, concierge services, etc.)

32.Strengthen management skills

33.Train managers to continually promote business plan engagement

Methodology and Research Design

INTRODUCTION

The research design used is exploratory and descriptive research design for
collecting and analyzing data. Research design concentrates mainly on inquiry
for better understanding and development of plan of action for discovering
something. This involves: observing the practices, implementation of theory, use
of variables, preparation for observations (choice of technique, selection of units
of observations, data analysis, report etc).

Purpose of research
The purpose of research is basically two-phase:

Exploratory:

Exploratory research is a type of research conducted because a problem has not

been clearly defined. Exploratory research helps determine the best research
design, data collection method and selection of subjects. Given its fundamental
nature, exploratory research often concludes that a perceived problem does not
actually exist.

Exploratory research often relies on secondary research such as reviewing

available literature and/or data, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors, and more
formal approaches through in-depth interviews, focus groups, projective
methods, case studies or pilot studies.

The results of exploratory research are not usually useful for decision-making by
themselves, but they can provide significant insight into a given situation.
Although the results of qualitative research can give some indication as to the
“why”, “how” and “when” something occurs, it cannot tell us “how often” or
“how many.”

Exploratory research is not typically generalizable to the population at large. The

exploratory approach attempts to discover general information about a topic that
is not well understood by the marketer.

For instance, a marketer has heard news reports about a new Internet
technology that is helping competitors but the marketer is not familiar with the
technology and needs to do research to learn more. When gaining insight (i.e.,
discovery) on an issue is the primary goal, exploratory research is used.

Descriptive Research

Descriptive research is used to obtain information concerning the current status

of the phenomena to describe “what exists” with respect to variables or
conditions in a situation. The methods involved range from the survey which
describes the status quo, the correlation study which investigates the
relationship between variables, to developmental studies which seek to
determine changes over time.

In descriptive research design questions asked are of the type, “What is the
relationship between or among variables?”

You know what the variables are, and you know how to measure them, so you
are beyond the scope of an exploratory study. The variables you are interested
in have been studied before, either independently, as in an exploratory study, or
with other variables, so that there is sufficient information to ask a question
about the relationship between them. You are able to relate the variables in
your study to a concept or conceptual framework so that the study does build on
previous work. The major consideration is accuracy in the measurement of the
variables.

Designs for studies at descriptive level require a descriptive survey. The design
dictates how the variables are to be measured in testing their relationship.

In this type of design, the variables are partly controlled by the situation, as they
are in exploratory design, but they are also partly controlled by the investigator,
who chooses a sample for the study. You are not interested in controlling the
other variables, merely in observing them. For example, in a study of the
relationship between educational level of drivers and ability to make sound
judgments about traffic signs, the investigator controls the first variable by
selecting a sample of drivers with all types of educational backgrounds. The
judgments of these drivers are then assessed. The drivers’ judgments will be
examined and evaluated as they occur. The purpose of the study will be
accomplished by seeing if the occurrence of sound judgment is related to
educational background.

The basic difference between exploratory and descriptive research is the

research design. Exploratory research follows a format that is less structured
and more flexible than descriptive research. This approach works well when the
marketer doesn’t have an understanding of the topic or the topic is new and it is
hard to pinpoint the research direction. The downside, however, is that results
may not be as useful in aiding a marketing decision.

Exploratory research may indicate who the key decision makers are in a
particular market thus enabling a more structured descriptive study targeted to
this group.

STATEMENT OF THE PROBLEM

This study is conducted at BMA Wealth Creator Pvt Ltd to find out the direct
relationship of recruiting good quality candidates and the organization’s
performance level, to find out the human resource planning done in the
organization.

This project mainly aims in finding out the best practices followed by the staffing
team and the operations in injecting the fresh blood in the organization.

Apart from finding out the best practices in recruitment, this project also aims in
finding out the Gender split applicants, Successful applicants by gender,
applicants by age, age of applicants by departments, successful applicants by
age and lastly applicants with disability. Etc.

SCOPE OF STUDY

To understand best practices followed in the Staffing team.

To measure the validity and its importance in the Organization’s performance

level.

To understand Succesful applicants by gender, by age, by disability.

OBJECTIVE OF THE PROBLEM

To find out the effect of recruitment in company’s growth

To find out how to recruit the right candidate for the right position.

To recruit the right resource in line with the organization’s goal.

To reduce attrition by recruiting the right minds.

To increase organization profit by recruiting the right talent.

RESEARCH METHODOLOGY

TYPE OF THE STUDY

The type of study is a project work undertaken at Pioneer Publicity Corporation.

The title of this study is “A STUDY ON EFFECTIVENESS OF RECRUITMENT IN
ORGANISATION’S DEVELOPMENT.”

TYPE OF DATA
Primary and secondary data

Data, or facts, may be derived from several sources. Data can be classified as
primary data and secondary data. Primary data is data gathered for the first time
by the researcher; secondary data is data taken by the researcher from
secondary sources, internal or external. The researcher must thoroughly search
secondary data sources before commissioning any efforts for collecting primary
data.

There are many advantages in searching for and analyzing data before
attempting the collection of primary data. In some cases, the secondary data
itself may be sufficient to solve the problem. Usually the cost of gathering
secondary data is much lower than the cost of organizing primary data.

Moreover, secondary data has several supplementary uses. It also helps to plan
the collection of primary data, in case, it becomes necessary. We shall therefore
discuss secondary data first and then take up primary data.

Secondary data is of two kinds, internal and external. Secondary data – whether
internal or external – is data already collected by others, for purposes other than
the solution of the problem on hand.
SOURCES OF DATA

Primary Data Sources

Primary data collection is necessary when a researcher cannot find the data
needed in secondary sources. Market researchers are interested in primary data
about demographic/socioeconomic characteristics, attitudes/opinions/interests,
awareness/knowledge, intentions, motivation, and behavior. Three basic means
of obtaining primary data are observation, surveys, and experiments. The choice
will be influenced by the nature of the problem and by the availability of time
and money.

Observation

Observation means that the situation of interest is checked and a person or

some mechanical device records the relevant facts, actions, or behaviors.
Accurate data about what consumers do in certain situations is provided by
observation. Observation does not tell why it happened.

Personal Approaches

Marketers can learn by personally observing or watching actions and situations.

For example, when an organization is choosing a new location, it would observe
the neighborhood conditions. Also, marketers of pet products and baby products
are extremely interested in how respondents react to new products, but
obviously cannot ask them to describe their opinions or to fill out surveys. They
must depend on observational research.

Surveys

Surveys or questioning involve using a questionnaire (data collection instrument)

to ask respondents questions to secure the desired information. Questionnaires
may be administered by mail, over the telephone, by computer, or in person.
Limitations of surveys include opportunities for error in construction and
administering of a questionnaire, expense, and time needed to conduct a survey.
Respondents may not respond, may be unable to respond, or may give
misleading responses.

Mail

Mail interviews can be used to collect large amounts of data and have a low cost
per respondent. Respondents can see a concept, read a description, and think
about it at their leisure. There is no interviewer bias. However, the
questionnaires are not flexible, cannot be adapted to individual respondents, and
generally have low response rates. The researcher has no control over who
completes the questionnaire.
Telephone

Telephone interviews are easy to administer and allow data to be collected

quickly at a relatively low cost. The interviewer can clarify the questions.
Response rates tend to be higher and telephone interviewing allows for greater
sample control.

However, it is more expensive than a mail questionnaire. The presence of an

interviewer on the phone may bias responses since respondents may be
unwilling to discuss personal information. Also, respondents can’t see product.
A major limitation is that they must be short.

Computer

Advances in computers and technology have led to sophisticated data collection

methods. Computer and online interviewing allow rapid data collection from
dispersed populations at a low cost.

Personal

Personal interviews may be conducted one-on-one or with a focus group. A

personal interview is a direct, face-to-face interview between the interviewer and
the respondent. In the past, personal interviews were conducted door-to-door.

Today, most personal interviews (one-on-one) are conducted in malls and are
referred to as mall intercept. Personal interviews are the most flexible since
interviewers can clarify questions and probe for answers. Respondents can see a
concept as well as read a description. More information can normally be
obtained through observation of the respondent’s surroundings. Personal
interviewing is expensive, yet it offers a great deal of flexibility and allows for
visual stimuli.

A focus group is a small group of people, carefully selected, who represent a

specific target audience. They are used to generate concepts and hypotheses.
The strength of focus groups is found in the group discussion and interaction.
Focus group interviews are a popular way of gaining insight into consumer
thoughts and feelings about a product. In the past, focus groups were regarded
mainly as a simple and quick way of asking any group of respondents, usually in
someone’s home, to answer questions about a product. Today, focus groups are
an important source of qualitative research. Advance preparation ensures that
the facility, moderator, and respondents are of high quality. An example of a
technique used in a focus group is a projective technique in which a People
Board is used to obtain attitudes through photograph associations and forced
relationships. Participants indicate which of several images in a category relate
to the subject at hand. The findings from a focus group are useful for general
information but do not suffice to give absolute quantifiable information.
A panel is a fixed sample of individuals from who repeated measurements are
taken over time with respect to the same variables. An example is MRCA, which
has a 12,000 household panel that is representative of the national census in
terms of significant demographics. Surveys of the panel conducted frequently
throughout the year provide a means to measure relatively small changes in
household purchases and product usage.

SOURCES OF SECONDARY DATA

Secondary data is information gathered for purposes other than the completion
of a research project. A variety of secondary information sources is available to
the researcher gathering data on an industry, potential product applications and
the market place. Secondary data is also used to gain initial insight into the
research problem.

There is a wealth of statistical and research data available today. Some sources
are:

• Federal government

• Provincial/state governments

• Statistics agencies

• Trade associations

• General business publications

• Magazine and newspaper articles

• Annual reports

• Academic publications

• Library sources

• Computerized bibliographies

• Syndicated services.

TYPE OF SURVEY
The type of survey used is of Questionnaire method. The instrument we used,
survey questionnaire, complied with our exacting research questions. The type of
scales used need to reflect the type of data needed to really test the
phenomenon. The specific questions were being asked. Carefully open-ended
questions were chosen for some types of inquiry and closed-ended, forced
response questions for other types. In a nut shell, some of the characteristics of
the questionnaire are as follows:

• The questions were dependent on the scope and the purpose of the
research.

• The questions used were simple, comprehensive and was directly related
to the objective of the research.

• The questions were framed to have answers like yes, no, rarely etc.

• The questions were arranged in a logical sequence.

TOOLS FOR ANALYSIS

The data collected will be drafted into tables with various factors. Percentage of
response is worked out and evaluation will be carried out for each data on the
basis of percentage of response. The findings will be recorded and suggestions
will be given regarding the effectiveness of recruitment program. The data
collected is analysis through various tables along with charts.

LIMITATIONS OF THE STUDY

This project study is limited to BMA Wealth Creator Pvt Ltd alone and thus can
not be generalized for all other companies working in the similar field. Further
research is planned with another 100 employees in future to know more about
the effectiveness of the recruitment program in Organization’s performance.

Summary of Findings and Conclusions

This project was undertaken to find out the effectiveness of appropriate

recruitment for Organization’s development. Accordingly data was collected
through On job training in the Organization and analyzing the data collected with
the help of cross tabulation and plotting the suitable graphs:-

Findings:
• As per the applications received by the staffing team each year,it has
been found that number of male applicants are more as compared to the female
applicants.

• However in departments like HR, Women candidates outnumbered men.

• The study also portrays selection of male candidates especially in

designing, equity development, system integration were more as compared to
female candidates. It is because less number of female applicants as compared
to men.

• To improve the organization’s effectiveness, the staffing team also

initiated various drives during weekends like “Recruitment for female candidates
only, especially for those positions where we receive more number of
applications from male candidates.

• To acquire and retain the candidates with fresh knowledge, the company
initiated in selecting candidates via campus recruitment.

The colleges were approached immediately after the 3rd Semester.

• In order to keep the choice broader, the company tied up with various
consultancies in various tier 2 cities to get the best out of the lot.

Conclusions

After undertaking this project, the main conclusion that I can draw is that
recruitment has an effect on nearly every aspect of the organization. It is the
main tool that directly or indirectly affects in chiselling a niche for the
organization in the vast industrial community.