Thursday, October 10, 2019
Project on Shree Cement Ltd.
ACKNOWLEDGEMENT I take this opportunity to present my gratitude to all who helped me during the course of the project for their aspiring guidance, invaluably constructive criticism and kind advice throughout the project work. I am sincerely grateful to them for sharing their sincere and revealing views on a number of issues related to the project. I express my heartfelt thanks to Mr. Gopal Tripathi for their support & guidance at SHREE CEMENT LTD. I would also like to thank my project external guide Mr. R. K. Shrivastava and all the people who provided me with the required facilities of working conditions conducive for my project work. PREFACE As we are stepping into the 21st century with the era of modernization & globalization, organizations are seeking to bring continuous improvement and required changes in all fields of activities. One key area is to build a pleasant working environment within the organization and to study the behavior of the employees for the purpose of identifying the scope of improvement in the organizational effectiveness. The main objective of this project is to get the hands on experience of the office and management and various systems and procedures on effective working. INDEX Table of Contents S. No. Contents 1. Acknowledgment 2. Preface 3. Company Profile 4. Vision of the company 5. Research Methodology 6. Objective of Recruitment & Selection 7. Importance of Recruitment & Selection 8. Recruitment Ã¢â¬â The Challenges 9. Sources of Recruitment 10. Recent Trends in Recruitment 11. Recruitment Policy of Shree Cement Ltd. 12. Selection Ã¢â¬â The Challenges 13. Selection Process at Shree Cement Ltd. 14. Probation And Confirmation 15. Training and Development 16. Conclusions 17. Bibliography COMPANY PROFILE BACKGROUND:- Over the last decade, a significant change in business environment has caused organizations around the world to transform their business model in order to maintain leadership. This change is hyper-competition Ã¢â¬â a state that renders traditional competitive advantage unsustainable. Rapid product introductions to battle the pressures of commoditization is impacting organizational bottom line faster than ever before. Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri. B. G. Bangur, the policy decisions are taken under the guidance of Shri. H. M. Bangur, Managing Director. Shri. M. K. Singhi, Executive Director of the Company, is looking after all day- to- day affairs. The company is managed by qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction. The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance. Shree cement a leading cement manufacturer of North India, has been participating in the infrastructure transformation for India for over two decades. It started operation in 1985 and has been growing over since. Its manufacturing units are located in Beawer, Ras in Rajasthan. It also has grinding unit at Khuskera near Gurgaon. It has 3 brands under its portfolio viz. Shree Ultra Jung Rodhak cement, Bangur Cement and Tuff cement. Its record of steady profitability and healthy operating margin was maintain in 2007-08 as well. It registered a growth of 51% in net sales which stood us at rs. 2065. 7 cr in 2007-08. Its net profit increase by 47% to rs. 260. 37 cr. During the year. Shree always strives to sustain it reputation as a respected corporate citizen. Its acknowledges that is operation have multiple impacts on the environment and communities in which it operates. Its business strategies and performance demonstrate a high level of commitment to preservation of environment and soci al development apart from economic success. HISTORY OF COMPANY:- 1979 Ã¢â¬â The Company was incorporated on 25th October, at Jaipur. The Company was promoted by members of the Bangur family and others. Shree Digvijay Cement Co. Ltd. , Graphite India, Ltd. and Fort Gloster Industries, Ltd. took active part in the promotion of the Company. The Company manufacture's cement & cement products. Ã¢â¬ ¢ To reduce fuel and power consumption, the Company adopted the latest dry process, four stage preheater precalcination technology of clinkerisation and air swept roller mill grinding system for raw material and coal grinding. Ã¢â¬ ¢ The Company entered into agreement with F. L. Smith & Co. A/s Copenhagen, a designer and manufacture of cement plants, its associates F. L. Smith & CIA. Espanola S. A. Madrid and with Larsen & Toubro Ltd. , Mumbai for the supply of plant equipment and services for the proposed project. 1984 Ã¢â¬â 70 No. of equity shares subscribed for by the signatories to the Memorandum of Association. In Oct. /Nov. 1, 53, 99,930 No. of equity shares issued of which 1, 06, 99,930 shares reserved for firm allotment as follows: Ã¢â¬ ¢ 48,00,000 shares to Shree DigVijay Cemen t Co. Ltd. ; Ã¢â¬ ¢ 11, 00,000 shares each to Graphite India, Ltd. and Fort Gloster Industries, Ltd. And Ã¢â¬ ¢ 36, 99,930 shares to Directors, their friends etc. Including upto 25, 00,000 shares to NRIs With repatriation rights. The balance 47, 00,000 shares offered to the public of which 18, 80,000 shares offered for allotment on preferential basis to Non-Residents. 1985 Ã¢â¬â Commercial production commenced from 1st May. 1986 Ã¢â¬â A diesel generating set of 13. 6 MW was installed for captive power generation 1987 Ã¢â¬â 46, 00,000 shares issued to financial institutions in conversion of loans. 1991 Ã¢â¬â Production of clinker and cement declined due to a major shut down of the plant for implementation of modernization/renovation/modification work. Ã¢â¬ ¢ The Company undertook to set up a new cement plant of 0. million Ã¢â¬ ¢ TPA capacity in Rajasthan Ã¢â¬ ¢ 7, 96,000 No. of Equity shares issued to financial institution in conversion of loan. 1992 Ã¢â¬â 36,00,000 shares allotted to FLT Ltd. a wholly owned subsidiary of P. L. Smith & Co. Denmark under financial collaboration agreement. 1993 Ã¢â¬â The Company undertook a scheme of implementing second stage of its licensed capacity to incr ease its capacity to 3300 tones per day. Ã¢â¬ ¢ The Company issued 21975 Ã¢â¬â 16% each with equity warrants and these will be converted as per institutional guidelines. Ã¢â¬ ¢ 2, 40,021 shares issued in pursuance of scheme of Amalgamation. 994 Ã¢â¬â The Company issued 10, 00,000-16% Secured Redeemable NCD of Rs 100 each on private placement basis. Ã¢â¬ ¢ A scheme of amalgamation of an existing leasing and finance Company with the Company was prepared for undertaking leasing activities and other financial services on large scale. Ã¢â¬ ¢ M/s. Mannakrishna Investment, Ltd. is a subsidiary of the Company. 1995 Ã¢â¬â The Company undertook the implementation of new unit of 124 MT capacities per annum named Raj Cement. Ã¢â¬ ¢ 43,95,000 No. of Equity shares on surrender of detachable optional share warrants attached with 16% unsubscribed non-Convertible Debentures of 100 each. 996 Ã¢â¬â The Company commissioned its second cement plant Ã¢â¬â Raj Cement with a capacity of 12. 4 lakh tones per annum in Beawer. Ã¢â¬ ¢ 58, 06,204 rights shares issued (prem. Rs 10 per share) in the prop. 1:5. 1998 Ã¢â¬â Shree Cement, the Calcutta-based PD-BG Bangur group company, has decided to issue preference shares aggregating Rs 15 crore to mobilize long-term funds. Ã¢â¬ ¢ Shree Cement's expansion in capacity by 12. 4 lakh tones at the new unit in Beawer has made it a leading cement manufacturer in North India. Ã¢â¬ ¢ IC RA has downgraded the rating of the NCD programme of Shree Cement Ltd (SCL) from LAA to LA. The Rs 372-crore 1. 25 million tonne cement plant near Ajmer was commissioned during the year after considerable delay due to an explosion in the electro-static precipitator. Ã¢â¬ ¢ Shree Cements has an installed capacity to produce up to two million tones of cement per annum in Rajasthan and has an equity capital of about Rs. 34 crores. 1999 Ã¢â¬â The company has been awarded the first prize for energy conservation in 1998 in the cement sector. Ã¢â ¬ ¢ SCL, belonging to the house of BangurÃ¢â¬â¢s, is one of the largest cement manufacturers in North India, having the installed capacity of 2 million tones. Its plants are located in Rajasthan. The new plant was set up at Beawer with the capacity of 1. 24 million tpa in Rajasthan. Ã¢â¬ ¢ Unit I and Unit II of the company receives National Award for Ã¢â¬ËBest Electrical Energy Performance' and Ã¢â¬ËBest Thermal Energy Performance' in the Cement Industry for the year 2000-01. Ã¢â¬ ¢ Decides to change the Accounting year to April Ã¢â¬â March each year and accordingly the current year is only for nine months. Ã¢â¬ ¢ Appoints Mr. M K Singhi as the Executive Director of Shree Cements. In pursuance to the IDBI, companies approve for early redemption of privately placed under noted cumulative redeemable preference shares. Ã¢â¬ ¢ Change in Management Structure: Mr. B G Bangur re-appointed as executive chairman and Shri H M Bangur re-appointed as the Managing Director for a period of five years. 2003 Ã¢â¬â Members approve for the delisting of its shares from 4 stock exchanges of Jaipur, Kolkota, Delhi and Chennai exchanges. Ã¢â¬ ¢ C onfers the Runner up National Safety Award by the Ministry of Labour, GOI, in recognition of outstanding performance in Industrial Safety achieving longest accident free period. Receives permission for delisting of shares from Delhi Stock Exchange. Ã¢â¬ ¢ The company has been conferred National Award for Excellence in Energy Management 2003 instituted by the Confederation of Indian Industry (CII) and Sohrabji Godrej Green Business Centre. Ã¢â¬ ¢ -Delisting of equity shares from Madras Stock Exchange Association Ltd. 2004- Company conferred Ã¢â¬ËBEST PRODUCITY AWARD-2003' by the Rajasthan state Productivity Council in recognition of productivity measures and productivity improvements achieved. Rajasthan Chamber of Commerce & Industries, Jaipur presents Ã¢â¬ËRCCI Excellence Award' to Shree Cement Ltd in recognition of Overall Best Corporate Governance Practices and Disclosures in Annual Report among all companies having registered office in Rajasthan. Ã¢â¬ ¢ -Delist from The Ca lcutta Stock Exchange Association Ltd (CSE). 2007- Shree Cement Ltd has appointed Shri. Amitabha Ghosh as Director of the Company w. e. f. May 14, 2007. PHILOSOPHY:- Ã¢â¬ ¢ Let noble thoughts come to us from all over the world. Ã¢â¬â Rig-Veda Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees. VISION:- Ã¢â¬ ¢ To sustain its reputation as the most efficient cement manufacturer in the world. Ã¢â¬ ¢ To drive down costs through innovative plant practices. To increase the awareness of superior product quality through a realistic and convincing communication process with consumers. Ã¢â¬ ¢ To strengthen realizations through intelligent brand building. BUSINESS ETHICS:- Ã¢â¬ ¢ Enforce good corporate governance practices. Ã¢â¬ ¢ Inculcate integrity of conduct. Ã¢â¬ ¢ Ensure transparency and credibility in communicatio n. Ã¢â¬ ¢ Remain accountable to all stakeholders. Ã¢â¬ ¢ Encourage socially responsible behavior. [pic] METHODOLOGY The cement industry is marked with a high level of attrition and therefore recruitment process becomes a crucial function of theÃ organization. At Shree Cement Ltd. , recruitment isÃ all time highÃ during May-June and Oct-Nov. The recruitmentÃ is high during these months due to the fact that March and September are half year closing andÃ businessÃ is high during Jan-Mar. Thus it is only after March that people move out of theÃ companies. Since my summer training was in the months of May-June, it gave me the opportunity of involving myself directly withÃ the recruitmentÃ process and analyzing the process so that suitable recommendations can be given. This project is centered on identifying best hiring practices in theÃ cement industries. It therefore requires great amount ofÃ researchÃ work. The methodology adopted was planned in advance so as to collect data in the most organized way. My area of focus wasÃ the recruitmentÃ and selection n training particularly at Shree Cement Ltd. I was directly involved withÃ the recruitmentÃ for candidates for the production profile. I was particularly involved with the sourcing of candidates for the regions such as M. P, U. P and Rajasthan. Before any task was undertaken, we were asked to go through the HR policies of Shree Cement Ltd. o that we get a better understanding of the process followed by them. Ã¢â¬ ¢ The first task was to understand the various job profiles for which recruitment was to be done. Ã¢â¬ ¢ The next step was to explore the various job portals to search for suitable candidates for the job profile. Ã¢â¬ ¢ Once the search criteria were put, candidates went through a telephonic interview to validate the information mentioned in their resume. Ã¢â¬ ¢ A candidate matching the desired profile was then lined for the first round of Face to Face interview in their respective cities. FirstlyÃ the candidateÃ had filled up the personal data form(pdf). Ã¢â¬ ¢ Then the candidatesÃ INTERVIEW EVALUATION SHEETÃ Ã which is provided by interviewer was crosschecked by the HR team. If they think thatÃ the candidate was good to hire or not. Ã¢â¬ ¢ When a candidate cleared his first round, he is then made to take anÃ aptitude test. We created theÃ aptitude test. It the HR department, which has the exclusive rights to assign test, test codes to the candidates. Each code was unique and could be used only once by a candidate. Ã¢â¬ ¢ OnceÃ the candidateÃ completed his first assessment, his scores were checked. If he cleared his cut-off he was given another test. Ã¢â¬ ¢ Since we received many resumes, it was essential that aÃ databaseÃ be maintained to keep a track. It was convenient method than toÃ stockÃ up piles of papers. SCL has their ownÃ databaseÃ , They update all the records of the new joinees in that tracker. That database containes all the information of a candidate such as name, contact number, location etc. Ã¢â¬ ¢ The external guide maintained a regular updating of theÃ database. Ã¢â¬ ¢ Understanding what kinds ofÃ databaseÃ are maintained and how they help in keeping a record. They maintaining a track of test codes given, theÃ databaseÃ for employee referrals,Ã DatabaseÃ for the resumes received through mails and response of advertisement. RESEARCHÃ METHODOLOGY Date Source PrimaryÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã : Ã¢â¬âÃ Through Personal Interviews SecondaryÃ Ã Ã Ã Ã Ã Ã : Ã¢â¬âÃ Through Internet, Journals, New s papers and Misc. Sample Area: Ã¢â¬â Work had done in Beawer regional Office. Sample procedure: Ã¢â¬â Random sampling. PROJECT SCHEDULE :- First weekÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã : Ã¢â¬â Training program from the company. Second weekÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã : Ã¢â¬â Collecting the primary and secondary data. Third and Fourth weekÃ Ã Ã Ã : Ã¢â¬â Study Recruitment & Selection Process Fifth weekÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã : Ã¢â¬â Analysis of Data Collection. Sixth weekÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã : Ã¢â¬â Final Report preparation and presentation OBJECTIVES OF THE RECRUITMENT AND SELECTION Every task is undertaken with an objective. Without any objective a task is rendered meaningless. The main objectives of this are: Ã¢â¬ ¢ Attract and encourage more and more candidates to apply in the organization. Ã¢â¬ ¢ Create a talent pool of candidates to enable the selection of best candidates for the organization. Ã¢â¬ ¢ Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities. IMPORTANCE OF THE RECRUITMENT AND SELECTION Ã¢â¬ ¢ Recruitment is the process which links the employers with the employees. Ã¢â¬ ¢ Increase the pool of job candidates at minimum cost. Ã¢â¬ ¢ Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Ã¢â¬ ¢ Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Ã¢â¬ ¢ Meet the organizations legal and social obligations regarding the composition of its workforce. Begin identifying and preparing potential job applicants who will be appropriate candidates. Ã¢â¬ ¢ Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants RECRUITMENT Recruitment is the discovering of the potential applicants for the actual and anticipated organizational vacancies. This being the critical factor, any organization has to have we ll defined policies & practices aligned with the organizationÃ¢â¬â¢s mission and vision since it injects fresh blood in the organization. Organizations work hard to find and attract capable applicants. Their methods depend upon the situations since there is no best recruiting technique. However, the job descriptions and specifications are essential tools, especially for the management in large organizations. THE CHALLENGES: ? Attract people with multi-dimensional experiences and skills ? Infuse fresh blood at every level of the organization ? Develop a culture that attracts people to the company ? Locate people whose personalities fit the companyÃ¢â¬â¢s values ? Devise methodologies for assessing psychological traits ? Induct outsiders with new perspective to lead the company Search for talent globally, and not just within the country ? Design entry pay that competes on quality, and not quantum ? Anticipate and find people for positions that do not exist yet The process of identification of different sources of personnel is known as recruitment. Recruitment is a process of searching the candidates for employment and stimulating them to apply for jobs in the organizations Recruitm ent is a process of searching the candidates for employment and stimulating them to apply for jobs in the organizations. It is a linking activity that brings together those offering jobs and those seeking jobs. Recruitment refers to the attempt of getting interested applicants and creating a pool of prospective employees so that the management can select the right person for the right job from this pool. Recruitment process precedes the selection process, that is, selection of right candidates for various positions in the organization. PROCESS It is a positive process as it attracts suitable applicants to apply for available jobs. The Process of recruitment: ? Identifies the different sources of labor supply ? Assesses their viability ? Choose the most suitable source or sources Invites applications from the perspective candidates for the vacant jobs. The aims of recruitment are: ? To obtain a pool of suitable candidates for vacant posts ? To use and be seen to use a fair process ? To ensure that all recruitment activities contribute to company goals and a desirable company image ? To conduct recruitment activities in an efficient and cost-effective manner FACTORS AFFECTING RECRUITMENT Ther e are many factors that limit or affect the recruitment policy of an organization. The important factors are: ? Size of the organization and the kinds of human resources required. Effect of past recruitment efforts. ? Nature of Workforce market in the region. ? Working conditions, wages and other benefits offered by other concerns. ? Social and political environment. ? Legal obligations created by various statutes RECRUITMENT POLICY STATEMENT In its recruitment activities, the company will: ? Advertise all vacancies internally, ? Reply to every job applicant without any delay, ? Inform job applicants the basic details and job conditions of every job advertised, ? Process all applications with efficiency and courtesy, ? Seek candidates on the basis of their qualifications, ? Aim to ensure that every person invited for interview will be given a fair and thorough hearing ? The company will not: Discriminate unfairly against potential applicants on the basis of sex, race, religion, caste, etc. ; ? Knowingly make any false or exaggerated claims in its recruitment literature or job advertisements. SOURCES OF RECRUITMENT [pic] The various sources of recruitment are basically grouped into two categories: ? Internal Recruitment (recruitment from within the enterprise) Transfer Promotion Employee referral ? External Recruitment (recruitment from outside) Advertisement Management consultant Educational institute Employment agencies Casual caller E-recruitment Although recruiting may bring to mind employment agencies and classified ads, current employees are often your largest source of recruits. Some surveys even indicated that up to 90% of all management positions are filled internally. Filling open positions with inside candidates has several advantages. Employees see that competence is rewarded and morale and performance may thus be enhanced. Having already been with your firm for some time, inside candidates may be more committed to company goals and less likely to leave. Promotion from within can boost employee commitment and provide managers a longer-term perspective when making business decisions. It may also be safer to promote employees from within, since you're likely to have a more accurate assessment of the person's skills than you would otherwise. Inside candidates may also require less orientation and training than outsiders. Yet promotion from within can also backfire. Employees who apply for jobs and don't get them may become discontented; informing unsuccessful applicants as to why they were rejected and what remedial actions they might take to be more successful in the future is thus essential. Similarly, many employers require managers to post job openings and interview all inside candidates. Yet the manager often knows ahead of time exactly whom he or she wants to hire, and requiring the person to interview a stream of unsuspecting inside candidates is therefore a waste of time for all concerned. Groups may also not be as satisfied when their new boss is appointed from within their own ranks as when he or she is a newcomer; sometimes, for instance, it is difficult for the newly chosen leader to shake off the reputation of being Ã¢â¬Å"one of the gangÃ¢â¬ . A. INTERNAL RECRUITMENT ? Promotions and Transfers This is a method of filling vacancies from within through transfers and promotions. A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc. , but not necessarily salary. Promotion, on the other hand, involves movement of employee from a lower level position to a higher-level position accompanied by (usually) changes in duties, responsibilities, status and value. Organizations generally prepare badli lists or a central pool of persons from which vacancies can be filled for manual jobs. Such persons are usually passed on to various departments, depending on internal requirements. If a person remains on such rolls for 240 days or more, he gets the status of a permanent employee as per the Industrial Disputes Act and is therefore entitled to all relevant benefits, including provident fund, gratuity, retrenchment compensation. Filling vacancies in higher jobs from within the organization has a benefit of motivating the existing employees. It has a great psychological impact over the employees because a promotion at the higher level may lead to a chain of promotions at lower levels in the organizations. Job Posting Job posting is another way of hiring people from within. In this method, the organization publicizes job openings on bulletin boards, electronic media and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company witho ut looking for greener pastures outside. ? Employee Referrals Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that Ã¢â¬Å"it takes one to know oneÃ¢â¬ . Employees working in the organization, in this case, are encouraged to recommend the names of their friends working in other organizations for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive Information Technology industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted Ã¢â¬â after the routine screening and examining process is over Ã¢â¬â and job offers extended to the suggested candidates. As a goodwill gesture, companies also consider the names recommended by unions from time to time. POSSIBLE BENEFITS AND COSTS OF EMPLOYEE REFERRALS ? Recommender gives a realistic picture about the job. The applicant can weigh the pros and cons carefully before handing over the CV The applicant is more likely to accept an offer if one is made and once employed, to have a higher job survival. ? It's an excellent means of locating potential employees in those hard-to-fill positions. The recommender earns a reward and the company can avoid expensive recruiting search Ã¢â¬â in case the candidate gets selected. Recommenders may confuse friendship with job competence. Factors such as bias, nepotism, and eagerness to see their friends in the company may come in the way of hiring a suitable candidate. ADVANTAGES OF USING INTERNAL SOURCES Filling vacancies in higher jobs within the organization or through internal transfers has various advantages such as: ? Employees are motivated to impro ve their performance. ? Moral of the employees is increased. ? Industrial peace prevails in the enterprise because of promotional avenues. ? Filling of jobs internally is cheaper as compared to getting candidates from external sources. A promotion at higher levels my led to a chain of promotion at lower levels in the organization. This motivates employees to improve their performance through learning and practice. ? Transfer or job rotation is a tool of training the employees to prepare them for higher jobs. ? Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff. DRAWBACKS OF INTERNAL SOURCES Internal sources of recruitment have certain drawbacks such as: ? When vacancies are filled through internal promotions, the scope for fresh talent is reduced. The employees may become lethargic if they are sure of time bound promotions. ? The spirit of competition among the employees may be hampered. ? Frequent transfers of emplo yees may reduce the overall productivity of the organization. EXTERNAL SOURCES Every enterprise has to tap external sources for various positions. Running enterprises have to recruit employees from outside for filling the positions whose specifications cannot be met by the present employees and for meeting the additional requirements of manpower. Companies commonly use the following external sources of recruitment: Media Advertisements: Advertisements in newspapers or trade and professional journals are generally used. The advantage of advertising is that more information about the organization, job description and job specifications can be given in advertisements to allow self screening by the prospective candidates. ? Management Consultants: Management consultancy firm helps the organizations to recruit technical, professional and managerial personnel. They used to specialize in middle level and top-level executive, but today they even help firms in recruiting fresh graduates & po stgraduates in the industry. Educational Institutes: Educational institutes at all levels offer opportunities for recruiting recent graduates. Most educational institutes operate placement services where prospective employers can review credentials and interview graduates. ? Recommendations: One of the best sources for individuals who perform effectively on the job is recommendation for the current employee. An employee will rarely recommend someone unless he or she believes that the individual can perform adequately. The recommended often gives applicants more realistic information about the job than any other source. Casual Callers : The organizations that are regarded as good employers draw a steady stream of unsolicited applicants in their offices. This serves as a valuable source of manpower. The merit of this source of recruitment is that it avoids the costs of recruiting workforce from other sources. ADVANTAGES OF USING EXTERNAL SOURCES The merits of external sources of recru itment are: ? Qualified Personnel: By using external sources of recruitment, the management can make qualified and trained people to apply for vacant jobs in the organization. ? Wider Choice: When vacancies are advertised widely, a large number of applicants from outside the organization apply. The management has a wider choice while selecting the people for employment. ? Fresh Talent: The insiders may have limited talents. External Sources facilitate infusion of fresh blood with new ideas into the enterprise. This will improve the overall working of the enterprise. ? Competitive Spirit: If a company can tap external sources, the existing staff will have to compete with the outsiders. They will work harder to show better performance. DRAWBACKS OF EXTERNAL SOURCES The demerits of filling vacancies from external sources of recruitment are: Dissatisfaction among Existing Staff: External recruitment may lead to dissatisfaction and frustration among existing employees. They may feel that their chances of promotion are reduced. ? Lengthy Process: Recruitment from outside takes long time. The business has to notify the vacancies and wait for applications to initiate the selection process. ? Uncertain Response: Here candidates from outside may not be suitable for the enterprise. There is no guarantee that the enterprise will be able to attract right kind of people from external sources. OTHER SOURSES In the search for particular types of applicants, nontraditional sources should be considered. For example, Employ the Handicapped associations can be a source of highly motivated workers; a forty-plus club can be an excellent source of mature and experienced workers etc. Recruiting Sources Used by Skill and Level SKILL/LEVEL RECRUITING SOURCE Unskilled, Semiskilled & Skilled Informal Contacts Walk-ins Public Employment Agencies Professional Employees Informal Contacts Internal Search Managerial Level Walk-ins Private Employment Agencies Public Employment Agencies RECENT TRENDS IN RECRUITMENT ? Outsourcing Under this arrangement company may draw the required personnel from the outsourcing firms or agencies or commission basis rather than offering them employment. This is also called leasing of human resources. The outsourcing irms develop their human resource pools by employing people for them and make available the personnel to various companies (called clients) as per their needs. The outsourcing firms get payment for their services to their clients and give salary directly to the personnel. The personnel deputed by the outsourcing agencies with the clients are not the employees of the clients. They continue to be on the payroll of their employees, that is, the outsourcing agencies. Several outsourcing companies or agenc ies have come up which supply human resources of various categories to their clients. A company in need of employees of certain categories can approach an outsourcing company and avail the services of it human resources. The advantages of getting human resources through the outsourcing agencies are: 1. The companies need not plan for human resources much in advance. They can get human resources on lease basis from an outsourcing agency. 2. The companies are free from industrial relations problems as human resources take on lease are not their employees. 3. The companies can dispense with this category of employees immediately after the work is over. ? Poaching or Raiding Poaching means employing a competent and experienced person already working in another reputed company, which might be a rival in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions. Whatever may be the means used to raid rival firms for potential candidates, it is often seen as an unethical practice and not openly talked about. In fact, raiding has become a challenge for human resource managers of modern organization. ? Website or e-Recruitment Many big organizations use Internet as a source of recruitment. They advertise the job vacancies through the worldwide web (www). The job seekers send their applications or Curriculum Vitae, CV; through e-mail using Internet, which can be drawn by the prospective employer depending upon their requirements. RECRUITMENT POLICY OF SHREE CEMENT LTD. OBJECTIVE: ? To accomplish the company to plan its manpower requirements in order to meet the organizational objectives and needs. ? To obtain and retain the right human resource material of appropriate skills, knowledge, aptitude and merit which will enable the company to grow and develop into a premier consultancy organization. MODES OF SOURCING: Internal sourcing is more widely used in practice as compared to external sourcing. Except in the lowermost grades, where direct recruitment is unavoidable, there is no specific quota for recruitment from outside. The company provides opportunity for its employees to grow from within the organization by acquiring the necessary qualification, skills, knowledge and training. Even so the company recruits from the open market to positions for which suitable candidates are not available either internally or on deputation from the other organizations like the Indian Railways etc according to job requirements. Deputation: The very nature of the business of the company requires that it should staff the organization with the experienced personnel from the Indian Railways or public undertakings in respect of a number of positions. The terms and conditions of deputation of employees to Naukri. com are decided in accordance with the rules of the central government and in consultation with the parent organization in case of the others. Re-Employment & Appointment Of The Consultants: In respect of certain special jobs requiring services of retired officers and staff of government or Naukri. om, the company may re-employ suitable persons belonging to this category for specified periods, subject to such re-employment being in accordance with the governmentÃ¢â¬â¢s and/or the companyÃ¢â¬â¢s policy and orders. In order to meet the specific job requirements of limited duration which cannot be handled by the companyÃ¢â¬â¢s regular staff for want of expertise or shortage of manpower and with the sp ecific approval of the director/ managing director/ board of directors, the company may appoint consultants/ advisors on the basis of the guidelines laid down by the board of directors / Railway board. Employment Exchanges: The recruitment to the posts up to the pay level of Rs 8000/ or other equivalent level are made through the employment exchanges ( compulsory notification of vacancies) Act, 1956 while considering the candidates recommended by the employment exchange personnel engaged on casual / temporary / ad-hoc/ contractual basis are also considered. Advertisement: The advertisement for a vacancy is drafted in consultation with the concerned departmental head, as and when it is to be released. The advertisement should indicate the job title, qualification experience, age limit and other salient aspects of the job and also the pay scale, allowances and the benefits afforded by the company. The planned advertisements are generally released in the national dailies, but depending upon the location, they are also released in regional / local dailies. Example of advertisement |Example of Job Advertisement | |Junior marketing manager | |Our company is a modern fast growing young business. We are expanding sales to India a bid to | |catch new opportunities for cement sales there. We have many branches to our business nation wide | |and have built up a good reputation within our field of trade. | |We are looking for a dynamic, confident person who is willing to travel and work on his/her own | |behalf. You will need excellent communication skills and diplomatic views and be able to project | |yourself clearly and politely in a positive manor. | |You must have been in an executive sales position previously and have had at least 0-3 years | |selling experience. Preferably in cement sales, candidate must MBA/PGDM marketing qualified. | |The job involves extensive travel around north India withÃ sales meeting to be held every 2 months. | | | |Salary is 200000-300000 per annum. T. A. AND HOLIDAY ALLOWANCES. Training will be given. | |Apply in writing To; shree cement Ltd. Bangur nagar beawar Ajmer (Raj. ) | |Ã Closing dateÃ¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦.. | Campus Recruitment: Campus recruitment is carried out from time to time to induct fresh talent in the organization from selected institutes. Recruitment for the posts of engineers is also made through campus interviews to meet the urgent requirements of the company. Institutes: Well established technical institutes and engineering colleges are selected by the competent authority are chosen and an association is maintained on a long-term basis. Process: ? Campus visits: visits are scheduled to the technical institutions and engineering colleges during the placement season. Teams of senior officers are deputed to these institutes and colleges for campus recruitment. ? Such of the applicants so screened as per the laid down criteria and found qualified are being called for appearing in the written test or interview to be conducted by the nominated selection board. ? All such recruits are required to serve the companies for a minimum period of three years. They are also required to execute a bond of Rs one lac in this regard and submit one surety. SELECTION PROCESS THE CHALLENGES: ? Selection is a critical process ? Locating The Right Person Requires a huge investment of money to get right types of people. ? Structure of Selection Process that helps companies to test for fit ? Employment Tests to rightly judge the capabilities of candidates ? Selecting people who possess the ability and qualifications to perform the jobs. Selection involves a series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The process of selection leads to employment of persons who possess the ability and qualifications to perform the jobs, which have fallen vacant in an organization. The process of selection divides the candidates for employment into two categories, namely, those who will be offered employment and those who will not be. The basic purpose of the selection process is to choose right type of candidates to man various positions in the organization. In order to achieve this purpose, a well-organized selection procedure involves many steps and at each step, unsuitable candidates are rejected. Both recruitment and selection are the two phases of the employment process. Recruitment being the first phase envisages taking decisions on the choice of tapping the sources of workforce supply. Selection is the second phase, which involves giving various types of test to the candidates and interviewing them in order to select the suitable candidates only. SIGNIFICANCE OF SELECTION PROCESS Selection is a critical process these days because it requires a huge investment of money to get right types of people. If the right types of persons are not chosen, it will lead to huge loss of the employer in term of time, effort and money. Therefore it is essential to devise a suitable selection procedure. Each step in the selection procedure should help in getting more and more information about the applicants to facilitate decision-making in the area of selection. The benefits of selecting right kind of people for various jobs are as follows: ? Proper selection and placement of personnel go a long way towards building up a stable workforce. It will keep the rates of employee turnover low. ? Competent employees show higher efficiency and enable the organization to achieve its objectives effectively. When people get jobs of their taste and choice, they get higher job satisfaction & in turn result into a part of a contended workforce for the organization People involved in the selection process are: Ã¢â¬ ¢ HR Department Ã¢â¬ ¢ Respective department head. Ã¢â¬ ¢ Respective divisional head. What Selection Is All About? All selection activities, from the initial screening interview to the physical examination if required, exist for the purpose of making effective selection decisions. Each activity is a step in the process that forms predictive exercise-managerial decision makers seeking to predict which job applicants will be successful if hired. In actuality, the selection process represents an effort to balance the objectives of evaluating and attracting. SIGNIFICANCE OF SELECTION PROCESS Selection is a critical process these days because it requires a huge investment of money to get right types of people. If the right types of persons are not chosen, it will lead to huge loss of the employer in term of time, effort and money. Therefore it is essential to devise a suitable selection procedure. Each step in the selection procedure should help in getting more and more information about the applicants to facilitate decision-making in the area of selection. The benefits of selecting right kind of people for various jobs are as follows: ? Proper selection and placement of personnel go a long way towards building up a stable workforce. It will keep the rates of employee turnover low. ? Competent employees show higher efficiency and enable the organization to achieve its objectives effectively. When people get jobs of their taste and choice, they get higher job satisfaction & in turn result into a part of a contended workforce for the organization. SELECTION PROCESS COMPRISES OF THE FOLLOWING STEPS: 1. Receipt of Applications: It is the first step in the process of selection process. The application form gives preliminary information about the candidate and assists the interviewer in formulating the questions to obtain more information about the candidate. 2. Scrutiny of Application: All those who have applied for the job may not be suitable for it so the HR department carries out a proper scrutiny of applications to select the candidates to be called for preliminary interview. 3. Preliminary Interview by HR Department: The HR department takes this interview. The candidates are asked about their qualifications, experience, interest, residence, age etc. Those whose qualification and does not match are rejected. . Interview taken by the person from the particular department: here they ask about the work experience; why he/she left the earlier job, ask about his/her background etc. The interviewer matches the job specification, qualification, ability to work under stress etc. At this level rejection are made if the interviewer does not find the candidate suitable fo r the job. 5. Interview by HR and Department Head: At this level, the HR & department head, both take interview of the selected candidates to know more about them. It is a very friendly conversation with them including specialized questions. The HR head tell the interviewee about the company, its mission, objectives and responsibilities of the job, which have applied for, salary, compensation, etc. 6. Placement and Orientation: Orientation and placement of Naukri. com covers the activities involved in introducing the new employees to the organization and to his or her work unit. It familiarize new employee with the Ã¢â¬â¢s objectives, history, procedures, and rules, communicate relevant personnel policies such as hours of work, pay procedures, overtime requirements, provide a tour of the companyÃ¢â¬â¢s physical facilities and introduce him to his superior and co-workers. SELECTION PROCESS AT SCL ? Receiving Applications Whenever there is a vacancy, it is advertised or enquiries are made from the suitable sources, and applications are received from the candidates. ? Screening of Application: All the applicants received in response to recruitment notification are scrutinized for the purpose of screening and short-listing the candidates who should be called for the selection. The company restricts selection to the more meritorious of the applicants through an appropriate process of initial screening. ? Selection Committee: Selection committee is constituted under the orders of the managing director or any other officer to whom the power to constitute such committees for the purpose of conducting the written tests and/ or interviews. The selection committee decides the actual scheme of the tests/ interview depending upon the requirements of the job for which recruitment is made. ? Selection Employment Interview: A minimum of 60% marks in the aggregate and also in the performance at the written test and interview is required to enable the candidates to be finally selected. The selection committee recommends the panel of successful candidates in order to the Board of directors as the case may be for employment. The main purposes of an employment interview are: Ã¢â¬â To find out the suitability of the candidate, Ã¢â¬â To seek more information about the candidate, and Ã¢â¬â To give candidate accurate picture of a job with details of term & conditions and some idea of organizationÃ¢â¬â¢s policies. Employment Interview may consist of number of rounds of interview with various interviewers ? Checking References A referee is potentially an important source of information about a candidateÃ¢â¬â¢s ability and personality if he/she holds a responsible position in some organization or has been an employer of the candidate ? Medical Checkup: An important part of the selection process is also to ensure the employee is free from all kind of diseases that can hamper his work. For this purpose, every short listed candidate goes through a medical check-up to ensure his physical fitness. The pre-employment physical examination or medical test of a candidate is an important step in the selection procedure. Medical examination as part of selection procedure depends entirely upon the kind of jobs to be offered to the candidates. For instance some industries do not take up medical examinations of the candidates at all. ? Letter Of Appointment: After the candidate has cleared all the hurdles in the selection procedure, he/se is formally appointed by issuing an appointment letter by concluding with him/her a service agreement. Generally in all organizations, the candidates are not appointed on permanent basis because it is better to try them for few months on the job itself. Thus all candidates have a probation period & candidates are expected to show their worth during the probation period to get permanent employment in the particular organization. CLASSIFICATION OF EMPLOYMENT TESTS & INTERVIEWS Employment Tests ? Intelligence Tests: These tests are used to judge the mental capacity of the applicants. They measure the individual learning abilities, i. e. , the ability to catch or understand instructions and also ability to make decision and judgment. These tests are used in the selection of personnel for almost every kind of job from the unskilled to the skilled one. Aptitude Tests: Aptitude means the potential that an individual has for learning and skills required to a job efficiently. They measure an applicantÃ¢â¬â¢s capacity and his potential for development. ? Proficiency Tests: Proficiency Tests are those, which are designed to measure the skills already acquired by the individuals. A proficiency test takes a sample of individualÃ¢â¬â¢s behavi or, which is designed as replica of the actual work situation. ? Interest Tests: Interest tests identify patterns of interest that is areas in which the individual shows special concern, fascination & involvement. These tests will suggest what types of jobs may be satisfying to the employees. ? Personality Tests: Personality test probes the qualities of the personality as a whole, the combination of aptitude, interest and usual mood & temperament. Employment Interviews The nature of employment interviews varies from firm to firm. It may be conducted in the following forms: ? Patterned or Structured Interview: In this interview, a series of questions, which can illuminate the significant aspects of the applicantÃ¢â¬â¢s background, are standardized in advance. During the interview, the standardized questions are asked as they are written; the order may vary but not the phrasing of the questions. ? Unstructured or Non-directed Interview: The interviewer does not ask direct & specific questions. He/she creates an atmosphere in which the candidate feels free to talk on the subject selected by the interviewer. ? Preliminary or Background information Interview: This type of interview is conducted when the history of the applicant has to be known in terms of his experience, education, health, interest & so on. It is more or less a preliminary interview. ? Stress Interview: The applicant is intentionally put under a stress by interrupting him, criticizing his/her viewpoint and keeping silent after he has finished speaking. ? Group Interview: It is an interview of a number of applicants in a group. The interviewers can see reactions of the applicants in dealing with each other. It is used where it is essential to know how the candidates behave in a group. PROBATION AND CONFIRMATION PROBATION PERIOD: All initial appointments in the company as a result of direct recruitment in accordance with the rules (except those of a temporary, ad-hoc, casual or contractual nature and those on foreign service or deputation terms from govt. or other undertakings) are on probation for a period of one year. During the period of probation, an employee is liable to be discharged from the service of the company without assigning any reason at the sole direction of the management. The period of the probation may be extended or curtailed in the individual cases by the competent authority on the merits of each case. During the period of probation, the employees are required to undergo such training as is called by the requirements of their jobs. Successful completion of the probation and the prescribed training course will make the employee eligible for regularization and confirmation in the companyÃ¢â¬â¢s employment. CONFIRMATION: The personnel division screens the probationers in an appropriate manner and obtains and notifies the approval of the competent authority for the regularization/ confirmation of individual direct recruits. | | | | | |SERIAL NO. |ACTIVITY/ PROCEDURE | | | | |1. Technical scrutiny of applications | | | | |2. |Approval for calling eligible candidates for written tests and interviews | | | | |3. |Dispatch of call letters | | | | |4. Selection of candidates called for interview | | | | |5. |Medical check-up | | | | |6. Dispatch of appointment letters | | | | |7. |Joining at | TRAINING Ã¢â¬â A TOOL FOR SUCCESS We know that successful candidates placed on the jobs need training to perform their duties effectively. Workers must be trained to operate machines, reduce scrap and avoid accidents. It is not only the workers who need training. Supervisors, managers and executives also need to be developed in order to enable them to grow and acquire maturity of thought and action. Training and development constitute an ongoing process in any organization. This chapter is devoted to a detailed discussion on the nature and process of training and development in a typical industrial establishment. Training could be compared to this metaphor Ã¢â¬â if I miss one meal in a day, then I will starve to death. The survival of the organization requires development throughout the ranks in order to survive, while training makes the organization more effective and efficient in its day-to-day operations. As a brief review of terms, training involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs. Development is a broad, ongoing multi-faceted set of activities (training activities among them) to bring someone or an organization up to another threshold of performance, often to perform some job or new role in the future. Training is the formal and systematic modification of behavior through learning which occurs as a result of education, instruction, development and planned experience. Ã¢â¬ Development is any learning activity, which is directed towards future, needs rather than present needs, and which is concerned more with career growth than immediate performance. Training is the hallmark of good management. Today tec hnical training is no longer enough, employees also need skills in the team building, decision making and communication. As competition demands better service, employees increasingly require customer service training. Competent employees do not remain competent forever. Due to the ever-changing business environment and market conditions, their skills become obsolete. Thus organizations spend billions of rupees on their training programs so as to upgrade the skills and knowledge of their employees in order to have an edge over its competitors and to gain profits. Training programs are directed towards improving job performance of the employees. Intensified competition, technological changes and the need for improved productivity are motivating the management to increase their expenditure on training. People at all levels in the organization need to undergo training to be able to deliver the best results. Training, Development, and Education HRD programs are divided into three main categories: Training, Development, and Education. Although some organizations lump all learning under Ã¢â¬Å"TrainingÃ¢â¬ or Ã¢â¬Å"Training and Development,Ã¢â¬ dividing it into three distinct categories makes the desired goals and objects more meaningful and precise. Training is the acquisition of technology, which permits employees to perform their present job to standards. It improves human performance on the job the employee is presently doing or is being hired to do. Also, it is given when new technology in introduced into the workplace. Education is training people to do a different job. It is often given to people who have been identified as being promotable, being considered for a new job either lateral or upward, or to increase their potential. Unlike training, which can be fully evaluated immediately upon the learners returning to work, education can only be completely evaluated when the learners move on to their future jobs or tasks. We can test them on what they learned while in training, but we cannot be fully satisfied with the evaluation until we see how well they perform their new jobs. Development is training people to acquire new horizons, technologies, or viewpoints. It enables leaders to guide their organizations onto new expectations by being proactive rather than reactive. It enables workers to create better products, faster services, and more competitive organizations. It is learning for growth of the individual, but not related to a specific present or future job. Unlike training and education, which can be completely evaluated, development cannot always be fully evaluated. This does not mean that we should abandon development programs, as helping people to grow and develop is what keeps an organization in the cutting edge of competitive environments. Development can be considered the forefront of what many now call the Learning Organization. Development involves changes in an organism that are systematic, organized, and successive and are thought to serve an adaptive function. EMPLOYEE TRAINING For the new employees, on-the-job training is given. The new employees are being exposed to the practical job under the guidance of the old co- worker and its immediate superior. Training and output go hand in hand. For the existing employees, a workshop is conducted to make them aware of the new technology or new system to be used. In that workshop they are taught how to use the new machine (if introduced), they are told about the benefits of using the new technology etc. Also they follow is cross training, when implemented horizontally, upward and downward. Department heads, assistants and employees can cross-train either within the department or in different departments. With support, employees can have a day's training in the role of department heads (Ã¢â¬Å"King for the DayÃ¢â¬ ). A department head can take a General Manager's role in his absence. It is a part of their yearly training and covers all positions and departments. Beginning with the supervisory level it must filter down to entry-level positions. This technique achieves the following objectives: Ã ? Prevents stagnation ? Offers learning and opportunities for professional development ? Rejuvenates all departments ? Improves understanding of different departments and the company as a whole ? Leads to better coordination and teamwork ? Erases differences, antagonism and unhealthy competition ? Increases knowledge, know-how, skills and work performance ? Improves overall motivation ? Enables sharing of organisational goals and objectives CONCEPT OF TRAINING MEANING: Training & development refers to the imparting of specific skills, abilities and knowledge to an employee. Development refers to those learning opportunities designed to help the employees. Development is not primary skill oriented. Instead, it provides general knowledge and attitudes that will be helpful to employees in higher positions. TRAINING & DEVELOPMENT NEED: Training Need = Standard Performance Ã¢â¬â Actual Performance INPUTS IN TRAINING & DEVELOPMENT: 1. Skills 2. Education 3. Development 4. Ethics 5. Attitudinal changes ? Skills: A worker needs skills to operate machines and other equipments with the least damage and scrap. Employees, particularly supervisors and executives, need interpersonal skills popularly known as the people skills. ? Education: The purpose of the education is to teach the theoretical concepts and develop a sense off reasoning and development. Education is training people to do a different job. It is often given to people who have been identified as being promotable, being considered for a new job either lateral or upward, or to increase their potential. Unlike training, which can be fully evaluated immediately upon the learners returning to work, education can only be completely evaluated when the learners move on to their future jobs or tasks. We can test them on what they learned while in training, but we cannot be fully satisfied with the evaluation until we see how well they perform their new jobs. ? Development: Development is training people to acquire new horizons, technologies, or viewpoints. It enables leaders to guide their organizations onto new expectations by being proactive rather than reactive. It enables workers to create better products, faster services, and more competitive organizations. It is learning for growth of the individual, but not related to a specific present or future job. Unlike training and education, which can be completely evaluated, development cannot always be fully evaluated. This does not mean that we should abandon development programs, as helping people to grow and develop is what keeps an organization in the cutting edge of competitive environments. Development can be considered the forefront of what many now call the Learning Organization. Development involves changes in an organism that are systematic, organized, and successive and are thought to serve an adaptive function. ? Ethics: There is a need for imparting greater ethical organization to a training development program. There is no denial of the fact that the ethics are largely ignored in businesses. ? Attitudinal changes: Attitudes represent feeling and beliefs of individuals towards others. The negative attitudes of the employees must be changed through training and development programs. IMPORTANCE OF TRAINING AND DEVELOPMENT Training and development is of vital importance in the success of any organization 1. Training provides greater stability, flexibility and capacity for growth in an organization 2. Scrap and damages to machinery and equipment can be avoided or minimized through training. 3. Training serves as an efficient source of recruitment. 4. Training is an investment in HR with a promise of better returns in future. Training and development programs, as was pointed out earlier, help remove performance deficiencies in employees. This is particularly true when Ã¢â¬â The deficiency is caused by a lack of ability rather than a lack of motivation to perform, Ã¢â¬ ¢ The individuals involved have the aptitude and motivation need to learn to do the job better, and Ã¢â¬ ¢ Supervisors and peers are supportive of the desired behaviors. There is greater stability, flexibility and capacity for growth in an organization. Training contributes to employs contribute t o the stay with the organization. Growth renders stability to the workforce. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employees versatile in operations. All rounder can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits form year to year. Who else but well-trained employees can contribute to the prosperity of an enterprise? Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well. Future needs of employees will be met through training and development programs. Organizations take fresh diploma holders or graduates as apprentices or management trainees. They are absorbed after course completion. Training serves as an effective source of recruitment. Training is an investment in HR with a promise of better returns in future. THE PURPOSE OF T