Mba Project Report On HDFC Bank
Mba Project Report On HDFC Bank
INTRODUCTION:
Recruitment is the process of choosing the right person for the right position and at the
right time. Recruitment also refers to the process of attracting, selecting, and appointing
potential candidates to meet the organization’s resource requirements.
We have Internal Factors as well as External Factors that influence the recruitment
process.
Internal Factors:
Organizations have control over the internal factors that affect their recruitment functions.
The internal factors are −
Size of organization
Recruiting policy
Image of organization
Image of job
Size of Organization:
The size of the organization is one of the most important factors affecting the recruitment
process. To expand the business, recruitment planning is mandatory for hiring more
resources, which will be handling the future operations.
Recruiting Policy:
Recruitment policy of an organization, i.e., hiring from internal or external sources of
organization is also a factor, which affects the recruitment process. It specifies the
objectives of the recruitment and provides a framework for the implementation of
recruitment programs.
Image of Organization:
Organizations having a good positive image in the market can easily attract competent
resources. Maintaining good public relations, providing public services, etc., definitely
helps an organization in enhancing its reputation in the market, and thereby attract the
best possible resources.
Image of Job:
Just like the image of organization, the image of a job plays a critical role in recruitment.
Jobs having a positive image in terms of better remuneration, promotions, recognition,
good work environment with career development opportunities are considered to be the
characteristics to attract qualified candidates.
External Factors:
External factors are those that cannot be controlled by an organization. The external
factors that affect the recruitment process include the following −
Labor market − Labor market controls the demand and supply of labor. For
example, if the supply of people having a specific skill is less than the demand,
then the hiring will need more efforts. On the other hand, if the demand is less
than the supply, the hiring will be relative easier.
Legal considerations − Job reservations for different castes such as STs, SCs,
OBCs are best examples of legal considerations. These considerations, passed
by government, will have a positive or negative impact on the recruitment policies
of the organizations.
Competitors − When organizations in the same industry are competing for the
best qualified resources, there is a need to analyze the competition and offer the
resources packages that are best in terms of industry standards.
OBJECTIVE OF STUDY:
REVIEW OF LITERATURE:
Brief Overview:
Effective research cannot be accomplished without studying critically what already exists
in the form of general literature and specific studies. Therefore, it is considered as an
important perquisite for actual planning and execution of research projects. The review of
existing literature helps to formulate hypothesis, identify research gaps and formulate a
framework for further investigation.
Need of the Recruitment: Dessler, (2000) found in his study that the Recruitment and
selection forms a core part of the central activities underlying human resource
management: namely, the acquisition, development and reward of the workers. It
frequently forms an important part of the work of human resource managers – or
designated specialists within work organizations. However, and importantly, recruitment
and selection decisions are often for good reason taken by non-specialists, by the line
managers.
Recruitment and selection also have an important role to play in ensuring worker
performance and positive organizational outcomes. Recruitment and selection had the
capacity to form a key part of the process of managing and leading people as a routine
part of organizational life, it is suggested here that recruitment and selection has become
ever more important as organizations increasingly regard their workforce as a source of
competitive advantage. Of course, not all employers engage with this proposition even at
the rhetorical level. However, there is evidence of increased interest in the utilization of
employee selection methods which are valid, reliable and fair.
Dessler listing the essence of these in the following: build a pool of candidates for the job,
have the applicants fill out application forms, utilize various selection techniques to
identify viable job candidates, send one or more viable job candidates to their supervisor,
have 47 the candidate(s) go through selection interviews, and determine to which
candidate(s) an offer should be made.
Process of Recruitment: Odiorne (1984) indicated that the quality of new recruits
depends upon an organization's recruitment practice, and that the relative effectiveness
of the selection phase is inherently dependent upon the caliber of candidates attracted.
Smith et al. (1989) argue that the more effectively the recruitment stage is carried out, the
less important the actual selection process becomes. When an organization makes the
decision to fill an existing vacancy through recruitment, the first stage in the process
involves conducting a comprehensive job analysis. This may already have been
conducted through the human resource planning process, particularly where recruitment
is a relatively frequent occurrence. Once a job analysis has been conducted, the
organization has a clear indication of the particular requirements of the job, where that
job fits into the overall organization structure, and can then begin the process of
recruitment to attract suitable candidates for the par 48 reality, recruitment practices
involve little or no attempt to validate practices. Personnel managers tend to rely on
feedback from line managers and probationary periods and disciplinary procedures to
weed out mistakes. Firms with high quit rates live with them and tend to build them into
their recruitment practices and they do not analyze the constitution of their labor turnover.
A number of recent studies have suggested that some recruitment methods are more
effective than others in terms of the value of the employees recruited.
Miyake, (2002) indicated that while advertising is usual for job vacancies, applicants were
sometimes recruited by word of mouth, through existing employees. Besides being
cheaper, the “grapevine” finds employees who stay longer (low voluntary turnover) and
who are less likely to be dismissed (low involuntary turnover). People recruited by word
of mouth stay longer because they have a clearer idea of what the job really involves. The
study reviewed five studies in which average labor turnover of those recruited by
advertising was 51 percent. The labor turnover for spontaneous applicants was 37 per
cent and turnover for applicants recommended by existing employees was 30 percent.
One hypothesis proposed to account for this was the “best information” hypothesis. It was
argued that people who were suggested by other employees were better and more
realistically informed about the job than those who applied through newspapers and
agencies. Thus, they were in a better position to assess their own suitability. Better
informed candidates are likely to have a more realistic view of the job, culture of the
organization and job prospects.
Burack, (1985) argues that recruitment sources are significantly linked to differences in
employee performance, turnover, satisfaction and organizational commitment. In a
survey of 201 large US companies, Burack asked respondents to rate the effectiveness
of nine recruitment sources in yielding high-quality, high-performing employees. The three
top ranked sources were employee referrals, college recruiting and executive search
firms. However, cautions that, while these general results are useful, there is a need for
greater internal analysis of the relative quality of recruits yielded by different sources.
Kersley et al (1997) reiterated the anticipatory socialization stage for students planning to
enter professions, and in particular the effects of recruitment and selection experiences
on career expectations and orientation. They agreed that the nature of students’ job
search activity, the possession of relevant work experience, and exposure to employers
through recruitment and selection activities may form part of the “evolving sequence of a
person’s work experiences” which contributes to anticipatory socialization. It has been
argued that exposure to employers through recruitment and selection is a social process
where employers and potential employees gradually perceive a match. Through job
search activities and awareness of employers’ recruitment literature and events, students
gather information about the organization’s goals, values, climate and work practices to
guide their ultimate decision. Exposure to selection procedures provides information
about the culture and attributes of an organization, and candidates form judgments from
their perceptions of the fairness of the selection methods used.
Delery and Doty (1996) argued that providing students with a greater awareness of
employment opportunities, and equipping them with the ability to be proactive in
approaching potential employers, will lead to more effective career self-management and
selection processes.
CONCEPTUAL FRAMEWORK:
Recruitment process is the first step in creating a powerful resource base. The process
undergoes a systematic procedure starting from sourcing the resources to arranging and
conducting interviews and finally selecting the right candidates.
Recruitment Planning: Recruitment planning is the first step of the recruitment process,
where the vacant positions are analyzed and described. It includes job specifications
and its nature, experience, qualifications and skills required for the job, etc.
A structured recruitment plan is mandatory to attract potential candidates from a pool of
candidates. The potential candidates should be qualified, experienced with a capability
to take the responsibilities required to achieve the objectives of the organization.
Identifying Vacancy:The first and foremost process of recruitment plan is identifying the
vacancy. This process begins with receiving the requisition for recruitments from
different department of the organization to the HR Department, which contains
−Number of posts to be filled, Number of positions, Duties and responsibilities to be
performed, Qualification and experience required, etc.
When a vacancy is identified, it the responsibility of the sourcing manager to ascertain
whether the position is required or not, permanent or temporary, full-time or part-time,
etc. These parameters should be evaluated before commencing recruitment. Proper
identifying, planning and evaluating leads to hiring of the right resource for the team
and the organization.
Job Analysis: Job analysis is a process of identifying, analyzing, and determining the
duties, responsibilities, skills, abilities, and work environment of a specific job. These
factors help in identifying what a job demands and what an employee must possess in
performing a job productively.
The following steps are important in analyzing a job −
Determining the skills, knowledge and skills, which are required for the job
The immediate products of job analysis are job descriptions and job specifications.
Job Location
Summary of Job
Job Duties
Process of Supervision
Working Conditions
Health Hazards
Job Specification: Job specification focuses on the specifications of the candidate,
whom the HR team is going to hire. The information about each job in an organization
is as follows −Physical specifications, Mental specifications, Physical features,
Emotional specifications and Behavioral specifications.
A job specification document provides information on the following elements −
Qualification
Experiences
Skills requirements
Work responsibilities
Emotional characteristics
Planning of career
Analyzing HR strategy
Collection of available data
Searching the Right Candidates: Searching is the process of recruitment where the
resources are sourced depending upon the requirement of the job. After the recruitment
strategy is done, the searching of candidates will be initialized. This process consists of
two steps −
Source activation − Once the line manager verifies and permits the existence of
the vacancy, the search for candidates starts.
Selling − Here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates.
Searching involves attracting the job seekers to the vacancies. The sources are broadly
divided into two categories: Internal Sources and External Sources.
Internal Sources: Internal sources of recruitment refer to hiring employees within the
organization through −
Promotions
Transfers
Former Employees
Employee Referrals
Previous Applicants
External Sources: External sources of recruitment refer to hiring employees outside the
organization through −
Direct Recruitment
Employment Exchanges
Employment Agencies
Advertisements
Professional Associations
Campus Recruitment
Word of Mouth
While reviewing the resumes, an HR executive must keep the following points in mind,
to ensure better screening of the potential candidates −
Job-hopping
It helps in verifying the candidates, whether they are active and available.
It also helps in giving a quick insight about the candidate’s attitude, ability to
answer interview questions, and communication skills.
Identifying the top candidates: Identifying the top candidates is the final step of
screening the resumes/candidates. In this process, the cream/top layer of resumes are
shortlisted, which makes it easy for the hiring manager to take a decision. This process
has the following three outcomes −
Helps the hiring managers to take a decision in hiring the right candidate
The costs incurred in the recruitment process are to be evaluated and controlled
effectively. These include the following −
Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees.
Cost incurred in recruiting suitable candidates for the final selection process
Time spent by the Management and the Professionals in preparing job description,
job specifications, and conducting interviews.
SCOPE AND IMPORTANCE OF RECRUITMENT:
The scope of Recruitment and Selection is very wide and it consists of a variety of
operations. Resources are considered as most important asset to any organization.
Hence, hiring right resources is the most important aspect of Recruitment. Every
company has its own pattern of recruitment as per their recruitment policies and
procedures.
Choosing the best suitable process of recruitment for effective hiring of resources
Any organization wants its future to be in good and safe hands. Hence, hiring the right
resource is a very important task for any organization.
Recruitment is one of the most fundamental activities of the HR team. If the recruitment
process is efficient, then
Here is a list that shows the purpose and importance of Recruitment in an organization:
It meets the organization’s social and legal obligations with regards to the work
force.
It helps in identifying the job applicants and selecting the appropriate resources.
PROPOSED METHODOLOGY:
The research methodology is survey method. A survey is a research method in which
subjects respond to a series of statements or questions in a questionnaire or an interview.
Surveys target some population, which are the people who are the focus of research.
Because populations are usually quite large, the researcher will target a sample, which is
a part of a population that represents the whole.
Once our sample is selected, we need a plan for asking questions and recording answers.
The most common types of surveys are questionnaires and interviews. A questionnaire
is series of written statements or questions. With an interview, the researcher personally
asks subjects a series of questions and gives participants the freedom to respond as they
wish. Both questionnaires and interviews can include open-ended questions (allowing the
subjects to respond freely), or close-ended questions (including a selection of fixed
responses).
RESEARCH DESIGN:
This is a exploratory research which explores the importance of the study done.
Quesionnaire
SAMPLING:
Convenience sampling technique was used as samples were collected from the
employees of the organization regarding the importance of the recruitment procedure.
MS-Excel
Graphs
Pie charts
LIMITATIONS:
As this was a academic project and the time was limited to 8 weeks, so the study is limited
to the organization located in Bangalore.