Progress Report 4 (Priyanshu Kumar 18BBA1008) PDF

SUMMER PROJECT
PROGRESS REPORT NO. 4
ON
FUNCTIONAL ELECTIVE AREA ANALYSIS OF
(Ansal Properties and Infrastructure Ltd.)
SUBMITTED TO: SUBMITTED BY:
Name: Dr (Prof) Anil Chandhok STUDENT NAME: Priyanshu Kumar
Designation: Professor UID: 18BBA1008
Chandigarh University Batch 2018-21
Location: Gharuan,
CHANDIGARH UNIVERSITY
GHARUAN, (PUNJAB)
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CHAPTER-4
FUNCTIONAL
ELECTIVE AREA
ANALYSIS
INTERNSHIP PROJECT
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OBJECTIVES
 To analyse the major departments of the company.
 To analyse the detailed structure of marketing and HR department.
 To analyse the detailed customer analysis of the company.
 To analyse the detailed recruitment process and technique of the company.
 To analyse the functions of both the departments.
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INTRODUCTION
TO
MARKETING DEPARTMENT
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4.1 DESCRIPTION OF A MARKETING DEPARTMENT
A marketing department promotes your business and drives sales of its products or services. It provides the
necessary research to identify your target customers and other audiences. Depending on the company’s
hierarchical organization, a marketing director, manager or vice president of marketing might be at the helm.
In some businesses, a vice president of sales and marketing oversees both the marketing and sales departments
with a strong manager leading each department.
It’s important to keep a strong marketing department intact regardless of the economy so you remain visible
and keep sales strong.
Research is Vital
Research is a pillar of all marketing activities. Without demographic research, product developers don’t
know what features to design into products that will appeal to customers. Publicists won’t know what
publications customers read or what industry topics journalists are covering. Research is used to measure
buying habits, product use and opinions of your business as well as your competitors.
The better your research, the less money you will waste – for example, by buying ads that won’t reach your
customers or making a product that no one will buy.
Connecting Customers to Products
A functional marketing department implements customer relationship management functions to track and
predict what customers want in their products. It connects the customer to the product with hard data as well
as emotional, qualitative information that can help product designers differentiate your products from those
of a competitor. This information also helps marketing promotions by highlighting these differences in
marketing materials. A marketing department sets prices for products that recoup development and
promotional costs while generating revenue for the company.
Promotions and PR
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Marketing departments carry out promotional strategies for products and services, and some may also
incorporate promotional activities, such as public relations, for the business as a whole. The promotions
staff assists the sales force with sales promotions; offers public relations support for product launches, trade
shows and other events; purchases advertising that illustrates product benefits and features; and pitches the
product to media outlets. Promotion activities range from creating awareness of a product to persuading
customers to try and then buy the product.
FIGURE 4.1 Functions of marketing department
New Business Development
Marketing works closely with sales in generating new business. Employees entice prospects to engage with
your company in some way, even if it’s just visiting the website, and then uses incentives to get customers
to continue thinking about the product so that the sales team can convince them to buy the product. This is
called generating leads. Not every lead turns into a paying customer, so business development is ongoing.
It can also include identifying new markets for existing products or discovering a need that current customers
have for a modified version of an existing product.
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DETAILED
CUSTOMER
ANALYSIS
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4.2 CUSTOMER SEGMENTATION, TARGETING AND POSITIONING
CUSTOMER SEGMENTATION
The main determinants of the demand for housing are demographic. But other factors, like income, price of
housing, cost and availability of credit, consumer preferences, investor preferences, price of substitutes, and
price of complements, all play a role.
The core demographic variables are population size and population growth: the more people in the economy,
the greater the demand for housing. But this is an oversimplification. It is necessary to consider family size,
the age composition of the family, the number of first and second children, net migration (immigration minus
emigration), non-family household formation, the number of double family households, death rates, divorce
rates, and marriages. In housing economics, the elemental unit of analysis is not the individual, as it is in
standard partial equilibrium models. Rather, it is households, which demand housing services: typically, one
household per house. The size and demographic composition of households is variable and not entirely
exogenous. It is endogenous to the housing market in the sense that as the price of the housing services
increase, household size will tend also to increase.
Figure 4.2 Demographic Distribution
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Income is also an important determinant. Empirical measures of the income elasticity of demand in India range
from 0.5 to 0.9 (1971). If permanent income elasticity is measured, the results are slightly higher (1975)
because transitory income varies from year to year and across individuals, so positive transitory income will
tend to cancel out negative transitory income. Many housing economists use permanent income rather than
annual income because of the high cost of purchasing real estate. For many people, real estate will be the
costliest item they will ever buy.
The price of housing is also an important factor. The price elasticity of the demand for housing services in
India is estimated as negative by 0.7 (1979), and as negative 0.9 (1971).
The retirement industry has been steadily growing over the past twenty years. The percentage of the U.S.
population over the age of 55 is at an all time high of 21% and is growing at an average rate of 3% each year.
In certain parts of the country, which has a high concentration of retirement communities, the growth rate is
about 8%. This percentage is also expected to grow as the first of the “baby boomer” generation begins to
reach retirement age in the next decade. It is estimated by the Indian Census Bureau that the retirement
industry, that includes homes, medical facilities, specially equipment, retirement entertainment services, etc.,
accounts for 4.8 billion dollars each year.
TARGET CUSTOMER
In the highly competitive property and real estate industry, knowing your target market is the key to a
successful marketing campaign. Your property will sell faster and for more money. At Screen Age we
specialise in creating highly photo realistic 3 d renders of property before its built, developers depend on India
to create imagery that appeals to their target market so that they can sell properties before the first brick has
even been laid. Knowing their target market is crucial. India’s commercial real estate business has historically
targeted, and will continue to target, multinational companies. India’s growth and success will therefore
depend on the provision of high-quality office space to attract and retain clients who are willing and able to
pay rent at suitable levels and on our ability to anticipate the future needs and expansion plans of these clients.
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FIRST HOME BUYERS UPGRADES
 Age 25-24 (Millennials). Average Age is 32  Age 40-59
 86% have a Mortgage. Average loan size is  Predominantly Family’s with younger kids
$45k
 30% are single. 67% are couples. 50% of  Account for approx. 40%of all housing loans
couples have kids
 80% buy single standing homes. 20% buy  The largest property buyer demographic
medium density.
 80% buy established homes. 20% buy new  Adult children are living at home for longer
homes.
YOUNG PROFESSIONALS HIGH END BUYERS
 Age 25-45  Age 40-60
 58% are single. 42% are couples  Predominantly Family’s with teenage kids
 64% move homes every 5 years  80% have a Tertiary qualification
 90% are full time employed  High incomes with little or no mortgage
 80% have a tertiary qualification  High proportion of business owner and

entrepreneurs
 71% engage in social media daily
 23% spend more than 3 hours on social

media per day
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POSTIONING
Our ability to identify suitable projects in fundamental to our business and involves certain risks, including
identifying and acquiring appropriate land or development rights over appropriate land, appealing to the tastes
of residential customers, understanding and responding to the requirements of commercial clients and
anticipating the changing retail trends in India. In identifying new projects, we also need to take into account
land use regulation, the land’s proximity to resources such as water and electricity and the availability and
competence of third parties such as architects, surveyors, engineers and contractors. While we have successful
identified suitable projects in the past, we may not be as successful in identifying suitable projects that meet
market demand in the future. The failure to identify suitable projects, build or develop saleable or lettable
properties or meet customers demand in a timely manner could result in lost or reduced profits. In addition,
such failure could reduce the number of projects we undertake and slow our growth. We may face significant
competition from other real estate developers, many of whom undertake similar projects within the same
regional markets as us. Given the fragmented nature of the real estate development industry, we often do not
have adequate information about the projects our competitors are developing and accordingly, we run the risk
of underestimating supply in the market. Our business plan is to expand across India; however, our operations
have historically focused on the Delhi and Gurgaon regions. As we seek to diversify our regional focus, we
face the risk that some of our competitors, who are also engaged in real estate development, may be better
known in other markets, enjoy better relationships with landowners and international joint venture partners,
gain early access to information regarding attractive parcels of land and be better placed to acquire such land.
We and our retail tenants compete with other retail distribution channels, including department stores and
malls, in attracting customers. Moreover, we compete with other retail real estate developers seeking suitable
retail tenants. Similarly, we must also compete with an increasing number of commercial real estate
developers. Increasing competition could result in price and supply volatility, which could cause our business
to suffer. In addition, we are expanding into new businesses such as SEZs, infrastructure and hotels, and have
entered into a joint venture for a life insurance business.
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4.3 MAJOR CLIENTS OF THE COMPANY
 LODHA GROUP
Established in 1980, the Lodha Group is Mumbai’s premier real estate developer. The Group is currently
developing in excess of 3.5 million sq. Ft. of prime real estate, with over 30 projects in and around Mumbai
from Nepean Sea Road to Dombivali. The group has further extended its promise of luxury living with
successful projects in Hyderabad and Pune. The Lodha Group has several landmark developments to its credit,
including World One-the world’s tallest residential tower, Lodha Bellissima- the only Indian residential
development to feature amongst the top 1000 landscapes in the world, and Palava India’s most liveable city,
spread over 4000 acres and located close to the upcoming Navi Mumbai international airport.
 HIRANANDANI DEVELOPERS
Hiranandani has continually pioneered newer technologies, bold design and precision engineering to create
landmark residential townships and commercial complexes. Propelled by the drive to change expectations and
the lifestyle of people thus changing the skyline of the city, Hiranandani has ushered in an era marked by
higher standards of living and global lifestyles. With its far sightedness to spot the shifting societal trends,
Hiranandani is today a leading real estate group in its flagship business of construction with a pan-India as
well as international presence.
 SAI DEVELOPERS GROUP
Ever since its inception in 1994, Sai Developers has believed that success and opportunity come through the
people it serves. We have constantly and relentlessly focused on creating a more fulfilling experience for our
customer. Today our efforts bear fruit and our name rhymes with commitment to quality, reliability, integrity
and excellence in architecture. Sai Developers believes in delivering best-in-class projects that cater to our
customer’s requirements in terms of quality, space utilization, location, safety and timely completion-97% of
the projects are completed on or before time. Today, Sai Developer is highly regarded for our transparency,
commitment, integrity and honesty, marking standard for quality and flawless execution of projects.
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 HAPPY HOME GROUP
Over the last 30 years, Happy Home Group has delivered more than 15 lakh square feet of residential and
commercial projects, redefining lives and enriching lifestyles of the people. Its portfolio of ongoing projects
spreads over one million square feet, with 500 saleable units available in premium, up-market location of
Bandra, Dadar-Matunga and Mulund, Being the pioneers of property redevelopment and experts in open land
development projects, the Group has laid a solid foundation for setting new milestones in the real estate
redevelopment sector in Mumbai. Happy Home Group has craved for themselves, a niche in the real estate
redevelopment projects
 GALAXY GROUP
The Galaxy Group is catering to the ever-increasing need for quality housing and commercial properties since
1995. What started out as a start-up with just a few employees has since grown into a group that now employees
100+ people and offers a portfolio of residential and commercial properties from Rs. 10 Lacs to Rs. 1.5 crores
and beyond. Developed 26 residential/commercial construction projects consisting of 2639 units covering
approximate land area of 600 lakh sq. mts.
 PURANIK’S GROUP
Puranik values are instrumental in making the company a trustworthy corporation. As leaders in real estate,
the company firmly believes in value-for-money and transparent deals with strict adherence to timelines and
budget estimates. All this has made us a trusted name. Puranik Builders has successfully built over 4 million
square feet of projects consisting of 1383 units in various stages of implementation. The group has contributed
to Government projects like 76km Sardar Patel Ring road around Ahmadabad (Developed by Urban
Development Authority)- Project cost of Rs. 25 crore) and the prestigious Sujulam Sufalam irrigation project
of Government of Gujarat. Experience in construction of public roads as Government Contractor registered in
‘A’ class, one of the highest classes.
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4.4 CUSTOMER INSIGHTS

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4.5 CONSUMER BEHAVIOUR APPLICATION TO REAL ESTATE
Most real estate study is based on neoclassical economic theory that assumes that people make rational
decisions about renting and buying real estate as part of their attempt to maximize utility. While recognizing
that real estate markets are imperfect, most real estate researchers do not examine the influence that the
diversity of real estate consumers has on the demand for real estate. Consumers are complex human beings
driven by internal and external forces, some of which are beyond their control and many of which they are
relatively unaware. Rather than ignore the human element of decision making or putt all aspects of non-
financial decision factors in a black box called “tastes and preferences,” real estate students, professors and
practitioners can benefit from integrating the study of consumer behaviour with the financial economic
approach to real estate study. Greater knowledge of real estate consumers and their behaviour will lead to
better understanding and prediction of decision makers’ actions in the real estate market. The purpose of this
paper is to present some of the most common consumer behaviour concepts and explain how integration of
consumer behaviour theories and understanding would improve real estate study.
Much of the study of consumer behaviour focuses on consumer choices. Utility theory in economics and
attitude theory in social psychology have strong similarities and constitute a basis for the benefits derived from
their use. While the study of economics focuses on outcomes, consumer behaviour emphasizes the process.
Rather than assuming perfect conditions, consumer behaviour researchers explicitly recognize the impact of
situational elements on behaviour and the variance among individuals. Most real estate purchases and leases
would be considered high involvement goods that would require complex decision-making. The three major
comprehensive models of this type of consumer decision making (Engel, Kollat and Blackwell, 1968; Howard
and Sheth, 1969; Nicosa 1966) trace the psychological state and behaviour of individual purchasers from the
point at which they perceive a need through the search for information, evaluation of alternatives, purchase,
and final evaluation of the consequences. The assumption is that a purchase act is preceded by a sequence of
mental information processing. This involves a cognitive function in forming beliefs, an emotional component
in developing positive or negative attitudes, and a reaction through being motivated to select and buy.
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INTERNAL DETERMINANTS OF CONSUMER BEHAVIOUR
Motivation
The force that drives a person to buy and use a good or service is called motivation. It explains why people
buy what they do and what they are trying to accomplish. Needs arise from the discrepancy between actual
and desired states of being. Needs can be classified as utilitarian or hedonic/experiential. Utilitarian needs
lead to consideration of objective product attributes or benefits, whereas hedonic needs elicit subjective
responses, pleasures, and aesthetic considerations (Havlena and Holbrook, 1986; Holbrook and Hirschman,
1982). It is common for utilitarian and hedonic needs to function simultaneously in a purchase decision
(Srinivasan, 1987). As the discrepancy between the desired and actual state of being increases, a condition of
arousal called a drive is activated.
Thus, a real estate buyer may be trying to satisfy both a utilitarian need for space and a hedonic need for status
simultaneously. An accurate valuation model must consider that the benefits the buyer is expecting are not
limited to financial rewards.
Perception
Perception deals with recognizing, selecting, organizing, and interpreting stimuli to make sense of the world
around us. People receive stimuli from their environment through the five senses, which they then must
interpret. People are selective and interpret stimuli that reinforce and enhance their existing beliefs.
Consumers tend to interpret what they perceive so that it does not conflict with their basic attitudes,
personality, motives, or aspirations. They pay attention to stimuli deemed relevant to existing needs, wants,
beliefs, and attitudes and disregard the rest. One perception important to the study of consumer behaviour is
the level of perceived risk in a potential purchase. Types of risk consumers face include
functional/performance, financial, physical, psychological, social, and time (Ross, 1975).
Knowledge and learning
Information processing describes the series of steps by which information is encountered through some

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exposure to a person’s senses, attended to, interpreted, understood and accepted, and stored in memory for
future use in making decisions (McGuire, 1976). Elaboration via mental processing transforms this
information into beliefs, attitudes and intentions that determine product choice and related aspects of purchase.
For a stimulus to be effective, it must be of sufficient strength to reach the lower or absolute threshold to
activate the consumer’s sensory receptors, creating a sensation. Because of the sheer number of stimuli to
which consumers are exposed on a regular basis, not all stimuli will receive additional processing. Consumers
subconsciously screen stimuli and select those that deserve their attention (Janiszewski, 1993).
FIGURE 4.3 Consumer Buying Behaviour
Attitudes
An attitude is an overall evaluation about something combining cognitive beliefs, emotional affects, and
behavioural intentions. Attitudes may vary along the dimensions of strength, direction (positive or negative),
and stability (Eagly and Chaiken, 1993). Also, not all attitudes are held with the same degree of confidence
(Berger, 1992). Attitudes based on direct experience with a product are usually held with more confidence
than those derived from indirect experience. Confidently held attitudes will usually be relied on more heavily
to guide behaviour (Berger, 1992; Fazio and Zanna, 1978).
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4.6 KEY TRENDS IN CUSTOMER TASTES AND PREFERENCES
Home buying behavior has evolved in the last decade. Buyer preference has shifted from under-construction
properties to ready homes. The funding pattern, too, involves a higher share of institutional finance now. Ansal
API.com shares the ever-evolving consumer behavior.
Consumer behavior is an ever-evolving subject. In a growing economy like India, the buying patterns have
changed drastically over the years across industries. Real estate is no different and has witnessed massive
variations in the way homebuyers purchase a home. Not only has the decision-making criteria rapidly changed
in the last few years, funding patterns and the choice of property has changed on the back of altering economic
scenario.
Growing industrialization widened professional avenues in India and, thus, enhanced the buying capacity of
individuals. With women fast taking up leadership roles and remaining at par with men on the professional
fronts, the concept of joint ownership, especially in nuclear families, witnessed an upswing. Higher disposable
income in the hands of homebuyers impacted the personal funding patterns in the real estate sector – one of
the most investment-heavy pursuits. This directly altered the role of banking and finance institutions in the
home buying process. Further, easy disbursal of funds to both buyers and sellers of real estate led to a sprawl
of residential stock, resulting in gradual piling of inventory and, thus, stabilization of property values. The
final straw which completely altered the course of real estate came in the form of government reforms
including demonetization, Real Estate (Regulation and Development) Act (RERA), and Goods and Services
Tax (GST) in 2016-17.
Here are some of the ways real estate has evolved in the last one decade:
Funding patterns
Talking at the 14th National Convention held by NAREDCO, Rajnish Kumar, Managing Director (National
Banking Group), State Bank of India, says, “Back in 2010, the general funding pattern involved 20-25 percent
equity share, 30-35 percent homebuyer’s finance, and 35-40 percent institutional finance. Today, bank funding
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can be extended up to 75 percent of the project cost. Real estate has become more dependent on loans in the
current times, as compared to a decade ago.”
Buying preferences
Again drawing comparisons between the market performance in 2010 and now, Kumar shares that between
2010 and 2013, real estate buyers could double their investments in a short span. Pre-launch projects of reputed
real estate developers sold at low rates and witnessed more than 100 percent appreciation by the time they
neared their possession schedules. However, the tables have turned now. Between 2013 and 2018, the rate of
price appreciation has reduced significantly. Investing in under-construction properties is no more profitable.
Moreover, the ambiguities related to the completion of under-construction projects has altered the buyer’s
preference towards a safer segment – ready homes.
Others
In addition to these, changes have been noted in the way buyers search homes now. The medium has fast
moved from offline including print ads and personal site visits to online platforms such as advertising portals
and mobile phones. Virtual property fares, too, witness a healthy traction from homebuyers, who were earlier
wary of making big-ticket purchases online.
FIGURE4.4 Average price trends
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INTRODUCTION
TO
HUMAN
RESOURCE
DEPARTMENT
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4.7 DESCRIPTION OF A HUMAN RESOURCE DEPARTMENT
Human resources is used to describe both the people who work for a company or organization and the
department responsible for managing resources related to employees. The term human resources was first
coined in the 1960s when the value of labor relations began to garner attention and when notions such as
motivation, organizational behavior, and selection assessments began to take shape.
Human resource management is a contemporary, umbrella term used to describe the management and
development of employees in an organization. Also called personnel or talent management (although these
terms are a bit antiquated), human resource management involves overseeing all things related to managing
an organization’s human capital.
Human resource management is therefore focused on a number of major areas, including:
 Recruiting and staffing
 Compensation and benefits
 Training and learning
 Labor and employee relations
 Organization development
Due to the many areas of human resource management, it is typical for professionals in this field to possess
specific expertise in one or more areas. Just a few of the related career titles for HR professionals include:
 Training development specialist
 HR manager
 Benefits specialist
 Human resource generalist
 Employment services manager
 Compensation and job analysis specialist
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 Training and development manager
 Recruiter
 Benefits counsellor
 Personnel analyst
A closer look at Human Resource Management
Human resource management involves developing and administering programs that are designed to increase
the effectiveness of an organization or business. It includes the entire spectrum of creating, managing, and
cultivating the employer-employee relationship.
For most organizations, agencies, and businesses, the human resources department is responsible for:
 Managing job recruitment, selection, and promotion
 Developing and overseeing employee benefits and wellness programs
 Developing, promoting, and enforcing personnel policies
 Promoting employee career development and job training
 Providing orientation programs for new hires
 Providing guidance regarding disciplinary actions
 Serving as a primary contact for work-site injuries or accidents
Human resource management is about:
Addressing current employee concerns: Unlike company managers who oversee the day-to-day work of
employees, HR departments deal with employee concerns such as benefits, pay, employee investments,
pension plans, and training. Their work may also include settling conflicts between employees or between
employees and their managers.
Acquiring new employees: The human resource management team recruits potential employees, oversees the
hiring process (background checks, drug testing, etc.), and provides new employee orientation.
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Managing the employee separation process: The HR management team must complete a specific set of
tasks if an employee quits, is fired, or is laid off. Paperwork must be completed to ensure that the process was
completed legally. Severance pay may be offered or negotiated, benefits must be settled, and access to
company resources must be severed via the collection of keys, badges, computers, or sensitive materials from
the employee.
Improving morale: Effective HR teams encourage company employees to do their best, which contributes to
the overall success of the company. Their work often involves rewarding employees for good performance
and creating a positive work environment.
The changing share of Human Resource Management
Human resource management involves both strategic and comprehensive approaches to managing people, as
well as workplace culture and environment.
The role of human resources professionals is to ensure that a company’s most important asset—its human
capital—is being nurtured and supported through the creation and management of programs, policies, and
procedures, and by fostering a positive work environment through effective employee-employer relations.
The concept behind human resource management is that employees who are subject to effective human
resource management are able to more effectively and productively contribute to a company’s overall
direction, thereby ensuring that company goals and objectives are accomplished.
Today’s human resource management team is responsible for much more than traditional personnel or
administrative tasks. Instead, members of a human resource management team are more focused on adding
value to the strategic utilization of employees and ensuring that employee programs are impacting the business
in positive and measurable ways.
An August 2014 Forbes article explored the shifting goal of today’s human resource management teams. More
specifically, the article found that HR teams focused on things that don’t add true value to the organization are
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often deemed reactive, uncreative, and lacking basic business understanding. On the other hand, HR
professionals who want to be recognized as true business partners must see themselves as business people who
specialize in HR, not as HR people who advise a business.
Todays’ human resources managers/business partners must understand the workings of the business and be
able to comfortably speak the language of business leaders in order to have a measured and proven impact on
business objectives.
The Agenda of Today’s Human Resource Department Team
Today’s HR management team must focus their efforts on five, critical areas, according to the Forbes article:
Define and align organizational purpose: A company’s employees must be able to clearly articulate why
the company exists in order to achieve a purpose-driven, sustainable, high-performing organization.
Employees must also understand how their efforts connect, or align, with the organization’s purpose.
Recruit the best talent by creating, marketing, and selling an Employee Value Proposition (EVP): False
marketing and misconceptions about an organization are some of the main reasons why the employer -
employee relationship fails. Therefore, companies must create, market, and sell an EVP that is true and
accurate as to not mislead potential employees.
Focus on employee strengths: Companies must make every effort to understand what candidates and
employees do best and put them into roles where they can play to their strengths as much as possible.
Create organizational alignment: Achievements must align with the organization’s objectives so as to build
a successful and sustainable organization.
Accurately measure the same things: All internal departments and employees must be measuring the same
things as to achieve a definitive organizational result and to ensure that everyone knows exactly where the
organization is at all times.
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RECRUITMENT
PROCESS
AND
TECHNIQUES
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4.8 RECRUITMENT AND PROCESS
Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in
an organization. It sources the candidates with the abilities and attitude, which are required for achieving the
objectives of an organization.
Recruitment process is a process of identifying the jobs vacancy, analyzing the job requirements, reviewing
applications, screening, shortlisting and selecting the right candidate.
To increase the efficiency of hiring, it is recommended that the HR team of an organization follows the five
best practices (as shown in the following image). These five practices ensure successful recruitment without
any interruptions. In addition, these practices also ensure consistency and compliance in the recruitment
process.
FIGURE 4.5 Recruitment Process
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.

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RECRUITMENT PLANNING
Recruitment planning is the first step of the recruitment process, where the vacant positions are analysed 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.
Job Analysis
Job analysis is a process of identifying, analysing, 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.
Job analysis helps in understanding what tasks are important and how to perform them. Its purpose is to
establish and document the job relatedness of employment procedures such as selection, training,
compensation, and performance appraisal.
The following steps are important in analysing a job −
 Recording and collecting job information
 Accuracy in checking the job information
 Generating job description based on the information
 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 Description
Job description is an important document, which is descriptive in nature and contains the final statement of
the job analysis. This description is very important for a successful recruitment process.
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Job description provides information about the scope of job roles, responsibilities and the positioning of the
job in the organization. And this data gives the employer and the organization a clear idea of what an employee
must do to meet the requirement of his job responsibilities.
Job description is generated for fulfilling the following processes −
 Classification and ranking of jobs
 Placing and orientation of new resources
 Promotions and transfers
 Describing the career path
 Future development of work standards
A job description provides information on the following elements −
 Job Title / Job Identification / Organization Position
 Job Location
 Summary of Job
 Job Duties
 Machines, Materials and Equipment
 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 first
step in job specification is preparing the list of all jobs in the organization and its locations. The second step
is to generate the information of each job.
This information about each job in an organization is as follows –
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 Physical specifications
 Mental specifications
 Physical features
 Emotional specifications
 Behavioural specifications
A job specification document provides information on the following elements −
 Qualification
 Experiences
 Training and development
 Skills requirements
 Work responsibilities
 Emotional characteristics
 Planning of career
Job Evaluation
Job evaluation is a comparative process of analysing, assessing, and determining the relative value/worth of
a job in relation to the other jobs in an organization.
The main objective of job evaluation is to analyse and determine which job commands how much pay. There
are several methods such as job grading, job classifications, job ranking, etc., which are involved in job
evaluation. Job evaluation forms the basis for salary and wage negotiations.
RECRUITMENT STRATEGY
Recruitment strategy is the second step of the recruitment process, where a strategy is prepared for hiring the
resources. After completing the preparation of job descriptions and job specifications, the next step is to decide
which strategy to adopt for recruiting the potential candidates for the organization.
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While preparing a recruitment strategy, the HR team considers the following points −
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but having a right strategy is mandatory to attract
the right candidates. The steps involved in developing a recruitment strategy include −
 Setting up a board team
 Analysing HR strategy
 Collection of available data
 Analysing the collected data
 Setting the recruitment strategy
FIGURE 4.6 Profile image of recruitment
SEARCHING THE RIGHT CANDIDATE
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 –
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 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
 Internal Advertisements (Job Posting)
 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
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SCREENING/SHORTLISTING
Screening starts after completion of the process of sourcing the candidates. Screening is the process of filtering
the applications of the candidates for further selection process.
Screening is an integral part of recruitment process that helps in removing unqualified or irrelevant candidates,
which were received through sourcing. The screening process of recruitment consists of three steps –
Reviewing of Resumes and Cover Letters
Reviewing is the first step of screening candidates. In this process, the resumes of the candidates are reviewed
and checked for the candidates’ education, work experience, and overall background matching the requirement
of the job.
While reviewing the resumes, an HR executive must keep the following points in mind, to ensure better
screening of the potential candidates −
 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping
 Lack of career progression
Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening candidates. In this process, after the
resumes are screened, the candidates are contacted through phone or video by the hiring manager. This
screening process has two outcomes −
 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
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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 −
 Shortlisting 5 to 10 resumes for review by the hiring managers
 Providing insights and recommendations to the hiring manager
 Helps the hiring managers to take a decision in hiring the right candidate
EVALUATION AND CONTROL
Evaluation and control is the last stage in the process of recruitment. In this process, the effectiveness and the
validity of the process and methods are assessed. Recruitment is a costly process, hence it is important that the
performance of the recruitment process is thoroughly evaluated.
The costs incurred in the recruitment process are to be evaluated and controlled effectively. These include the
following −
 Salaries to the Recruiters
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.
 Administrative expenses and Recruitment overheads
 Overtime and Outstanding costs, while the vacancies remain unfilled
 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.
Finally, the question that is to be asked is, whether the recruitment methods used are valid or not? And whether
the recruitment process itself is effective or not? Statistical information on the costs incurred for the process
of recruitment should be effective.
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4.9RECRUITMENT TECHNIQUES
Recruitment methods have been studied since the 1920s. In this article, we will give an overview of the 15
most common recruitment methods. We will also explore how good these methods are at predicting whether
or not a candidate will be a good fit based on the latest research.
One of the studies that we will often refer in this article, is Schmidt and Hunter’s 1998 article on the validity
of selection methods. This article summarizes “85 Years of Research Findings” in a meta-analysis (an analysis
that combines the data of multiple studies). We have also included a number of more contemporary studies
about this topic.
 IQ TESTS
Our number one recruitment method is the IQ test or General Mental Ability (GMA) test.
IQ testing is, arguably, the most well-validated concept in social sciences. Whether we like it or not, your IQ
is the best predictor of your academic success, learning abilities, how successful you are in your work, and
how much money you will make in your life.
Because IQ is not related specifically to job knowledge, it can be used to hire for any position, whether in IT
or marketing, whether senior or entry level.
The interesting thing is that IQ is indicative of two things when it comes to work. First, it predicts how quickly
a candidate will learn a job. This means that candidates with a higher IQ score will have a shorter ‘time to
productivity’, a metric that measures how long it takes a new hire to contribute to an organization. Second, it
predicts how successful a candidate will be in their job.
Of course, IQ isn’t everything.
According to a meta-analysis by Schmidt & Hunter (1998), GMA predicts up to 26% of the job performance
of a candidate. This still leaves 74% open for interpretation!
Although GMAs are commonly seen as an effective tool, there are a number of studies which have also

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questioned how useful they are based on job role/industry and fairness of the tests themselves. Overall, while
GMAs are still a great tool for predicting future success, decisions shouldn’t be made based on these results
alone and should always be combined with other recruitment methods to balance the potential disadvantages.
 UNSTRUCTURED EMPLOYMENT INTERVIEWS
There’s no doubt you’re probably already using interviews in your hiring process. But did you know that the
way you structure your interviews can have a major impact on how effective they are?
Many companies, especially young startups, and SMBs have little time to come up with a structured review
process.
Instead, they leave it up to hiring managers to come up with their own questions and means of assessment.
But, if you’re using unstructured interviews now, it’s time to stop! When looking at Schmidt and Hunter’s
meta-analysis, we can see a major difference in the validity of unstructured (.38) vs. structured interviews
(.51).
This means that unstructured interviews predict roughly 14% of a new hire’s performance, while a structured
interview predicts 26%! This means that you would need around 3 unstructured interviews in order to be as
confident about someone’s skills, compared to 1 structured interview.
Unstructured interviews lead to hiring decisions based on gut instinct, rather than a fair and equal comparison.
A number of studies have found that, when interviews are unstructured, it’s more likely that certain candidates
can be favored based on the biases of the interviewer. Unconscious bias is more common than you may think
and can greatly damage your recruitment efforts. Instead, having a set list of questions that every candidate
must answer improves the chances of a fair assessment.
 STRUCTURED EMPLOYMENT INTERVIEWS
Combining structured interviews with a GMA test was the second highest predictor of future performance in
Schmidt and Hunter’s meta-analysis. Precisely because structured interviews mean that applicants are assessed
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and scored based on the same questions, they’re considered significantly more valid in terms of predicting
future success. Studies show that comparing candidates based on the same criteria lowers the chances of a
biased interview.
What’s more, taking the time to research the right questions for your interview process will help you make
better hiring decisions. Always striving to make their processes data-driven, tech giant Google even analyzes
the data behind its past interview questions. Recently the company decided to drop its
infamous brainteasers after finding that the answers didn’t provide any insights into future job success.
A famous example of a brain teaser is “why are manhole covers round?”
While face-to-face or phone interviews may be a great way to see how a person expresses themselves and
presents their qualifications, they don’t tell us everything. The fact is, some people are much better at selling
themselves and their abilities than others. Are we passing up great talent just because they aren’t comfortable
in interviews?
 WORK SAMPLE TESTS
Asking for a short assignment is a great way to see a potential hire’s skills in action. Event organizers are
commonly asked to draw up a fake event strategy to see how much forethought they put into their planning.
Content marketers are usually given a short writing task to get a sense of their style. You can even hold group
work sample tests to see how different people are able to interact and get a job done.
But is this an ideal method?
According to Schmidt and Hunter, the use of work sample tests is one of the best ways to find how well a
candidate will perform in their job. It is just as effective as a structured interview!
However, one potential drawback is that they may not be effective when hiring candidates who don’t have
previous experience. Today people are continuously changing career paths. Especially in new or hard to fill
roles, it’s necessary to be open to candidates who may not have the skills they need yet but who have the
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learning agility they need to grow, develop and adapt with the needs of the organization.
 JOB KNOWLEDGE TESTS
Instead of just testing one aspect of a candidate’s abilities, job knowledge tests allow you to get a wider picture
of a person’s role-specific expertise. Unlike a GMA, there is no attempt to assess the applicant’s learning
potential. Job knowledge can be used to inform the hiring manager about what an applicant already knows.
Job knowledge tests traditionally focus on procedural knowledge (if situation x occurs, which procedure
should be used in response?) A 2005 study points out that job knowledge tests have traditionally been better
at predicting performance in military-related jobs which focus heavily on these procedures. Instead, the authors
expanded their tests to include decision-making information.
As a result, they found that a job knowledge test may actually provide a better prediction of future performance
than cognitive ability tests.
If you decide to use this method, consider the types of questions you’re asking and what the role requires.
Again, like work sample tests, job knowledge is harder to test for hires who don’t have prior experience.
However, it does enable you to test whether or not candidates have a solid understanding of the job they
applied for.
Some believe that methods like IQ tests, interviews, and job knowledge tests don’t go far enough in giving us
a true understanding of the applicant’s character and their ability to adapt and thrive in the work environment.
The next two methods provide testing that goes beyond intelligence and job knowledge.
 INTERGRITY TESTS
What a GMA test, interview or job knowledge screening won’t tell you are the behavioral traits of an applicant.
Someone may be very intelligent and skilled in a particular field but they may not have the soft skills they
need to work in a team, or they may even have a tendency towards toxic behaviors. Integrity testing identifies
a person’s propensity for honesty, trustworthiness, and dependability.
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By using this sort of assessment, companies try to select talent that has a higher likelihood of displaying
positive behavior in the workplace.
And the results are positive.
In Schmidt and Hunter’s study, the integrity test on its own predicted 17% of future performance. When
combined with the GMA test, it predicted 42% of future performance!
Although this method is highly effective, it is good to be aware of the drawbacks.
One of them being the acceptability and fairness of the assessment.
The use of Integrity test results in hiring decisions raises ethical questions. Should we be using a self-
assessment like this to measure a person’s honesty? What about the possibility of false positives? What’s more,
those who are rejected on the basis of the test may feel they’re being labeled as ‘dishonest’. Good
communication of test results is therefore key for a good candidate experience.
This brings us to the second problem, the need for trained test administrators. Untrained test givers can
exacerbate the fairness issue by misinterpreting or misclassifying the results.
 CONSCIENTIOUSNESS TESTS
Similar to integrity tests, conscientiousness testing measures a person’s level of self-discipline and reliability
through organizational skills and the ability to create long term goals. Personality tests like the NEO-PI Big
Five and the MBTI are some of the most popular methods.
Personality traits are indicative of work behavior. Of the Big Five, especially conscientiousness is related to
better job performance. People who are conscientious are described as orderly, dutiful, achievement striving,
self-disciplined, and industrious.
Because personality traits and IQ are two very different things, a combination of GMA testing and a
conscientiousness test is able to predict 36% of job performance.
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Of the other personality traits, only extraversion seems somewhat related to performance. For example, both
conscientiousness and extraversion are positively related to sales performance.
 PEER RATINGS
Another avenue some recruiters use to find candidates who will be both a great fit for the team and top
performers is peer ratings. Today more and more companies are using peer feedback to assess job performance.
Unlike traditional manager to employee performance reviews, peer ratings provide a well-rounded picture of
a person’s abilities.
Unlike integrity and conscientiousness testing, both based on self-assessment alone, these results allow us to
get an idea of how the candidate is perceived by the people they work with directly.
Of course, it’s only possible to use this method for internal hires who already have a history of peer -review
data. There are also concerns that peer-reviews may be influenced by factors like popularity.
 REFERENCE CHECKS
Reference checks are one of the oldest recruitment methods in the book. And it makes sense. If you want to
know more about a potential candidate, who better to ask than their previous employer?
In fact, a peer-reviewed study by Skillshare found that reference feedback is predictive of first-year
involuntary turnover.
However, for such a widely used method, Schmidt and Hunter’s research found that reference checks only
predict job performance by about 7%. There are a number of considerations to take into account when using
this method.
As with interviews, when using references as a recruitment method, we have to consider the potential for bias.
Studies show that 62% of a rater’s judgment is a reflection on themselves. In other words, the perception we
have of another person and their performance will be altered by our own standards and values. References can
be helpful, but be sure to use this method in conjunction with other, more predictive assessments.
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So far, we’ve gone through the most popular and well-researched methods to date but, in order to really find
the right recruitment methods for your needs, we also need to consider some of the modern challenges which
could be impacting your search.
 IMPROVING JOB POSTINGS
Improving diversity is a major challenge many HR managers are facing. Having a deeper look at our
recruitment methods could provide some answers and help with diversity hiring.
We shouldn’t just be looking at the methods used to assess each applicant, we should also consider the methods
we’re using to attract candidates in the first place. The ways we advertise a position and our organization can
actually have a major impact on the candidates who apply.
The language we use is especially important.
A number of studies have found that the wording we use can sometimes discourage certain groups from
applying for a job. This can be based on gender, ethnicity, age, introverts, extroverts, parents, etc. But we’re
now seeing a number of tools emerging, such as Textio and Gender Decoder, to help us detect potential bias
in our job adverts. One study found that when gendered wording is eliminated from job adverts, recruiters will
actually see a 42% increase in applicants.
 EMPLOYEE REFERRALS
Your company actually has a much wider network than you realize. Instead of focusing only on candidates
who come in through the typical job portal, leverage your employee ambassador network to find your next
hire.
Surveys have shown that employee referrals reduce cost and time per hire and have the highest ROI of any
other recruitment method. New talent that comes in via a referral is also more likely to stay longer at their
jobs. In fact, a survey by Deloitte found that 51% of organizations say employee referrals are the number one
recruitment source. Some companies are maximizing the potential of this method by offering employee
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bonuses for each new hire they bring in.
As with all methods, there is a downside.
Employee referrals may impact the diversity within your organization. An employee’s network will most likely
be made up of people who are similar to them, whether they share the same social circle, live in the same
neighborhood or went to the same university. A recent study by BCG reported that organizations with above-
average diversity on their management teams also reported a 19-percentage point higher revenue on new
products and services launched over the past three years.
 GAMIFICATION
Recruiters working in the tech industry have a particularly difficult time. Tech talent is in extremely high
demand and traditional recruitment methods are often less effective with this group of candidates. Rounds of
interviews, tests, and assessments are not something these hires, especially the younger ones, are willing to go
through.
Instead, many companies have turned the tables and rethought how they can make the recruitment process
more fun for applicants and more effective for companies. A good example are hackathons. Similar to
situational group interviews, hackathons allow recruiters to see how developers interact with others, solve
problems, and how they put their skills into action.
Other applications include gamified assessments. The verdict on their reliability is still out there. Although
some claim to be very good at predicting performance, they are usually tested by the company itself so results
should be interpreted with caution.
 VIDEO JOB POSTINGS, APPLICATIONS AND INTERVIEWS
In today’s interconnected world, companies aren’t limiting themselves to local talent pools. International
hiring is now becoming the norm. But this can also impact the effectiveness of some of the more traditional
recruitment methods we discussed.
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In the digital world, video-based job ads, applications, and interviews are becoming more popular. Indeed,
video-based job ads on Facebook receive 36% more applicants. After switching to a video-based recruitment
process, Hilton was able to cut their hiring time from six weeks to five days.
 AI BASED SCREENING PROCESS
New advances in AI technology and automation are here to save recruiters from having to sift through resume
after resume. In fact, you could be losing 14 hours a week by not automating some of your tasks.
There are various intriguing uses of AI in recruitment, varying from automated candidate sourcing and
candidate rediscovery to candidate matching and preselection and everything in-between. Pre-employment
assessment tools often combine (elements of) GMA, work sample, integrity and conscientiousness tests in a
single online experience to predict a candidate’s likelihood to succeed in the job their applying for.
Put very simply, AI works by analyzing historical data and using it to make decisions. Sometimes, in case of
unskillful use of the technology, this may mean that the AI will copy the biases of the traditional recruitment
system, something Amazon found out after introducing an AI-based recruitment tool that had developed a
preference for male candidates.
 HIRING FREELANCERS AND CONTRACTORS
Finally, the rise of the gig economy is providing more and more recruitment options to companies. A study by
Bersin by Deloitte found that the average time it takes to fill a position has actually increased. This means
more money being spent on the recruitment process and less money being generated while the position goes
unfilled.
Hiring freelancers and contractors is a great cost-effective alternative. While freelancers still need to go
through a recruitment screening, the costs associated with contracting them are much lower. The consequences
also aren’t as big if you happen to hire someone who isn’t a fit.
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LEARNING OUTCOMES
 I have learnt about how the departments functions in the company.
 I have learnt about the marketing and HR department of the company in detail.
 I have learnt about the customer analysis of the company.
 I have learnt about recruitment process and techniques followed by the company.
 I have learnt about the major tasks to be done by the departments.
43

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SUMMER PROJECT

PROGRESS REPORT NO. 4

FUNCTIONAL ELECTIVE AREA ANALYSIS OF

(Ansal Properties and Infrastructure Ltd.)

SUBMITTED TO: SUBMITTED BY:

Name: Dr (Prof) Anil Chandhok STUDENT NAME: Priyanshu Kumar

Designation: Professor UID: 18BBA1008

Chandigarh University Batch 2018-21

 To analyse the major departments of the company.

 To analyse the detailed structure of marketing and HR department.

 To analyse the detailed customer analysis of the company.

 To analyse the detailed recruitment process and technique of the company.

 To analyse the functions of both the departments.

with a strong manager leading each department.

and keep sales strong.

customers or making a product that no one will buy.

Connecting Customers to Products

promotional costs while generating revenue for the company.

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customers to try and then buy the product.

FIGURE 4.1 Functions of marketing department

New Business Development

have for a modified version of an existing product.

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price of complements, all play a role.

increase, household size will tend also to increase.

Figure 4.2 Demographic Distribution

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costliest item they will ever buy.

India is estimated as negative by 0.7 (1979), and as negative 0.9 (1971).

accounts for 4.8 billion dollars each year.

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 Age 25-24 (Millennials). Average Age is 32  Age 40-59

YOUNG PROFESSIONALS HIGH END BUYERS

 Age 25-45  Age 40-60

 64% move homes every 5 years  80% have a Tertiary qualification

 80% have a tertiary qualification  High proportion of business owner and

 71% engage in social media daily

 23% spend more than 3 hours on social

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entered into a joint venture for a life insurance business.

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well as international presence.

 SAI DEVELOPERS GROUP

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approximate land area of 600 lakh sq. mts.

of Government of Gujarat. Experience in construction of public roads as Government Contractor registered in

‘A’ class, one of the highest classes.

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arousal called a drive is activated.

limited to financial rewards.

functional/performance, financial, physical, psychological, social, and time (Ross, 1975).

Knowledge and learning

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FIGURE 4.3 Consumer Buying Behaviour

to guide behaviour (Berger, 1992; Fazio and Zanna, 1978).

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