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IMPERIAL AUTO INDUSTRIES Submitted to Partial fulfillment of the requirement of the awards of degree in Master of Business Administration To Maharshi Dayanand University, Rohtak (Session : 2010-2012)
SUBMITTED BY: HARDEEP SINGH ROLL NO. 10021 SEMESTER 3RD MBA FINAL YEAR
Deptt. Of Management Studies SHRI RAM COLLEGE OF ENGINEERING & MANAGEMENT PALWAL (HARYANA)
ACKNOWLEDGEMENT
It gives me immense pleasure to take this opportunity to acknowledge all those who were, directly or indirectly, part of this project and made this project possible. First I would like to thank my guide Manager (P & A), Mr. Satish Kumar Sorout who not only guided me throughout the project but also took great effort in making the project a success. Without his keen interest, moral support, suggestion and valuable guidance the completion of this project would not have been possible. My heartiest gratefulness to Junior Officer (P & A) Mr. Sanjay Gulati for his support throughout my training, whenever and wherever required.
PREFACE
Classroom study is the foundation, which is essential, but getting down cut from a tree is different whenever it comes. To bridge the gap between the theory and practical, It is essential for the student to step out of the classroom and move around the corporate world. Classroom theory can pass on knowledge but attitude and skills can be enhanced from market exposure with them. IMPERIAL AUTO INDUSTRIES Provide me an opportunity to experience an actual industry condition. It is correctly said that industrial exposure is nearly a civilized form of warfare where most of the battles are won by civilized thinking and the attitude. This training had not only provided me the market exposure but also passed on attitude and skill to become a successful professional.
Chapter
1 2 3
Particulars
ACKNOWLEDGEMENT PREFACE INTRODUCTION LITERATURE
3.1 Evolution of Global Auto Industry 3.2 Evolution of Indian Auto Component Industry 3.3 Automotive industry crisis of 2008-09
&
REVIEW
OF
COMPANY PROFILE
4.1 Introduction 4.2 History 4.3 Companies Philosophy. 4.3Vision,Quality,Environmental&health Policy 4.4 Milestone 4.5 Product portfolio.
5 6 7 8 9 10 11
CONCEPTUALIZATION RESEARCH METHODOLOGY FINDINGS & INTERPRETATION SUGGETIONS CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE
INDUSTRY PROFILE
Going by current trends in production and exports of auto components, the domestic Indian auto component manufacturing industry is heading for a whopping 18% growth in the coming years compared to the export market which is estimated to reach $2.7 bn by the year 2010. The three main factors providing impetus to this industry are the ever increasing domestic automobile industry (two-wheelers, commercial vehicles and passenger cars), the
aftermarket sales and servicing industry and the outsourcing of component manufacturing to India and China by the global titans The Indian Auto component Industry has always been riding over the Indian Automobile industry. The Component industry started out small in the 1940s supplying components to Hindustan Motors and Premier Automobiles. In the 1950s, the arrival of Telco, Bajaj, and Mahindra & Mahindra led to steadily increasing production. In the 1980s with Maruti, the growth suddenly accelerated. Boom time for the auto components industry started with the arrival of India's "people's car" - the Maruti. The new car required components that would adhere to its stringent quality standards. It virtually gave birth to a variety of new age auto component manufacturers who manufactured components that combined the best of technology with quality. As Maruti became India's best selling car, the path of Indian auto component industry took an upswing. Export figures also climbed. Low costs of labor and raw material resulted in exports taking a quantum jump. The influx of foreign auto majors ranging from Mercedes Benz, Ford, General Motors to Daewoo few years ago presented a world of opportunity for the industry. The auto components industry responded with huge capacity expansion and modernization programs. However, the global auto giants soon realized that the Indian market was not as big as it appeared to be. Their targets went haywire, inventories piled up and bookings were canceled. This also coincided with a general slowdown in the Indian economy in the last one or two years. The auto component industry in India, which is driven by domestic demand, also faced sluggish growth. However, things have taken a turn for the better. Growth in the commercial vehicle and the passenger car segments has been 20 per cent year on year and 40 per cent year on year respectively from year 2000 onwards
Some Indian companies have used the recession to trim down by cutting costs and improving productivity. Several companies have entered into technological collaboration and equity partnership with world leaders in auto components. They have not only adopted their systems but also their manufacturing and management practices. Strict quality controls, sound technology and high volumes will enable the Indian auto component industry to chart greater progress in the coming future. The New multinationals that came in India to manufacture and sell in India realized that it was cheaper to manufacture products in India by around 30%. They were exposed to a new idea of exporting back low cost good quality products back to their global factories and thus reduce their overall costs. This resulted into high demand for components and thats how at last the component industry lost its dependence on the local Automobile manufacturers. The industry is now exposed to a global market, which is 50 times bigger in size. Indias automotive component industry manufactures the entire range of parts required by the domestic automobile industry and currently employ about 250,000 persons. Auto component manufacturers supply to two kinds of buyers Original Equipment Manufacturers (OEM) and the Replacement Market. The replacement market is characterized by the presence of several small-scale suppliers who score over the organized players in terms of excise duty exemptions and lower overheads. The new car required components that would adhere to its stringent quality standards. It virtually gave birth to a variety of new age auto component manufacturers who manufactured components that combined the best of technology with quality. As Maruti became India's best selling car, the path of Indian auto component industry took an upswing. Export figures also climbed. Low costs of labor and raw material resulted in exports taking a quantum jump.
The influx of foreign auto majors ranging from Mercedes Benz, Ford, General Motors to Daewoo few years ago presented a world of opportunity for the industry. The auto components industry responded with huge capacity expansion and modernization program. However, the global auto giants soon realized that the Indian market was not as big as it appeared to be. Their targets went haywire, inventories piled up and bookings were canceled. This also coincided with a general slowdown in the Indian economy in the last one or two years. The auto component industry in India, which is driven by domestic demand, also faced sluggish growth. However, things have taken a turn for the better. Growth in the commercial vehicle and the passenger car segments has been 20 per cent year on year and 40 per cent year on year respectively from year 2000 onwards.
Some Indian companies have used the recession to trim down by cutting costs and improving productivity. Several companies have entered into technological collaboration and equity partnership with world leaders in auto components. They have not only adopted their systems but also their manufacturing and management practices. Strict quality controls, sound technology and high volumes will enable the Indian auto component industry to chart greater progress in the coming future. The New multinationals that came in India to manufacture and sell in India realized that it was cheaper to manufacture products in India by around 30%. They were exposed to a new idea of exporting back low cost good quality products back to their global factories and thus reduce their overall costs. This resulted into high demand for components and thats how at last the component industry lost its dependence on the local Automobile manufacturers. The industry is now exposed to a global market, which is 50 times bigger in size.
Automotive industry crisis of 20082009 The automotive industry crisis of 20082009 is a global financial crisis in the auto industry that began during the later half of 2008. The crisis is primarily felt in the United States' automobile manufacturing industry and, by extension, Canada, due to the Automotive Products Trade Agreement, but other automobile manufacturers, particularly those in Europe and Japan, are also suffering from the crisis. The automotive sector was first weakened by the substantially more expensive automobile fuels linked to the 2003-2008 oil crisis which, in particular, caused customers
to turn away from large sport utility vehicles (SUVs) and pickup trucks, the main market of the American "Big Three" (General Motors, Ford, and Chrysler). The US automakers also suffered from considerably higher wages than their non-unionized counterparts, including salaries, benefits, healthcare, and pensions. In return for labor peace, management granted concessions to its unions that resulted in uncompetitive cost structures and significant legacy costs. In 2008, the situation became critical because the global financial crisis and the related placed pressure on the prices of raw materials. In certain countries, particularly the United States, the Big Three have been under heavy criticism since their vehicle offerings were largely fuel inefficient SUVs and light trucks, despite the increase in the price of oil. Accordingly, they suffered both from consumer perception of relatively higher quality models available from abroad particularly from Japan and to some extent from Europe and from transplants, foreign cars manufactured or assembled in the United States. The Big Three had neglected development of passenger cars and instead focused on light trucks due to better profit margins, in order to offset the considerably higher labour costs, falling considerably behind in these market segments to Japanese and European automakers.
As of the beginning of 2009, the vehicle companies of the world are being hit hard by the economic slowdown across national boundaries. Car companies from Asia, Europe, North America, and elsewhere have been forced to implement creative marketing strategies to entice reluctant consumers to purchase vehicles, when many firms are experiencing double digit percentage sales declines. Major manufacturers, including the Big Three and Toyota, are offering substantial discounts. Hyundai is even offering to allow customers to return their new cars if they lose their jobs
Company Profile
Founded in 1969, IAI today is a pioneer manufacturer and exporter in automotive tubing sector. Employing about 900 qualified people, it has manufacturing operations in 5 different plants in India & warehouses in Detroit and London. In 1990 IAI became supplier to the most OES like New Holland, Suzuki, DCM Toyota, JCB, Mahindra Nissan and other main players of the industry. With an ambition to become a globally recognized and financially strong company, IAI sustains an undisputed leadership in the Indian market. IAI is well established strong company and has heavily invested in several auto-parts plants in important automotive fields, each plant's facilities meet international standards to assure the quality of the product at international level. The company policy is to ensure value for money to the customer, by providing products, which meet customer's requirement. IAI strives to achieve consistent improvement in quality through process control, adherence to quality system and safe and clean working environment. QS-9000 Certified in the year 2000 , ISO-14001 awarded in 2003 and TS-16949 certified in 2004 IAI has become the ultimate choice of the global market in the automotive sector. In 2005 Imperial Auto signed up a joint venture with TRI (Tokai Rubber Industries of Japan).
History 1970s
IAI started supplying to M&M, Telco, Kirloskar, FIAT, Ambassador etc. the only automotive players in that decade.
1980s
Japanese collaborations like Maruti-Suzuki & LCVs from Mazda, Nissan, Toyota and Mitsubishi started manufacturing in India. IAI started supplies to Maruti Suzuki, DCM,Toyota, Swaraj Mazda, JCB & Mahindra Nissan. For the first time, India experienced high volume manufacturing of Cars. For the first time, India experienced high volume manufacturing of Cars.
1990s
Multinationals like New-Holland, Ford, FIAT, John-Deere, JCB, Hitachi, Mitsubishi, GM IAI took active participation in the emerging scenario & became a supplier most of the above OEs.
2000s
Global sourcing from multinationals overseas is a great potential area, like JCB, JohnDeere, New Holland, Cummins, Komatsu etc. IAI got status of approved global supplier from John Deere, Cummins is already exporting to some OE manufacturers overseas.
COMPANIES PHILOSOPHY: Ensure value for money to the customer Make products which meet/ exceed customer expectations. Treat work force as member of a big family. Run all business groups operations profitably
COMPANY GOALS: HR POLICY DOMESTIC SALES GROWTH COLLABORATIONS & PATERNSHIP PRODUCT PROFIT CENTERS EXPORTS SIX SIGMA, SUPPLIER DEVELOPMENT CUSTOMER DELIGHT TEAM BUILDING ZERO PP
Vision
TO become a globally recognized, financially Strong company, sustaining undisputed leadership in the Indian market
iAi a manufacturer of automotive hoses and tubes commits itself to giving value for money to our customer.iAi is on a growth path through continuous technology iAi shall diligently shoulder its responsibilities toward improvements and innovations.
iAi trains and motivates employees & suppliers for achieving excellence . clean environment and safety of workmen. iAi is commited to meet all legal and other requirements.
MILESTONES 1985
Numerically controlled bending machines installed for bending larger diameter pipes
1989
Collaboration with Meiji Rubber for brake hoses Supply of fuel injection tubes for Railway Traction Locomotives
1990
Caterpillar fuel injection tube development started.
1992
Commenced manufacture of high pressure hose assemblies at new unit at plot 94, sector-25, faridabad. ISI certification obtained for brake hoses.
1995
Started activities for ISO 90002 accreditation Adopted Cummins supplier improvement programme.
1996
Supplies to Tata Cummins commenced Improved facilities for radiator/bend hoses installed. New plant for fuel injection pipes at sector 27-c, completed. New plant at plot no. 83, sector-25, started.
1997
ISO 9002 accreditation. Self certification for auto Malt Telco, Pune Technical collaboration with Gates, USA.
1998
An imperial auto industry becomes public limited Production started at pune plant Joint venture with Eagle Picher Fluid Systems Ltd. U.K Started activities for QS-9000.
1998
Imperial auto industries becomes public limited Production started at pune plant Joint venture with Eagle Picher Fluid Systems Ltd. U.K Started activities for QS-9000.
1999
Target exports to developed countries
2000
QS-9000 accreditation for all plants (Plant-I,II,III,IV). Global supplier to JCB, John-Deree & Cummins
2003
Certificate awarded ISO-14001
2004
Certification TS-16949
PRODUCT PORTFOLIO
NYLON TUBES
Fuels system. Brake booster pipes/Lubricants Pipes Clutch /Vaccum/Lubrication pipes.
TUBULAR COMPONENTS
Exhaust pipes/ Components. Oil, Water & Air delivery pipes Structural automotive fabricated tubes.
Fuel tank necks Pipes & hoses for tanks, Armoured vehicles ,etc Components for Air starting system.
RUBBER PRODUCT
Hoses without end fitting. Radiator/Bend Hoses Fuel hoses as per given geometry Multilayered hoses- FKM, NBR, CSM
HRM is becoming a specialized branch giving rise to a number of specialized areas like : Staffing Welfare and Safety Wages and Salary Administration Training and Development Labour Relations
1. Industrial peace: This is secured by excellent union management relations, healthy inter-personal relationships, and promoting participative management style and good industrial and labour relations. 2. Achieve High Productivity: The underlying objective brings to increase the quantity or volume of the product or service for a given input, productivity improvement programme is very significant in a competitive environment. 3. Better quality of working life of employees: This involves both intrinsic and extrinsic factors connected with work.
4. Obtain and sustain competitive advantage through empowerment: continuous improvement and innovative steps being the two essential ingredients to achieve and sustain competitive advantage, todays industries are knowledge based and skill intensive. 5. Cordial relationship between the employer and employees. 6. Personnel research functions. 7. Proper orientation and introduction to the new employees.
Role of HR
Due to rapidly changing markets across various industries, the role of HR has changed significantly. In todays highly competitive markets its vital that human resources add value to each organization. The role of HR has stepped up and became an equal business partner in order to support the business goals. They have to focus on the strategies to preserve growth and profitability in their traditional western markets, while aggressively pursuing the opportunities in the east.
Key topics:-
HR strategies have to be flexible to confront changing markets and company production relocation plans They have to identify and develop the right leader - one who can identify the winning path and successfully lead the organization along that path They have to manage to retain the talents - spread culture of commitment They have to bring people who can boost the spirit of innovation
INTRODUCTION OF RECTRUITMENT Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.Recruitment is an ongoing process and not confined to the formative stage of organization. Employees leave the firm in search of greener pastures-some retires and some dies in the saddle.More importantly, an enterprise grows, diversifies, take over other units all necessitating hiring of new men and women. In fact, the hiring function stops when the company ceases to exist. Recruitment refers to the process of receipt of applicators from job seekers. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individual will come to know a company, and eventually decide whether they wish to work for it. A well managed and well planned recruiting effort will result in high quality applicants.
PURPOSE AND IMPORTANCE 1. Support the organization ability to acquire, retain and develop the best talent and skills. 2. Determine present and future manpower requirements of the organization in coordination with planning and job analysis activities. 3. Obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. 4. Create a pool of candidates so that the management can select the right candidate for the right job from this pool 5. Attract and encourage more and more candidates to apply in the organization 6. Increase the pool of candidates at minimum cost. 7. Acts as a link between the employers and the job seekers . 8. Infuse fresh blood at all levels of the organization . 9. Meet the organization's legal and social obligations regarding the composition of its workforce. 10. Increase the effectiveness of various recruiting techniques . 11. Help increase the success rate of selection process by decreasing number of visibly under qualified or over qualified job applicants. 12. Help reduce the probability that job applicant once recruited and selected will leave the organization only after a short period of time. 13. Meet the organization legal and social obligation regarding the composition of its workforce. 14. Increase organization and individual effectiveness of various recruiting techniques and sources of all types of job applicants.
EXTERNAL FACTORS: SUPPLY&DEMA ND UNEMPLOYME NT RATE POLITICALLEGAL SONS OF SOIL IMAGE RECRUITMENT
INTERNAL FACTERS: RECRUITMENT POLICY HRP SIZE OF THE FIRM COST GROWTH &EXPANSION
EXTERNAL FORCES
1.
SUPPLY AND DEMAND : If the demand for a particular skill is high relative to the supply, an extraordinary recruiting effort may be needed.For instance the demand for programmers and financial analysts is likely to be higher than their supply,ACS opposed to the demand supply relationship for non-technical employees.
2.
UNEMPLOYMENT RATE : When the unemployment rate in a given area is high,the company recruitment process may be simpler.The number of unsolicited applicants is usually greater,and increased size of the labour pool providesbetter opportuanities for attracting qualified applicants.On the other hand ,as the unemployment rate drops, recruiting efforts must be increased and new sources explored.
3.
LABOUR MARKET CONDITION : For non managerial , supervisiory and middle management positionslocal area labour market condition are of primary importance. However so far as recruitment for executive and professional position is concerned , condition of all market are important.
4.
POLITICAL AND LEGAL CONSIDERATION : There is a strong case for giving preference to people hailing from less advantages section of the society.Reservation forr SCs,STs, minorities ,and other bacwords classesis a political decision .There are acts whiches deals with recruitment and selection. Child labour act , prohibit employment of children in certain employment, and seeks to regulate their working condition in certain employment. Simlarly, the
employment exchange act1959, .The apprentices act 1961 The factory act 1948 etc also dealswith recruitment.
5.
SONS OF SOILS : Preference to sons of soils is another political factor. Political leader clamour that preference must be given to the people of their respective states in matter of employment.
6.
IMAGE : The company image also matter attracting large number of job seekers.Blue chip companies attract large number of employees.It is the perception of job seekers about the company that matter in attracting qualified prospective employees.
INTERNAL FACTORS: 1. RECRUITMENT POLICY: Most firm have a policy on recruiting internally or externally. Generally the policy is to prefer is internally, as own employees know the company well land can recomand candidates who fit the organization culture.
2. HRP: In most cases , a company cannot attract prospective employees in sufficient numbers and required skills overnight. Its takes times to examine the alternative regarding the appropriates sources of recruits ands the most productives methods for obtaining them.
Onces the best alternatives have been identified, recruiting plans may be made. Effective hrp greatly facilitates the recruiting efforts.
3. SIZE: An organization with one hundred thousand employeeswill find recruiting less problematic than a firm just one hundred employees. 4. COST: Recruiting costs are calculated per new hire and the figure is considerable nowadays. Recruiters must, therefore operate within budgets. Careful HRP and forethought by recruiters can minimize recruitment costs. One cost saving measure, for instance, is recruiting for multiple job openings simultaneously. The best solution is to use proactive personnel practices to reduce employee turnover, thus minimizing the need for recruiting. Evaluating the quality , quantity and cots of recruitment help ensure that it is efficient and cost effective. 5. GROWTH AND EXPASION: An organization registering growth and expansion will have more recruiting on hand than the one which finds its fortunes declining.
JOB VACANCIES
APPLICANT POPULATION
SCREENING
POTENTIAL HIRE
RECRUITMENT PLANING The first stage in the recruitment process is planning. Planing involve the translation of likely jobs vacancies and information about the nature of these jobs into a set of objectives or targetsthat specify the (1) Number of contacts : Organisations,nearly always plan to attracts more applicant than they will hire.Some of those contacts will be uninterested, unqualified, or both. Each time a recruitment programme is contemplated one task is to estimate the number of applicant necessary to fill all vacancies with qualified people.Companies calculate yield ratio which express the relationship of applicant inputs to outputs at various decision points.
(2) Types of contacts : This refers to the types of people to be informed about job openings. These details are available through job description and job specification.
STRATEGY DEVELOPMENT : Once it is know how many and what type of recruits are required serious consideration need to be given to (1) Firms must decide whether to hire less skilled emploees and invest in training and education programmes , or they can hire skilled labors and professional .
(2) Technological sophistication the second decision in streategy development relates to the metheod used in recruitment and selection this decision is mainly is mainly influenced by the available technology . the
(3) advent of computers has made it possible for employers to scan national and international applicant qualification.
(4) Where to look in order to reduce costs, firms look into labour markets most likely to offer the required job seekers. Generally. Generally companies look into the national market for managerial and professional employes, regional or local markets for technical employees, and local markets for clerical and blue coller employers.
(5) How to look how to look refers to the method or sources of recruitment. There are several sources and they may be broadly categorized into (1)internal, and (2) external
SOURCES OF RECRUITMENT
INTERNAL SOURCES
EXTERNAL SOURCES
PROFFESIONAL AND TRADE ADVERTISEMENT EMPLOYMENT EXCHANGE CAMPUS RECRUITMENT WALKS IN CONSULTANTS DISPLACED PERSONS RADIO AND TELEVISION ACQUISION AND MERGER COMPETITIORS E-RECRUITING
INTERNAL RECRUITMENT
Interal recruitment seeks applicants for position from those who are currently employed. Internal sources include present employees, employee referrals, former applicant.it is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three Transfers, promotions and Re-employment of exemployees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
Internal recruitment may lead to increase in employees productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done. Present EMPLOYEES promotion and transfers from among the present employes can be a good sources of recruitment. Promotion to higher position has several advantages. They are _ (1) it is good public relation ; (2) it builds morale ;(3) it encoueages competent individual who are ambitious.(It is cheaper than going outside the recruitment. EMPLOYEES REFFERAL This can be a good source of recruitment. Employees can develop good prospect for their families and friends by acquainting them with the advantages of a job with the company, furnishing cards of introduction ,and even encouraging them to apply.refferal can be a effective way of recruiting.Many prospects can be reached at a very low costs. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
ADVANTAGES OF INTERNAL RECRUITMENT: (1) It is less costly than external recruiting (2) Firm typically have a better knowledge of the internal candidates skills and abilitiesthan the ones acquired through external recruiting.
(3) An organization policy of promoting from within can enhance employee morale and job satisfaction.
DISADVANTAGES:
(1) Lak of new talents.Some companies complained of unit raiding in which division compete for the same people. (2) Politics play a great impact on internal recruitmentand selection than does external recruiting.
EXTERNAL RECRUITMENT a. External Recruitment External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money .The external sources of recruitment include Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labour contractors, recommendations etc. Employment at Factory Level This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as badli workers.
b.
Advertisement It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television.
c. Employment Exchanges There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange.
d. Employment Agencies There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns.
e. Educational Institutions There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions, is called as Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates.
f. Recommendations There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern
ADVANTAGES OF EXTERNAL RECRUITMENT: (1) The firm will have the benefit of new skills, new talents and new experience, if people are hired from external sources.
(2) The management will be able to fulfill reservation requirement in favour of the disadvantages section of the society.
(3) Scope of resentment heartburn and jealousy can be avoided by recruiting from outside.
DISADVANTAGES: (1) Better motivation and increased morale associated with promoting own employees are lost to the company.
(3) If recruitment and selection are not properly carried out, chances of right candidates being rejected and wrong applicants being selected.
SEARCHING Search involves two steps: SOURCES ACTIVATION: Typically, sources and search methods are activated by the issuance of an employee requisition. The means that no actual recruiting takes places until line managers have verified that a vacancy does exist or will exist.
SELLING In selling the company, both the message and the media desever attention. Message refers to the emplyement advertisement. With regard to media, it may be stated that effeiveness of any recruiting message depend on the media.
SCREENING Application received in response to advertisement are screened and only eligiable applicants are called for an interview. The purpose of screening is to remove from the recruitment process, at an early stage, those applicant who are visibly unqualified for the job. Effective screening can save a great deal of time and money.
EVALUATION AND CONTROL Evaluation and control is necessary as considerable costs incurred in the recruitment process. The costs generally incurred are; 1. Salaries for recruiters. 2. Management and professional time spent on preparing job description, job specifications, advertisements, agency liaison, and so forth. 3. Cost of advertisements or other receuitment methods, that is, agency fees. 4. Cost of producing supporting literature. 5. Recuiting overheads and administrative expenses. 6. Costs of overtime and outsourcing while the vancies remain unfilled. 7. Cost of recruiting suitable candidates for the selection process.
SELECTION
It is the peoples skills, knowledge and motivation that guarantee the success of each individual organization. Searching and selecting human resources is a demanding and time-consuming task. The main reasons to entrust us with these tasks are efficiency and ability to adapt to the requirements of the client. We will find and select people in a professional manner and within the set deadlines as well as in line with the business ethics.
Our advantages:
expertise efficiency long-term co-operation with the existing clients a large base of human resources price competitiveness free advertising of job vacancies on our websites
SUCCESS
FAILURE
FAILURE PREDICTED
SUCCESS PREDICTED
FALSE NEGATIVE ERRORS: Means rejection of an applicant who would have successed FALSE POSITIVE ERRORS: An applicant is selected expecting success, but failure occurred. TRUE POSITIVE: Results when a candidates hired expecting success and success results. TRUE NEGATIVE: FAILURE IS PREDICTING AND IT HAPPENS.
In recruitment and selection cost involves which are: Damage company reputation, accident due to negligence, absenteeism etc. Secondly cost associated with training, transfer Third cost of replacing with a fresher cost of hiring etc. So competitive advantages basis on effective selection.
ORGANISATION FOR SELECTION Selection is now centralized and is handling by the human resource department. This arrangement is preferable because of the following advantage; 1. It is easier for the applicant because they can send their applications to a single centralized department/agency. 2. It facilitates contact with applicants because issues pertaining to employment can be cleared through one central location. 3. It helps operating managers to concentrate on their operating responsibilities. This is especially helpful during peak hiring periods. 4. It can provide for better selection because hiring is done by specialists trained in staffing techniques. 5. The applicant is better assured of consideration for a greater variety of jobs. 6. Hiring costs may be cut because duplication of effort is minised. 7. With increased government regulation on the selection process, it is important that people who know about these rules a major part of the selection process.
Selection tests
Employment interview
Job offer
Employment contract
Evaluation
PRELIMINARY INTERVIEW It was stated that the applications received from job seeks would be subject to scrutiny so as to eliminate unqualified applicants. This is usually followed by a preliminary interview the purpose of which is more or less as scrutiny of applications, that is, elimination of unqualified applications. Scrutiny enables the HR specialists to eliminate unqualified job seekers baseds on the information supplied in their application forms. SELECTION TESTS Job seekers who pass the screening and the preliminary interview are called for tests. Different types of test may be administered, depending on the job and company. Generally, tests are used to determine the applicants ability, aptitude and personality. Ability tests (also called achievement tests) assist in determining how well an individual can perform tasks related to the job. An excellent illustration of this is the typing tests given to a prospective employee for a secretarial job. An aptitude test help determine a persons potential to learn in a given area. Personality tests are given to measure a prospective employee motivation to function in a particular working environment. interest tests are used to mearure an individual activity preferences. EMPLOYMENT INTERVIEW The next in the selection process is employment interview. An interview is conducted at the beginning and at the end of the selection process. The emphasis here is on the latter. Interview is a formal, in depeth conversation conducted to evaluate the applicants acceptability. It is considered to be an excellent selection device. Its popularity stems from its flexibility. Interview can be adapted to unskilled, skilled, managerial and professional employees. It allows a two way exchange of information, the interviews learn about the applicant, and the applicant learns about the employer. The employment interview can be (1) one to one (sequential.) or (3) panel.
BJECTIVE OF INTERVIEW Interview has at least three objectives (1) helps obtain additional information from the applicant; (2) facilitates giving general information to the applicant such as company policies, job, products manufactured and the like; and (3) helps build the companys image among the applicants. REFERENCE AND BACKGROUND CHECKS Many employers request names, addresses, and telephone numbers or references for the purpose of verifying information and, perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. When the labour market is very tight, firms sometime hire applicants before checking references. SELECTION DECISION After obtaining information through the preceding steps, selection decision the most critical of all the steps must be made. The final decision has to be made from the pool of individuals who pass the tests, interview and reference checks. The view of the manager will be generally considered in the final selection because it is he/ she who is responsible for the performance of the new employee. The HR manager plays a crucial role in the final selection.
PHYSICAL EXAMINATION After the selection decision and before the job after is made, the candidate is required to undergo a physical fitness test.
JOB OFFER The next in the selection process is job offer to those applicants who have crossed all the previous hurdles. Job offer is made through a letter of appointment. Such letter generally contains a date by which the appointee must report on the duty. The appointee must be given reasonable time for reporting. CONTRACTS OF EMPLOYMENT After the offer has been made and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is the attestation form. This form contains certain vital details about the candidate which are authenticated and attested by him/her. Attestation form will be a valid record for future reference. There is also a need for preparing a contract of employment. The basic information that should be included in a written contract of employment will very according to the level of the job.
BARRIERS TO EFFECTIVE SELECTION The main objective of selection is to hire people having competence and commitment. This objective is often defeated because of certain barriers.
PERCEPTION Selection demands an individual or a group of people to assess and compare the respective competencis of others, with the aim of choosing the right persons for the jobs. But our views are highly personalized. We all perceive the world differently.
FAIRNESS Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. But the low numbers of women and other less privileged sections of the society in middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective.
VALIDITY A test that has been validated can differentiate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success. RELIABILITY A reliable method is one which will produce consistent results when repeated in similar situations. Like a validated test, a reliable test may fail to predict job performance with precision. PRESSURE Pressure is on the selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidates.
The purpose of the study is to understand the training and development programme followed in iAi. The methodology evolves from the objectives of the project and involves collecting primary and secondary data.
6. And last but not the least step is to evaluate the performance of trainees after providing training to them. The Training programme plays an important role in increasing the knowledge and skill of an employee for doing a particular job. Training is a short term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose and then reward the employees based on the performance through performance appraisal system after the training programme are conducted. Therefore the study is completely based on the training and development programmes conducted in iAi. TRAINING IS REQUIRED TO ACHIEVE THE FOLLOWING: Growth, Expansion and Modernization To increase productivity and profitability, reduce cost and finally enhance skill and knowledge of the employee. To prevent obsolescence. To help in developing a problem solving attitude. To give people awareness of rules and procedures. To make people more competent . To make personnel become committed to their job resulting in pro activeness. To make people trust each other more.
KEY ASPECTS OF HRD TRAINING IN iAi Learning and Development Leadership, Management Training Setting training and learning at the right level Training Needs Analysis (TNA) Train the Trainer
Research Methodology
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods.
Research Objective
1) To analyze the training method used in iAi. 2) To put forward suggestions and recommendations in the Training methods followed in the organization. 3) To analyze whether the training has reached the employees.
Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. A research design specifies the methods and procedures for conducting a particular study. According to
Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.
Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut, there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such
studies are done in live situations like communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then.
Primary data: For primary data collection, we have to plan the following four
important aspects. Sampling Research Instrument
Questionnaires
This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.
Sampling Methodology
It refers to the definite plan adopted by the research for obtaining the data from the respondents; the technique adopted here is to gather data from sampling unit, questionnaire method .
Sample unit
The respondents were Linemen, Assistant Executives /Junior Executives, Senior Assistants /Assistant etc.
Secondary Data: Data were collected from documents, records, Internet, text books
and company past records etc.
Pie chart
This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.
Bar chart
This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.
Preparation of report
Percentage was calculated for each factor as per the below shown formula Number of respondents in favour of X 100 Percentage = ---------------------------------------------------------Total number of respondents
FORMULATION OF HYPOTHESIS
The hypothesis has been to analyze the effectiveness of training programme conducted in the company i.e. It analyzes the effective training methods and techniques adopted to achieve the organizational goals.
By hypothesis we mean a statement hypothesis testing deals with a procedure, which aspects or rejects the hypothesis. The two hypothesis are :
NULL HYPOTHESIS It states there is no significance difference between the sample value and population value. This means that the observe difference is clue to the random fluctuations Ho denotes the null hypothesis. ALTERNATIVE HYPOTHESIS In case the null is rejected, we should have the alternate hypothesis to accept alternative hypothesis denoted accordingly.
Types of Errors While testing hypothesis, there are four possible combinations between the population value and sample value. The four combinations are: Hypothesis is true & test accepts it. Hypothesis is true & test rejects it. (Type 1 error) Hypothesis is false & test accepts it. (Type 2 error) Hypothesis is false & test rejects it.
Level of significance It is nothing but the probability of rejecting a true hypothesis and denoted by . 1- gives the level of confidence of the experiment in taking the decision. It is always preferable to keep the level of significance at a low percentage. It means that we should not reject a true hypothesis. represents the risk of accepting a false hypothesis 1- is called the power of the test.
Acceptance region This represents the region with in which the calculated of the statistics must lie to accept the null hypothesis. If calculated value lies in this region then the null hypothesis will be rejected. Hypothesis testing procedure : 1. Set up a null hypothesis denoted by Ho this means there is no significant difference between sample value and population value. In case if Ho is rejected we must have an alternative hypothesis. 2. Select the level of significance. 3. Select an appropriate distribution for the test, which is known as test hypothesis the distribution generally used are normal distribution students t distribution, Fisher F distribution or chi-square distribution. 4. Calculate the necessary values from the given data for the test. 5. Make conclusion from testing. If calculated value is less than the tabulated else Ha is accepted and Ho is rejected. value,
Test of Hypothesis Whether the training and development activities has reached the employees or not. Efforts are made in the study for proving the following hypothesis. Information: Sample size Number of respondents for NO : 40 : 2 Number of respondents for YES : 38
Assumptions: The test is at 5% level of significance. It is assumed that out of total population 5% of the respondents will respond negatively. Such a test for attributes are one tailed on the basis of the above assumptions
Null hypothesis = Ho = Training and development activities has not reached the employees effectively. Alternative hypothesis = Ha = Training and development activities has reached the employees effectively. Test statistic Zcal = p-P PQ n when n = sample size p = Population proportion P = sample proportion Q = Significance Given: p = 38/40 = 0.92 P = 95% Q = 1-P n = 40 Therfore, Zcal = p-P = PQ/n = 0.950.05/40 = 0.03 Zcal = 0.92-0.95 0.03 = 0.95 = 1-0.95 = 0.05
Ztab = 1.96 Conclusion Zcal < Ztab Therefore , we can infer that training and development activities has reached the employees effectively.
Data interpretation
Exhibit: 2 Have you undergone any type of training?
Interpretation: A mix view comes out of it 65% of the employees receives training in one or the other But this 65% includes employees who receives training only once in their work life. While 35% didnt receive any type of training and this data includes new joiners also.
32%
Interpretation Most of the employees says that they receive on- the job training . 68% of the total respondents says that they receives on-the job training . While 32% says that they receives off- the job training .
22% 45% Refresher training Sensitivity training Convergent training 13% 20% Latest technology
Interpretation:
At imperial out of the total training session conducted 45% are training on the same topics on which training is already imparted, And they are trained for new innovations or Of new ideas in the same field. While 22% training is given on new technology introduced in the company. And 20% given on Sensitivity topics .
10%
Yes No
90%
Interpretation
Out of the sample size of 40, 90% employees that are 36 employees find training environment comfortable they are very comfortable to adjust according to the situation. While other 10% find it uncomfortable in some or the other way.
Interpretation
Most of the employees are not satisfied with the training provided to them very rarerly training is provided to them while employees want refresher training on timely basis Only 45% of the employees are satisfied with the training they had in imperial. While 55% says that training provided to them is not enough to increase their efficiency.
5% 30% 50% 15% Workshop Classroom Conference hall outside the establishment
Interpretation
Most of the training programs in imperial are conducted at the workshop itself almost 50% are conducted at workshop itself then conference hall is used for training program. While classroom lecture are used for 15%. But training conducted outside the establishment is very rare its just because of saving cost .
Qualified and Experienced 35% 25% Skillful and knowledgeable Encouraged class participation All of the above
15% 25%
Interpretation
35% of the trainers are qualified and experienced, skillful and knowledgeable and they encouraged class participation as well to make employees understand better. While employees find that 25% of them are focusing on encouraging class participation . 25% are Qualified and experienced and 15% of them are skillfull and knowledgeable.
Exhibit: 9 . How did u find the behavior of trainers during training session?
3% 35%
Interpretation
Employees find trainers are friendly during the training sessions .They find that they can easily interact with the trainers. 35% says that it was easy going normal discussion takes place in training session. While 10% says that trainers are sometime rude they are not in a mood to respond to their answers. And 3% says that trainers are impartial to them.
5%
3%
Interpretation:
A large percentage shows that training program end up with in a day. On the other side some training programs are conducted for a time span of 2-3 days this percentage includes training on the topics with vast information and time is required to end up with the topic. While training for one week and fortnight are conducted very rarely training on which practical training is required or technical trainings required are conducted for large span of time of 1week or fortnight.
15%
55%
Interpretation: A large no of employee says that training program is the part of continues learning. 55% of the employees says that its continues learning. The opinion of 20% of the employees is that training is a part of Performance appraisal. Out of the sample unit 10% says that it is a part of work schedule. While 15% says that training is a part of all the above aspects.
25%
yes no
75%
Interpretation:
Whenever training is conducted most of the time pre and post test are conducted to Evaluate their effectiveness and to cross check their knowledge they receive during the training sessions.75% says those tests are conducted to judge their effectiveness.
Interpretation
Most of the population says that evaluation is done but feedback is not given them. Employees are not satisfied with the feedback procedure of iAi.
18% 41%
Quality of work life improved Personality development Increase in work environment 14% Group synergy
27%
Interpretation
Out of the total sample unit, 41% think that through training quality of their work life improved. Training help those to increase their efficiency and effectiveness .On the other hand 27% think that training helps in increasing the working environment. While 18% Think that it increases group synergy and 14% says that training is helpful for developing their personality.
Exhibit: 15
15%
Yes No
85%
Interpretation:
After getting training most of the employees feels that they are able to do their work with more confidence and can do their work effectively and efficiently.85% of the employees feel that training brings confidence in them. While 15% doesnt feel any changes in them from training.
Operational skills Efficiency Behaviour Communication skills Team building 12% All of the above
20%
10%
Interpretation:
Out of the total sample unit of 40 employees .only 10% that is 4 employee feel that training enhances communication skills. While 12% and 13% employees feel that training enhances behavior and efficiency respectively. On the other hand 15% think that It is operational skills which are enhanced by training. 20% think that it is tea bulding spirit which is enhanced it them. And 30% observes that all tha above qualities are improved in them.
25%
12% 10% Promotion. Transfer to the convenient place Hike in the salary. 8% 45% Recognition Increase in incentives.
Interpretation: The diagram shows that a large no of employees receives recognition through the training programs conducted in iAi. 45% of the employees says its recognition which they recives from the training conducted . while 25% says that they are benefited through the increase of incentives also.
13%
Increase in the productivity 35% Increase in Quality of work life Improvement in the Human relations Improvement in Intrapersonal relations. (Junior/senior)
25%
27%
Interpretation:
A Mixed opinion is carried out of Questionnaire that training program Helps in increasing the productivity.27% think that it increases quality of work life. 25% think it improves human relation. While only 13% think that Training improves intrapersonal relations.
CONCLUSION
Human Resource Development Activity is an important part of every organization. Through HRD (Training Analysis), organization can help employees in adjusting and accommodating themselves to the organizations & market competitive environment.
The present study has been undertaken with the objective of analyzing and evaluating the Training Analysis Strategies of Imperial Auto Industries. After carefully study and survey about the policy and procedure adopted to improve organization strategies and observing the Training Analysis activities conducted at IAI, it can be said that the policy is of very limited applicability. These policies need improvement, revision and extension to all employees of the company at each level.
A complete and effective Training Analysis activity and its proper implementation are very essential. A regular periodical feedback and evaluation is necessary so that it can be made more effective and well planned.
Bibliography
Book Kothari C.R Research : WIlshaw Prakashan : 2nd edition Greer R. Carles : Strategic Human Resource Development 2nd edition
QUESTIONNAIRE
Q1. Which
of the following methods does your company choose for sourcing? Check all the apply 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 Campus Employee Referrals Consultants Walk in Existing Data Base Advertisement Job Fairs Portals Websites Call back
2. Suggest some of the screening methods that can be used for effective recruitment. 3. What do you think is the most challenging step in the entire recruitment and selection procedure .
6. Why you choose the external providers? 7.How many rounds of interviews are conducted before a candidate is offered the employment? One Junior Level Middle Level Senior Level Two Three More
8. Following which test organization conduct for selection of candidate Aptitude Intelligence Personality Psychological Any other 9. Are rejected candidates informed by Email Phone Not informed 10. What are the job sites from which you source resumes? 11. Why from them?
12. Do you have referral policy in your organization? Yes No 13. If yes how does it work?
15.Do you take candidate feedback on recruitment process? Yes No 16.What is the reason behind candidate not going to join after selection? Personal Salary Problem Not Interested Got another opportunity Other Pl. Specify 17. What company will do the stop the attrition?
18. What is the ratio of the attrition for various posts? Dept Admin Accounts/Finance Billing Costing Comm & Purchase Stores Excise HRD Logistics Marketing Sales Q-Control Systems Works Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
20. What is the ration of recruitment for various posts? Dept Admin Accounts/Finance Billing Costing Comm & Purchase Stores Excise HRD Logistics Marketing Sales Q-Control Systems Works 21. Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec