COMPANY PROFILE

Telecommunication Market in India

Technological changes in the telecom and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom based technological innovations. In order to exploit these innovations for competing in global markets, business community the world over has been putting pressure on governments to revise the policy, regulation and structure of the telecom sector. Several countries across the world have responded by restructuring the state controlled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures. Over the past several years, developing countries have also recognized the important role a responsive, business oriented and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now accept the limitations of a monolith state monopoly in responding to the twin challenges of spurring internal growth and competing in an increasingly global economy. Past experience of reform across many countries suggests that the fundamental underlying issue that must be addressed in telecom reform is introduction of competition for efficiency. Competition is considered to be an important factor than ownership in introducing efficiency. India's 21.59 million-line telephone network is one of the largest in the world and the 3rd largest among emerging economies (after China and Republic of Korea). Given the low telephone penetration rate India offers vast scope for growth. It is therefore not surprising that India has one of the fastest growing telecommunication systems in the world with system size (total connections) growing at an average of more than 20 percent over the last 4 years. The industry is considered as having the highest potential for investment in India. The growth in demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services. This is expected to soar in the next few years. Recognizing that the telecom sector is one of the prime movers of the economy, the Government's regulatory and policy initiatives have also been directed towards 1

establishing a world class telecommunications infrastructure in India. The telecom sector in India therefore offers an Airtel environment for investment. The telecommunications initiative in the country is lead by Ministry of Communications through the Department of Telecommunication & Department Telecom Services and its undertakings for provision of basic telephone services, national and international long distance communications, manufacture of complete range of telecom equipment, research and development, and consultancy services. The Telecom Commission performs the Executive and Policy making functions. The Telecom Regulatory Authority of India performs the functions of an independent regulatory body.

Indian Telecom Sector to Be Most Vibrant In 2010

In 2010 we believe that Indian Telecom industry expects to continue with its fast pace of subscriber additions, at least 11 million per month, launch of 3G and Wi MAX spectrum, while tariff would continue to slide during the year. The industry having crossed the 500 million subscriber mark earlier in September 2009 itself, the next milestone would be 750 million. (Global research and analysis firm Gartner, in a recent study, estimates Indian mobile users to touch 771 million by 2013). However, this would be a long way off, even though subscriber addition is expected to continue at fast pace in 2010 as companies expand networks to rural areas and new firms commence operations.

3G
One of the main catalysts for growth would be the launch of 3G and WiMAX spectrum, expected to take place by mid-January. 3G, or third generation telecom services, would result in addition or more subscribers as they would bring in a host of data-enabled services to the industry, and growth would come in from both voice and data.

Wi MAX
Additionally,Department of Telecommunications (DOT) had announced the simultaneous auction of WiMax spectrum that would result in adding of additional data-enabled customers on telecom networks. A host of telecom operators are expected to join the bandwagon for WiMax spectrum.

Tariffs
Cheap call tariffs and mobile handsets were other factors that drove demand in 2009, and telecom companies are expected to continue price was both in call rates and instruments

in 2010. This, according to industry analysts, will result in telecom sectors exponential growth. The industry also expects launching of innovative and customer friendly schemes like the one second billing in 2010. These schemes would continue to help in improving teledensity and penetration of telecom services in rural and semi-urban areas in the country.

Infrastructure operators
The year 2010 would be that of the infrastructure players. Apart from an expected consolidation in the sector, the infrastructure majors will increase the pace of tower rollout across all the 22 circles in the country.

Bandwidth
An expected increase in bandwidth landing in the country, with telecom companies are laying more submarine cables, would also benefit the industry. This would be beneficial to bandwidth-intensive sectors like BPO, IT and banking. The industry expects telecom companies to launch terrestrial cables with 50 GB capacities each, to be hiked depending on demand. This coupled with a planned increase by operators this year and next year, would also result in an increase in capacity landing at Indian shores.

Group Overview
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of bicycle parts to one of the largest and most respected business groups in India. With its entrepreneurial spirit and passion to undertake business projects that are transformational in nature, Bharti has created world-class businesses in telecom, financial services, retail, and foods. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Since then there has been no looking back and Bharti Airtel, the group's' flagship company, has emerged as one of the top telecom companies in the world and is amongst the top five wireless operators in the world. Through its global telecom operations Bharti group has presence in 21 countries across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia.

Over the past few years, the group has diversified into emerging business areas in the fast expanding Indian economy. With a vision to build India's finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats - small and medium - as well establishing large scale cash & carry stores to serve institutional customers and other retailers. The group offers a complete portfolio of financial services life insurance, general insurance and asset management - to customers across India. Bharti also serves customers through its fresh and processed foods business. The group has growing interests in other areas such as telecom software, real estate, training and capacity building, and distribution of telecom/IT products. What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years some of biggest names in international business have partnered Bharti. Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa Group is the partner for the financial services business and Del Monte Pacific for the processed foods division. Bharti strongly believes in giving back to the society and through its philanthropic arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in India.

Mobile Strategy
Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins. Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles. Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.

Bharti Airtel Limited

Bharti Airtel to Observe Silent period from June 30, 2010 New Delhi June 25, 2010 : Bharti Airtel, Indias leading private telecom services provider would observe a 'Silent Period' from the close of business on June 30, 2010 (Wednesday), till the declaration of results for the first quarter ending June 30, 2010, as a commitment towards highest level of corporate governance. Details about the quarterly and annual results announcement and the earnings call will be made available on the website. The practice of silent period does not refrain the company and its representatives from any press conference & public dissemination of information. The observation of silent period is only a practice and hence does not imply any legal obligation for the company under any circumstances. About Bharti Airtel Limited : Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asias leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. The company has an aggregate of around 138 million customers across its operations. Bharti Airtel has been ranked among the six best performing technology companies in the world by Business Week.

Bharti Airtel is structured as four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to carriers. The Digital TV business provides DTH Airtels national high-speed optic fiber network currently spans over 126,357 Rkms across India. Airtel's international network infrastructure includes ownership of the i2i submarine cable system and consortium ownership in five global undersea cable systems

Bharti Airtel Airtel comes to you from Bharti Airtel Limited, one of Asias leading integrated telecom services providers with operations in 19 countries across Asia and Africa. Bharti Airtel since its inception, has been at the forefront of technology and has pioneered several innovations in the telecom sector. The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. Vision and Values Our vision By 2020 we will build India's finest conglomerate by:

Always empowering and backing our people Being loved and admired by our customers and -respected by our partners Transforming millions of lives and making a positive impact on society Being brave and unbounded in realizing our dreams

Our values Empowerment We respect the opinions and decisions of others. We encourage and back people to do their best Entrepreneurship We always strive to change the status quo. We Innovate with new ideas and energies with a strong passion and entrepreneurial spirit. Transparency We believe we must work with honesty, trust and the innate desire to do good. Impact Are driven by the desire to create a meaningful difference in society Flexibility We are ever willing to learn and adapt to the environment, our partners and the customer's evolving needs.

Bharti Airtel Limited (BSE: 532454) formerly known as Bharti Tele-Ventures LTD (BTVL) is an Indian company offering telecommunication services in 19 countries. It is the largest cellular service provider in India, with more than 141 million subscriptions as of August 2010[update] Bharti Airtel is the world's third largest, single-country mobile operator and fifth largest telecom operator in the world with a subscriber base of over 180 million It also offers fixed line services and broadband services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. It is known for being the first mobile phone company in the world to outsource everything except marketing and sales and finance. Its network (base stations, microwave links, etc.) is maintained by Ericsson and Nokia Siemens Network, business support by IBM and transmission towers by another company. Ericsson agreed for the first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute). During the last financial year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business. The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in 18 countries across the Indian Subcontinent and Africa. The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to Telco. Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 30.7% share of the wireless services market. In January 2010, company announced that Manoj Kohli, Joint Managing Director and current Chief Executive Officer of Indian and South Asian 7

operations, will become the Chief Executive Officer of the International Business Group from 1 April 2010. He will be overseeing Bharti's overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj Kohli and will be the CEO, effective from 1 April 2010. Airtel digital TV launches two attractive offers for new customers this festive season - Offer 1: Now get 4 month free subscription to Economy Pack with all new Airtel digital connections @Rs.1690 - Offer 2: Purchase a new Airtel digital TV connection for just Rs. 999 New Delhi, October 7, 2010 : Airtel digital TV, the DTH arm of Bharti Airtel, today announced two powerful combos on new subscriptions for customers across India. The Limited Period Offers come on the eve of the festival season. Offer 1: Customers purchasing a new Airtel digital TV connection @ Rs.1690 need not recharge their Airtel digital TV accounts for the next 4 months. They would be entitled to 4 months free subscription to the Economy Pack (around 150 popular channels, worth Rs.200+taxes) thereby enabling them to make the move to the next generation DTH technology on Airtel, for an effective price of just Rs.806! Offer 2: New customers who purchase a new Airtel digital TV connection for Rs.999 and get started with an initial recharge of just Rs.200. Announcing the offers, Sugato Banerji, CMO-DTH Services, Bharti Airtel, said "We believe that these two new entry offers will provide yet another compelling reason for customers to join the growing Airtel digital TV family. By significantly bring down the Total Cost of Ownership these offers will make it more easier for more customers, to move to the next generation home entertainment options like Airtel digital TV." Airtel digital TV the DTH service from Bharti Airtel has 3.8 million customers and is one of the leading national level DTH service in the country which offers its customers MPEG 4 with DVBS 2 currently the most advanced digital broadcasting technologies available in the world after HD broadcasting. Additionally, Airtel digital TV was the first to bring many firsts to the DTH segment in India including a Universal Remote which operates both the Set Top Box and TV set as well as several unique Interactive Applications. Airtel digital TV recorder was the first to offer the capability to record live television, anytime, anywhere and recently added HD services to its portfolio. Users can also update themselves on the latest stock news. All this is backed by 24x7 customer care. Airtel digital TV launched its services in October 2010. 8

About Bharti Airtel

Limited : Bharti Airtel Limited is a leading global

telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by Business week. Bharti Airtel had over 188 million customers across its operations at the end of August 2010. To know more visit www.airtel.in

Services
Mobile Services Airtel is the name of the company's mobile services brand. It operates in 19 countries and the Channel Islands. It is the 5th largest mobile operator in the world in terms of subscriber base. Airtel's network consists of 3G and 2G services depending on the country of operation. Airtel In India, the company's mobile service is branded as Airtel. It has nationwide presence and is the market leader with a market share of 30.07% (as of May 2010). On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM). The Apple iPhone 3G was rolled out in India on 22 August 2010 by Airtel & Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high prices and contract bonds discouraged consumers and it was not as successful for both the service providers as much as the iPhone is successful in other markets of the world. On May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the Indian government Rs. 12,295 crores for spectrum in 13 circles, the most amount spent by an operator in this auction. Airtel won 3G licenses in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir. Bharti is expecting to launch its 3G service by December 2010. On 20 September 2010, Bharti Airtel said that it has given contracts to Ericsson India, Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for 9

providing 3G services in the country. These vendors will plan, design, deploy and maintain 3G-HSPA (third generation, high speed packet access) networks in 13 telecom circles where the company has won 3G licenses. While Bharti Airtel has awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks in three circles. Chinese telecom equipment vendor Huawei Technologies has been introduced as the third partner for three circles. Subscriber base in India The Airtel subscriber base according to Cellular Operators Association of India (COAI) as of August 2010 was: Metros

Chennai - 2,877,029 Delhi - 6,950,079 Mumbai - 3,201,916 Kolkata - 2,947,042

"A" Circle

Andhra Pradesh - 14,240,429 Gujarat - 5,980,024 Karnataka - 13,434,418 Maharashtra - 7,209,072 Tamil Nadu - 8,744,937

"B" Circle

Haryana - 1,580,398 Kerala - 3,332,095 Madhya Pradesh - 7,496,236 Punjab - 5,171,278 Rajasthan - 11,004,105 Uttar Pradesh (East) - 8,534,334 Uttar Pradesh (West) - 4,923,409 West Bengal - 6,644,688

"C" Circle

Assam - 2,683,243 Bihar - 12,600,521 Himachal Pradesh - 1,452,709 10

Jammu and Kashmir - 1,751,239 North Eastern States - 1,612,005 Orissa - 4,840,243

Airtel is the market leader in India with about 31.18% market share of 481 million GSM mobile connections as of August 2010.

Criticism
There has been lot of criticism about Airtel for its unauthorised VAS activation. Many of its services were activated automatically according to a complaint forum. In return Airtel launched STOP/START 121 services for such issues. Airtel-Vodafone (Jersey and Guernsey) On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of the Bharti Group, announced they would launch mobile services in the British Crown Dependency islands of Jersey and Guernsey under the brand name Airtel-Vodafone after signing an agreement with Vodafone. Airtel Lanka In December 2008, Bharti Airtel rolled out 3.5G services in Sri Lanka in association with Singapore Telecommunications. Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on 12 January 2009. Airtel Lanka has 1.4 million mobile customers in Sri Lanka, across 20 administrative districts. Airtel in Bangladesh In January 2010, it was announced that the Bangladesh Telecommunications Regulatory Commission (BTRC) had given Bharti Airtel the go ahead to acquire a 70% stake in the Bangladesh business of Abu Dhabi based Wired Telecom. The latter had till date invested a total of $600 million, with plans to bring their Bangladesh investments to the $1 billion mark. Airtel's 70% stake in the company is said to be at a cost of an initial $300 million. The service is being operated under the brand name Wired Telecom. Wired Telecom covers the entire country and has over 2.5 million customers. Airtel in Africa On 14, February 2010 a statement issued by Zain Ghana, said "the Board of Directors of Kuwait's Zain Group, after its meeting on February 14, 2010, issued a resolution to accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive discussions until 25 March 2010, regarding the sale of its African unit, Zain Africa BV." The offer 11

was for $10.7 billion. The deal would provide Bharti access to 15 more countries in the region, adding around 40.1 million subscribers to its already 125 million-plus user base. The combined revenue of the two entities would be around $12 billion. The deal ran into hurdles after the government of the of Gabon had come out against the deal, but later approved the sale. The government of Congo Republic had also said Bharti-Zain deal broke law. There was also a dispute about minority ownership of Zain's operations in Nigeria, the biggest market in the deal. Minority shareholder Econet was seeking to overturn a 2006 deal by Zain - then called Celtel - in which it bought a majority stake in Nigerian mobile operator Vee Networks Ltd, now Zain Nigeria. On 8, June 2010, Bharti said the Nigeria ownership dispute had been settled. On 8, June 2010, Bharti Airtel, in the largest ever telecom takeover by an Indian firm, completed a deal to buy Kuwait-based Zain Telecom's businesses in 15 African countries for $10.7 billion. The transaction is the largest ever cross-border deal in an emerging market and will result in combined revenues of about $13 billion."The overall integration should be complete by the end of this financial year. On September 1, 2010, Chairman and Managing Director Sunil Bharti Mittal said that Bharti Airtel Ltd would change its Africa operations brand from Zain to Airtel by 15 October 2010. Airtel Seychelles

On August 11, 2010, Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19 countries. Telecom Seychelles began operations in 1998 and operates 3G, Fixed Line, ship to shore services satellite telephony, among value added services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. The company has over 57 percent share of the mobile market of Seychelles. Airtel announced plans to invest US$10 million in its fixed and mobile telecoms network in the Seychelles over three years , whilst also participating in the Seychelles East Africa submarine cable (SEAS) project. The US$34 million SEAS project is aimed at improving the Seychelles global connectivity by building a 2,000 km undersea high speed link to Dar es Salaam in Tanzani. .Telemedia

The Telemedia business provides services in 89 Indian cities and consists of two brands.

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Airtel Broadband provides broadband and IPTV services. Airtel provides both capped as well as unlimited download plans. The maximum speed available for home users is 16Mbps.

Airtel Fixed Line which provides fixed line services.

Airtel has about 3.15 million wireline customers, of which 42.6% are broadband/internet subscribers as of August 2010. Until September 18, 2004, Bharti provided fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel". Digital Television

Main article: Airtel Digital TV The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand name Airtel Digital TV. It started services on 9 October 2008 and has about 32.44 million customers as of August 2010. Enterprise

The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing stations. Merger talks

In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications company with coverage in 21 countries in Africa and the Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative nature of the talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues and broader geographic coverage. However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. In May 2010, Bharti Airtel again confirmed that it is in Talks with MTN and companies have now agreed discuss the potential transaction exclusively by July 31, 2010. Bharti Airtel said in a statement "Bharti Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN Group". 13

Talks eventually ended without agreement, due to the South African government opposition

Consecutively for four years 1997,1998,1999 and 2000, Airtel has been voted as the Best Cellular Service in the country and won the coveted Techies award.

Airtel has consistently strived hard to, not only deliver as per customer expectation, but also go beyond that. According to its those at Airtel, their vision, mission and values are as follows.

VISION
To make mobile communications a way of life and be the customers' first choice

MISSION
We will meet the mobile communication needs of our customers through : Error-free service delivery Innovative products and services Cost efficiency

VALUES
We will always put our customers first. We will always trust and respect each other. We will respect our associates as we respect each other. We will work together through a process of continuous improvement

Airtel (Bharti Airtel Ltd.)

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers, which constitute, 44.6 million mobile and 5.4 million fixed line customers, as of March 31, 2009. Airtel comes to us from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first 14

company to export its products to the USA. Bharti has also put its footsteps into Insurance and Retail segment in collaboration with Multi- National giants. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 50 million satisfied customers.
SERVICES

Airtel Prepaid Strong Network Coverage Other Services Voice Mail SMS (Short Messaging Service) Subscription Alerts Airtel Live! Airtel Live! WAP Services: Airtel Live! Voice Services: Airtel Live! SIM Services.

Airtel Live! SMS Services Hello Tunes 121@airtelindia.com.

Airtel Postpaid Easy Billing Easy Payment Options. Anytime Anywhere Long Distance Calling Facility Widest Roaming - National and International GPRS - Roaming

Say it. In more than just words, with Services from Airtel Conference call Missed call alert Subscription Alerts Airtel Live! GPRS (General Packet Radio Services)

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Business Divisions
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. The group focuses on delivering telecommunications services as an integrated offering including mobile, broadband & telephone, national and international long distance and data connectivity services to corporate, small and medium scale enterprises. The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fibre on its national long distance network. For international connectivity to east, it has a submarine cable landing station .

Bharti Airtel Limited

(A Bharti Enterprise) Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 42,685,530 customers as on May 31, 2008, consisting of 40,743,725 GSM mobile and 1,941,805 broadband & telephone customers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand. Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).

Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company. The companys mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment 16

suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. The company's unique strategic outsourcing model has been studied and documented by Harvard

Factsheet At-a-glance guide to Bharti Airtel

Organization Structure Organisation chart depicting the Senior Management positions

Shareholding Structure Details on the latest shareholding structure and major shareholders, as on March 31, 2009

Awards & Recognitions Laurels recognising Bharti's consistent efforts.

Factsheet

Name

Bharti Airtel Limited.

Business Description

Provides mobile, broadband & telephone (fixed line) and enterprise services (carriers & services to corporates)

Established

July 07, 1995, as a Public Limited Company

Proportionate Revenue

Rs. 184,202 million (year ended March 31, 2008-Audited) Rs. 117,255 million (year ended March 31, 2007-Audited) As per Indian GAAP Accounts

Proportionate EBITDA

Rs. 74,407 million (year ended March 31, 2008-Audited) Rs. 42,250 million (year ended March 31, 2007-Audited) As per Indian GAAP Accounts

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Shares in Issue

1,895,934,157 as at March 31, 2008

Listings

The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE)

Market Capitalization

Customer Base

40,743,725 GSM mobile and 1,941,805 broadband & telephone (fixed line) customers (Status as at month ended May 31, 2008)

Provides GSM mobile services in all the 23 telecom circles in Operational Network India, and was the first private operator to have an all India presence. Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India.

Bharti Airtel Limited (A Bharti Enterprise) Registered Office Qutab Ambience (at Qutab Minar), Mehrauli Road, New Delhi - 110 030 Tel. No.: +91 11 4166 6000 Fax No.: +91 11 4166 6011/12 table 1.1

Organisation Structure
As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bhartis key team players. With effect from March 01,

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2007, this unified management structure of 'One Airtel' will enable continued improvement in the delivery of the Groups strategic vision.

Bharti Airtel - Organization Structure

FIG 1.1

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Bharti Enterprises - Organization Structure

FIG 1.2

Organisation Structure
As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bhartis key team players. With effect from March 01, 2007, this unified management structure of 'One Airtel' will enable continued improvement in the delivery of the Groups strategic vision.

Bharti Enterprises - Organization Structure

The equity shares of Bharti Airtel are currently listed on National Stock Exchange of India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Airtel offered 185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15 million through this process. The shares were over subscribed 2.56 times. With this IPO, Bharti Airtel established certain important landmarks in the history of the Indian capital market. Together with being the first 100% book building process that this 20

country has seen, the listing was completed within a record time of ten working days. of the close of the issue. Moreover the process of allotment and issue of shares was also completed within one day of the last day of pay-in. The book running lead managers for the IPO were JM Morgan Stanley and DSP Merrill Lynch and the registrars to the issue was Karvy Consultants Limited. Share price data is delayed by approximately 15 minutes

VISION
To make mobile communications a way of life and be the customers' first choice

MISSION
We will meet the mobile communication needs of our customers through : Error-free service delivery Innovative products and services Cost efficiency

PRODUCTS
Post Paid Card Pre Paid Cash Card

Post Paid Card

Business Lifestyle Plan AirTel Standard Leisure Plan

How much does it cost Security Deposit (Refundable) Activation Charges Total TABLE1.2 Note: The above are one time entry cost. The deposit is completely refundable. Rs. 2000 Rs. 1260 Rs. 3260

Airtime Rates Business Lifestyle Plan

Monthly Rental Outgoing Rates(applicable 24 hours) Rs. 625 per month Rs. 8 per minute

21

Incoming Rates(applicable 24 hours) The rates are valid 24 hours a day/ 7 days a week

Rs. 1 per minute

TABLE1.3 AirTel Standard Plan

Monthly Rental Standard Hours(10 am to 9 pm) Rs. 475 per month Rs. 4 per minute(Outgoing and Incoming) Rs. 3.90 per minute(Outgoing and Incoming) Rs. 2.90 per minute(Outgoing and Incoming)

Concession Hrs-I(8 am to 10 am & 9 pm to 12 midnight)

Concession Hrs-II(12 midnight to 8 am) TABLE 1.4

Billing pulse is of 30 seconds. On Sundays and National Holidays (15th Aug, 26th Jan & 2nd Oct) the tariff rates are of Rs. 2.90 per minute (midnight to 8 am) & Rs. 3.90 per minute (8 am to midnight).

AirTel Leisure Plan

Monthly Rental Incoming & Outgoing Rates 8 pm to 8 am (Weekdays) 8 am to 8 pm (Weekdays) Sundays & National Holidays (all 24 hours) TABLE 1.5 Weekdays are Monday to Saturday. National Holidays are 15th Aug, 26th Jan & 2nd Oct. The billing pulse is 30 seconds on all days. 50 paisa per 30 seconds Rs. 3 per 30 seconds 50 paisa per 30 seconds Rs. 525 per month

AirTel Easy
Monthly Rental Rs. 525 per month Outgoing Peak Rate Rs. 6.00 per minute Rs. 6.00 per minute 22 Incoming Rs. 2.00 per minute Rs. 2.00 per minute

Standard Rate

Off Peak Rate TABLE1.6

Rs. 6.00 per minute

Rs. 2.00 per minute

Pre Paid Cash Card

Magic Pre Paid Connection What is Magic? Magic Ready Cellular Card is your ready-to-use, no-hassle cellular connection. It comes pre-activated with STD/ISD calling facility. Backed by Airtel, the leading cellular operator in India, it gives you crystal clear communication in entire Delhi, Ghaziabad, NOIDA, Gurgaon, Faridabad and Ballabhgarh. Highlights MAGIC... the simplest way to go cellular Wide Availability

Magic Ready Cellular Card and Magic Recharge Cards are available widely all over the city at over 1800 outlets. No applying

Magic is available across the counter. You do not need to apply in advance or go through complicated formalities to get connected. Instant Connectivity

Magic Ready Cellular Card can be used as soon as it's bought. Your connection is preactivated with a host of other services. MAGIC ... the most affordable cellular No Rentals No Security Deposits Pre-activated STD/ISD Free CLI

Cost Package
Sadasdasd Magic "Regular" pack

MRP Inclusive of :

Rs. 1525

23

Calling Value

Rs. 785.71

Activation Fee

Rs. 500

Processing Fee

Rs. 166.67

Service Tax

Rs. 72.62 TABLE1.7

Recharging Magic Card One can either recharge Magic online or purchase a recharge card from any of our outlets spread across the city. Recharge cards are available in four convenient denominations of Rs.500, Rs. 1000, Rs. 2000 and Rs 3000. Technology: In no other service or business is technology such a major factor. Sales and marketing are futile without a sound technological base. Hence we analyze AirTel on the basis of this parameter. Technological facets in cellular services are explained and the level of expertise of both players stated. Call set up time: This is the time that it takes a user to get connected after the completion of the dialing process. Presently 8-30 seconds is considered normal set-up time. Airtels call set up time is generally within this range. Capacity Call congestion: This is the quality of getting calls through even in high user density areas. Airtel provides better customer satisfaction. This will enable them to increase their customer base leading to increased revenues in the future. Voice Quality and Coverage

It is the clarity of transmission. In city centers this quality is not difficult to maintain. However it becomes very important when the transmission is being directed to or from under ground locations, from behind tall building and structures , narrow and congested city interiors. 24

AirTel provides better quality in the above mentioned. The reason for this is the better infrastructure and technology .

Customer care
In one of the market researches, consumers described Mobile Telephony as the Dil Ka Rishta. And always taking notice were the 2 giants AIRTEL and Vodafone. As the passage of time has added importance to the above concept, both these organizations have tried getting the upper hand at providing their clientele with customer care and services that wireless technology can bring to them Our foray into deciding the leader in this quest has left us with extremely close results. We looked at this competition at 2 different stages: Customer care at the point of making the sale:For both these concerns, this translated into providing smoothness of transaction for the customer AIRTEL had been established to posses 3 core values.Leadership, Performance and Dynamism. In its quest for customer care, it embarked upon a campaign intended to add warmth to these core values. It was felt that the creative should reflect humane yet aspiration, family-centric yet reachable and softer brand values.

After-sales service: The aspect of comfort should continue even after a customer has made an initial purchase, and both corporations have made it a locus point of their strategies. sales

RECRUITMENT AND SELECTION

Employees well selected and well placed would not only contribute to the efficient running of the organization but also offer significant potential for future replacement. Recruitment is concerned with both engaging the required number of people, and measuring their quality. It is not only a matter of satisfying a companys needs; it is also an activity, which influences the shape of the companys future. It is a process that not only helps to select and fill a vacancy physically, mentally, and temperamentally but also helps to develop an employee into a desirable employee. Selection process searches persons with potential who would grow in the organization.

25

The organizational practices in selection in India vary considerably. The private and public sector organizations differ in their selection practices. Selection for public sector undertakings is governed by the principles laid down in 1961 (Prasad, 1973) and are operationalised by Public Enterprises Selection Board, Union Public Service Commission, National Institute of Bank Management, Subordinate Services Commission, etc. The process of selection begins with the understanding and definition of the job to be performed by those involved in selection. These are then converted into job specifications (qualifications), which are made public. Job opportunities should be publicized in such a way that they enable the organization to draw upon prospective candidates from a wide cross- section of the society. Systematic and planned selection helps the organization to derive the following advantages. It helps to generate only relevant applicants through a self- selection process on the part of the potential applicants. It thus saves time and money. Careful selection is functional in choosing highly motivated employees and thus develops a culture of a committed way of work life. Pareek and Rao (1981) suggest that through proper selection of new entrants it is possible to build a desirable culture and desirable norms in the organization. Once such a culture is established it also influence the new entrants orientation. Proper selection also ensure high degree of satisfaction among the employees by letting them know that their capabilities are being properly utilized and that they are now wasting their time and talent. This feeling is likely to raise the morale of the employees and may result in higher levels of commitment and productivity. It ensures supply of the right type of personnel in a short duration of time. In any selection there are chances of selecting a wrong person and also chances of losing a right person. Both are equally costly to the organization. Systematic selection ensures minimization of such errors:It helps build the image of the organization. It ensures purely objective, merit- related selection and hence establishes an image of impartiality. This attracts more qualified and better candidates tot he organization. 26

Systematic selection is a tremendous blessing for human resources information systems. It provides a useful data bank for personnel audit and research, and potential for upward mobility in the organization. The process of Selection consists of three stages:- Recruitment, Screening and Selection

Recruitment
The first stage in selection is to make the vacancies known to a large number of people and the opportunities that the organization offers. The process of attracting people to apply is called recruitment. Recruitment is also defined as a process of searching for prospective employees and stimulating them to apply for jobs. It is different from selection, which begins after recruitment has ended. While recruitment, is a process of attracting people selection is a process of choosing a few among those who have been attracted.

The need for recruitment may arise out of the following situations.
Vacancies due to transfer, promotion, retirement, termination, permanent disability, or death.Creation of vacancies due to expansion, diversification, growth, or job respecification.

Recruitment is done by using a number of methods.

1. Employment Agencies There are a number of private employment agencies like Ferguson Associates, ABC Consultants, SB Billimoria, who register for employment and can furnish a list of suitable candidates when sought by employers from their data bank. Generally, these agencies, these agencies also recruit on behalf of the organization without necessarily disclosing the identity of the organization. They go as far as short-listing the candidates for organization but the final decision is taken by the representatives of the organization. In terms of cost this might turn out to be cheaper than the organizations doing it themselves. The time and man-hours saved by the company executives in processing and short-listing the candidates could perhaps be utilized elsewhere by the organization. Up to a certain point the organizations identity remains unknown.

27

On the other hand, there is always the risk of losing out in screening some person whom the representatives of the organization would have liked to meet. 2. Advertisement It is the most widely used method for generating applications. Its reach is very wide. Different mass media could be used to make people aware of the opportunities. There are special journals and magazines that cater to different market segments and putting an advertisement in them may generate a large number of relevant applications. However, in preparing and advertisement, lot of care has to be taken to ensure that some self-selection among applicants takes place. In other words, only qualified people should think of responding to advertisements. A good advertisement has to be specific and clear-cut in what it is looking for. Subramanian and Devi (1984) studied 496 advertisements published in the Hindu during 1981. Public sector enterprise inserted as many as 125 out of 496 advertisements. Their results revealed that public sector enterprises provided better job descriptions, job specifications, compensation details, qualifications, age and selection procedures as compared to private sector enterprises. A good, carefully worded advertisement can also help in building the image of the organization. 3. Campus Recruitment While campus recruitment is a common phenomenon in the West, in India it has made its mark rather recently. Many organizations send their representatives every year to national institutes of higher learning like Indian Institutes of Management Indian Institutes of Technology and similar others. I In fact many institutes have regular placement offices which not only send out the profiles of graduating students, but also help the visiting company representatives in administrative details. The organizations have definite

advantages through campus recruitment. First, the cost is low; second, they can arrange interviews at short notice,; third, they can meet the teaching faculty; fourth, it gives them an opportunity to sell the organization to a large student body who would be graduating later, as well as establish a goodwill through presentations and distribution of company material. One of the drawbacks of campus recruitment for employing organizations is that they interview candidates who have similar experience and education.

28

4. Deputation Deputation refers to sending an employee to another organization for a short duration of two to three years. Deputation is a pretty common method of recruitment in the public sector organizations and government agencies in India. It also takes place in the private sector when an employee is sent to another unit of the same group for some time. However, deputation in Indian context is generally, seen with reference to public sector organizations and government agencies. Deputation is useful because it provides ready expertise and the organization does not have to incur the initial cost of induction and training. Since the deputation period is generally limited to two to three years, it is often a handicap. 5. Professional Association Very often, for certain professional and technical positions it may be useful to go to professional associations (e.g. All India Management Association). An application routed through these associations would, perhaps, be better in terms of qualification as some of these association themselves do a preliminary screening. In India, this is not a very common practice and those few that do provide this kind of service have not been able to generate a large number of applications. 6. Word of Mouth Sometimes it may be more economic, both in terms of time and money, to pass the word around about the possible opening. This could be done either through individual employees or unions. It often serves the purpose of keeping the union involved in recruitment and ensuring industrial harmony.

7. Casual Applications Often the organization receives self- solicited applications seeking suitable opportunities. Many organizations I keep a live file of such casual unsolicited applications and whenever a befitting position opens, invite them to apply through formal channel. One major problem with this method is that such people apply to a number of organizations, and when they are needed by the organization, either they are absorbed by other organizations or are not interested in the position. 8. Raiding 29

Raiding is a technical term used when employees working elsewhere are attracted to joint organizations. The organizations are always on the lookout for qualified professionals, and are willing to offer them a better deal if they make the switch. There are always some employees who are professionally very competent, but dissatisfied with something or the other in the organization. They form the easy group to attract. The other group is formed of those who are equally competent but are quite satisfied with their present position. To attract them, the organization has to offer a very lucrative package of perquisites. Whatever may be the means used to attract, often it is seen as an unethical practice and not openly talked about. SELECTION Managing Recruitment and Selection System
ATTRACT

ENGAGE

TRANSACT

SATISFY

RETAIN

30

Selection is choosing a few from those who applied. Some selection are: 1. Application Banks This is one of the most common methods used for collecting information from the applicants. The general purpose of application blanks, according to Athreya (1968), is to secure desired factual information from an applicant in a form convenient for evaluating the applicants qualifications. Purpose of Applications Blanks: Lipsett, Rodgers and Kenter (1964) have identified three purposes of application blanks: preliminary screening, aid in interview, and a selection device in its own right. A wider application shows that the application blank serves the following purpose. They provide the candidates first formal introduction to the company. Prior to receiving the application, the company knows nothing about him/her. They generate data in uniform formats and hence make it easy to make cross comparison of the applicants. They generate data that can serve as abases to initiate a dialogue in the interview. This may be true for both preliminary and final interviews. Areas that need to be further explored are identified on the basis of blank also provide leads for subsequent interviews. Data in the application blank can be used for purpose of analysis and research in personnel. In addition, some minimum data on employees selected have to be stored for subsequent use. Since the major part of the application blank is structured, the responses could be precoded for compcutersation. This is particularly useful when a large number of

applications are generated and there are time and resource constraints. Often application blanks require the applicants to provide information in an unstructured way (i.e. anything else you would like to mention or state in your own handwriting why you wish to be considered for this post, etc.). This gives a very useful clue to the organizing and presentation abilities of the applicant. Sometimes the application blanks are designed with weight ages assigned to various items in the applicants blanks based on past experience. These are called weighted application blanks. 31

Contents of application blanks: Though the information sought in applicant blanks may vary according to the level of the position and the organisation, most application blanks seem to contain the following kinds of information. Personal data- name, date and place of birth, address sex and other identification marks. Marital data- whether married, number of children, whether spouse is working, education of the spouse and children, other dependents, etc. Physical data- height, weight, general health condition, whether physically handicapped, etc. Educational data- various levels of formal education, years, marks obtained, distinctions, subjects taken, merit awards, scholarships, etc. Employment data- past experience, years, position, company, salary, promotions, professional courses attended, nature of duties, reasons for leaving previous jobs, membership of professional bodies and associations. Extra academic data- sports and games, NSS, NCC, level of efficiency achieved in extra academic activities, prizes, hobbies and interest, pastime activities etc. References- names of two or more people who can credentials by way of the suitability of the candidate to the announced position. Generally, they are ex-employees or ex-teachers, and the references consists of a freefloating letter. 2. Interview Interview is, perhaps, one of the most widely used method of selection. A survey by Spriegeland James (1958) conducted on 236 firms in USA in 1930 and a second survey by the same authors conducted on 852 firms in 1957 showed that 94 per cent and 99 per cent organizations, respectively, used interview as a method of selection. Unfortunately we do not seem to find a similar survey in the Indian context, but if one talks to the representatives of ten organizations, chances are that nine out of ten would be using interview as a method of selection. Interview is one of the few situation where a candidate comes face-to-face with the representatives of the organisation. It is, thus, seen as an interaction between the interviewer and the applicant and a situation in which both participate. Tharp (1983) 32

explains the rationale of the interview process when he says, Only through the interview process can a manager gather sufficient data to be able to predict whether a candidate will be successful in the position for which he or she is being considered. A face-to-face interview has several advantages which are not otherwise available. To an organisation it may provide a situation to verify certain information given in the application blank. There are certain areas where information can be sought only through interview. In an interview setting the applicant also gets an opportunity to explain certain things which he may not like to put on paper. Additionally, he can seek information on the organisation, its future plans, his own growth prospects in the organization so as to help him take a well informed decision. Interview, provides an opportunity of two-way interaction facilitating the gathering of complete information to take meaningful decisions. Interview provides an overall picture of the applicant which comes as piecemeal when other methods are used. A well conducted interview that puts the applicant at case and provides an environment where the applicant can talk freely about himself, helps generate information that would provide useful insight into the personality of the applicant as a whole. There are different methods of interviewing applicants. These methods vary according to the purpose of interview and the nature of position for which the applicants are interviewed. 3. Business Games For positions where decision-making is the most important components, some techniques are developed to assess the decision- making ability of the applicants. These are called business games. Applicants for supervisory or managerial positions are put in a simulated exercise of actual decision- making. A problem is provided to them along with all the necessary information and constraints. The applicant is asked to make a decision and the quality of this decision is judged by how well the applicant has processed the information provided to him. One example of business games is the in-basket techniques.

33

IN-basket technique for selecting managers was developed by Lopez (1966). It consists of providing the applicant with background material on the organization such as its history, organization structure, operating procedures, roles, financial data, targets, and past achievement, etc. It helps to set the applicant in a more of less realistic situation. Along with this information a set of problems are provided. In basket is like an in-treay in an office where the incoming papers are placed. The problems contained in the in-tray by way of memos, letters, and reports are related to each other in some way and are also

related to a master plan. The idea is that the decision taken should be in consonance with the overall reality of the organization and should not be an isolated case (Jaffee, 1971_. Once the exercise is over the applicants judgment and performance is evaluated. The applicant explains the decisions that he took and why he took those decisions. It is a powerful technique for selection, particularly for the managerial cadre and provide insight into the applicants abilities and behaviour. However, the development of such an exercise is time consuming. Often the exercise may not be taken seriously by the participants; hence the behaviour may not be very spontaneous. In the Indian context this excise is quite often practiced but as part of interview. Here the interviewer may provide a situation to the applicant and ask him to indicate what he would do and why. However, as an independent selection tool its use has been nominal. 4. Group Discussion Another frequently used technique for the selection of supervisory and management staff and particularly for management trainees in India is known as leaderless group discussion or just group discussion. Before the individual, face-to-face, interview takes place a group of applicants ranging from six to ten are either provided a company situation or a topic on which they are allowed some times to discuss among themselves. The discussion is preceded by a preparation time which provides an opportunity to the applicants to think of the subject matter and evolve strategy of making their contribution. Group discussion are generally unstructured. There are no predetermined expectations of who will perform what role seen is how the group takes its shape, what is this shape, and who has contributed most to this. Depending upon the job expectation a variety of things could be examined. Generally, the quality of content, its delivery time management, interpersonal competence, and behaviour in the group are assessed. The assessment is

34

done by more than one person who are also members of the interview panel. These assessments are done independently. Since the assess are also members of the interview panel, it provides them an opportunity to follow up certain points during the face-to-face interview. This method is extremely useful as its generates some very useful data on the behaviour, personality, and leadership qualities in the group . It is time saving as six to ten applicants can be observed simultaneously. However, the assessors have to be careful because vocal applicants with better schooling may score better because of their delivery. Hence emphasis should be placed on content and general behaviour. Physical Examination This, as a method of selection, is most useful where physical strength is most important or where physically handicapped are employed. Other than providing a sound, hygienic environment and legally protecting the organisation, there does not seem to be any other reason why physical examination should be undertaken.

35

OBJECTIVES
To study that whether recruitment & selection is needed in organizations. To what extent recruitment & selection should be done and how can it made be effective to increase the productivity of employees in Bharti Airtel. To determine the level of job Recruitment. To study the attitude of employees towards their jobs. To analyze opportunities that is provided to employees for their development. To find out that if any gap exist in its policies for this it conducts time to time surveys to find out what the employees expects from their organization. To study the development of an employees in an organization. To determine the process of recruitment and selection of airtel.

36

RESEARCH METHODOLOGY
Research can be defined as the search for knowledge, or as any systematic investigation, with an open mind, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method. The primary purpose for basic research (as opposed to applied research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe.

Research methodology.
It is a system of principles or methods of procedure in any discipline, such as education, research, diagnosis, or treatment.

Types of research \
The basic types of research are as follows: Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control. fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, 37

when we are interested in investigating the reasons for human behavior, we quite often talk of Motivation Research,

Objectives of research 1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulate research studies). 2. To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies). 3. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies). 4. To test a hypothesis of a causal relationship between variables.

Sources of research
1. Primary sources A primary source is an original object or document -- the raw material or first-hand information. Primary sources include historical and legal documents, eyewitness accounts, results of experiments, statistical data, pieces of creative writing, and art objects. 2. Secondary sources A secondary source is something written about a primary source. Secondary sources include comments on, interpretations of, or discussions about the original material. You can think of secondary sources as second-hand information.

In this project data is collected from primary sources. All data is collected by using survey method. In survey method data can be collected from following methods Through interview Through questionnaire in questionnaire method the response format that we have used is close ended questions.

38

Importance of research Explain what a theory is and is not.

Define and recognize the differences among theories, hypotheses, and opinions. Summarize what you should learn from Exploring Research.Describe 8

characteristics of good research. Describe how a scientific method goes about formulating and answering a question. Describe the common steps taken in conducting research. Describe the major difference between non experimental and experimental research. Briefly describe the goals of descriptive, historical, correlation, and qualitative, experimental, and quasi-experimental research. This topic is based on cotemporary management issue and the type of this topic is descriptive and analytical research

39

INTRODUCTION
RECRUITMENT AND SELECTION
Employees well selected and well placed would not only contribute to the efficient running of the organization but also offer significant potential for future replacement. Recruitment is concerned with both engaging the required number of people, and measuring their quality. It is not only a matter of satisfying a companys needs; it is also an activity, which influences the shape of the companys future. It is a process that not only helps to select and fill a vacancy physically, mentally, and temperamentally but also helps to develop an employee into a desirable employee. Selection process searches persons with potential who would grow in the organisation.

Recruitment
The first stage in selection is to make the vacancies known to a large number of people and the opportunities that the organisation offers. The process of attracting people to apply is called recruitment. Recruitment is also defined as a process of searching for prospective employees and stimulating them to apply for jobs. It is different from selection, which begins after recruitment has ended. While recruitment, is a process of attracting people selection is a process of choosing a few among those who have been attracted. The need for recruitment may arise out of the following situations. Vacancies due to transfer, promotion, retirement, termination, permanent disability, or death .Creation of vacancies due to expansion, diversification, growth,or job respecification. Recruitment is done by using a number of methods. 1. Employment Agencies There are a number of private employment agencies like Ferguson Associates, ABC Consultants, SB Billimoria, who register for employment and can furnish a list of suitable candidates when sought by employers from their data bank. Generally, these agencies, these agencies also recruit on behalf of the organisation without necessarily disclosing the 40

identity of the organisation. They go as far as short-listing the candidates for organisation but the final decision is taken by the representatives of the organisation.

2. Advertisement It is the most widely used method for generating applications. Its reach is very wide. Different mass media could be used to make people aware of the opportunities. There are special journals and magazines that cater to different market segments and putting an advertisement in them may generate a large number of relevant applications. However, in preparing and advertisement, lot of care has to be taken to ensure that some self-selection among applicants takes place. In other words, only qualified people should think of responding to advertisements. 3. Campus Recruitment While campus recruitment is a common phenomenon in the West, in India it has made its mark rather recently. Many organizations send their representatives every year to national institutes of higher learning like Indian Institutes of Management Indian Institutes of Technology and similar others. 4. Deputation Deputation refers to sending an employee to another organization for a short duration of two to three years. Deputation is a pretty common method of recruitment in the public sector organizations and government agencies in India. It also takes place in the private sector when an employee is sent to another unit of the same group for some time. 7. 5.Casual Applications Often the organization receives self- solicited applications seeking suitable opportunities. Many organizations I keep a live file of such casual unsolicited applications and whenever a befitting position opens, invite them to apply through formal channel. One major problem with this method is that such people apply to a number of organizations, and when they are needed by the organisation, either they are absorbed by other organizations or are not interested in the position. 6. Raiding

41

Raiding is a technical term used when employees working elsewhere are attracted to joint organizations. The organizations are always on the lookout for qualified professionals, and are willing to offer them a better deal if they make the switch. There are always some employees who are professionally very competent, but dissatisfied with something or the other in the organisation. They form the easy group to attract. SELECTION Selection is choosing a few from those who applied. Some selection are: 1. Application Banks This is one of the most common methods used for collecting information from the applicants. The general purpose of application blanks, according to Athreya (1968), is to secure desired factual information from an applicant in a form convenient for evaluating the applicants qualifications. Sometimes the application blanks are designed with weight ages assigned to various items in the applicants blanks based on past experience. These are called weighted application blanks. 2. Interview Interview is, perhaps, one of the most widely used method of selection. A survey by Spriegeland James (1958) conducted on 236 firms in USA in 1930 and a second survey by the same authors conducted on 852 firms in 1957 showed that 94 per cent and 99 per cent organizations, respectively, used interview as a method of selection. Unfortunately we do not seem to find a similar survey in the Indian context, but if one talks to the representatives of ten organizations, chances are that nine out of ten would be using interview as a method of selection. 3. Business Games For positions where decision-making is the most important components, some techniques are developed to assess the decision- making ability of the applicants. These are called business games. Applicants for supervisory or managerial positions are put in a simulated exercise of actual decision- making. A problem is provided to them along with all the necessary information and constraints. The applicant is asked to make a decision and the quality of this decision is judged by how well the applicant has processed the information provided to him. One example of business games is the in-basket techniques. 42

4. Group Discussion Another frequently used technique for the selection of supervisory and management staff and particularly for management trainees in India is known as leaderless group discussion or just group discussion. Before the individual, face-to-face, interview takes place a group of applicants ranging from six to ten are either provided a company situation or a topic on which they are allowed some times to discuss among themselves. The discussion is preceded by a preparation time which provides an opportunity to the applicants to think of the subject matter and evolve strategy of making their contribution. 5.Physical Examination This, as a method of selection, is most useful where physical strength is most important or where physically handicapped are employed. Other than providing a sound, hygienic environment and legally protecting the organisation, there does not seem to be any other reason why physical examination should be undertaken.

43

DATA ANALYSIS
Ql ) . Do you think service working conditions in the corporation are? a) Excellent c) Good b) Very Good d) Poor

22%

25%

Excellent Very Good Good Poor

33%

20%

FIG 1.1 INTERPRITATION About 33% of the employees say that the working condition in an organization is good ,25% says it is excellent and 20% says organization has a good very good whereas 22% says condition is very poor in an organization. 44

45

Q2).

Chances of career upliftment in the corporation? a)Excellent c) Good b)Very Good d)Poor

12%

32%

26%

Excellent

Very Good

Good

Poor

30%

FIG 1.2 INTERPRITATION 32% of employees says the chance of career upliftment in an organization is excellent , 30% says growth in career development is very good and 26% says it is good whereas 12% says there is no career upliftment.

46

Q3). Would you like to switch over to the other organization n the near future, if offered? a) Yes b) No

21%

Yes

No

79%

FIG 1.3 INTERPRITATION Around 79% employees they will not switch over to the other organization in near future because there are so may opportunities whereas 21% says yes they would like to switch over to another organization in near future.

47

Q4). Are you satisfied with the transfer/promotion Policy in the Corporation? a) Yes b) No

43% 57%

Yes
No

FIG 1.4 INTERPRITATION About 43% of employees are satisfied with the transfer and promotion policies in an organization whereas 57% of employees say that they are not satisfied with these policies.

48

Q5). Do you think promotion chances are equal in all cadres & at all levels? a) Yes b) No

37% 63%

Yes No

FIG 1.5 INTERPRITATION 63% of employees says the chance of promotion is not equal at all the levels whereas 37% says the chance of promotion is equal at all the level because of the good opportunities of career growth.

49

Q6) Pay & allowances and other benefits including Perks in the corporation as compared to other public undertakings? a) Excellent c) Good b) Very Good d) Poor

14% 18% 33% 35%

Excellent Very Good Good Poor

FIG 1.6 INTERPRITATION 18% of employees say that Pay & allowances and other benefits including Perks in the corporation as compared to other public undertakings are excellent, 35% says very good and 33% says it is good whereas 14% says Pay & allowances and other benefits including Perks in the corporation as compared to other public undertakings are poor.

50

Q7).What is your major concern when considering transfer on promotion or otherwise ? a Age b. Family Obligation c. Financial burden due to double base d. Job Satisfaction e Promotion prospects

35
30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11

32% of employees say that their basic concerned about the age factor, 24% say that they basically concerned family obligation 185 says that they concerned about the financial burden due to double base, 20% say their basic concerned is job satisfaction and 10% say that their basic concerned is promotion prospects

51

Q8.Number of Promotions &transfer availed during service? Promotion 1 2 3 4 5 Transfer 1 2 3 4 5

Promotion
1 2

3
4 5

FIG 1.8

INTERPRITATION During a service period 32% of employees are getting 2 promotion, 295 of employees are getting 3 promotion, 18% are getting 4 promotion, 13% are getting 5 promotion and 8% are getting 1 promotion.

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Ql0) Do you think VRS is another form of downsizing? a) Yes b) No

42%

Yes

58%

No

FIG1.10 INTERPRITATION 58% of employees say that yes VRS is another form of downsizing whereas 42% say no.

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Q11) Would you like to opt for VRS if offered in the future? a) Yes b) No

22% 78%

Yes No

Fig . 1.11

INTERPRITATION Employees are happy with vrs system so about 80% employees would like to opt vrs in future if they are offered. Only 22% employees are not interested in this.

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Q12)Work distribution among employees is according to their skill & job knowledge? a) Yes b)No

33% 67%

Yes No

Fig 1.12 INTERPRITATION Distribution of work among the employees are not based on their knowledge og job or skills. 67% of employees think like this only 33% think that the work distribution is according to their skills and knowledge of job.

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Q13)Do you feel Job Satisfaction with your present working conditions? a) Yes b)No

32% 68%

Yes No

Fig1.13 INTERPRITATION Working conditions are good in the organisation. It shows healthy work culture of company. 68% employees are happy and 32% want some improvement in working conditions.

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Q14) Do you feel there is excess man power in the corporation? a) Yes b)No

48% 52%

Yes No

FIG.1.14 INTERPRITATION This answer is having of 52% and 48%. So its about 50-50 ratio between yes and no answer about excess man power in organisation.

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Ql 6)All employees are treated at par by management while granting benefits/perks? a) Yes b)No

48% 52%

Yes No

FIG1.16 INTERPRITATION 52% of employees say that they are treated at par by management while granting benefits perks while 48% say that they are not treated by management while granting benefits perks.

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Q17) Is Union association in the corporation to watch interest of the employees? a) Yes b)No

36%
64%

Yes No

FIG 1.18 INTERPRITATION 64% of employees say that there is a union association in the corporation to watch interest of the employees whereas 36% of employees say that there is no any union association to see the interest of employees.

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S.W.O.T ANALYSIS OF THE AIRTEL

Strengths

Right products, quality and reliability.

Weaknesses

Superior product performance vs. competitors.

Some gaps in range for certain sectors.

Brand Image Products have required accreditations.

Not popular in the international market

Delivery-staff need training. Customer service staff needs training.

High degree of customer satisfaction.

Good place to work Lower response time with efficient and effective service.

Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

Dedicated workforce aiming at making a long-term career in the field.

Opportunities

Threats

Profit margins will be good. End-users respond to new ideas. Could extend to overseas. New specialist applications. Could seek better supplier deals. Fast-track career development opportunities on an industry-wide basis.

Legislation could impact. Existing core business distribution risk.

Retention of CSD staff critical. Vulnerable to reactive attack by major competitors.

The cost of telecom and network infrastructure is much higher in India.

An applied research centre to create opportunities for

Lack of infrastructure in rural areas could constrain investment.

developing techniques to provide added-value services 63

High volume/low cost market is intensely competitive.

CONCLUSION
The employees are generally satisfied with the working conditions in the Corporation Chances of career growth are low in the corporation. The employees of the Corporation are not satisfied with the HR policies and their implementation in practice at different hierarchical levels and feel a need for the policies to be changed with time Most of the employees have expressed discontent over the functioning and role of the existing trade unions in protecting the interests and working for the welfare of the employees of the corporation and in encouraging the active participation of employees in the activities of the management in general. The employees are generally satisfied with the transfer policies in the Param Switch and Gear Ltd. The level of motivation in the employees regarding work is low. .The above information is based on the analysis of the questionnaires filled by a sample of employees in the Corporation Headquarters various departments. Getting high quality job performance from your employees depends on giving employees opportunities for their personal growth, achievement, responsibility, recognition, and reward. Once the compensation (pay and benefits) is established properly, it is necessary to use other means to further motivate and improve your work force's output. The basis of all job enhancement efforts is your recognition of employees' desire to do good work, to assume responsibility, to achieve and to succeed.

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SUGGESTIONS
Offer rewards and recognition to employees who earn degrees or job related certifications along with the job. Also Promotion to be based on performance and education both. Increase support of education benefits, including more tuition reimbursement. Cab routing is one of the major problems faced by the employees especially female employees. Hence there should a proper working help line for cabs and the routing should not be such that it takes more than the required time. In order to reduce the stress level, various on-the-floor activities should be introduced. The nature of work being a team effort special consideration should be given to team building games & role plays which will not only act as a stress buster but will also help in building relationship with supervisors. There need to be some changes in the non-monetary incentives, which are provided to employees. Since the workforce comprises mostly of age group between 20-30, thus the incentives like movie tickets, gift vouchers, discount coupons, pizza party etc should be introduced. Loyalty bonus or incentives can be introduced for those employees who stay with the company for 2 years or more. Moreover, if introduced, these should be given quarterly. Hold managers accountable for retention efforts by making it part of their performance plans. Since the exit interviews do not show the true picture of the reasons for attrition, this job can be outsourced so that actual reasons can be known. Timely performance appraisal should be done. Reimbursement of official expenses particularly Phone Bills. Supervisors involvement in career development in synchronization of interests and temperaments of employees. Apart from company sponsored training and seminars some other educational courses or seminars to be conducted so as to help them in their future career, which is at the same time supported by their qualification. This will not be beneficial for the career development but will also be a tool to prevent employee attrition. 65

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APPENDICES
QUESTIONNAIRE Name: Designation Phone no: Ql ). Do you think service working conditions in the corporation are: a)Excellent c) Good Q2). b)Very Good d) Poor

Chances of career upliftment in the corporation? a)Excellent c) Good b)Very Good d)Poor

Q3).

Would you like to switch over to the other organization n the near future, if offered? a) Yes b) No

Q4).

Are you satisfied with the transfer/promotion Policy in the Corporation? a) Yes b) No

Q5).

Do you think promotion chances are equal in all cadres & at all levels? a) Yes b) No

Q6).

Pay & allowances & other benefits including Perks in the corporation as compared to other public undertakings? a) Excellent c) Good b) Very Good d) Poor e) Equal

Q7).

What is your major concern when considering transfer on promotion or otherwise? a Age c. .Financial burden due to double base e Promotion prospects b. .Family Obligation d. Job Satisfaction

Q8

Number of Promotions &transfer availed during service? 67

Promotion 1 2 3 4 5 Q9)

Transfer 1 2 3 4 5

Do you think VRS should be offered once again in the corporation? a) Yes b) No

Ql 0) Do you think VRS is another form of downsizing? a) Yes b) No

Q11) Would you like to opt for VRS if offered in the future? a) Yes b) No

Q12) Work distribution among employees is according to their skill & job knowledge? a) Yes b)No

Q13) Do you feel Job Satisfaction with your present working conditions? a) Yes b)No

Q14) Do you feel there is excess man power in the corporation? a) Yes b)No

Q15). Have you ever experienced any lacuna .inconsistency or anomaly in the service rules in the corporation? a) Yes b)No

Ql 6) All employees are treated at par by management while granting benefits/perks? a) Yes b)No

Q17) Is Union association in the corporation to watch interest of the employees? a) Yes b)No

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BIBLIOGRAPHY
Newspaper clippings (Regular Articles on Current HR Trends in HT Power Jobs section of Hindustan Times) The Business Today experimental guide to Managing Workforce (special fourth anniversary issue of Business Today) Reference Books: DeCENZO A. DAVID & ROBBINS P. STEPHEN, Personnel/ Human Resource Management, Third Edition, Prentice-Hall India Kandula R. Srinivas, Human Resource Management in Practice (with 300 Models, techniques and tools), Prentice-Hall India Armstrong Michael, Murlis Helen Reward Management: A Handbook of Remuneration strategy and Practice (Fifth Edition), Published by Kogan Page, Page No: 3, 9, And 27. Jacobs Barry People, Performance, Profit, Published by Montogomery Research (June 1, 2005), Page No: 28, 42, 48, 56 Martin Graeme, Hetrick Susan Corporate Reputations, Branding and People Management: A Strategic Approach to HR, Published by Butterworth Heinemann (August 18, 2006), Page No: 28, 30, 36, 37, 112 WEB: http://www.employment-studies.co.uk/summary/summary.php?id=408 http://www.isrinsight.com/Solutions/engagement.aspx http://www.ndplonline.com/home/people.html http://www.standardchartered.com/in/ http://www.airtelcellular.com http://www.conferenceboard.ca/documents.asp?rnext=1831 ARTICLES: Masarech Ann Mary, Enthused and in gear ... Ingredients for employee engagement, Canadian Manager, Published by Canadian Institute of Management dated on December 22, 2004, Page No: 18

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