project - sharvari daund(1).doc
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A PROJECT REPORT
ON
RECRUITMENT AND SELECTION WITH REFERENCE TO
CONSULTANCY
PROJECT WORK SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
MASTER OF MANAGEMENT STUDIESIN
HUMAN RESOURSE
SUBMITTED BY
SHARVARI GORAKSHA DAUND
UNDER THE GUIDANCE OF
PROF. NISHA MALHOTRA
AlamuriRatnamala
Institute of Engineering & Technology
Affiliated to
UNIVERSITY OF MUMBAI
Department of HR Management
Academic Year
2012- 2014
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CERTIFICATE
This is to certify that the dissertation/project entitled Recruitment and
selection Process with Reference to Consultancysubmitted by Ms.Sharvari
Goraksha Daund Bearing Pin No._______________ on this ____day of______
20__ in partial fulfillment of the requirements for the award of the Degree of
Master of Management Studies of University of Mumbai, is a bonafide work to
the best of my/our knowledge and may be placed before the Examination Board
for their consideration
_________________ ________________
Internal Examiner External Examiner
______________ ________________
Mr. Nishant Kaushik Director
DeanAcademics
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Certificate of Undertaking
I, Sharvari Goraksha Daund hereby declare that project entitled Recruitment
and selection Process with Reference to ConsultancyUndertaken at Alamuri
Ratnamala Institute of Engineering and Technology by Sharvari Goraksha
Daund, Seat No. _______ in partial fulfillment of MMS (Management) degree
(Semester III) Examination, is my original work and the Project has nor formed
the basis for the award of any degree, associate ship, fellowship or any other
similar titles, either in Mumbai University or any other University of India.
(Signature of the Student)
SHARVARI GORAKSHA DAUND
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ACKNOWLEDGEMENT
I, Sharvari Goraksha Daund, a student of Allamuri Ratnamala Institute of
Engineering & Technology, would like to take this opportunity to express my
sincere thanks to all.
I wish to express my deep sense of gratitude to my Internal Guide, Prof. Nisha
Malhotra for her able guidance and useful suggestions, which helped me in
completing the project work, in time that had been a source of inspiration and
for her timely guidance in the conduct of my project work.
(Signature of the Student)
SHARVARI GORAKSHA DAUND
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EXECUTIVE SUMMARY
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Recruitment and Selection are simultaneous process and are incomplete without
each other. They are important components of the organization and are different
from each other. Since all the aspect needs practical example and explanation
this project includes Recruitment and selection Process of Infosys. And a
practical case study. It also contains addresses of various and top placement
consultants and the pricelist of advertisements in the magazine.
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Index
Sr.
No.
Content Page
No.
1 Objectives 1
2 Methodology 3
3 Scope & Limitations of Research 5
4 Recruitment 7
5 Importance of recruitment 10
6 Recruitment process 12
7 Sources of recruitment 16
8 Internal Sources of Recruitments 18
9 External sources of recruitment 19
10 Factors affecting recruitment 22
11 Internal factors 23
12 External factors 26
13 Recruitment policy 30
14 Components of the Recruitment Policy 32
15 Factors affecting recruitment policy 33
16 Recent trends in recruitment 35
17 ERecruitment 38
18 Advantages of Recruitment 40
19 Advantage & Disadvantage of ERecruitment 44
20 Recruitment v/s selection 47
21 Recruitment management system 50
22 Outsourcing recruitment 51
23 Advantages of outsourcing 55
24 Outsourcing process 58
25 How to select consultants 60
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26 Recruitment strategies 62
27 HR challenges in recruitment 66
28 Forms of recruitment 70
29 Equal employment opportunity 74
30 Headhunting 75
31 Revolve Corporate 81
32 Questioner 86
33 Findings 89
34 Recommendations 91
35 Conclusion 93
36 Bibliography 96
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OBJECTIVES
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OBJECTIVES
1. To make a study on the most preferably used recruitment source in thecompanies. (internal/external) whether is it in case of junior, middle or senior
level.
2. To understand the recruitment strategies followed by the companies.
3. To identify the types of interviews conducted by the companies.
4. To take into consideration the different types of competency based practices
conducted by the companies.
5. To understand the steps of recruitment procedure followed by the companies.
6. To study the importance of the factors that influences the recruitment policy.
7. To analyze the challenges the countered by the HR of the companies.
8. To make a study on the crucial factors responsible for the selection process.
9. To assess the conditions responsible for making the selection procedure
successful.
10. To know the steps of the selection process followed by the companies.
11. To know whether induction is carried on by the companies.
12. To assess the importance of both recruitment & selection in HRM.
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Methodology
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Methodology
Source of Information:
I. Primary:The primary information is collected through Face to Face Interview, Observations and by
participation in Recruitment and Selection Procedure.
II.
Secondary:The Secondary Information is collected through website, Journals, Books and some other relevant
sources.
Both Primary and Secondary Data sources are used to generate this report.
Primary Data sources are Scheduled survey, informal discussion with professionals and observations
while working.
The secondary Data sources are different published website of revolve and other books which are
referred.
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Scope & Limitations of
Research
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Scope of Research
The report deals with the recruitment and selection process in terms of
theoretical point of view and the practical use.
The study allow to learn about Recruitment and Selection issues, modern
techniques and models used to make it more efficient.
The study helps to learn the practical procedures followed by the leading
organizations.
Moreover the study will help to differentiate between the practices and theories
that direct to realize how the organization can improve their Recruitment and
Selection Process.
Limitations of Research
The main limitation of the study is the collection of Information. Because most
of the information are confidential. So they dont want to disclose them. And I
am not able to show any forms which they use in the time of joining or we use
to upgrade the files.
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Recruitment
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RecruitmentRecruitment is the process of searching the candidates for employment andstimulating them to apply for jobs in the organization. Recruitment is the
activity that links the employers and the job seekers. A few definitions of
recruitment are:
A process of finding and attracting capable applicants for employment.The process begins when new recruits are sought and ends when theirapplications are submitted. The result is a pool of applications from
which new employees are selected.
It is the process to discover sources of manpower to meet the requirementof staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an
efficient working force.
Recruitment of candidates is the function preceding the selection, whichhelps create a pool of prospective employees for the organization so that
the management can select the right candidate for the right job from this
pool.
The main objective of the recruitment process is to expedite the selectionprocess. Recruitment is a continuous process whereby the firm attempts
to develop a pool of qualified applicants for the future human resources
needs even though specific vacancies do not exist. Usually, the
recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy.
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RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
I.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an
organization can predict by studying trends in internal and external
environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
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Importance of recruitment
The Purpose and Importance of Recruitment are given below:
Attract and encourage more and more candidates to apply in theorganization.
Create a talent pool of candidates to enable the selection of bestcandidates for the organization.
Determine present and future requirements of the organization inconjunction with its personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing numberof visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selectedwill leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding thecomposition of its workforce.
Begin identifying and preparing potential job applicants who will beappropriate candidates.
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Increase organization and individual effectiveness of various recruitingtechniques and sources for all types of job applicants
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Recruitment process
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Recruitment process
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the recruitment strategic advantage for the
organizations.
Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time.
A general recruitment process is as follows:
Identifying the vacancy:The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These
contain:
Posts to be filled
Number of persons
Duties to be performed
Qualifications required
Preparing the job description and person specification. Locating and developing the sources of required number and type of
employees (Advertising etc.).
Shortlisting and identifying the prospective employee with requiredcharacteristics.
Arranging the interviews with the selected candidates. Conducting the interview and decision making
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Recruitment Process includes following :
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Shortlisting
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process i.e.
the final interviews and the decision making, conveying the decision and the
appointment formalities.
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Sources of recruitment
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Sources of recruitment
Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources
within the organization itself (like transfer of employees from one department to
other, promotions) to fill a position are known as the internal sources of
recruitment. Recruitment candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of recruitment.
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Internal Sources of Recruitments
1.TRANSFERS
The employees are transferred from one department to another according to
their efficiency and experience.
2. PROMOTIONS
The employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their
performance.
4. Retired and Retrenched employees may also be recruited once again in case
of shortage of qualified personnel or increase in load of work recruitment such
people save time and costs of the organizations as the people are already aware
of the organizational culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and Disabled
employees are also done by many companies so that the members of the family
do not become dependent on the mercy of others.
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External sources of recruitment
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used
source of recruitment. The main advantage of this method is that it has a wide
reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges etc. are
a good source of recruiting well qualified executives, engineers, medical staff
etc. They provide facilities for campus interviews and placements. This source
is known as Campus Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on behalf of
client companies by charging a fee. These agencies are particularly suitable for
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recruitment of executives and specialists. It is also known as RPO (Recruitment
Process Outsourcing)
4. EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout the country.
These exchanges provide job information to job seekers and help employers in
identifying suitable candidates.
5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close
contacts with the sources of such workers. This source is used to recruit labor
for construction jobs.
6. UNSOLICITED APPLICANTS
Many job seekers visit the office of wellknown companies on their own. Such
callers are considered nuisance to the daily work routine of the enterprise. But
can help in creating the talent pool or the database of the probable candidates
for the organization.
7. EMPLOYEE REFERRALS / RECOMMENDATIONS
Many organizations have structured system where the current employees of the
organization can refer their friends and relatives for some position in their
organization. Also, the office bearers of trade unions are often aware of the
suitability of candidates. Recruitment Management can inquire these leaders for
suitable jobs. In some organizations these are formal agreements to give priority
in recruitment to the candidates recommended by the trade union.
8. RECRUITMENT AT FACTORY GATE
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Unskilled workers may be recruited at the factory gate these may be employed
whenever a permanent worker is absent. More efficient among these may be
recruited to fill permanent vacancies.
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Factors affecting recruitment
The recruitment function of the organizations is affected and governed by a mix
of various internal and external forces. The internal forces or factors are the
factors that can be controlled by the organization. And the external factors are
those factors which cannot be controlled by the organization. The internal and
external forces affecting recruitment function of an organization are:
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Internal factors
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Internal factors
1. RECRUITMENT POLICY
The recruitment policy of an organization specifies the objectives of recruitment
and provides a framework for implementation of recruitment program. It may
involve organizational system to be developed for implementing recruitmentprograms and procedures by filling up vacancies with best qualified people.
FACTORSS AFFECTINGG RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
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2. HUMMAN RESOURRCE PLANNINNG
Effective human resource planning helps in determining the gaps present in the
existing manpower of the organization on. It also helps in determining the
number of employees to be recruited and what qualification they must possess.
3. SIZE OF THE FIRMM
The size of the firm is an important factor in recruitment process.
If the organization is planning to increase its operations and expand its business,
it will think of hiring more personnel, which will handle its operations.
4. COSTT
Recruitment incur cost to the employer, therefore, organizations try to employ
that source of recruitment which will bear a lower cost of recruitment to the
organization for each candidate.
5. GROWTH AND EXPANSION
Organization will employ or think of employing more personnel if it is
expanding its operations.
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External factors
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External factors
The external factors which affecting recruitment are the forces which cannot be
controlled by the organization.
The major external forces are:
1. SUPPLY AND DEMAND
The availability of manpower both within and outside the organization is an
important determinant in the recruitment process. If the company has a demand
for more professionals and there is limited supply in the market for the
professionals demanded by the company, then the company will have to depend
upon internal sources by providing them special training and development
programs.
2. LABOUR MARKET
Employment conditions in the community where the organization is located will
influence the recruiting efforts of the organization. If there is surplus of
manpower at the time of recruitment, even informal attempts at the time of
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recruiting like notice boards display of the requisition or announcement in the
meeting etc will attract more than enough applicants.
3. IMAGE / GOODWILL
Image of the employer can work as a potential constraint for recruitment. An
organization with positive image and goodwill as an employer finds it easier to
attract and retain employees than an organization with negative image. Image of
a company is based on what organization does and affected by industry. For
example finance was taken up by fresher MBAs when many finance companies
were coming up.
4. POLITICALSOCIALLEGAL ENVIRONMENT
Various government regulations prohibiting discrimination in hiring and
employment have direct impact on recruitment practices. For example,
Government of India has introduced legislation for reservation in employment
for scheduled castes, scheduled tribes, physically handicapped etc. Also, trade
unions play important role in recruitment. This restricts management freedom to
select those individuals who it believes would be the best performers.
If the candidate cant meet criteria stipulated by the union but union regulations
can restrict recruitment sources.
5. UNEMPLOYMENT RATE
One of the factors that influence the availability of applicants is the growth of
the economy (whether economy is growing or not and its rate). When the
company is not creating new jobs, there is often oversupply of qualified labour
which in turn leads to unemployment.
6. COMPETITORS
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The recruitment policies of the competitors also affect the recruitment function
of the organizations. To face the competition, many a times the organizations
have to change their recruitment policies according to the policies being
followed by the competitors.
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Recruitment policy
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Recruitment policy
In todays rapidly changing business environment, a well defined recruitment
policy is necessary for organizations to respond to its human resource
requirements in time. Therefore, it is important to have a clear and concise
recruitment policy in place, which can be executed effectively to recruit the best
talent pool for the selection of the right candidate at the right place quickly.
Creating a suitable recruitment policy is the first step in the efficient hiring
process. A clear and concise recruitment policy helps ensure a sound
recruitment process.
It specifies the objectives of recruitment and provides a framework for
implementation of recruitment programme. It may involve organizational
system to be developed for implementing recruitment programs and procedures
by filling up vacancies with best qualified people.
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Components of the Recruitment Policy:
*The general recruitment policies and terms of the organization
* Recruitment services of consultants
* Recruitment of temporary e employees
* Unique recruitment situations
* The selection process
* The job descriptions
* The terms and conditions of the employment
A recruitment policy of an organization should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with dignityand respect.
Unbiased policy.
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weight age during selection given to factors that suit organization needs.
Optimization of manpower at the time of selection process. Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment
relationship.
Integrates employee needs with the organizational needs.
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Factors affecting
recruitment policy
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Recent trends inrecruitment
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Recent trends in recruitment
The following trends are being seen in recruitment:
OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now.
A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organization by the initial screening of the candidates
according to the needs of the organisation and creating a suitable pool of talent
for the final selection by the organisation. Outsourcing firms develop their
human resource pool by employing people for them and make available
personnel to various companies as per their needs. In turn, the outsourcing firms
or the intermediaries charge the organisations for their services.
Advantages of outsourcing are:
1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage
3. Turning the management's focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable
resumes/candidates.
5. Company can save a lot of its resources and time
POACHING/RAIDING
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Buying talent (rather than developing it) is the latest mantra being followed
by the organisations today. Poaching means employing a competent and
experienced person already working with another reputed company in the same
or different industry; the organization might be a competitor in the industry. A
company can attract talent from another firm by offering attractive pay packages
and other terms and conditions, better than the current employer of the
candidate. But it is seen as an unethical practice and not openly talked about.
Indian software and the retail sector are the sectors facing the most severe brunt
of poaching today. It has become a challenge for human resource managers to
face and tackle poaching, as it weakens the competitive strength of the firm.
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ERECRUITMENT
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Advantages of recruitment
Low cost. No intermediaries Reduction in time for recruitment. Recruitment of right type of people. Efficiency of recruitment proces
The buzzword and the latest trends in recruitment is the E Recruitment. Also
known as Online recruitment, it is the use of technology or the web based
tools to assist the recruitment processes. The tool can be either a job website
like naukri.com, the organizationscorporate web site or its own intranet. Many
big and small organizations are using Internet as a source of recruitment. They
advertise job vacancies through worldwide web. The job seekers send their
applications or curriculum vitae (CV) through an email using the Internet.
Alternatively job seekers place their CVs in worldwide web, which can be
drawn by prospective employees depending upon their requirements.
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The internet penetration in India is increasing and has tremendous potential.
According to a study by NASSCOM
Jobs are among the top reasons why new users will come on to the internet,
besides email. There are more than 18million resumes floating online across
the world.
The two kinds of erecruitment that an organization can use is
Job portalsi.e. posting the position with the job description and the jobspecification on the job portal and also searching for the suitable resumes
posted on the site corresponding to the opening in the organization.
Creating a complete online recruitment/application section in the
companysown website. Companies have added an application system
to its website, where the passive job seekerscan submit their resumes
into the database of the organization for consideration in future, as and
when the roles become available.
Resume Scanners:Resume scanner is one major benefit provided by thejob portals to the Organizations. It enables the employees to screen and
filter the resumes through predefined Criteriasand requirements (skills,
qualifications, Experience, payroll etc.) of the job. Job sites provide a
24*7 access to the database of the resumes to the employees facilitating
the justin
time hiring by the organizations. Also, the jobs can be posted
on the site almost immediately and is also cheaper than advertising in the
employment newspapers. Sometimes companies can get valuable
references through the passersby applicants. Online recruitment helps
the organisations to automate the recruitment process, save their time and
costs on recruitments
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Online Recruitment
Techniques
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Online recruitment techniques
Giving a detailed job description and job specifications in the job postings to
attract candidates with the right skill sets and qualifications at the first stage.
Erecruitment should be incorporated into the overall recruitment strategy of the
organization.
A well defined and structured applicant tracking system should be integrated
and the system should have a backend support.
Along with the backoffice support a comprehensive website to receive and
process job applications (through direct or online advertising) should bedeveloped.
Therefore, to conclude, it can be said that erecruitment is the Evolving face of
recruitment.
Advantage & Disadvantage of E-Recruitment
Newspapers are still jobseekers most popular source of vacancies. But the
Internet is fast becoming a rival. In the past four years, the web has nearly
doubled in popularity among job hunters.
Thats according to a survey by the British Market Research Bureau, which
discovered that 23 per cent of those questioned preferred to go online to find
work.
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Well over 1m people have found jobs online during the past five years, and as
graduates and young professionals become increasingly IT literate, so the
numbers will greatly increase.
But IT career consultants say it is unlikely that online recruitment will ever
replace traditional methods like newspapers, the trade press, wordof mouth and
contacting a company directly, which are seen as proactive ways of finding
work, while the Internet is regarded as reactive.
Another surveyby IT services firm Paritysuggested that only five per cent
of big employers used the Internet to recruit in 2003, compared to 33 per cent in
2001. The common complaints about online jobhunting centre on the
impersonal nature its lack of human contact and personal feedback. Job
seekers bemoan the fact that details can be out of date, sites crash at vital
moments and emails get lost. Recruitment sites also sometimes dont have
information arranged in a logical or accessible fashion.
However, the Internet is speedy, instantly available and offers a vast amount of
information on job hunting as well as offering vacancies aplenty, allowing
people to search, view and apply for jobs and post CVs at the click of a mouse,
at any time of the day or night. Many jobsearch sites, such as many listed in
our Jobs channel offer free registration and job alerts by email. When used in
tandem with more traditional, human offline methods, the web can be
extremely useful in helping shape your career.
Webbased recruitment offers candidates access to a sizeable amounts of
information about their potential employers, making brushingup on the
background much easier than it was in preInternet days. Websites, with their
interactive elements, are far more useful than company brochures in offering an
idea of how a company views itself and what it expects from its members of
staff.
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Some recruiters have abandoned their online methods because they were being
inundated with unwanted or inappropriate emails. But many more businesses
have refined their websites to benefit both themselves and potential employees.
Filtering software can screen applicants early in the process; meaning valid
applicants are less likely to be lost in the glut of applications.
The very best employers websites offer realistic job previews, sometimes
through editorials featuring interviews with people currently working at the
firm. Applicants may be able to email specific employees, nominated by the
company as spokespeople, to enquire about the nature of a position. Having
access to a wealth of knowledge means you wont waste your timeapplying for
a role to which you are not suited.
Competency questionnaires, ability tests and psychometric exams can feature
online at the front end of the job application process, meaning applicants who
pass these stages are the most suitable and likeliest to be considered.
It can be weeks between sending an application by post and taking a new job,
by way of interviews and aptitude tests. That time frame can now potentially be
reduced to days, even hours, without the need to ever leave your PC.
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RECRUITMENT
V/S SELECTION
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RECRUITMENT V/S SELECTION
Both recruitment and selection are the two phases of the employment process.
The differences between the two are:
1. The recruitment is the process of searching the candidates for employmentand stimulating them to apply for jobs in the organization WHEREAS selection
involves the series of steps by which the candidates are screened for choosing
the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates too
enable the selection off best candidates for thee organization, by attracting more
and more employees to apply in the organization WHEREAS the basic purpose
of selection process is to choose the right candidate to fill the various positions
in the organization.
3. Recruitment is a positive process i.e. encouraging more and more employees
to apply WHEREAAS selection is a negative process as it involves rejection of
the unsuitable candidates.
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4. Recruitment is concerned with tapping the sources off human resources
WHEEREAS selection is concerned with selecting the most suitable candidate
through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS
selection results in a contract of service between the employer and the selected
employee. Recruitment management system is the comprehensive tool to
manage the entire recruitment processes of an organization. It is one of thee
technological tools facilitated by the information management systems to the
HR of organizations. Just like performance management, payroll and other
systems, Recruitment management system helps to contour the recruitment
processes and effectively managing the ROI on recruitment.
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The features, functions and major benefits of the recruitment
management system are explained below:
Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and
reliable processing of applications from various applications. Helps to reduce
the timeperhire and costperhire.
Recruitment management system helps to incorporate and integrate the various
links like the application system on the official website of the company, the
unsolicited applications, outsourcing recruitment, the final decision making to
the main recruitment process.
Recruitment management system maintains an automated active database of the
applicants facilitating the talent management and increasing the efficiency of
the recruitment processes.
Recruitment management system provides and a flexible, automated and
interactive interface between the online application system, the recruitment
department of the company and the job seeker. Offers tolls and support to
enhance productivity, solutions and optimizing the recruitment processes to
ensure improved ROI.
Recruitment management system helps to communicate and create healthy
relationships with the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information
system tool which helps to sane the time and costs of the recruiters and
improving the recruitment processes.
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Outsourcing
Recruitment
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Outsourcing recruitment
Outsourcing Recruitment is the human resource (HR) processes is the latest
practice being followed by middle and large sized organizations. It is being
witnessed across all the industries. In India, the HR processes are being
outsourced from nearly a decade now.
Outsourcing industry is growing at a high rate.
Human Resource Outsourcing refers to the process in which an organization
uses the expert services of a third party (generally professional consultants) to
take care of its HR functions while HR management can focus on the strategic
dimension of their function. The functions that are typically outsourced are the
functions ones that need expertise, relevant experience, knowledge and best
methods and practices. This has given rise to outsourcing the various HR
functions of an organization.
HR Consultancies such as MaFoii and Placement Consulting provide such
services through expert professional consultants.
Human resources business process outsourcing (HR BPO) is a major component
of the worldwide BPO market.
Performance management outsourcing involves all the performance monitoring,
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Measurement, management being outsourced from a third party or an external
organization.
Many organizations have started outsourcing its recruitment processes i.e.
transferring all or some part of its recruitment process to an external consultant
providing the recruitment services.
It is commonly known as RPO i.e. recruitment process outsourcing.
More and more medium and large sized organizations are outsourcing their
recruitment process right from the entry level jobs to the C-level jobs.
The present value off the recruitment process outsourcing industry ((RPO) in
India is estimated to be $2.5 billion and it is expected to grow at the annual rate
of 30-40 percent for the next couple of years.
According to a recent survey, only 8-10 percent of the Indian companies are
complete recruitment processes. However, the number of companies
outsourcing their recruitment processes is increasing at a very fast rate and so is
the percentage of their total recruitment processes being outsourced.
Outsourcing organizations strive for providing cost saving benefits to their
clients. One of the major advantages too organizations, who outsource their
recruitment process, is that it helps to save up to as much as 40 per cent of their
recruitment costs. With the experience, expertise and the economies of scale of
the third party, organizations are able to improve the quality of the recruits
and the speed of the whole process.
Also, outsourcing enables the human resource professionals of organizations to
focus on the core and other HR and strategic issues.
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Outsourcing also gives a structured approach to the whole process of
recruitment, with the ultimate power of decision making of recruiting with the
organization itself.
The portion of the recruitment cycle that is outsourced range from preparing job
descriptions to arranging interviews, the activities that consume almost 70
percent of the time of the whole recruitment process.
Outsourcing the recruitment processes for a sector like BPO, which faces an
attrition of almost 50-60 per cent, can help the companies in BPO sector to save
costs tremendously and focus on other issues like retention. The job seekers are
also availing the services of the
third parties (consultants) for accessing the latest job opportunities.
In India, the trend of outsourcing recruitment is also catching up fast.
For example: Vodafone outsources its recruitment activities to
Alexander Mann Solutions (RPO service provider).
Wipro has outsourced its recruitment process to
MeritTrac.
Yes bank is also known to outsource 50 per cent of its recruitment processes.
Advantages of outsourcing
Traditionally, recruitment is seen as the cost incurring process in an
organization. HR outsourcing helps the HR professionals of the organizations to
concentrate on the strategic functions and processes of human resource
management rather than wasting their efforts, time and money on the routine
work.
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Outsourcing the recruitment processes helps to cut the recruitment costs to 20 %
and also provide economies of scale to the large sized organizations.
The major advantages of outsourcing recruitment performance management are:
Outsourcing is beneficial for both the corporate organizations that use the
outsourcing services as well as the consultancies that provide the service to the
corporate. Apart from increasing their revenues, outsourcing Process provides
business opportunities to the service providers, enhancing the skill set of the
service providers and exposure to the different corporate experiences thereby
increasing their expertise.
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The advantages accruing to the corporate are:
Turning the management's focus to strategic level processes of HRM
Accessibility to the expertise of the service providers
Freedom from red tape and adhering to strict rules and regulations
Optimal resource utilization
Structured and fair performance management.
A satisfied and, hence, highly productive employees
Value creation, operational flexibility and competitive advantage
Therefore outsourcing helps both the organizations and the consultancies to
grow and perform better.
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Outsourcing process
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Outsourcing process
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How to select consultants
If an organization decides to outsource its recruitment processes or activities, it
is very important to find and select a suitable recruitment consultant or
consultancies, which can deliver results according to the needs off the
organization.
Today, there are thousands of consulting firms (consultancies) as well as
freelance consultants working independently.
An organization looks for various considerations and qualities before selecting
the suitable recruitment consultant.
The reputation of the consulting firm in the job market (based on expertise and
experience).
Who are the consultantsor firmspast and present
Clients?
Consultants expertise and experience (from how long has he/firm been in the
business)
Does the recruitment consultant have the requisite resources to complete the
targets on time?
Get the idea of the effectiveness and the services of the recruitment consultant
from its current and past clients. Qualities of an independent recruitment
consultant:
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Some of the qualities or characteristics looked in recruitment consultants
are:
Marketing skills
Flexibility and adaptability
Wisdom
Exuberance
Ability to prioritize
Ambition
Resourcefulness
Diplomacy/delicacy Selecting the right recruitment consultant is essential for
the effective recruitment processes. A successful Recruitment consultant is
someone who is Determinative, focused, and able to create opportunities for
him, works harder and smarter than competitors and continually set and achieve
higher standards.
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Recruitment
strategies
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Recruitment strategies
Recruitment is of the most crucial roles of the human resource professionals.
The level of performance of and organization depends on the effectiveness of its
recruitment function. Organizations have developed and follow recruitment
strategies to hire the best talent for their organization and to utilize their
resources be well planned and practical to attract more and good talent to apply
in the organization.
For formulating an effective and successful recruitment strategy, the
strategy should cover the following elements:
1. Identifying and prioritizing jobs Recruitment keeps arising at various levels
in every organization; it is almost a never-ending process. It is impossible to fill
all the positions immediately. Therefore, there is a need to identify the positions
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requiring immediate attention and action. To maintain the quality of the
recruitment activities, it is useful to prioritize the vacancies whether to focus on
all vacancies equally or focusing on key jobs first.
2. Canddidates to target the recruitment process can be effective only if the
organization completely understands the requirements of the type of Candidates
that are required and will be beneficial for the organization.
This covers the following parameters as well:
A successful recruitment strategy should be
Performance level required: Different strategies are required for focusing on
hiring high performers and average performers.
Experience level required: the strategy should be clear as to what is the
experience level required by the organization. The candidatesexperience can
range from being a fresher to experienced senior professionals.
Category of the candidate: the strategy should clearly define the target
candidate. He/she can be from the same industry, different industry,
unemployed, top performers of the industry etc.
3. Sources of recruitment the strategy should define various sources (external
and internal) of recruitment. Which are the sources to be used and focused for
the recruitment purposes for various positions? Employee referral is one of the
most effective sources of recruitment.
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Category of the candidate: the strategy should clearly define the targetcandidate. He/she can be from the same industry, different industry,
unemployed, top performers, of the industry etc.
4. Trained recruiters
The recruitment professionals conducting the interviews and the other
recruitment activities should be welltrained and experienced to conduct the
activities. They should also be aware of the major parameters and skills (e.g.:
behavioral, technical etc.) to focus while interviewing and selecting a candidate.
5. How to evaluate the candidates
The various parameters and the ways to judge them i.e. the entire recruitment
process should be planned in advance. Like the rounds of technical interviews,
HR interviews, written tests, psychometric tests etc.
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HR challenges in
recruitment
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HR challenges in recruitment
Recruitment is a function that requires business perspective, expertise, ability to
find and match the best potential candidate for the organization, diplomacy,
marketing skills (as to sell the position to the candidate)and wisdom to align the
recruitment processes for the benefit of the organization. The HR professionals
handling the recruitment function of the organization are constantly facing new
challenges in Recruitment. The biggest HR challenge in Recruitment for such
professionals is to source or recruit the best people or potential candidate for the
organization.
In the last few years, the job market has undergone some fundamental changes
in terms of technologies, sources of recruitment, competition in the market etc.In an already saturated job market, where the practices like poaching and
raiding are gaining momentum.
HR professionals are constantly facing new challenges in one of their most
important function recruitment. They have to face and conquer various
challenges to find the best candidates for their organizations.
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The major challenges faced by the HR in recruitment are:
Adaptability to globalizationThe HR professionals are expected andrequired to keep in tune with the changing times, i.e. the changes taking
place across the globe. HR should maintain the timeliness of the process
Lack of motivation Recruitment is considered to be a thankless job.Even if the organization is achieving results, HR department or
professionals are not thanked for recruiting the right employees andperformers.
Process analysisThe immediacy and speed of the recruitment processare the main concerns of the HR in recruitment. The process should be
flexible, adaptive and responsive to the immediate requirements. The
recruitment process should also be cost effective.
Strategic prioritization The emerging new systems are both anopportunity as well as a challenge for the HR professionals. Therefore,
reviewing staffing needs and prioritizing the tasks to meet the changes in
the market has become a challenge for the recruitment professionals.
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Forms of recruitment
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Forms of recruitment
The organizations differ in terms of their size, business, processes and practices.
A few decisions by the recruitment professionals can affect the productivity and
efficiency of the organization. Organizations adopt different forms of
recruitment practices according to the specific needs of the organization. The
organizations can choose from the centralized or decentralized forms of
recruitment, explained below:
CENTRALIZED RECRUITMENT
The recruitment practices of an organization are centralized when the HR /
recruitment department at the head office performs all functions of recruitment.
Recruitment decisions for all the business verticals and departments of an
organization are carried out by the one central HR (or recruitment) department.
Centralized from of recruitment is commonly seen in government organizations.
Benefits of the centralized form of recruitment are:
Reduces administration costs Better utilization of specialists Uniformity in recruitment Interchangeability of staff Reduces favoritism Every department sends requisitions for recruitment to their central office
DECENTRALIZED RECRUITMENT
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Decentralized recruitment practices are most commonly seen in the case of
conglomerates operating in different and diverse business areas. With diverse
and geographically spread business areas and offices, it becomes important to
understand the needs of each department and frame the recruitment policies and
procedures accordingly. Each department carries out its own recruitment.
Choice between the two will depend upon management philosophy and needs of
particular organization. In some cases combination of both is used. Lower level
staffs as well as top level executives are recruited in a decentralized manner.
Equal employment opportunity
Equal employment opportunity refers to the approach of the employers to
ensure the practice of being fair and impartial in the employment process. *The
term "Equal Opportunity
Employment" was first given by President Lyndon B. Johnson when he signed
Executive Order
11246 which was created to prohibit federal contractors from discriminatingagainst employees on the basis of race, sex, creed, religion, color, or national
origin*. The scope of the order also covered the discrimination on the basis of
the minority status.
Discrimination in employment
Discrimination refers to the any kind of prejudice, biasness or favoritism on the
basis of
Disability Race Age
Sex Sexuality
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Pregnancy Marital status
in employment. No person should be treated less favorably than any other on
the basis of the specified issues above. Many countries (like SA) have already
implemented Equal Opportunity Act, making it against the law to treat anybody
unfairly.
Diversity in workforce
With the globalization and the increasing size of the organizations, the diversity
in the workforce is increasing i.e. people from diverse backgrounds, educational
background, age groups, race, gender, abilities etc come together to work for
one organization and common objectives. Therefore, it is the responsibility of
the employer to create an equalitybased and discriminationfree working
environment and practices. Equal opportunity means treating people equally and
fairly irrespective of their race, religion, sex, age, disability etc. Giving women
an equal treatment and access to opportunities at the workplace. Any employee
should be illtreated or harassed by the employer or other employees.
Equal Employment Opportunity principles help to realize and respect the actual
worth of the individual on the basis of his knowledge, skills, abilities and merit.
And the policy should cover all the employees of an organization whether
permanent or temporary, contractual etc.
Equal employment opportunity is necessary to ensure:
* To give fair access to the people of all development opportunities
* To create a fair organization, industry and society.
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* To encourage and give disadvantaged or disabled people a fair chance to grow
with the society
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Headhunting
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Headhunting
Headhunting refers to the approach of finding and attracting the best
experienced person with the required skill set. Headhunting is also a recruitment
process involves convincing the person to join your organization.
The most valuable resource in today's fastpaced corporate world are People.
The present recruitment scenario is witness to the expertise of job consultants
better known as headhunters.
Headhunters have established themselves as an important link in the
employment chain.
Various companies and firms have chosen to enhance their human resource by
using the expertise that headhunters bring to recruitment. The boom in the
headhunting industry can be attributed to the headhunter's superior
understanding of the industry and market norms, job profiles, people skills etc.
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By virtue of their aggressive networking and people skills, headhunters today
have created a niche for themselves.
Increasing staff turnover rates have served to propel the headhunting industry to
a high demand, high delivery industry.
So to join or start a muchneeded service like this what does one need to be
successful? The pointers below will help in better understanding of the do's and
don'ts of the business.
It is imperative to have an indepth specialized knowledge of the industry, the
job requirements, work culture, HR policies etc. This is the reason most
headhunters work within well defined niches and offer their services in
specialized industries.
A good grasp of the various problems and issues that plague the market, is
essential
Every new search assignment that a headhunter takes up involves sifting the
grain from the chaff. In other words, it calls for prescreening numerous
candidates for a job. This is where the headhunter's ability to probe beyond the
superficial, comes to the fore. Piloting the right person to the right job calls for a
specialized screening of the aptitude and skills of the candidates to ensure the
selection of highvalue performers.
Several factors need to be considered. The headhunter takes into consideration
the candidate's values, job preferences, skills, background, family commitments
etc.
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These are the guiding parameters by which the headhunter analyses the
candidate's suitability to the requirements of the recruiter. The main objective
should not be to generate shortterm employment but to bridge the
demandsupply gap. Ethical headhunting calls for a sense of integrity.
The headhunter should guide the candidates in interview handling skills. The
headhunter plays an important role in negotiations regarding salary and other
benefits.
A headhunter stakes his reputation on the competencies of his candidate. A
headhunter's responsibility does not merely end once the candidate is hired.
Good follow up with the company is a valueadded service that can give a
headhunter an edge and help in striking a longterm relationship with the
company.
With a clear understanding of the above, a headhunter can be tuned to success in
the corporate scenario. The headhunter charges a commission from the company
per hire but also owes loyalty to the candidate. Hence, it is vital for him to help
the candidate find a fulfilling and rewarding job.
The intense competition in the recruitment procedures has led to several
headhunters working round the clock. To sum up, it is not only about skills, but
also about being in the right place at the right time. In other words, a true
headhunter is one who finds the right peg for the right hole.
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Headhunting process
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Headhunting process
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Revolve Corporate
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Revolve Corporate
Revolve Corporate is a premium integrated HR solutions company, with a focus
on Executive Search, Recruitment Solutions and Staffing Services.
We serve diverse industry with specialization in Junior, Senior and Top
Management Level, Executive search & placement.
Revolve Corporate provides valueadded services to a broad range of industry
sectors through a growing network and varied alliances.
Our Clients
IT/Telecom Industry 6.8, 3.2, 1.4,1.2,1.8 Pharmaceutical Industry Manufacturing Industry Hospitality Sectors Interior Decorator
Industry
Accounting Industry Automobile Engineering Industry FMCG Industry HR Firms Retailing
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Ratio of Employees
1-5 Employees
6-10 employees
11-25 employees
More than 26
No full time staff
Recolve Corporate has ratio of emploeeys as follows :
1-5 Employees = 6.8 %
6-10 Employees = 3.2%
11-25 employees = 1.4%
More than 26 Employees = 1.2%
No Full time staff = 1.8%
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Selection Procedure
The first step involves getting required details from client includingnumber of vacancies, job specification, desirable educational
qualification, salary structure and other terms and conditions of
employment / recruitment
Based on the above we extract most suitable CVs from our databank.
After careful shortlisting we forward CVs to the clients for review andshort listing process.
After receiving the list of shortlisted candidates, we arrange for thepersonal telephonic interviews as per the convenience of our clients.
If desired by client we also make final selection on their behalf.
After final selection by the client, an offer letter is issued to thecandidates and declaration is taken from them accepting the terms and
conditions of employment.
And accordingly the formality of the invoice to be raised takes place.
Add on Head hunting Approach of finding and attracting the best experienced
person with the required skill set is also a part of our recruitment process.
The more Formal Term is Executive Search
We at Revolve Corporate are also into Head Hunting.
We indulge into following methods:
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Through wide variety of our Industry contacts. Taking external referrals.
On Average following time staff spends on requirement:
Time
1 to 5
6 to 10
16 to 20
21 to 30
31 to 40
More than 40
Unkown
Brief Explanation of timing spend
Hours Requirement
1-5 20.3
6-10 21.6
16-20 10.8
21-30 11.7
31-40 6.1
More than 40 9.5
Unkown 19.9
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QUESTIONNAIRE
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QUESTIONNAIRE
1 How many employees you have in your firm?1-5 10-15 +30
2 How you think the future of Consultancy business will be?Good Excellent Extra-Ordinary
3 What are the rates of most consultants in market?High Normal Low
4 Are you only in Recruitment or Training & Development also?
Yes No
5 What will be the challenges ahead of the employees five years down theline?
Inflation High Rate Low Demand
6 Mostly you have clients from which sector?IT Service Construction All Clients
7 On what basis you pitch the client?Requirements Profit
8 How you think you are different from other consultants?Supply of candidate is low Supply of candidate is High
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9 Do you think recruitment consultants are exploited by the corporate?Yes No
10What is the attrition ratio in your firm?Low Normal High
11Do you think there should be a regulatory authority for all theconsultants in India?
Yes No
12How you think a consultant should cope up with the current marketfluctuations?
They should have track of the client.They should be fast in responding to their client.The candidate should have the skills which are required by the
clients.
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Findings
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Recommendations
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Recommendations
Recruitment is something very crucial and an important and integral part of any
organization.
It plays a vital role, once an organization has an efficient group of manpower
the graph of the company will always keep moving in the upward direction
symbolizing growth which everyorganization starves for, thus recruitment is
an important part.
Choosing the right consultant in case of outsourcing recruitment is also
important as they are the ones who on behalf of the organization screen
candidates and send it to the organization thus making things easier for the HR
of the organization.
In case of recruitment I would suggest that a website should be created wherein
any candidate who is looking for a job can create account in that website and his
name will automatically get entered in the database of all the hr consultancies,
just as we have job portals naukri and monster which is in turn a database for
the consultants and organizations, database of job seekers, in this website of
consultants the job seekers will get access to all consultants (who provide job)
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Conclusion
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Conclusion
Revolve is a premium integrated HR solutions company, with a focus on
Executive Search, Recruitment Solutions and Staffing Services.
We serve diverse industry with specialization in Junior, Senior and Top
Management Level, Executive search & placement.
Revolve provides valueadded services to a broad range of industry sectors
through a growing network and varied alliances.
I learnt
Precisely about a JD
Access to job portals
Usage of job portals
Mass Mailing
Head Hunting
Coordination with clients/ candidates
Interviewing candidates
Email etiquettes
Business meetings/ business development
The guidance given to me by my head was so crisp and clear that in turn helped
me to grasp things at a good pace.
The biggest asset in the project was that it involved complete learning that
always encouraged me and kept my interest alive.
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I also learnt things such as patience, communication skills, email etiquettes,
coordination, team work and negotiation.
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Bibliography
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Bibliography
Books:
Human Resource DevelopmentJohn Wilson
Hire with Your headLou Adler
WEBSITIES:
www.hrguide.com
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