MINI PROJECT REPORT

ON
TOPIC- RECRUITMENT AND SELECTION PROCESS OF MARUTI
SUBMITTED TO DEPARTMENT OF BUSINESS ADMINISTRATION
In partial fulfillment of the Requirement for the subject
Subject Code-KMBN(252)

SUBMITTED BY- DEEP GAUR

MBA 1st Year (2st SEM)
ROLL NO :- 2001090700012

Submitted To Under the Supervision of

Mr. Dinesh Kumar Singh Mr. Gaurav Tiwari

Head of Department Assistant Professor

ALIGARH COLLEGE OF ENGINEERING AND TECHNOLOGY ,

ALIGARH
SESSION 2020-2021

ACKNOWLEDGEMENT
1
I would like to express my special thanks of gratitude to my teacher
Mrs. Jaya Saraswat as well as our H.O.D Mr. D.K. Singh who gave
me the golden opportunity to do this wonderful project on the topic
name RECRUITMENT AND SELECTION PROCESS OF MARUTI ,
which also helped me in doing a lot of Research and i came to know
about so many new things I am really thankful to them.
Secondly i would also like to thank my parents and friends who
helped me a lot in finalizing this project within the limited time frame

NAME- DEEP GAUR

MBA 1st year
Roll no. 2001090700012

DECLARATION
2
I hereby declare that the following documented Project Report
TOPIC-“ RECRUIT AND SELECTION PROCESS OF MARUTI
SUZUKI Ltd.”is  based on my own work carreid out during the
course of our study under the supervision of Mr. Dinesh Kumar
Singh. I assert the statement made and conclusions drawn are an
outcome of my research work.I further certify that
o The work contained in the report is original and has been done
by me under the supervision of my supervisor.
o We have followed the guidelines provided by the university in
writring the report.
o Whenever, we have used materials(data, theortical,analysis,and
text) from other sources, we have given due credit to them in the
text of the report.

NAME- DEEP GAUR

MBA 1ST YEAR(2ND SEM)
ROLL NO.- 2001090700012

PREFACE

3
The course of MBA require one to undergo a summerinternship with the end of
the 2nd Semester, so as to get a practical knowledge and understanding the
practical aspects of all the theories read. It helps us to make the best use of our
skills and intelligence so as to make a better research report. It is really the most
important thing during the course of the study. The purpose of my research
project was to study the Recruitment and Selection process and its use in
selecting the right candidates. It was a continuous learning experience as I got to
know different kinds of Recruitment procedure, how they are conducted and are
beneficia.

TABLE OF CONTENT
❖ COMPANY PROFILE

4
 About company
History of the company
❖ INTRODUCTION OF THE TOPIC
❖ OBJECTIVE OF THE STUDY
❖ RESEARCH METHODOLOGY
Data collection
▪ Primary data
▪ Secondary data
❖ DATA ANALYSIS
Purpose and importance
Factors
▪ Internal factors
▪ External factors
❖ INTERPRETATION
Recruitment policy
Source of recruitment
Selection process
Steps of selection process

❖ SUGGESTIONS
❖ LIMITATIONS
❖ CONCLUSION
❖ APPENDIX

COMPANY PROFILE

5
Maruti Suzuki India Limited commonly referred to as Maruti, is
asubsidiary company of Japaneseautomaker  Suzuki Motor
Corporation. Ithas a market share of 37% of the Indian passenger car
market as of  November 2012. Maruti Suzuki offers a complete range
of cars from entrylevelMaruti 800,Maruti EsteemandAlto, to
hatchback Ritz,A-Star ,Swift,Wagon-R ,Estilloand sedansDZire,SX4,
in the 'C'segmentMaruti Eeco,Maruti Omni, Multi Purpose
vehicleErtigaandSports Utility vehicleGrand Vitara.It was the first
company in India to mass-produce and sell more than amillion cars. It
is largely credited for having brought in an automobilerevolution to
India. It is the market leader in India, and on 17
September 2007,Maruti Udyog Limited was renamed as Maruti
Suzuki IndiaLimited. The company's headquarters are on Nelson
Mandela Road, New Delhi. In February 2012, the company sold its
10th million vehicle in India.Maruti Suzuki is India and Nepal's
leading automobile manufacturer andthe market leader in the car
segment, both in terms of volume of vehiclessold and revenue earned.
Until recently, 18.28% of the company wasowned by theIndian
government, and 54.2% bySuzukiof Japan. The BJP-led government
held aninitial public offeringof 25% of the company inJune 2003. As
of 10 May 2007, the government of India sold its completeshare to
Indian financial institutions and no longer has any stake in
MarutiUdyog.
Maruti Udyog Limited (MUL) was established in February 1981,
thoughthe actual production commenced in 1983 with the Maruti 800,
based ontheSuzuki Alto kei car which at the time was the only
modern car available in India, its only competitors-
theHindustan Ambassador andPremier Padminiwere both around 25
years out of date atthat point. Through 2004, Maruti Suzuki has
produced over 5 Millionvehicles. Maruti Suzukis are sold in India and
various several other countries, depending upon export orders.

6
Models similar to Maruti Suzukis(but not manufactured by Maruti
Udyog) are sold bySuzuki Motor  Corporationand manufactured in
Pakistanandother SouthAsiancountries.

The company exports more than 50,000 cars annually and has an
extremelylarge domestic market in India selling over 730,000 cars
annually.Maruti 800, till 2004, was the India's largest selling compact
car ever since it waslaunched in 1983. More than a million units of
this car have been soldworldwide so far. Currently,Maruti Suzuki
Altotops the sales charts butMaruti Suzuki's Swift has taken over this
titles by 19000 models in April2012.The company imports diesel

7
engines for all maruti Suzuki cars fromthe fiat motors the great Italian
company.The German car companyVolkswagen has a 19.9% non-
controlling shareholding in Suzuki Motor Corporation.Due to the
large number of Maruti 800s sold in the Indian market, the
term"Maruti" is commonly used to refer to this compact car model.
Itsmanufacturing facilities are located at
twofacilitiesGurgaonandManesar south of Delhi. Maruti Suzuki’s
Gurgaonfacility has an installed capacity of 900,000 units per annum.
The Manesar facilities, launched in February 2007 comprise a vehicle
assembly plantwith a capacity of 550,000 units per year and a Diesel
Engine plant with anannual capacity of 100,000 engines and
transmissions. Manesar andGurgaon facilities have a combined
capability to produce over 14,50,000units annually. More than half
the cars sold in India are Maruti Suzuki cars.The company is a
subsidiary of Suzuki Motor Corporation, Japan, whichowns 54.2 per
cent of Maruti Suzuki. The rest is owned by public andfinancial
institutions. It is listed on theBombay Stock  Exchangeand National
Stock Exchange of India.During 2007-08, Maruti Suzuki sold 764,842
cars, of which 53,024 wereexported. In all, over six million Maruti
Suzuki cars are on Indian roadssince the first car was rolled out on 14
December 1983. Maruti Suzukioffers 15 models,Maruti
800,Alto,Maruti Alto 800,WagonR ,Estilo,A-star ,Ritz,Swift,Swift
DZire,SX4,Omni,Eeco,Gypsy,Grand Vitara,Kizashiand the newly
launchedErtiga. Swift, Swift DZire, A-star and SX4 are manufactured
in Manesar, Grand Vitara and Kizashi areimported from Japan as

8
completely built units(CBU), remaining all modelsare manufactured
in Maruti Suzuki's Gurgaon Plant. The company is believed to be
moving towards introduction of a new version of Maruti 800 by
November 2012, which will be more fuel efficient, though
slightlycostlier than Alto and existing Maruti 800. Suzuki Motor
Corporation, the  parent company, is a global leader in mini and
compact cars for threedecades. Suzuki’s technical superiority lies in
its ability to pack power and performance into a compact, lightweight
engine that is clean and fuelefficient. Nearly 75,000 people are
employed directly by Maruti Suzukiand its partners. It has been rated
first in customer satisfaction among allcar makers in India from 1999
to 2009 by J D Power Asia Pacific. MarutiSuzuki will be introducing
new 800cc model by Diwali in 2012.The modelis supposed to be fuel
efficient, hence more expensive.

Joint venture related issuesJoint venture related issues

Relationship between the Government of India, under theUnited

Front (India)coalition andSuzuki Motor Corporationover the joint
venturewasa point of heated debate in the Indian media till Suzuki
Motor Corporationgained the controlling stake. This highly profitable
joint venture that had anear monopolistic trade in the
Indianautomobile marketand the nature of the partnership built up till
then was the underlying reason for most issues.The success of the
joint venture led Suzuki to increase its equity from 26%to 40% in
1987, and further to 50% in 1992. In 1982 both the venture partners
had entered into an agreement to nominate their candidate for the post
9
of Managing Director and every Managing Director will have a
tenureof five yearsR.C. Bhargava was the initial managing director of
the company since theinception of the joint venture. Till today he is
regarded as instrumental for the success of Maruti Suzuki. Joining in
1982 he held several key positionsin the company before heading the
company as Managing Director.Currently he is on the Board of
Directors.

After completing his five-year tenure, Mr. Bhargava later assumed the

office of Part-Time Chairman. TheGovernment nominated Mr.
S.S.L.N. Bhaskarudu as the ManagingDirector on 27 August 1997.
Mr. Bhaskarudu had joined Maruti Suzuki in1983 after spending 21
years in the Public sector undertaking Bharat HeavyElectricals
Limited as General Manager. In 1987 he was promoted as
Chief General Manager. In 1988 he was named Director, Productions
andProjects. The next year (1989) he was named Director of Materials

and in1993 he became Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting

of theBoard with the reason of it being called on a short notice. Later
SuzukiMotor Corporation went on record to state that Bhaskarudu
was"incompetent" and wanted someone else. However, the Ministry
of Industries,Governmentof India refuted the charges. Media stated
from theMaruti Suzuki sources that Bhaskarudu was interested
toindigenisemostof components for the models including gear boxes
especially for Maruti 800. Suzuki also felt that Bhaskarudu was a

10
proxy for the Government andwould not let it increase its stake in the
venture.

If Maruti Suzuki wouldhave been able to indigenise gear boxes then

Maruti Suzuki would have been able to manufacture all the models
without the technical assistancefrom Suzuki. Till today the issue of
localization of gear boxes ishighlighted in the press.

Industrial relations

Since its founding in 1983, Maruti Udyog Limited experienced

few problems with its labour force. TheIndian labour it hired readily
acceptedJapanese work culture and the modern manufacturing
process. In 1997,there was a change in ownership, and Maruti became
predominantlygovernment controlled. Shortly thereafter, conflict
between theUnited Front Governmentand Suzuki started. Labour
unrest started under management of Indian central government. In
2000, a major industrialrelations issue began and employees of Maruti
went on an indefinite strike,demanding among other things, major
revisions to their wages, incentivesand pensions.Employees
usedslowdownin October 2000, to press a revision to their incentive-
linked pay. In parallel, after elections and a new centralgovernment
led by NDA alliance, India pursued a disinvestments policy.Along
with many other government owned companies, the
newadministration proposed to sell part of its stake in Maruti Suzuki
in a publicoffering. The worker's union opposed this sell-off plan on

11
the grounds thatthe company will lose a major business advantage of
being subsidised bythe Government, and the union has better
protection while the companyremains in control of the
government.The standoff between the union and the management
continued through2001. The management refused union demands
citing increased competition and lower margins. The central
government prevailed and privatized maruti in 2002. SUZUKI
became the majority owner of Maruti udhyog limited.

HISTORY OF MARUTI SUZUKI

In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the
manufacture of an indigenous , cost effective , low maintenance
compact car for the Indian middle class . Indira Gandhi’s cabinet
passed a unanimous resolution for the development and production of
a people’s car. Sanjay Gandhi’s company was christened Maruti
limited. The name of the car was chosen after a Hindu deity named
Maruti Ltd. That time Hindustan Motors’ Ambassador was the chief
car and the company had come out with a new entrant the premier
Padmini that worked slowly gaining a part of the market share
dominated by the ambassador. For the next ten years the Indian car
market had stagnated at a volume of 30,000 to 40,000 cars for the
decade ending 1983. Sanjay Gandhi was awarded the exclusive
contract and license to design, develop and manufacture the “People’s
Car.” These exclusive rights of production generated some criticism
in certain quarters, which was directly targeted at Indira Gandhi. Over
12
the next few years the company was sidelined to Bangladesh
liberation war and emergency. In the early days under the powerful
patronage of Sanjay Gandhi the company was provided with free
land, tax breaks and funds. Till the end of 1970 the company had not
started the production and a prototype test model was welcomed with
criticism and skepticism. The company went into liquidation IN 1977.
The media perceived it to be another area of growing corruption.
Unfortunately Maruti’s started to fly only after the death of Sanjay
Gandhi, when Suzuki motors joined the government of India as a joint
venture partnered with 50% share. After his death Indira Gandhi
decided that the project should not be allowed to die. Maruti’s entered
into this collaboration with Suzuki motors. The collaboration heralded
a revolution in the Indian car industry by producing the maruti800. It
created a record of taking 13 months time to go from design to rolling
out cars from a production line. The production of Maruti-800 in 1983
marked the beginning of a revolution in the Indian automobile
industry. It brought in the latest technology of that time more fuel
efficiency and lower prices that led to the creation of a huge market
for all car segments as the Indian, middle class grew in size. This in
turn brought in more players in this segment. A number of auxiliary
car parts making units were set up as more car manufacturers realized
it was more cost effective to make their car parts in India rather than
importing them.

Maruti’s major influence was in helping the component

industry in the country because of its emphasis on localization and

13
indigenization. As in the beginning that sector hadn’t grown much
Maruti’s had to start dozens of joint ventures with Indian
entrepreneurs. It got them from foreign collaborations that led to
collaborations for other manufacturers so that over a period of time
the whole component industry was able to upgrade itself and improve
its quality who had given their income leading to major existing
export potential vehicle components. It also brought in better methods
of financing that allowed more people who given their income levels
could not afford to buy a car on their own, to buy cars. It still remains
the leader not only in the terms of market share but also in customer
satisfaction surveys. It has consistently topped J.D. power quality
surveys, including 2005. By the year 1993 the company had sold 1,
96,820 cars. By March 1994 it produced 1 million vehicles becoming
the first Indian company to cross the 2 million mark in October, 1997
and rolled out 4 millionth vehicles as Alto-LX .Then it introduced
Wagon-R followed by Swift . Swift has been a great success in the
market .In 2007 Maruti came up with SX4 and Grand Vitara.

INTRODUCTION OF THE TOPIC

14
Recruitment and Selection is an important operation in HRM,
designed to maximize employee strength in order to meet the
employer's strategic goals and objectives. In short, Recruitment and
Selection is the process of sourcing, screening, shortlisting and
selecting the right candidates for the filling the required vacant
positions.

In this tutorial, we will discuss the various aspects of Recruitment and

Selection such as the recruitment process, the factors affecting
recruitment, recruitment planning, methods of recruitment,
recruitment interviews, selection process and making an offer.

The Scope of Recruitment and Selection

15
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.

The scope of Recruitment and Selection includes the following

operations:

 Dealing with the excess or shortage of resources

 Preparing the Recruitment policy for different categories of

employees

 Analyzing the recruitment policies, processes, and procedures of

the organization

 Identifying the areas, where there could be a scope of

improvement

 Streamlining the hiring process with suitable recommendations

 Choosing the best suitable process of recruitment for effective

hiring of resources

Any organization wants it future to be in good and safe hands. Hence,

hiring the right resource is a very important task for any organization.

Case Study: How to Improvise Recruitment Process

16
Let’s assume there is a company called ABC Systems, which sells
FMCG products. The company is lately suffering due to its high
attrition rates. In this case study, we will see how ABC Systems can
improve its recruiting process and focus on maintaining the efforts
required for filling a job vacancy. We will also learn how the HR
team of ABC Systems can reduce the time and effort involved in
sourcing good resources for the vacant positions.

We suggest here seven different steps that ABC Systems can utilize to
resolve its problems.

Step 1: Define the Problem

1) First, define the problem in exact terms and then, design a step-
wise recruitment process that can be easily followed.
2) Sending the resignation communication message to HR with
request for initiating the recruitment process
3) Manager-HR directs the hiring team to start the recruitment
process
4) Logging into the employment website and contacting different
recruiters
5) Sourcing, identifying, and collecting the resumes of the
candidates
6) Receiving relevant resumes
7) Shortlisting the resumes
8) Sending the shortlisted resumes to the department manager

17
 9) Schedule interview dates
10) Calling the candidates for interview
11) Interviewers complete the feedback form and the feedback
is shared with the HR
12) This process repeats for many candidates till the best
candidates are finalized.
13) The HR team negotiates the package and compensation
14) Final confirmation and agreements
15) Send offer letter
16) Offer accepted

Step 2: Research the Causes Analyze the root cause of the problem at
hand. Why the attrition rate is so high? There are several ways to
arrive at the root cause behind a problem.

In case of ABC Systems, it was observed that there is only a less

percent of candidates who are rejected in the process of review.
Hence, there is a need to improve this process by increasing the
number of rejections with an efficient review process.

18
OBJECTIVE OF THE STUDY
The main goal of studying the Recruitment and Selection process of
the organization is:

• To identify the average time spent for selection process.

• To develop & understanding of selection process.

• To understand the employee awareness on recruitment & selection.

• To study the stages of selection procedure.

• To study the employee satisfactory level with the existing

recruitment policy.

19
RESERCH METHODOLOGY
The Problem discovery is an incomplete process, if it is done without
looking of HR Research design.Here for research purpose descriptive
study is done as we have relevant
information but the problem is to describe the relationships between 
marketing problem and theavailable information.

SCOPE OF THE STUDY

•A strong focus on HR selection and recruitment will
helpcompanies to unshackle of in grained customer expectationthems
elves from the constraints
•Employment research helps companies to develop services
•It helps in promotion decisions and other HR mix decisions
•It is necessary for HR strategy
•It is help full tool in analysis employee feed back that’s usefulin
services modification
DATA COLLECTION
The task of data collections begins after a research problem has been
defined andresearch design is chalked out. First of all we should
analyses two types of data.

1-Primary dataPrimary data

- this is the data collocated a fresh and for the first time. And- this is
the data collocated a fresh and for the first time. And thus happen to

20
be original in character for the purpose of research.thus happen to be
original in character for the purpose of research.
♦investigation at hand there are various methods of collecting primary
data suchas – 
•Observation methods
•Interview method
•Method of questionnaire
•Through schedules etc.I have selected questionnaire method
collection the primary data.

2- Secondary data— 
This is the data collected usually start their investigation by
examining secondary datato see whether their problems could
problems could partly or wholly is solved withoutcollecting costly
primary dataSecondary data provide starting points for research and
offers by advantage of lowand ready availability. Secondary data can
be collected from various sourced like.
•Internal sources
•Govt. publications
•Periodical and journals
•Commercial data
•Books, magazine and newspapersTelephones & internet
 

DATA ANALYSIS
21
PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially

qualified job candidates. Specifically, the purposes are to:Specifically,
the purposes are to:
•Determine the present and future requirements of the organization in
conjunction with its personnel-planning and job-analysis activities.
•Increase the pool of job candidates at minimum cost.
•Help increase the success rate of the selection process by reducing
the number of visibly, under qualified or overqualified job applicants.
•Help reduce the probability that job applicants, once recruited and
selected, willleave the organization only after a short period of time.
•Begin identifying and preparing potential job applicants who will bea
ppropriate candidates.
•Induct outsiders with a new perspective to lead the company.
•Infuse fresh blood at all levels of the organization.
•Develop an organizational culture that attracts competent people to th
ecompany.
•Search or head hunt/head pouch people whose skills fit the
company’s values.
•Devise methodologies for assessing psychological traits.
•Search for talent globally and not just within the company.
•Design entry pay that competes on quality but not on quantum.
•Anticipate and find people for positions that do not exist yet.

22
•Increase organizational and individual effectiveness in the short term
and longterm.
•Evaluate the effectiveness of various recruiting techniques and
sources for alltypes of job applicants.
Recruitment represents the first contact that a company makes with po
tentialemployees. It is through recruitment that many individuals will
come to know a
company, and eventually decide whether they wish to work for it. A
wellplannedandwellmanaged recruiting effort will result in high-
quality applicants, whereas, ahaphazard and piecemeal effort will
result in mediocre ones. High-quality employeescannot be selected
when better candidates do not know of job openings, are notinterested
in working for the company and do not apply. The recruitment
processshould inform qualified individuals about employment
opportunities, create a positiveimage of the company, provide enough
information about the jobs so that applicantscan make comparisons
with their qualifications and interests, and generate enthusiasmamong
the best candidates so that they will apply for the vacant positions.
The negative consequences of a poor recruitment process speak
volumes about itsrole in an organization. The failure to generate an
adequate number of reasonablyqualified applicants can prove costly in
several ways. It can greatly complicate theselection process and may
result in lowering of selection standards.
Thepoorqualityof selection means extra cost on training and supervisi
on. Furthermore, whenrecruitment fails to meet the organizational

23
needs for talent, a typical response is toraise entry-level pay scales.
This can distort traditional wage and salary relationshipsin the
organization, resulting in avoidable consequences. Thus, the
effectiveness of arecruitment process can play a major role in
determining the resources that must beexpended on other HR
activities and their ultimate success.
SUB-SYSTEMS OF RECRUITMENT
The recruitment process consists of the following four sub-functions:-
•Finding out and developing the sources where the required number
and kind of employees will be available.
•Developing suitable techniques to attract the desirable candidates.
•Employing the techniques to attract candidates.
•Stimulating as many candidates as possible and asking them to apply
for jobsirrespective of the number of candidates required.
Management has to attract more candidates in order to increase the
selectionratioso that the most suitable candidate can be selected out of 
the total candidatesavailable. Recruitment is positive as it aims at
increasing the number of applicants andselection is somewhat
negative as it selects the suitable
candidatesinwhichprocess;the unsuitable candidates are automatically 
eliminated. Though, the function of recruitment seems to be easy, a
number of factors make performance of recruitment acomplex one.
FACTORS AFFECTING RECRUITMENT
The following are the 2 important factors affecting Recruitment:-

24
1)INTERNAL FACTORS

•Recruiting policy
•Temporary and part-time employees
•Recruitment of local citizens
•Engagement of the company in HRP
•Company’s size
•Cost of recruitment
•Company’s growth and expansion

2) EXTERNAL FACTORS

•Supply and Demand factors

•Unemployment Rate
•Labour-market conditions
•Political and legal considerations
•Social factors
•Economic factors
•Technological factors

INDUCEMENTSINDUCEMENTS
Organisational inducements are all the positive features and
benefitsoffered by an organization that serves to attract job applicants 
to theorganisation. Three inducements need specific mention here,
they are:-

25
 ● Compensation:
Starting salaries, frequency of pay increases, incentives
andfringe benefits can all serve as inducements to potential
employees.

● Career Opportunities:
These help the present employees to grow personallyand
professionally and also attract good people to the organization.
The feeling that the company takes care of employee career
aspirates serves as a powerful inducement to potential
emplotees.

● Image or reputation
Factors that affects an organisation’s reputaion include its
general treatment of employees ,the nature and quality of its
product and service ans its paricipation in worthwhile socail
endeavors.

INTERPRETATION
 RECRUITMENT POLICY

Recruitment policy of any organization is derived from the

personnel policy of the same organization. In other words the former

26
is a part of thelatter. However, recruitment policy by itself should take
into considerationthe government’s reservation policy, policy
regarding sons of soil, etc., personnel policies of other
organizations regarding merit, internal
sources,social responsibility in absorbing minority sections, women, e
tc.Recruitment policy should commit itself to the organisation’s perso
nnel policy like enriching the organisation’s human resources or servi
cing thecommunity by absorbing the retrenched or laid-off employees 
or casual/temporary employees or dependents of present/former
employees,etc.
The following factors should be taken into consideration in formulatin
grecruitment policy. They are:-
•Government policies
•Personnel policies of other competing organizations
•Organisation’s personnel policies
•Recruitment sources
•Recruitment needs
•Recruitment cost
•Selection criteria and preference
IMPACT OF PERSONNEL POLICIES ON RECRUITMENT
POLICIES
Recruitment policies are mostly drawn from personnel policies of
theorganization. According to Dale Yodar and Paul D. Standohar, gen
eral personnel policies provide a wide variety of guidelines to be spelt 
out inrecruitment policy. After formulation of the recruitment policies

27
, themanagement has to decide whether to centralize or decentralize th
erecruitment function.
SOURCE OF RECRUITMENT

There are many sources of recruiting potential employees but all of

them can be grouped into two categories, namely.

Internal Sources of Recruitment 

Internal sources of recruitment consist of employees who are already

on the payroll of a firm. It also includes former employees who have
returned to work for the organization. Recruitment from internal
sources is done to fill up vacancies through promotion, re-hiring and
transferring employees within the company.

Advantages of Internal Sources of Recruitment 

28
● Selecting and transferring existing employees is a simpler process.
● The managers are aware of the talents and abilities of already
existing employees.
● Internal recruitment serves as a tool to boost the morale of
employees as internal hiring creates job and promotion
opportunities for existing employees.
● Internal hiring promotes a feeling of loyalty amongst the
employees.
● Existing employees are already aware of the company’s working
methods and don’t take a long time to adjust to new positions.
However, there is a potential drawback to the internal recruitment
process. It can lead to a stagnation in the company’s workforce. No
introduction of new employees or fresh ideas.

Often employees who are not suitable for a higher position are given
promotions just because they have been at the organization for a long
time, not because of their skills and qualifications.

Characteristics of Internal Sources of Recruitment 

● Quick process.
● Cheaper than the external recruitment process.
● Works as a tool of motivation for the staff.
● The company’s choice is limited to existing employees of the
company.
● Hiring fresh employees is a lost prospect.

External Sources of Recruitment

External sources of recruitment refer to the sources that lie outside or

exist external to the organization.
29
Sources of external recruitment include:

1. People joining an organization, specifically through

recommendations.
2. Employment agencies( e.g. naukri.com) or employment
exchanges.
3. Advertising
4. Institutes like colleges and vocational schools (e.g. campus
selection)
5. Contractors
6. Hiring unskilled labor
7.  List of applications
8. Temporary workers.
Encouraging existing employees to recommend suitable candidates
can thus lead to the hiring of the right individuals for the right jobs. A
higher level of teamwork and synchronization among employees
would, therefore, be achieved.

However, it might also lead to employees picking their close friends

and family members who are unfit for the jobs. Thus, talented
individuals might lose out on good opportunities.

Whereas, external recruitment provides a wider collection of potential

employees with the necessary skillset. It has proven to be a successful
recruitment process when hiring for managerial and technical
positions.

Characteristics of External Sources

● Long and time-consuming process.

● It is an expensive process.

30
●  When external people are given opportunities over them, then
existing workers lose morale
● Hiring new employees can lead to the introduction of new blood
and thus the introduction of a new set of skills and ideas.

CENTRALISED V/s DECENTRALISED

Recruitment practices vary from one organization to another.
Someorganizations like commercial banks resort to centralized
recruitmentwhilesome organizations like the Indian Railway resort to 
decentralized recruitment practices.
Personnel department at the central office
performsall the functions of recruitment in case of centralised recruit
ment and personnel departments at unit level/zonal level perform
all the functions of recruitment concerning to the jobs of
the respective unit or zone.

MERITS OF CENTRALISED RECRUITMENT

•Average cost of recruitment per candidate/unit should be relatively
less due toeconomies of scale.
•It would have more expertise available to it.
•It can ensure broad uniformity among human resources of various
units/zonesin respect of education, skill, knowledge, talent, etc.
•It would generally be above malpractices, abuse of powers,
favouritism, bias,etc.
•It would facilitate interchangeability of staff among various
units/zones.

31
•It enables the line managers of various units and zones to concentrate
on their operational activities by relieving them from the recruiting
functions.
•It enables the organization to have centralised selection procedure,
promotionaland transfer procedure, etc.
•It ensures the most effective and suitable placement to candidates.
•It enables centralised training programmes which further brings
uniformity andminimizes average cost of staff.
MERITS OF DECENTRALISED RECRUITMENT
•The unit concerned concentrates only on those sources/places
wherein normallygets the suitable candidates. As such the cost of
recruitment would be relativelyless.
•The unit gets most suitable candidates as it is well aware of the
requirements of the job regarding culture, traditional, family
background aspects, local factors,social factors, etc.
•Units can recruit candidates as and when they are required without
any delay.
•The units would enjoy freedom in finding out, developing the
sources, inselecting and employing the techniques to stimulate the
candidates.

•The unit would relatively enjoy advantage about the availability of

information,control and feedback and various functions/processes of
recruitment.

32
•The unit would enjoy better familiarity and control over the
employees itrecruits rather than on employees selected by the central
recruitment agency.

Both the systems of recruitment would suffer from their own

demerits. Hence, themanagement has to weigh both the merits and
demerits of each system before makinga final decision about
centralizing or decentralizing the recruitment.
Alternativelymanagement may decentralize the recruitment of certain
categories of employees preferably middle and top level managerial
personnel and centralize the recruitment of other categories of
employee’s preferably lower level positions in view of the natureof
the jobs and suitability of those systems for those categories of
positions. Themanagement has to find out and develop the sources of
recruitment after decidingupon centralizing or decentralizing
the recruitment function.

SELECTION
Introduction
The size of the labour market, the image of the company, the place of
posting,the nature of job, the compensation package and a host of
other factors influence themanner of aspirants are likely to respond to
the recruiting efforts of the company.Through the process of
recruitment the company tries to locate prospective
33
employeesand encourages them to apply for vacancies at various level
s. Recruiting, thus, provides a pool of applicants for selection.
Definition
To select mean to choose. Selection is the process of picking
individuals whohave relevant qualifications to fill jobs in an
organisation. The basic purpose is tochoose the individual who can
most successfully perform the job from the pool of qualified
candidates.
Purpose
The purpose of selection is to pick up the most suitable candidate who
wouldmeet the requirements of the job in an organisation best, to find
out which jobapplicant will be successful, if hired. To meet this goal,
the company obtains
andassesses information about the applicants in terms of age, qualifica
tions, skills,experience, etc. the needs of the job are matched with the
profile of candidates. Themost suitable person is then picked up after
eliminating the unsuitable applicantsthrough successive stages of
selection process. How well an employee is matched to
a job is very important because it is directly affects the amount and qu
ality of employee’s work. Any mismatched in this regard can cost an
organisation a great dealof money, time and trouble, especially, in
terms of training and operating costs. Incourse of time, the employee
may find the job distasteful and leave in frustration.
Hemay even circulate ‘hot news’ and juicy bits of negative informatio
n about thecompany, causing incalculable harm to the company in the 

34
long run. Effectiveelection, therefore, demands constant monitoring
of the ‘fit’ between people the job.
The Process
Selection is usually a series of hurdles or steps. Each one must be
successfullycleared before the applicant proceeds to the next one. The
time and emphasis place oneach step will definitely vary from one
organisation to another and indeed, from job to job within the same
organisation. The sequence of steps may also vary from job to joband
organisation to organisation. For example some organisations may
give moreimportance to testing while others give more emphasis to
interviews and referencechecks. Similarly a single brief selection
interview might be enough for applicants for lower level positions,
while applicants for managerial jobs might be interviewed by
anumber of people. 
Steps of selection precess

RECEPTION

SCREENING INTERVIEW

APPLICATIN BLANK

SELECTION TEST

SELECTION INTERVIEW

35
CHECKING REFERENCE

MEDICAL EXAMINATION

FINAL APPROVAL

Reception
A company is known by the people it employs. In order to attract
peoplewithtalents,skills and experience a company has to create a fav
ourable impression on theapplicants’ right from the
stage of reception. Whoever meets the applicant
initiallyshould be tactful and able to extend help in a friendly and cour
teous way.Employment possibilities must be presented honestly and c
learly. If no jobs areavailable at that point of time, the applicant may
be asked to call back the personneldepartment after some time.
Screening Interview
A preliminaryinterview is generallyplannedby large organisations
to cut thecost of selection by allowing only eligible candidates to go
through the further stagesin selection. A junior executive from the
Personnel Department may elicit responsesfrom the applicants on
important items determining the suitability of an applicant for a job
such as age, education, experience, pay expectations, aptitude,
location, choiceetc. this ‘courtesy interview’ as it is often called helps
the department screen

36
outobvious misfits. If the department finds the candidate suitable, a pr
escribedapplication form is given to the applicants to fill and submit.
Application Blank 
Application blank or form is one of the most common methods used
to collectinformation on the various aspects of the applicants’
academic, social, demographic,work related background and
references. It is a brief history sheet of employee’s background,
usually containing the following things:
•Personal data (address, sex, telephone number)
•Marital data
•Educational data
•Employment Experience
•Extra-curricular activities
•References and Recommendations

Usefulness of Application Blank or Form

Application blank is highly useful selection tool, in that way it serves
threeimportant purposes:
1.It introduces the candidate to the company in a formal way.
2.It helps the company to have a cross-comparison of the applicants;
the companycan screen and reject candidates if they fail to meet the
eligibility criteria at thisstage itself.
3.It can serve as a basis to initiate a dialogue in the interview.
Selection Testing

37
Candidates may have to undertake selection tests to establish their
claim for the job. These tests are based on the assumption that, human
behaviour in an actual work situation can be predicted by sampling it.
Selection tests are classified into six types.

They are as follow:

(i) Aptitude Tests:
Aptitude means the potential which an individual has for learning the
skills required to do a job efficiently. Aptitude tests measures an
applicant’s capacity and his ability to learn a given job if given
adequate training. These tests are the most promising indices for
predicting employee’s success. Aptitude tests can be divided into
general and mental ability or intelligence tests and specific aptitude
tests such as mechanical aptitude tests, clerical aptitude tests, etc.
(a) Intelligence Tests:
These tests are used to measure a person’s capacity for reasoning and
comprehension in terms of his memory, mental alertness, vocabulary,
and grasping capacity. A candidate’s IQ or mental alertness can be
estimated through intelligence tests. The tests consists of logical
reasoning ability, data interpretation, comprehension skills and basic
language skills. Though these tests are accepted as useful ones, they
are criticized to be against deprived sections of the community.
(b) Mechanical Aptitude Tests:

38
These tests deal with the ability of the candidate to do mechanical
work. They are used to judge and measure the specialised knowledge,
perceptual speed and problem solving ability. These tests are useful
for selecting apprentices, skilled mechanical employees, technicians,
etc.
(c) Psychomotor Tests:
These tests judge abilities like manual dexterity, motor ability and
eye-hand coordination of candidates. These tests are useful to select
semiskilled workers and workers for repetitive operations like
packing, watch assembly, quality inspection, etc.
(d) Clerical Aptitude Tests:
These tests measure specific capacities involved in office work, like
spelling, computation, comprehension, copying, word measuring, etc.
(ii) Achievement Tests:
The candidate’s achievement in his career is tested regarding his
knowledge about the job and actual work experience. These tests are
more useful to measure the value of specific achievement when an
organization wishes to employ experienced candidates.
Selection Interview:
Interview serves as a means of checking the information given in the
application forms and the tests results. It also provides an opportunity
to the candidates to enquire about the job during interview. Managers
get an opportunity to take a decision about their suitability for
employment. Selection interview should be conducted in an
atmosphere which is free from disturbance, noise and interruption.

39
Interview should be conducted in great depth to judge the suitability
of the candidates.
Checking References:
References are generally required to enquire about the conduct of
those candidates who have been found suitable in the interviews and
tests. References can be collected from the previous employers,
colleges last attended or from any other reliable source.
Before forming a balanced opinion, it is necessary to enquire from
three to five persons about the conduct of the prospective candidate.
However, this exercise may not always produce the desired results
because (i) no candidate will cite the name of a referee who might
speak unfavourably about him; (ii) the referee may not always
respond; and (iii) due to a prejudice the referee may deliberately
speak against the candidate.
Medical Examination:
A physical examination of the potential employee is necessary for the
company, to protect itself against the risk of claims for compensation
from individuals who are afflicted with disabilities. The medical
examination should be both general and thorough. The findings
should be carefully recorded so as to give a complete medical history,
the scope of current physical capacities, and the nature of disabilities,
if any.
But, it needs to be remembered that the medical examination is an aid
to selecting employees who, besides fulfilling the requirements as to
abilities and skills, also possess necessary physical characteristics. In

40
other words, medical examination should not be used unfairly to
reject an otherwise suitable candidate.
Final Approval:
After a candidate has cleared all the hurdles in the selection
procedure, he is formally appointed by issuing him an appointment
letter or by making a service agreement with him. No selection
procedure is fool proof and the best way to judge a person is by
observing him working on the job.

 SUGGESTION
● Chances of the selection of the candidate increases at the
company as the same candidate may get a second chance in
some cases.
● It is very important for every organization serves its customer
base who will repeatedly buy its products and carry a long time
relationship with the company as well as work as a spoken
person tp promote the products of the company to
peers,friends,relatives,etc.this organization is really good at its
service quality.
● Performance evaluation: The company evaluation of employee’s
performance of maruti is properly done by the HR division.

41
 ● The success of company depends on their ability to attract and
retain external talent who possess the skills and the experience
to meet.

LIMITATIONS

1. Process consumes a lot of time

Recruitment is a lengthy process, and the recruitment agency might
take a lot of time to find the correct candidates. A recruitment team
isn’t helpful when you want a candidate to fill a vacant position
immediately.

2. Communication gap
The only way to communicate with the recruitment team is via emails
or telephones. There can be times where the team doesn’t properly
understand what the company wants and finds a wrong candidate.

42
On the other hand, the company’s HR department is always there, so
they can proactively search according to the company’s need. They
understand the business model in a better way as well.

3. Not practical for temporary hires

Hiring a recruitment team for finding candidates for project work isn’t
ideal since the person is only going to work for a limited time. So,
you will only have to bear the load of finding employees on a
temporary basis.

In such circumstances, the cost of operation goes higher than the

benefits the company gets on by making the hire.

CONCLUSION
I have tried to give my best to the project. I have incorporated all
the relevant HUMAN RESOURCES MANAGEMENT principles which
could be associated with our topic on “Recruitment and Selection”
process.

I express my gratitude to my Respected Prof. Mrs. JAYA SARASWAT I

have dealt with this project very conscientiously and sincerely. I hope
to keepdoing such interesting projects in the future.Thank you.

43
 

APPENDIX
⮚ Does the organization clearly define the the position
objective,requirements and candidates specifications in
the recruitment process?
YES NO CAN’T SAY

⮚ Is the organization doing timelyness recruitment and

selection process?
YES NO CAN’T SAY
44
⮚ Doess the HR team act as a consultant to enhance the
quality of the applicant pre-screening process?
YES NO CAN’T SAY

⮚ Does HR train hiring employees to make the best hiring

decision?

YES NO CAN’T SAY

⮚ Does the HR department is efficient in sekection policy

of the employees?
YES NO CAN’T SAY
⮚ Does the organization do proper job analysis before
sekection process begins?

YES NO CAN’T SAY

⮚ Does the job responsibilities and job description are

clearly defined to the candidates appearing for selection
process?
YES NO CAN’T SAY

45
⮚ Does the selection method used by the organization are
reliable?
YES NO CAN’T SAY

46