Documente Academic
Documente Profesional
Documente Cultură
Of
Submitted By
M.B.A (HR)
Mr. K.SREEHARI
2016-2019
1
DECLARATION
I, the undersigned student of MBA programme, hereby declare that the Project Report
EDUCATION, Hyderabad, is original and is a bonafide work of mine, and it was neither
submitted to any other University or Institution for the award of any Degree/ Diploma/
DATE:
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ACKNOWLEDGEMENT
I take great pleasure to express my deep sense of gratitude to one and all in the company who
has been directly or indirectly helpful to me in completing the project.
I am also immensely thankful to my project guide Mr. SREEHARI who helped in successful
completion of this project work.
I take this opportunity to express my heartfelt thanks to the TOYOTA PVT LTD Hyderabad,
for giving me an opportunity to undertake my project work.
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CERTIFFICATE
This is to certify that the Project Report titled. “SELECTION & RECRUITMENT”,
submitted in partial fulfillment for the award of MBA Degree of Dr. BRAOU, Hyderabad, is
the outcome of the successful and satisfactory completion of the Project Work done under my
guidance by. Ms. PALLAVI DHARA with Admission No. 09418501026.
Further, it is also to declare that the above titled project report, has never been subjected to any
publication nor submitted to any other University or Institution for the award of any Degree/
Diploma/ Certificate, to the best of my knowledge and belief.
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CHAPTER PLAN
5
CHAPTER-1
6
INTRODUCTION:
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operates will need shorter periods of training and time for 'fitting in'.
2. The organization is unlikely to be greatly 'disrupted' by someone who is used to working with
others in the organization.
3. Internal promotion acts as an incentive to all staff to work harder within the organization.
4. From the firm's point of view, the strengths and weaknesses of an insider will have been
assessed. There is always a risk attached to employing an outsider who may only be a success 'on
paper'.
The disadvantages of recruiting from within are that:
1. You will have to replace the person who has been promoted
2. An insider may be less likely to make the essential criticisms required to get the company
working more effectively
3. Promotion of one person in a company may upset someone else.
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NEED FOR THE STUDY
The purpose of study is to learn the practical applicability of the theoretical knowledge gained
about recruitment and selection process.
• To gain knowledge about, the process of recruitment and selection in HYUNDAI.
• To know the effectiveness or ineffectiveness of the process of recruitment and selection
in HYUNDAI.
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OBJECTIVE OF THE STUDY
The purpose of the study is to learn the practical applicability of the theoretical knowledge
gained about recruitment and selection process.
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SCOPE OF THE STUDY:
The study covers HYUNDAI in Hyderabad consisting of 100 employees. This study
covers all aspects of training and development programs in HYUNDAI .This study cover the
New Entrant Manager response towards the recruitment and selection programs in the
organization.
HRM plays a large part in determining the effectiveness and efficiency of the establishment.
Increase in productivity is possible only when there is an increase in quantity of output. It applies
not only to new employees. It can help employees and employers to increase their level of
performance and to develop skills, knowledge on their present job assignments to organization.
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PERIOD OF THE STUDY:
Since so many years HUNDAI Hyderabad has been following the same procedure
of appraisals for their executives and employees and for the study of my project data has
collected on Selection process.
The Period of the study for the said research is 45 DAYS i.e., the data is collected from 2 years
of experience people working as a HR in the organization.
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LIMITATIONS OF THE STUDY:
As the period of study is limited for 45 days the data collected is very limited.
The entire staff would not be taken for the purpose of the study.
The information provided was not totally accurate. Biased answers were given.
Due to time constraints, data is collected from limited number of employees of the
Company.
As the data is collected in the working hours of the employees, they are busy they
could not give the complete response.
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CHAPTER-II
RESEARCH METHODOLOGY:
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RESEARCH METHODOLOGY:
DATA COLLECTION METHODS:
The data for the study was collected through primary and secondary methods
Primary Methods;
Primary methods are those methods that provide firsthand information. The methods followed
were interview methods and questionnaire method
Secondary methods:
Secondary methods are those methods that provide already existing information of the past, also
called as second hand information. The information was obtained from the different HR journals
published by the organization for various purposes like HR 'department personal use, reference
by any other department about the performance of various activities that have been started by the
HR department, to know about the performance appraisal system or the bonus system etc.
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CHAPTER-III
REVIEW OF LITERATURE
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UNDERSTANDING SELECTION PROCESS:
Recruitment function helps the organization to develop a pool of prospective human resources. It
is difficult for the HR manager to employ the suitable people out of the pool. Infact, many
organizations face critical problems in choosing the people. Selection techniques and methods
reduce the complexities in choosing the right candidates for the job.
After identifying the sources of human resources, searching for prospective employees and
stimulating them to apply for jobs in an Organization, the management has to perform the
function of selecting the right employees at the right time. The obvious guiding policy in
selection is the intention to choose the best qualifies and suitable job candidate for each unfilled
job.
The objective of the selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. The selection procedure is the system of
functions and devices adopted in a given company to ascertain whether the candidate's
specifications are matched with the job specifications and requirements or not.
The selection process can be successful if the following requirements are satisfied:
Someone should have the authority to select. This authority comes from the employment
requisition, as developed by an analysis to the workload and work force.
There must be some standard of personnel with which a prospective employee may be
compared, i.e. a comprehensive job description and job specification should be available
before hand.
There must be a sufficient number of applicants from whom the '' required number of
employees may be selected.
Selection of personnel to man the organization is a crucial, complex and continuing function.
The ability of an organization to attain its goal effectively and to develop in a dynamic
environment largely depends upon the effectiveness of its selection programmer. If the right
person is selected, he is valuable asset to the organization.
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SELECTION PROCEDURE:
Selection procedure employs several methods of collecting information about the candidate's
qualifications, experience, physical and mental ability, nature and behavior, knowledge and
aptitude for judging whether a given applicant is suitable or not for the job. Therefore the
selection procedure is not a single act but is essentially a series of methods or stages by which
different types of information can be secured through various selection techniques. At each step
facts may come to light, which are useful for comparison with the job requirement and employee
specifications.
Job analysis
Recruitment
Application form
Written examination
Preliminary interview
Business games
Tests
Final interview
Medical examination
Reference checks
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UNDERSTANDING RECRUITMENT PROCESS:
Recruitment is the phase, which immediately precedes selection. Its purpose is to pave the -way
for the selection procedures by producing, ideally, the smallest number of candidates who appear
to be capable either of performing the required tasks of the job from the outset, or of developing
the ability to do so within a-period of time acceptable to the employing organization. The
smallest number of potentially suitable candidates can in theory, of course, be any number. The
main point that needs to be made about the recruitment task is that the employing organization
should not waste time and money examining the. credentials of people whose
qualifications do not match the requirements of the job.
Apart from the methods used and the general administration of task, the achievement of the
objective will depend very much in the end on how efficiently the basic tasks of manpower
planning and job analysis have been carried out and applied. In short, efficient recruitment of
staff may be described as knowing what resources you want, what resources are available, where
and how they may be found.
To attract people with multi-dimensional skills and experiences that suits the present and
future organizational strategies
To induct outsiders with a new perspective to lead the company
To infuse fresh blood at all levels of the organization
To develop an organizational culture that attracts competent people to the Company
To search or head hunt/ head pouch people whose skills fit the .company's values.
To devise methodologies for assessing psychological traits
To seek out non-conventional development grounds of talent
To search for talent globally and not just within the company
To design entry pay that competes on quality but not on quantum
To anticipate and find people for positions that does not exist yet.
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Merits of Centralized Recruitment:
Average cost of recruitment per candidate/unit should be relatively less due to economies
of scale
It would have more expertise available to use
It can ensure board unifonnity among human resources of various units/zones in respect
of education, skill, knowledge, talent etc.,
It would generally be above malpractices, abuse of powers, favoritism, bias etc.,
The unit concerned concentrates only on those sources/places where it normally gets the
suitable candidates. As such, the cost of recruitment would be relatively less.
The unit gets the most suitable candidates as it is well aware of the requirements of the
jobs regarding cultural, traditional, family background aspects, local factors, social
factors etc.,
Units can recruit candidates as and when they are required without any delay.
The different kinds of internal sources are:
Organizations consider the candidates from this source for higher-level jobs due to availability of
most suitable candidates for jobs relatively or equally to the external source, to meet the trade
union demands and due to the policy of the organization to motivate the present employees.
Organizations find this source to fill the vacancies relatively at the lower level owning to the
availability of suitable candidates or trade union pressures or in order to motivate them on the
present job.
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., Generally, particular organizations retrench the employees due to lack of work. The
organization takes the candidates for employment from the retrenched employees due to
obligation, trade union pressure and so on. Sometimes, the organizations prefer to re-employ
their retired employees as a token of their loyalty to the organization or to postpone some
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External sources:
search for the required candidates from these sources for the following
reasons:
The suitable candidates with skill, knowledge, talent etc., are generally available.
Candidates can be selected without any pre-conceived notion or reservations.
Cost of employees can be minimized because employees selected from this source are
generally organization.
Human resources mix can be balanced with different background, experience, skills etc.,
Latest knowledge, skill, innovative or creative talent can also be flowed into the
organization.
Existing sources will also broaden their personality
Long run benefit to the organization in the sense that qualitative human resources can be
brought. Placed in the minimum pay scale.
Different kinds of External sources are:
(a) Campus recruitment:
Different types of organizations like industries, business firms, service organizations, social or
religious organizations can get fresh candidates for different types of jobs from various
educational institutions like collages and universities imparting education in science, commerce,
arts, engineering and technology, agriculture, medicine, management studies etc.,
(b) Private employment agencies/consultants:
Public employment agencies or consultants like ABC consultants in India perform recruitment
functions on behalf of a client company by charging fees. Line managers are relieved from
recruitment functions so that they can concentrate on their operational activities and recruitment
functions are entrusted to a private agency or consultants.
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CHAPTER-IV
23
THEORETICAL FRAME WORK
PRELIMINARY INTERVIEW:
The preliminary interview is to solicit necessary information from the prospective applications
and to assess the applicant's suitability to the job. An assistant in the personnel department may
conduct this preliminary interview. The information thus provided by the candidate may be
related to the job or personal specifications regarding education, experience, salary expectations,
attitude towards job, age, physical appearance and other requirements etc. Thus, preliminary
interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a
candidate satisfies the job requirements regarding most of the areas, he may be selected for
further process. Preliminary interviews are short and known as stand up interviews or sizing up
of the applicants or screening interviews. However, certain required amount of care is to be taken
to ensure that the desirable
Business games are widely used as a selection technique for selecting management trainees,
executive trainees and managerial personnel at junior, middle and top management positions.
Business games help to evaluate the applicants in the areas of decision-making, identifying the
potentialities, handling the situations, problem-solving skills, human relations skills etc.
participants are placed in a hypothetical work situation and are required to play the role
situations in the game. The hypothesis is that the most succe
ssful candidate in the game will be most successful one on the job.
(I) TESTS:
Psychological tests play a vital role in employee selection. A psychological test is essentially an
objective and standardized measure of sample of behavior from which inferences about future
behavior and performance of the candidate can be drawn.
Objectivity of tests refers to the validity and reliability of the instruments in measuring the ability
of the individuals. Objectivity provides equal opportunity to all the job seekers without any
discriminating against sex; caste etc. standardization of test refers to uniformity of procedure in
conducting the tests for all the candidates. Sample behavior refers to the sample of the total
behavior of the prospective employee on the job.
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Types of Psychological Tests
Type of Test
(b) In Basket
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(vi) Multi-Dimensional sting
Types of test:
Tests are classified into six classes, each class is again divided into different types of tests. They
are:
APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given job if
given adequate training. Aptitudes can be divided into general and mental ability or intelligence
and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude
test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ).
These types of tests measure specific capacities involved in office work. Items of this tests
include spelling, computation, comprehension, copying, word measuring etc.
ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something- as these tests are concerned
with what one has accomplished. These tests are more useful to measure the value of a specific
achievement when an organization wishes to employ experienced candidates. These tests are
classified into (a) job knowledge test and (b) work sample test.
SITUATIONAL TESTS: This test evaluates a candidate's in a similar life situation. In this test
the candidate is asked either to cope with the situation or solve clerical situations of the job
This test is administered through the group discussion approach to solve a problem under which
candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating
skills, oral communicating skills, coordinating and concluding skills.
INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work, job,
occupations, hobbies and recreational activities. The purpose of this test is to find out whether a
candidate, is interested or disinterested in the
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Job for which he is a candidate and to find out in which area of the job range/occupation the
candidate is interested. The assumption of this test is that there is a high correlation between the
interest of a candidate in a job and job success. Interest inventories are less faked and they may
not fluctuate after the age of 30.
MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent upon
globalization, competitiveness and the consequent customer-centered strategies. Organization
have to develop multidimensional testing in order to find out whether the candidates possess a
variety of skills or not, candidate's ability to integrate the multi-skills and potentiality to apply
them based on situational and functional requirement.
PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure the basic and
non-job related information. The interaction between the candidate and the personnel manager
when the former meets the latter to enquire about the vacancies or additional particulars in
connection with the employment advertisement is an example of the informal interview.
(2) Unstructured interview:
In this interview, the candidate is given the freedom to tell about himself by revealing his
knowledge on various items/areas, his background, expectations, interest etc. Similarly, the
interviewer also provides information on various items required by the candidate.
CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive
Or experts on various areas of job knowledge, skill, talent etc. This interview
May take various forms like:
(1) Back ground information interview:
This interview is intended to collect the information, which is not available in The application
blank and to check that information provided in the Application blank regarding education, place
of domicile, family, health, interest, hobbies, likes, dislikes and extracurricular activities of the
applicant.
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CHAPTER-5
COMPANY PROFILE
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COMPANY PROFILE
HISTORY:
The Company is an authorized Dealer of Hyundai Motors India Limited (HMIL) for sale
of its entire range of motor vehicles. It is also authorized to service & repair of all Hyundai cars
and also deals in spare parts of Hyundai cars.
Lakshmi Hyundai was established in the year 1998 in Himayathnagar with the launch of
Hyundai’s first car in India- the evergreen SANTRO. The entire business is managed under the
able leadership and guidance of the managing Director ShriK.RamaMohanaRao.
Soon after the Himayathnagar showroom, came up the ‘state-of-art service facilities at
Kukatpally, Banjarahills and L.B.Nagar. These service centers are well equipped to cater to the
needs of valued customers. The management left no stone unturned to review, research and
implement the latest of technologies and methodologies to improve on the sales, service on the
customer satisfaction. Continuous up gradation of the facilities at the sales and service outlets
and adding to the service agenda each time, add been sales graph go high by the year.
AWARDS:
Hyundai EON Won the 'Saloon Car of the Year' Award at 'Bloomberg UTV Auto Car
India 2019'
Hyundai Elantra Won the 'Car of the Year' Award at 'Car India & Bike India Awards
2016'
Hyundai Elantra Won the 'Best Design and Styling' Award at 'Bloomberg UTV Auto Car
India 2015'
Hyundai Elantra Won the 'Saloon Car of the Year' Award at 'Bloomberg UTV Auto Car
India 2013'
Hyundai Elantra Won the 'Executive Car of the Year' Award at 'Car India & Bike India
Awards 2013'
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LAKSHMI HYUNDAI MAN POWER:
The recruitment process involves both internal and external methods. Internal methods
namely are employee referrals, promotions, inter company transfers.
Employee referrals;
This is the most common method of recruitment used by the organization. Last year the
organization recruited 16 employees by employee referrals.
Promotions
Posts falling vacant due to be filled will be notified within the division/office, giving educational
qualifications and experience laid down for the post and the extent to which these will be relaxed
for promotion and inviting applications from eligible employees in lower group, who have
rendered the requisite qualifying service and who have requisite higher post.
External methodsof recruitment followed by the organization are employment exchange, paper
advertisements and campus recruitment. .
Employment Exchange:All vacancies are to be notified to the Local Employment Exchange. If
employment exchanges are unable to sponsor the suitable candidates with in the prescribed time
limits, the vacancies may be advertised in the press on a local/regional advertisement the
vacancies may be advertised on India Basis. A minimum of two weeks notice is to given to the
Local Employment Exchange for sponsoring suitable candidates.
Paper advertisements:
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Of the external methods this method is mostly adopted by the organization. This method of
recruitment involves advertising the requirements of personnel in two of the leading newspapers
one being in English language and other being in regional language. For recruitments in
Hyderabad, Eenadu and Deccan Chronicle are the two leading newspapers that the requirement
of personnel is advertised.
SELECTION PROCESS AT LAKSHMI HYUNDAI:
After the recruitment process next step is the selection process in employing a suitable candidate
into the organization. At Hindustan Aeronautics Limited the selection process mainly includes
test/interviews. If a candidate passes through the different rounds of interviews/test then he is
employed into the organization. The Personnel Department of each division or the corporate
office will screen the applications received and categorize them to those that satisfy prescribed
minimum educational qualification and experience and those do not .
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APPOINTMENT OF SELECTED CANIDIDATES
Candidates who are selected for appointment to post will be issued with a letter proposing to
offer the post or offering the post. If they accept appointment offer they are to be reply in the
form.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company
(HMC), South Korea and is the largest passenger car exporter and the second largest car
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manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The
A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the
Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa
Fe.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising demand,
HMIL commissioned its second plant in February 2008, which produces an additional 300,000
units per annum, raising HMIL’s total production capacity to 600,000 units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge global
technology, HMIL has set up a modern multi-million dollar research and development facility in
the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering
and ensure quick turnaround time to changing consumer needs.
As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to
achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more
than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has
been the number one exporter of passenger car of the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 315 strong dealer network and
640 strong service points across India, which will see further expansion in 2010.
Mr. Han Woo Park joined Hyundai Motor Company in Seoul, South Korea, in 1982 in the
finance department and ever since he has been involved with costing, auditing and the financial
operations of the company.
He joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer and since then he
has played a pivotal role in HMIL as he was involved in all aspects of the company in his
capacity as a CFO.
Mr. Park has a vast experience and understanding of Hyundai Motor India Ltd and the Indian
culture and has successfully led his team for the last seven years. Mr. Park holds a degree in
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Business Administration from the University of Dankook in Seoul, South Korea.
Prior to his becoming the Managing Director of HMIL he held the position of CFO and Senior
Executive Director. Mr Park lives in Chennai with his wife. He has two children, a son and a
daughter. The son is studying at University of Texas, Austin and the daughter is studying at
SUNY Buffalo. Mr Park was born in South Korea on January 29, 1958.
Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary of Hyundai Motor
Company, South Korea, which has set up the R&D Centre in Hyderabad. HMIE is a centre with
one of the most advanced research and development facilities which focuses on state of the art
product and design engineering and rigorous quality enhancement. The new R&D Centre at
Hyderabad in India is Hyundai Motor Company’s fourth overseas R&D centre.
Set up with an investment of Rs. 184 crores, the new 200,000 square-foot facility R&D Centre, is
aimed at further accelerating local content development and enable Hyundai to respond even
more quickly to changing customer needs across the world. The R&D Centre will further
facilitate the development of India as Hyundai’s global hub for manufacturing and engineering
of small cars. The new R&D Centre in Hyderabad will support all back-end operations like
computer aided engineering (CAE), computer aided design (CAD) and help the R & D work
taking place across Hyundai’s car line-up. The R&D Centre will help in developing vehicles
which includes their styling, design engineering and vehicle test & evaluation. The R&D Centre
will play a pivotal role for cars manufactured in India inorder to satisfy the specific needs of the
Indian customers.
Hyundai Motor Company’s other overseas R&D centres are located in the United States,
Germany, Japan & Korea.
Management Philosophy With the spirit of creative challenge, we will strive to create a more
affluent lifestyle for humanity, and contribute to the harmony and co-prosperity with
shareholders, customers, employees and other stakeholders in the automobile industry.
The spirit of creative challenge has been a driving force in leading HMC to where it is today.
It is the permanent key factor for HMC to actively respond to change in the management system
and seek creative and self–innovative system. With the spirit of creative challenge, we create
profits, the primary objective of a private enterprise. Furthermore, we take responsibility for the
environment and society we belong to, and offer sustainable mobility in order to implement our
corporate philosophy and provide benefits to all stakeholders including shareholders, customers,
executives, employees, suppliers, and communities. Vision We announced "Innovation for
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Customers" as our mid–to long–term vision with five core strategies: global orientation, respect
for human values, customer satisfaction, technology innovation, and cultural creation. We desire
to create an automobile culture of putting customer first via developing human–centered and
environment–friendly technological
innovation. Management Policy Based on a respect for human dignity, we make efforts to
meet the expectations of all stakeholders including customers and business partners by building a
constructive relationship amongst management, labor, executives and employees. Also, we focus
on communicating our corporate values both internally and externally, and gaining confidence
from all
stakeholders.
35
one of our strategies to meet the needs of our stakeholders and the society we belong to. We also
intend to promote sustainability development and preservation of the environment.
36
37
38
New Arrivals
EON
Santro Xing
39
i10
i20
Accent
Fluidic Verna
40
INDUSTRY PROFILE
Introduction
The automobile industry is one of India’s most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The auto
sector is one of the biggest job creators, both directly and indirectly. It is estimated that every job
created in an auto company leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China and
Japan. According to a report by Standard Chartered Bank, India is likely to overtake Thailand in
global auto-export market share by the year 2020.
The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the government’s backing, and trends
in the international scenario such as the decline in prices of natural rubber, the Indian automobile
industry is slated to witness some major growth.
Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 – August 2014 was recorded at US$ 10,119.68 million, as per data
by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
137,873 passenger cars were sold in July 2014 compared to 131,257 units during the
corresponding month of 2013. Among the auto makers, Maruti Suzuki, Hyundai Motor India and
Honda Cars India emerged the top three gainers with sales growth of 15.45 per cent, 12 per cent
and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of increased
demands from the urban market. Total sales across different vehicle segments grew 12 per cent
year on year (y-o-y) to 1,586,123 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of the
total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for
scooters, which has far outstripped supply has prompted Honda to set up its first dedicated
scooter plant in Ahmedabad.
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Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR) of 8–
9 per cent in the next five years making India a high-potential market for many international
brands.
Investments
To match production with demand, many auto makers have started to invest heavily in various
segments in the industry in the last few months. Some of the major investments and
developments in the automobile sector in India are as follows:
Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million) in India, by
way of capital expenditure (capex) and investment during FY15. The company is
required to manage Rs 6,000 crore (US$ 980.56 million) of assets in seven locations
across the world, for which maintenance capex is needed.
Honda Motors plans to set up the world's largest scooter plant in Gujarat to roll out 1.2
million units annually and achieve leadership position in the Indian two-wheeler market.
The company plans to spend around Rs 1,100 crore (US$ 179.76 million) on the new
plant in Ahmedabad, and expand its range with a few more offerings.
Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor India
(YMI) will take care of its India operations. “The restructuring is part of Yamaha’s mid-
term plan aimed at improving organisational efficiency,” as per Mr Hiroyuki Suzuki,
Chief Executive and Managing Director. YMI would be responsible for corporate
planning and strategy, business planning and business expansion, quality control, and
regional control of Yamaha India Business.
Tata Motors plans to use the 'hub-and-spoke' model in which India will be the key
manufacturing base while it will have mini-hubs in overseas markets. The company also
plans to set up mini hubs in potential markets like Africa, Middle-East and South East
Asia.
Hero Cycles through its unit OPM Global has acquired a majority stake in German
bicycle company MitteldeutscheFahrradwerke AG (MIFA) for €15 million (US$ 19.11
million). The company plans to invest an additional €4 million (US$ 5.09 million) as
capital expenses in restructuring the acquired company.
Government Initiatives
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The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route. To boost manufacturing, the government had lowered
excise duty on small cars, motorcycles, scooters and commercial vehicles to eight per cent from
12 per cent, on sports utility vehicles to 24 per cent from 30 per cent, on mid-segment cars to 20
per cent from 24 per cent and on large-segment cars to 24 per cent from 27 per cent.
The government’s decision to resolve VAT disputes has also resulted in the top Indian auto
makers namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and Tata Motors announcing an
investment of around Rs 11,500 crore (US$ 1.87 billion) in Maharashtra.
The Automobile Mission Plan for the period 2006–2016, designed by the government is aimed at
accelerating and sustaining growth in this sector. Also, the well-established Regulatory
Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in
providing a boost to this sector.
The Government of India-appointed SIAM and Automotive Components Manufacturers
Association (ACMA) are responsible in working for the development of the Indian automobile
industry.
Road Ahead
The future of the auto industry depends on the positive sentiments and the demand for vehicles in
the market. With the festival season coming up, the Indian auto sector will see a rise in demand
which is expected to bring in major growth. An auto dealer survey by firm UBS suggested that
the Indian auto industry, riding on trends like the upcoming festival season and decline in fuel
price, will observe a 12 per cent y-o-y growth in FY15.
Also, keeping up with international trends, there is expected to be a surge in the number of
hybrid vehicles in the Indian auto sector in the years to come.
43
The growth story for the Indian automobile industry in 2014 rode on the two-wheeler segment
and not on passenger cars or commercial vehicles, as high interest rates and a stuttering
manufacturing industry kept a check on demand.
The year also saw Competition Commission of India (CCI) levying a penalty of
Rs.2,544.65crore ($415) on 14 car makers for their restrictive trade practices by preventing
independent repairers coming into the market. Some of the leading car makers also had to recall
some models over defective components.
When other segments like passenger cars and commercial vehicles logged negative growth, the
two-wheeler makers registered around 13 percent growth between January and October. Riding
on the two-wheeler sector's growth, the automotive industry grew 9.8 percent by volume year-
on-year (YoY) between January and October.
"The two-wheeler segment is the only one that has clocked positive growth at 12.9 percent YoY
(year-on-year) to reach sales of nearly 13.5 million units by October. This can be attributed to the
low cost of two wheelers
in India," Vijay Kakade, vice president for automotive and transportation practice at Frost &
Sullivan, told IANS.
44
He said the light commercial vehicle (LCV) segment has been the worst hit, with sales reducing
to approximately 330,000 units -- an 18.9 percent YoY fall over 2013.
"The passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5
percent respectively during the period, compared to 2013. The reduction in sales can be
attributed to the slowdown and the high interest rates set by the RBI (Reserve Bank of India)
reducing the availability of finance options to the public," Kakade added.
"These segments have shown positive signs over the past few months, which is expected to lead
to growth in the next year."
"The year 2014 has been a year of stagnation, which is a positive sign as the decline has stopped.
The industry has shown signs of growth, albeit slower than expected, over the past few months,"
Kakade remarked.
P. Balendran, vice president, General Motors India, had similar views to share with IANS: "Of
late, we have seen some movements in new entries driven by novelty factors and some select
manufacturers have been getting the benefits too."
He said the market has not shown any movement forward, despite the excise duty reduction,
while the customer sentiment has not picked up due to sticky interest rates, which remain at high
levels.
"Although fuel prices have started coming down significantly, the enquiry levels at showrooms
have come down and conversions are not taking place at all. The sales of diesel vehicles are also
tapering off because of the narrowing price gap vis-a-vis petrol," Balendran added.
Expecting the government to continue with a lower excise duty regime for small/mid-sized/big
cars and sports utility vehicles (SUV) till March 2015, Balendran said the rates should be
continued till the Goods and Services Tax ( GST) is introduced -- aiding the turnaround of the
auto sector.
Terming 2014 a mixed bag for the automobile industry, SumitSawhney, chief executive and
managing director of Renault India, told that while there has been a sea change in the consumer
sentiment with a gradually improving economic climate in the country, the optimism has still to
45
translate into sustained sales growth.
"The industry is looking forward to the budget for pro-business policies to reignite the
automobile industry in India."
* Overall growth was 9.8 percent by volume year-on-year (YoY) between January and October.
* Two-wheeler sector grew 12.9 percemt
* Passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5 till
October
* LCV segment worst hit, with sales falling 18.9 percent YoY fall over 2013 till October
* Excise duty reduction on automobiles
* Competition Commission of India (CCI) fines 14 car-makers Rs.2,544.65 crore for restrictive
trade practices.
Auto manufacturers have been trying to cope with economical rough patch in last two years.
Trying to boost sales and implementing cost effective schemes just wasn’t enough. They also
had to cut many of their employees loose to stay somewhat balanced, in some cases. On a
fashionable note, senior employees were asked to take voluntary retirement (not sure what
‘voluntary’ is doing in that sentence).
Tata Motors apart from giving customers attractive offers, gave 600 of their employees early
retirement offers, last month. Ashok Leyland too offered 500 of their employees with irresistible
retirement schemes, last year (pun intended).
Sales of Cars, SUVs, Vans, pick-ups, and entire commercial vehicle segment went south, with
passenger vehicle market encountering first decline in the decade. But what saved the overall
scenario was the two-wheeler market. It took 7.31% hike with motorcycle sales going 3.91% up
and scooter sales riding 23% north. Export sales figures also contributed to somewhat saving the
year with rise of 7.21%.
46
The downtrend left auto manufacturers with piled up inventory and stagnation. The interim
budget announced in February, gave a minor boost as all vehicles prices were reduced
marginally, but it hasn’t exactly helped boost sales yet. Automakers are expecting aid from the
government’s new budget by way of further tax cuts.
Sales figures of March 2014 shows 12.83% overall growth also by means of increased two-
wheeler sales. Commercial Vehicles have further dipped compared to March 2013 and passenger
cars stagnating below the graph. However, overall production has increased by 9.95% comparing
March figures of both years, suggesting auto makers’ confidence in ongoing fiscal to make
better.
Launch of new A segment compact cars by various auto majors seems to be helpful in this
economy, for customers as well as value chain entities. Maruti Suzuki finished top on podium
with 42% share in overall car sales, followed by Hyundai with 15% share.
Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over in the fiscal
2014-15, with boost in manufacturing sector, new investment and fresh capacities in the industry.
VikramKirloskar, president of SIAM says, “Whichever government comes in…I am looking for
stability in excise duty and some reduction in taxes. We are an over-taxed industry.”
47
CHAPTER-6
48
RESEARCH DATA ANALYSIS INTERPRETATION
Percentage No of
Group (%) Respondents
Excellent 20% 10
Very good 10 % 5
Good 60% 30
Average 10% 5
Total 100 50
35
30
25
20
15
10
5
0
Excellent Very good Good Average
Interpretation: The above data shows that the recruitment process is good.
20% of the employees feel that the recruitment process is excellent in Lakshmi Hyundai
solutions. 70% of employees feel that the recruitment process is good, and 10% feel that the
recruitment process is average.
49
(2) Which of these was a part of your recruitment and selection process?
Percentage No of
Group (%) Respondents
Written test and interview 10% 5
Group discussion and interview 10% 5
Interview 10% 5
All of the above 70% 35
Total 100 50
40
35
30
25
20
15
10
5
0
Written test and Group discussion and Interview All of the above
interview interview
Interpretation: The above data shows that the written test, group discussion and interview
are the part of recruitment and selection process.
10% of the employees are based on written test and interview
10% of the employees are based onGroup discussion and interview
10% of the employees are based on Interview, 70% of the employees
based all.
50
3) Fitness test is necessary for all the employees at regular intervals?
Percentage No of
Group (%) Respondents
Strongly agree 60% 30
Agree 30% 15
Disagree 8% 4
Strongly disagree 2% 1
Total 100 50
35
30
25
20
15
10
0
Strongly agree Agree Disagree Strongly disagree
Interpretation: The above data shows that fitness test is necessary for the employees.
90% of the employees agree that fitness test is necessary for all the employees at regular
intervals. 10% of employees disagree that fitness test is necessary.
51
4) The screening process of candidates is very impressive?
35
30
25
20
15
10
0
Strongly agree Agree Disagree Strongly disagree
Interpretation: The above data shows that screening process is impressive in Lakshmi Hyundai
90% of the employees agree that screening process of candidates is very impressive and 10% of
employees disagree that screening process of candidates is impressive.
52
(5) The general intelligence level of each individual during selection is tested?
(a)Yes (b) No.
Percentage No of
Group (%) Respondents
Yes 80% 40
No 20% 10
Total 100 50
45
40
35
30
25
20
15
10
5
0
Yes No
Interpretation : 80% of the employees agree that the general intelligence is tested during
selection and 20% of the employees disagree that the general intelligence is tested during
selection.
: The above data shows that the general intelligence of the individual is tested during selection
process.
53
6) Internal employees are given more preference for referring candidates?
Percentage No of
Group (%) Respondents
Yes 20% 10
No 80% 40
Total 100 50
50
40
30
20
10
0
Yes No
Interpretation: The above data shows that the employees are given less preference for
referring the candidates
20% of employees say that they are given preference for referring the candidates and
80% of employees say that they are not given preference for referring the candidates.
54
(7) Interviews are conducted by a group of people from different departments?
No of
Group Percentage (%) Respondents
Yes 96% 48
No 4% 2
Total 100 50
Analysis:
96% of the employees say that interview is conducted by group of employees from different
departments and 4% of the employees say that interview is not conducted by group of employees
from different departments.
Interpretation: The above data shows that the interviews are conducted by group of
employees from different departments
50
40
30
No of Respondents
20
10
0
Yes No
(8) Do you agree that a good recruitment policy plays a key factor in the working of an
organization?
55
Percentage No of
Group (%) Respondents
Strongly agree 60% 30
Agree 30% 15
Disagree 10% 5
Strongly disagree 0% 0
Total 100 50
Analysis:
90% of the employees agree that the good recruitment policy plays a key factor in the working
of an organization and 10% of the employees disagree that the recruitment policy plays a key
factor in the working of an organization.
Interpretation: The above data shows that the recruitment policy plays a key factor in the
working of an organization
Recruitment policy
35
30
25
20
15 No of Respondents
10
0
Strongly agree Agree Disagree Strongly
disagree
56
(9) Rate the process of recruitment and selection in this organization?
Percentage No of
Group (%) Respondents
Excellent 20% 10
Good 50% 25
Satisfactory 30% 15
Not satisfactory 0% 0
Total 100 50
Analysis:
20% of the employees feel that the recruitment and selection process is excellent in Lakshmi
Hyundai. 50% of employees feel that the recruitment and selection process is good, and 30% feel
that the recruitment and selection process is satisfactory.
Interpretation: The above data shows that the recruitment and selection process are good in
Lakshmi Hyundai.
25
20
15
No of Respondents
10
0
Excellent Good Satisfactory Not
satisfactory
57
(10) Which of the following attracted you to apply for the Job at Lakshmi Hyundai?
Percentage No of
Group (%) Respondents
Decent salary 0% 0
Opportunities for growth 90% 45
Job security 10% 5
Identification with the company 0% 0
Total 100 50
Analysis:
90% of the employees feel that they are attracted to apply for the Job at Lakshmi Hyundai
for having opportunities for growth and 5% for job security.
Interpretation: The above data shows that the employees feel that they are attracted to apply
for the Job at Lakshmi Hyundai for having opportunities for growth.
58
(11) In your view, which source is more reliable for the recruitment?
Percentage No of
Group (%) Respondents
Internal 10% 5
External 80% 40
Mix of both 10% 5
Total 100% 50
Analysis:
10% of the employees support for internal recruitment, 80% of employees support for external
and 10% of employees support for both.
Interpretation: The above data shows that the most of the employees support for external
source.
Sources of recruitment
45
40
35
30
25
No of Respondents
20
15
10
0
Internal External Mix of both
59
(12) Which of these was a part of your recruitment and selection process?
Percentage No of
Group (%) Respondents
Written test and interview 10% 5
Group discussion and interview 10% 5
Interview 10% 5
All of the above 70% 35
Total 100 50
Analysis:
10% of the employees are based on written test and interview
10% of the employees are based onGroup discussion and interview
10% of the employees are based on Interview, 70% of the employees
based all.
Interpretation: The above data shows that the written test, group discussion and interview
are the part of recruitment and selection process.
60
(13) During the interview process, what do you think is valued the most in
Your profile?
Percentage No of
Group (%) Respondents
Qualification 20% 10
Experience 4% 2
Personal traits 4% 2
All of the above 72% 36
Total 100 50
Analysis:
20% of employees support for qualification,4% of employees support for experience,4%
of employees support for personal traits, 72% of employees support for all.
Interpretation: The above data shows that the qualification, experience and personal traits
are valued in profile during interview process
Interview process
40
35
30
25
20
No of Respondents
15
10
0
Qualification Experience Personal traits All of the above
61
14) What was the time taken for the entire recruitment and selection process?
Percentage No of
Group (%) Respondents
Within one weeks 10% 5
Within two weeks 20% 10
Within three weeks 30% 15
More then three weeks 40% 20
Total 100 50
Analysis:
10% Within one weeks ,20% Within two weeks,30%within three weeks ,40% more then
three weeks.
Interpretation: The above data shows that the most of the employeessays it takes more then
three weeks for the entire recruitment and selection process.
20
15
No of Respondents
10
0
Within one weeksWithin two weeks Within three More then three
weeks weeks
62
(15) What kind of the interview did you undergo?
Percentage No of
Group (%) Respondents
Formal and structural
Interview 70% 35
Formal and unstructured
Interview 10% 5
Stress interview 2% 1
Board interview 18% 9
Total 100 50
Analysis:
70% Formal and structural Interview, 10% Formal and unstructured
Interview 2%, Stress interview, 18% Board interview.
Interpretation: The above data shows that most of employees undergone formal and
structural interview.
63
CHAPTER-7
64
FINDINGS
Recruitment and selection process Lakshmi Hyundai includes
(a) Written test
(b) Group discussion
(c) Interview.
Qualification
Experience
Personal traits are the things which are valued the most in the applied Candidates profile
during the interview.
Time taken for the entire recruitment and selection process in Lakshmi Hyundai is more than
3 weeks.
Communications and subject knowledge are important for an employee before recruiting into
the job.
Internal employees are not given more preference for referring Candidates.
The impact of induction in employee’s life is good.
Interviews are conducted by a group of people from different departments.
The Recruitment and selection process in this organization is good.
65
CONCLUSIONS
Communications and subject knowledge are important for an employee before recruiting into
the job
Interviews are conducted by a group of people from different departments before recruiting
into the job.
The Recruitment process helps to maintain adequate manpower to fill up the vacancies.
Recruitment and selection process in Hyundai includes
(a) Written test
(b) Group discussion
(c) Interview.
D) Qualification
E) Experience
Personal traits are the things which are valued the most in the applied Candidates profile
during the interview.
66
CHAPTER-8
SUGGESTIONS AND RECOMMENDATION
67
SUGGESTIONS AND RECOMMENDATION
68
CHAPTER-9
BIBLIOGRAPHY
69
REFERENCE
Personnel Management C.B.Mamoria
V.S.P.Rao
WWW.lakshmigroup.Org
WWW.Google.Com
www.autoindia.com
70
QUESTIONNAIRE
Name:
Experience:
Department:
Designation:
(4) The general intelligence level of each individual during selection is tested?
(a)Yes (b) No
71