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“A STUDY ON EFFECTIVES OF RECRUITMENT AND SELECTION PROCESS
AT
IBS SOFTWARE SERVICES PVT LTD.”
PROJECT REPORT
Submitted to Mahatma Gandhi University in partial fulfilment of the
requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
RAIBY MATHEW
Reg. No. 84658
Under the guidance of
LIGO KOSHY
Faculty Guide
Accredited by NAAC with ‘A’ Grade
DEPARTMENT OF MANAGEMENT STUDIES
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES TIRUVALLA
JUNE, 2018
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323 Fax: 0469 2730317
macfast@macfast.orgm, www.macfast.org
CERTIFICATE
This is to certify that the project report entitled “A Study on Effectiveness of
Recruitment and Selection Process at Ibs Software Services pvt ltd.” is a bonafide report of
the project work undertaken by Raiby Mathew, fourth semester MBA student of our college
during a period of 8 weeks commencing from 8th January to 8th march 2018.
Ligo Koshy Dr. Sudeep B Chandramana
Faculty Guide Head, Dept. of Management Studies
Fr. Dr. Cherian J Kottayil University Examiner
Principal
COMPANY CERTIFICATE
DECLARATION
I hereby declare that this project report entitled “A Study on Effectiveness of Recruitment
and Selection Process at Ibs Software Services Pvt ltd.” is a bonafide report of the study
undertaken by me, under the guidance of Ligo Koshy, Department of Management Studies,
MACFAST, Tiruvalla.
I also declare that this project report has not been submitted to any other University or
Institute for the award of any degree or diploma.
Place : Tiruvalla
Date : Raiby Mathew
ACKNOWLEDGEMENT
My sincere thanks to almighty god for his blessings showered on me to complete this
organization study.
I express my heartiest thanks to our respected principal Rev. Fr. Dr. Cherian J
Kottayil for the facilities provided for the execution of the report. I also express my heartfelt
thanks to Dr. Sudeep B Chandraman, Head of the Department of Management Studies for
providing all the help in doing this project.
I express my heartfelt gratitude to my faculty guide Mr. Ligo Koshy for the great
guidance and valuable suggestions in the preparation of this project report.
I am highly indebted to Mrs.Geetu Elizabeth Mathew, Lead-Human Resourses at
Ibs Software Services Pvt Ltd for his guidance and constant supervision and also providing
me with necessary information’s regarding the project.
I would also like to express my gratitude towards my parents, friends, and the member
of the organization Ibs Software Services Pvt Ltd which helped me to complete this project.
The experience I have gathered will be a privilege for my future career planning and
believe that this endeavor has prepared me for taking up new-challenges in future.
Above all I thank almighty for showering his blessing on me.
Last but not least I would like to express my thanks to all my friends for their help in
completing this report.
Raiby Mathew
LIST OF TABLES
Table.
No
Title Page.No
4.1 The gender of respondents among professionals
4.2 The age group of respondents among professionals
4.3 The marital status of respondents among professionals
4.4 The qualification of respondents among professionals
4.5 The experience of respondents among profession
4.6 The organisation's ability to clearly define the job description and
job specification
4.7 The average time spent by the interviewers during interview
4.80 The company’s ability to recruit based on the candidates experience
level, qualification and communication skills
4.9 The new recruit’s ability to get work along with the working
environment of ibs
4.10 How well do those hired perform on the job
4.11 The quality of interview and selection process to separate
performers from pretenders
4.12 The quality of information given to rejected candidates about their
status of application
4.13 The consideration given to the internal candidates for all jobs
before outside recruitment begins
4.14 The effectiveness of the interviewing process and other selection
instruments such as test
4.15 Maximum duration taken by the recruiters for recruitment
4.16 How the rejected candidates are informed
4.17 What mode of interview do the respondents prefer
4.18 Difference in the opinion regarding the consideration given for
internal candidates before external recruitment begins on the basis
of gender
4.19 Difference in the opinion regarding the consideration given for
internal candidates before external recruitment begins on the basis
of age
4.20 Difference in the opinion regarding the consideration given for
internal candidates before external recruitment begins on the basis
of marital status
4.21 Difference in the opinion regarding the consideration given for
internal candidates before external recruitment begins on the basis
of qualification
4.22 Difference in the opinion regarding the cosideration given for
internal candidates before external recruitment begins on the basis
of experience
4.23 Difference in the opinion regarding which qualities in a candidate
to be given more importance on the basis of gender
4.24 Difference in the opinion regarding which qualities in a candidate
to be given more importance on the basis of age
4.25 Difference in the opinion regarding which qualities in a candidate
to be given more importance on the basis of marital status
4.26 Difference in the opinion regarding which qualities in a candidate
to be given more importance on the basis of qualification
4.27 Difference in the opinion regarding which qualities in a candidate
to be given more importance on the basis of experience
4.28 Difference in the opinion regarding which is the best way to hire
employees on the basis of gender
4.29 Difference in the opinion regarding which is the best way to hire
employees on the basis of age
4.30 Difference in the opinion regarding which is the best way to hire
employees on the basis of marital status
4.31 Difference in the opinion regarding which is the best way to hire
employees on the basis of qualification
4.32 Difference in the opinion regarding the challenges in recruitment
and selection on the basis of gender
4.33 Difference in the opinion regarding the challenges in recruitment
and selection on the basis of age
4.34 Difference in the opinion regarding the challenges in recruitment
and selection on the basis of marital status
4.35 Difference in the opinion regarding the challenges in recruitment
and selection on the basis of qualification
4.36 The gender of respondents among professionals
4.37 The age group of respondents among employees
4.38 The marital status of respondents among employees
4.39 The qualification of respondents among employees
4.40 The experience of respondents employees
4.41 Recruitment teams ability to clearly define the job description and
job specification
4.42 The recruiters approach in recruitment and selection
4.43 Rating of the interview process in the ibs
4.44 The rating of recruitment practices of ibs in terms of rigidity in
eligibility criteria
4.45 Satisfaction level of respondents with the quality and relation of
questions to the job
4.46 Satisfaction level with the frequency of the recruitment team in
terms of feedback
4.47 Satisfaction level with the on- boarding activities of ibs
4.48 Rating regarding the information communicated about the selection
process to the candidates by the organization
4.49 Rating on company’s consideration given to internal candidates
for all jobs before outside recruitment begins
4.50 Treatment of organization in termsof respect and fairness
4.51 The opinion regarding the perception of interview process in ibs
among gender
4.52 Difference in the opinion regarding the perception of interview
process in ibs among age group
4.53 Difference in the opinion regarding the perception of interview
process in ibs among marital status
4.54 Difference in the opinion regarding the perception of interview
process in ibs among qualification
4.55 Difference in the opinion regarding the perception of interview
process in ibs among experience
4.56 Difference in the satisfaction towards the on boarding activities of
ibs among gender
4.57 Difference in satisfaction towards the on boarding activities of ibs
among age group
4.58 Difference in satisfaction towards the on boarding activities of ibs
among marital status
4.59 Difference in the satisfaction towards the on boarding activities of
ibs among qualification
4.60 Difference in the opinion of getting information of the job
opportunity based on gender
4.61 Difference in the opinion of getting information of the job
opportunity based on age group
4.62 Difference in the opinion of getting information of the job
opportunity based on marital status
4.63 Difference in the opinion of getting information of the job
opportunity based on qualification
4.64 Difference in the opinion of getting information of the job
opportunity based on experience
4.65 The mode of hiring in which you are placed in the organization
4.66 Best mode of interview
LIST OF FIGURES
Figure.No Title Page.No
2.1.1 Recruitment process
2.7.1 Selection process
2.9.1 Recruitment process in ibs software
3.2.5 Cargo sales and commercial solutions
3.2.6 Cargo terminal operations
3.2.7 Revenue Accounting
3.2.8 ULD Management
3.2.9 Mail Management
4.1 The gender of respondents among professionals
4.2 The age group of respondents among professionals
4.3 The marital status of respondents among professionals
4.4 The qualification of respondents among professionals
4.5 The experience of respondents among profession
4.6 The organisation's ability to clearly define the job description and
job specification
4.7 The average time spent by the interviewers during interview
4.8 The company’s ability to recruit based on the candidates
experience level, qualification and communication skills
4.9 The new recruit’s ability to get work along with the working
environment of ibs
4.10 How well do those hired perform on the job
4.11 The quality of interview and selection process to separate
performers from pretenders
4.12 The quality of information given to rejected candidates about
their status of application
4.13 The consideration given to the internal candidates for all jobs
before outside recruitment begins
4.14 The effectiveness of the interviewing process and other selection
instruments such as test
4.15 Maximum duration taken by the recruiters for recruitment
4.16 How the rejected candidates are informed
4.17 What mode of interview do the respondents prefer
4.35 The gender of respondents among professionals
4.36 The age group of respondents among employees
4.37 The marital status of respondents among employees
4.38 The qualification of respondents among employees
4.39 The experience of respondents employees
4.40 Recruitment teams ability to clearly define the job description
and job specification
4.41 The recruiters approach in recruitment and selection
4.42 Rating of the interview process in the ibs
4.43 The rating of recruitment practices of ibs in terms of rigidity in
eligibility criteria
4.44 Satisfaction level of respondents with the quality and relation of
questions to the job
4.45 Satisfaction level with the frequency of the recruitment team in
terms of feedback
4.46 Satisfaction level with the on- boarding activities of ibs
4.47 Rating regarding the information communicated about the
selection process to the candidates by the organization
4.48 Rating on company’s consideration given to internal candidates
for all jobs before outside recruitment begins
4.65 The mode of hiring in which you are placed in the organization
4.66 Best mode of interview
ABBREVATIONS
BPM- Business Process Management
CAAC - Civil Aviation Of China
CAGR - Compound Annual Growth Rate
CAMO - Continuing Airworthiness Management Organisation
CGI - Core Group of Influence
CII - Confederation of Indian Industry
CRA - Cargo Revenue Accounting
Deity - Department of Electronics and Information Technology
DIPP - Department of Industrial Policy and Promotion
DTS - Discovery Travel Systems
EASA - European Aviation Safety Agency
EDF - Electronic Development Funds
e-TV - e-Tourist Visa
FAA - Federal Aviation Administration
GDP - Gross Domestic Product
GPS - Global Positioning System
HBSi - Hotel Booking Solutions incorporated
HRD - Human Resource Development
ICT - Information and Communication Technology
IDC - International Data Corporation
IIIT-H - International Institute of Information Technology
JAA - Joint Aviation Authorities
M&E - maintenance and engineering
MPM - Manpower Management
MRO - Maintenance Repair and Overhaul
NASSCOM- National Association of Software & Services Companies
NCA - Nippon Cargo Airlines
NDLM- National Digital Literacy Mission
PAs - Postal Administrations
PMS - Property Management System
PoB - Personnel On Board Management
PPP - public-private partnership
PSS - Passenger Service System
SMAC - Social, Mobility, Analytics and Cloud
TTL - Travel, Transportation and Logistics
ULD - Unit Load Device
VC - Venture Capital
CONTENTS
Page No.
ACKNOWLEDGEMENT (i-ii)
LIST OF TABLES (iii- iv)
LIST OF FIGURES (v)
ABBREVIATIONS (vi)
CHAPTER I – INTRODUCTION
1.1 Statement of the Problem
1.2 Significance of the Study
1.3 Review of Literature
1.4 Objectives of the Study
1.5 Hypotheses of the Study
1.6 Methodological Design of the Study
1.7 Sampling Design
1.8 Tools for Analysis
1.9 Reference Period
1.10 Limitations of the Study
1.11 Chapterisation
CHAPTER II -THEORETICAL FRAMEWORK OF THE STUDY
CHAPTER III - PROFILE OF….
3.1 Industry
3.2 Company
CHAPTER IV - ANALYSIS AND INTERPRETATION OF DATA
CHAPTER V - SUMMARY OF FINDINGS, CONCLUSIONS AND
SUGGESTIONS
BIBLIOGRAPHY
APPENDICES
1
CHAPTER – 1
INTRODUCTION
2
1. INTRODUCTION
In today’s rapidly changing business environment, organizations have to respond quickly to
requirements for people. Many private players have entered the economy thereby increasing
the level of competition. In the competitive scenario it has become a challenge for each
company to adopt practices that would help the organization stand out in the market. The
competitiveness of a company or an organization is measured through the quality of products
and services offered to customers are result of the genius brains working behind them.
Human Resources in this regard has become an important function in any organization. All
practices of marketing and finances can be easily emulated but the capability, the skills and
talent of a person cannot be emulated. Hence, it is important to have a well-defined
recruitment policy in place, which can be executed effectively to get the best fits for the
vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out
to be costly mistakes for the organization. Therefore, a recruitment practice in an organization
must be effective and efficient in attracting the best manpower.
In the case of an expanding company like IBS Software Services there is a new post created
every day. Thus, recruitment is an ongoing process carried throughout the year. The project is
based on the evaluation of effectiveness of recruitment and selection process. The various
recommendations suggested have been the rest of the study. The idea is to generate ways of
dealing with arising need for manpower and making hiring process manageable and efficient.
To pursue these, I would be going through the recruitment policies of the company. By
active participation in the recruitment process, the areas where improvement can be bought
about can be identified.
1.1. STATEMENT OF THE PROBLEM
The success of organizations in this modern business environment depends on the calibre of
the manpower that steers the day to day affairs of the organizations. The process of recruiting
and selecting all categories of employees has been a matter of concerns to may organizations
and needs attention. Even though it is the wish of every organization to attract the best human
resource in order to channel their collective effort into excellent performances,
unconventional selection practice can mar any business plan. This study will therefore,
identify and assess the effectiveness of the recruitment and selection practices and procedures
of IBS Software.
3
1.2 SIGNIFICANCE OF THE STUDY
A researcher has its own importance in any business organization. It is a systematic and
scientific investigation of any idea either precise or abstract from continuous basis of
learning. As we know in present times, the modern world is progressing at a very high pace.
Due to high competition and increased expectations, every organization needs effective
recruitment and selection process. By this study new segments of recruitment and selection
process has been discovered. This will help to enhance the capability of IBS Software in
using the recruitment and selection process more effectively.
This project would be significant for the readers as it is providing them knowledge about
recruitment and selection process.
1.3 REVIEW OF LITERATURE
The study of Odiorne (1984) indicates that the quality of new recruits depends upon the
organization’s recruitment practice and that the relative effectiveness of selection phase is
inherently dependent upon the caliber of candidates attracted. One result of effective
recruitment and selection is reduced labor turnover and good employee morale.
Burack (1985) persuaded that recruitment sources are significantly linked to differences in
employee performance, turnover, satisfaction and organizational commitment. Dowling and
Schuler (1990) said that the primary aim of recruitment is searching for and obtaining
potential job candidates in sufficient numbers and quality in order for the organization to be
able to select the most appropriate people to satisfy its job needs.
Huselid (1995), Enlighted in his studies that recruitment procedures provide a large pool of
qualified applicants, paired with a reliable and valid selection regime that will have a
substantial influence over the quality and type of skills new employees possess. The
implication of this line of thought is that an organization’s human resource policies and
practices represent important forces for shaping employee behavior and attitudes.
Delery and Doty(1996), suggested that providing the respondents with great awareness of
employment opportunities and equipping them with the ability to be proactive in approaching
potential employers will lead to more effective career self-management and selection process.
4
In the work of Gareth Roberts (1997) it is mentioned that the process of attracting people to
apply for the job requires achievement of a balance. There need to be sufficient candidates to
afford an opportunity to choose and also the quality of candidates needs to be good enough to
make such decisions meaningful.
Elwood & James, (1996) said that recruitment and selection form a major part of an
organization’s overall resourcing strategies, which identifies and secures people needed for
an organization to survive and succeed in the short to long-term.
Bratton & Gold (1999) suggested in their studies that recruitment and selection are the
initial stages of a dialogue among applications and the company that shapes the employment
relationship. This relationship being the essence of a company's manpower development,
failure to acknowledge the importance of determining expectation during recruitment and
selection can lead to the loss of high quality job seekers and take the initial stage of the
employment relationship so down as to make the accomplishment of desirable HRM
outcomes extremely difficult.
Montan and Charnou (2000) in their findings suggest that recruitment and selection include
sourcing candidates by advertising or other methods, screening potential candidates using
tests and interviews, selecting candidates based on the results of the tests or interviews, and
on-boarding to ensure that the candidates are able to fulfill their new roles effectively.
The theories of Zottoli & Wanous(2000) reveals that the effectiveness of recruitment and
selection process has primarily been assessed by examining the rates of turnover, job survival
and job performance along with organizational issues such as referrals by current personnel,
in-house job postings, and the re-hiring of former employees.
The studies of Bohlander, Snell & Sherman (2001) is that it is important for managers to
understand the objectives, policies and practices used for selection. More importantly, those
responsible for making selection decisions should have adequate information upon which to
base their decisions.
Based on the theory of Barney (2001), firms should constantly evaluate their workforce to
ensure that they have the right people with the right skills in the right places to ensure
sustained competitive advantage and when this is not the case, firms should make-up for the
shortfall by employing appropriate recruitment and selection criteria. The theory maintained
5
that the major part of any firm’s strength or weakness stem from the caliber of the people
employed and the quality of their working relationships.
Human Resource Management theories of Korsten (2003) emphasize on techniques of
recruitment and selection and outline the benefits of interviews, assessment and psychometric
examinations as employee selection process. It also states recruitment process may be
internal or external or may also be conducted online and this process is based on the levels of
recruitment policies, job postings and details, advertising, job application and interviewing
process, assessment, decision making, formal selection and training.
The findings of Robbins (2005), shows that organization’s human resource policies and
practices represent important forces for shaping employee behavior and attitudes. The study
suggests that in designing and instituting recruitment and selection criteria quality should not
be compromised. This is more so as the right type of labor is hard to come by.
In the work of Armstrong (2006), people and their collective skills, abilities and experience,
coupled with their ability to deploy these in the interests of the employing organization, are
now recognized as making a significant contribution to organizational success and also
constituting a significant source of competitive advantage.
In the view of Rauf (2007) there is a positive association between the extensiveness of
recruiting, selection test validation and the use of formal selection procedures, organisations
performance and firm profits. The sophisticated recruitment and selection procedures are
positively related to performance in organizations.
In the work of Dessler, G. (2008), the main aim of employee selection is person job fit.
Person job fit means matching the knowledge, skills, abilities and competencies that are
required for performing the job based on job analysis with the applicant’s knowledge, skills,
abilities and competencies. Selecting the right employee leads to improved employee and
organizational performance.
Mohamed Branine (2008) has persuaded that graduate recruitment and selection process
refers to the process of searching for and obtaining potential job applicants from graduates in
sufficient quantity and quality so that potential employers can select the most suitable
candidates to fill in their job vacancies
The theory of Henry and Temtime (2009) says that recruitment is the entry point of
manpower into an organization and the path an organization must follow from there on in
6
order to make sure that they have attracted the right individuals for their culture and vibes so
that the overall strategic goals are achieved .
From the work of Ezeali and Esiagu(2010) recruitment and selection in any organization is a
serious business as the success of any organization or efficiency in service delivery depends
on the quality of its workforce who was recruited into the organization through recruitment
and selection exercises.
Opatha (2010) persuaded that recruitment is the process of finding and attracting suitably
qualified people to apply for job vacancies in the organization. It is a set of activities an
organization uses to attract job candidates who have the needed abilities and attitudes.
Recruitment is the process of generating a pool of qualified applicants for organizational job
vacancies. Selection is the process of making the choice of the most suitable applicant from
the pool of applicants recruited to fill the relevant job vacancy.
Rao (2010) said that recruitment is the first step after which selection and placement comes
in the employment process. Employers aim is to choose an appropriate candidate suitable for
a particular job. Recruitment is the activity done by the HR’s in many organizations. The
recruitment process differs from one organization to others.
In the work of Ofori & Aryeetey (2011) recruiting and selecting the wrong candidates who
are not capable come with a huge negative cost which businesses cannot afford. Thus, the
overall aim of recruitment and selection within the organization is to obtain the number and
quality of employees that are required to satisfy the strategic objectives of the organization, at
minimal cost. Recruitment is the process of generating a pool of competent individuals to
apply for employment within an organization.
The insight of the work of Sinha and Thaly (2013) mention that there is a variety of
recruitment approaches such as employee referral, campus recruitment, advertising,
recruitment agencies/consultants, job sites/portals, company websites, social media etc, and
most organizations will use a combination of two or more of these as part of a recruitment
process or to deliver their overall recruitment strategy. Also which recruiting channels should
be used depends on the job position, on the company’s employer brand, on the resources the
company has on its recruiting team, on how much recruiting budget the company has, etc.
One can use them all and find out which suits the best.
7
The study of Gamage (2014) suggests that recruitment and selection are vital functions of
human resource management for any type of business organization. These are terms that refer
to the process of attracting and choosing candidates for employment. General purpose of
recruitment is to provide the organization with a pool of potentially qualified job candidates.
The quality of human resource in an organization highly depends on the quality of applicants
attracted because organization is going to select employees from those who were attracted.
REFERENCES
1. George S Odiorne(1984), Strategic Human Resource Management, First Edition,
Jossey : Bass Inc. Publishing
2. Burack EH (1985), “Linking Corporate Business and Human Resource Planning:
Strategic Issues and Concerns” Human Resource Planning, 9(2) : 134.
3. Dowling, P & Schuler, R, 1990, International Dimensions of Human Resource
Management, Boston, Mass: PWS-Kent Publishing
4. Huselid, A. M. (1995). “The impact of human resource management practices on
turnover, productivity, and corporate financial performance”, Academy of
Management Journal ,34(3) : 84
5. John E. Delery and D. Harold Doty(1996), “Modes of Theorizing in Strategic Human
Resource Management: Tests of Universalistic, Contingency, and Configurationally
Performance Predictions”, The Academy of Management Journal,56(9) : 45
6. Gareth Roberts (1997), Recruitment And Selection : A Competency Approach, London
: CIPD Publishing,
7. Elwood & James A. P. (1996). “Productivity gains from the implementation of
employee training Programs “, Industrial relation, 33(4): 411-425.
8. John Bratton & Jefrey Gold (1999), Human Resource Management: Theory and
Practice, UK: Macmillan.
9. Montan, H., & Charnou, B. (2000). “Human resource practices and firm performance
of multinational corporations: Influences of country of origin” , Journal of
International Human Resource Management, 51(3) : 36
10. Zottoli, M. & Wanous, J. (2000).” Recruitment source research: Current status and
future irections”, Human Resource Management Review, 10 (4) 353-382.
8
11. Bohlander, G., Snell, S. & Sherman, A. (2001), Managing human resources, New
York: South- Western College publishing
12. Barney, J. B. (2001). “Resource-based theories of competitive advantage: a ten-year
retrospective on the resource-based view”, Journal of Management,54(6): 76
13. Korsten A.D. (2003), “Developing a training plan to ensure employees keep up with
the dynamics of facility management”, Journal of Facilities Management, 30(1) :34
14. Robbins, S. P. (2005), Organizational behavior: Concepts, controversies and
applications, New Jersey: Prentice Hall.
15. Armstrong, M., (2006), A Handbook of Human Resource Management Practice 10th
edition, Great Britain: Cambridge University.
16. Rauf, M.A. (2007), HRM sophistication and SME performance: A case of readymade
garment manufacturers and exporters in Lahore -Pakistan Report, London: HMS
17. Dessler, G. (2008). Human Resource Management (11th ed), New Jersey: Prentice
Hall
18. Mohamed Branine(2008), Career Development International , Emerald Group
Publishing Limited
19. Henry, O., & Temtime, Z. (2009). “Recruitment and selection practices in SMEs:
Empirical evidence from a developing country perspective”, Advances in
Management,67(1): 15
20. Ezeali, B. O & Esiagu,L. N (2010), Public personnel management: Human capital
management strategy in the 12st century, Onitsha: Book Point Limited.
21. Opatha, H.H.D.N.P. (2010), Human resource management, Colombo: Author
published
22. Rao P. (2010), Human Resource Management (Text and Cases), Mumbai: Himalaya
Publishing House.
23. Ofori D & Aryeetey, M. (2011), “Recruitment and selection practices in small and
medium enterprises’, International Journal of Business Administration,20(3):64
24. Sinha V & Thaly, P (2013). “A review on changing trend of recruitment practice to
enhance the quality of hiring in global organizations”, Management, 18(2), 141-156.
9
25. Gamage, A. S. (2014), “Recruitment and selection practices in manufacturing SMEs
in Japan”, An analysis of the link with business performance Ruhuna Journal of
Management and Finance, 1(1), 37-52
10
1.4 OBJECTIVESOF THE STUDY
• To analyse the effectiveness of the recruitment and selection process at IBS.
• To know the perception of employers and employees regarding recruitment and
selection process.
• To find out areas which need to be addressed in recruitment and selection process in
IBS.
1.5 HYPOTHESES OF THE STUDY
Ho: There is no effectiveness in recruitment and selection process.
HO1: The Perception about consideration given to internal candidate for all the jobs before
outside recruitment does not differ among the gender of HR Professionals
HO2: The Perception about consideration given to internal candidate for all the jobs before
outside recruitment does not differ among the age of HR Professionals
Ho3: The Perception about consideration given to internal candidate for all the jobs before
outside recruitment does not differ among the marital status of HR Professionals
Ho4: The Perception about consideration given to internal candidate for all the jobs before
outside recruitment does not differ among the qualification of HR Professionals
Ho5: The Perception about consideration given to internal candidate for all the jobs before
outside recruitment does not differ among the experience of HR Professionals
H06: There is no significant difference in the perception of interview process in IBS among
gender
H07: There is no significant difference in the perception of interview process in IBS among
different age group of employees
H08: There is no significant difference in the perception of interview process in IBS among
employees with different marital status
H09: There is no significant difference in the perception of interview process in IBS among
the employees with different qualification
11
H10: There is no significant difference in the perception of interview process in IBS among
the employees with different experience
H11: There is no significant difference in the satisfaction towards the on boarding activities of
IBS among gender
H12: There is no significant difference in the satisfaction towards the on boarding activities of
IBS among age group
H13: There is no significant difference in the satisfaction towards the on boarding activities of
IBS among marital status
H14: There is no significant difference in the satisfaction towards the on boarding activities of
IBS among qualification
1.6 METHODOLOGICALDESIGN OF THE STUDY
The nature of study is descriptive in nature. Both primary and secondary data were used for
the study. Primary data were collected through distribution of structured questionnaire.
Psychologist Rensis Likert’s five level likert scale is used for collection of primary data.
Secondary data were mainly collected from the reports, documents and websites provided by
the company.
1.7 SAMPLING DESIGN
• Population
The population of the study covers the employees of IBS Software.
• Sample size
A total number of 100 samples 80 were selected from the employees and 20 were
selected from HR Professionals of IBS Software.
• Sampling technique
The method of sampling was simple random. Simple random is a subset of
Statistical population in which each member of the subset has an equal probability of being
chosen.
12
1.8 TOOLS FOR ANALYSIS
The analysis of the study was conducted using the software package called SPSS, used for
logical batched and non-batched statistical analysis. The tools for analysis used are
percentage analysis and correlation test.
• Simple Percentage Analysis: Percentage analysis is the method to represent raw
streams of data as a percentage (a part in 100 per cent) for better understanding of
collected data.
Percentage of respondents =
𝑁𝑜.𝑜𝑓 𝑅𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠
x 100
• Correlation test: Correlation is a statistical technique that can show whether and
how strongly pairs of variables are related. The correlation is one of the most
common and most useful statistics. A correlation is a single number that describes the
degree of relationship between two variables.
• Anova: Analysis of variance is a collection of statistical models and their associated
estimation procedures used to analyse the differences among group means in a
sample. One way or two way refers to the number of independent variables in you
analysis of variance test,
• T-test: The t-test is any statistical hypothesis test in which the test statistic follows a
students t-distribution under the null hypothesis.
1.9 REFERENCEPERIOD
The data for the study covers a period of 7 weeks commencing from 08th Jan 2018 to 02nd
Mar 2018.
1.10 LIMITATION OF THE STUDY
1. Employees were busy in their work so they did not spend much time in respond openly
to the question asked.
2. Due to time constraint the in-depth study could not be conducted.
3. The data was collected only on current working employees not an employee who left the
organization.
13
1.11 CHAPTERISATION
The study consists of 5 chapters:
1. Introduction
2. Theoretical framework of the study
3. Profile of:
A) Industry
B) Company
4. Analysis and interpretation of data
5. Summary of findings, conclusions and suggestions
14
CHAPTER 2
THEORETICAL FRAMEWORK
OF THE STUDY
15
2. THEORETICAL FRAMEWORK OF THE STUDY
DEFINITION OF RECRUITMENT
According to Edwin B. Flippo, “It is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation.” He further elaborates
it, terming it both negative and positive. He says, “It is often termed positive in that it
stimulates people to apply for jobs, to increase the hiring ratio, i.e. the number of applicants
for a job. Selection, on the other hand, tends to be negative because it rejects a good number
of those who apply, leaving only the best to be hired”
In the words of Dale Yoder, Recruitment is the process to “discover the sources of manpower
to meet the requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective selection of an efficient
working force.”
Kempner writes, “Recruitment forms the first stage in the process which continues with
selection and ceases with the placement of the candidates. In personnel recruitment,
management tries to do far more than merely fill job openings. As a routine the formula for
personnel recruitment would be simple i.e., just fill the job with any applicant who comes
along.
Joseph J. Famularo has said, “However, the act of hiring a man carries with it the
presumption that he will stay with the company-that sooner or later his ability to perform his
work, his capacity for job growth, and his ability to get along in the group in which he works
will become matters of first importance.” Because of this, a critical examination of
recruitment methods in use should be made, and that is the purpose of this chapter.
MEANING
Recruitment is a positive process of searching for prospective employees and stimulating
them to apply for the jobs in the organisation. When more persons apply for jobs then there
will be a scope for recruiting better persons.
Recruitment is the process of attracting prospective employees and stimulating them for
applying job in organization. The job-seekers too, on the other hand, are in search of
organisations offering them employment. Recruitment is a linkage activity bringing together
those with jobs and those seeking jobs.
16
In simple words, the term recruitment refers to discovering the source from where potential
employees may be selected. The scientific recruitment process leads to higher productivity,
better wages, high morale, reduction in labour turnover and enhanced reputation. It stimulates
people to apply for jobs; hence it is a positive process.
Recruitment is concerned with reaching out, attracting, and ensuring a supply of qualified
personnel and making out selection of requisite manpower both in their quantitative and
qualitative aspect. It is the development and maintenance of adequate man- power resources.
This is the first stage of the process of selection and is completed with placement.
2.1 RECRUITMENT PROCESS
Recruitment is a process of finding and attracting the potential resources for filling up the
vacant positions in an organization. It sources the candidates with the abilities and attitude,
which are required for achieving the objectives of an organization.
Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, shortlisting and selecting the right
candidate.To increase the efficiency of hiring, it is recommended that the HR team of an
organization follows the five best practices (as shown in the following image). These five
practices ensure successful recruitment without any interruptions. In addition, these practices
also ensure consistency and compliance in the recruitment process
Figure 2.1.1
17
2.1.2 Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the vacant positions
are analysed and described. It includes job specifications and its nature, experience,
qualifications and skills required for the job, etc. A structured recruitment plan is mandatory
to attract potential candidates from a pool of candidates. The potential candidates should be
qualified, experienced with a capability to take the responsibilities required to achieve the
objectives of the organization.
2.1.3 Identifying Vacancy
The first and foremost process of recruitment plan is identifying the vacancy. This process
begins with receiving the requisition for recruitments from different department of the
organization to the HR Department, which contains −
 Number of posts to be filled
 Number of positions
 Duties and responsibilities to be performed
 Qualification and experience required
When a vacancy is identified, it the responsibility of the sourcing manager to ascertain
whether the position is required or not, permanent or temporary, full-time or part-time, etc.
These parameters should be evaluated before commencing recruitment. Proper identifying,
planning and evaluating leads to hiring of the right resource for the team and the
organization.
2.1.4 Job Analysis
Job analysis is a process of identifying, analysing, and determining the duties,
responsibilities, skills, abilities, and work environment of a specific job. These factors help in
identifying what a job demands and what an employee must possess in performing a job
productively.
Job analysis helps in understanding what tasks are important and how to perform them. Its
purpose is to establish and document the job relatedness of employment procedures such as
selection, training, compensation, and performance appraisal.
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The following steps are important in analysing a job −
 Recording and collecting job information
 Accuracy in checking the job information
 Generating job description based on the information
 Determining the skills, knowledge and skills, which are required for the job
The immediate products of job analysis are job descriptions and job specifications.
2.1.5 Job Description
Job description is an important document, which is descriptive in nature and contains the
final statement of the job analysis. This description is very important for a successful
recruitment process.
Job description provides information about the scope of job roles, responsibilities and the
positioning of the job in the organization. And this data gives the employer and the
organization a clear idea of what an employee must do to meet the requirement of his job
responsibilities.
Job description is generated for fulfilling the following processes −
 Classification and ranking of jobs
 Placing and orientation of new resources
 Promotions and transfers
 Describing the career path
 Future development of work standards
A job description provides information on the following elements −
 Job Title / Job Identification / Organization Position
 Job Location
 Summary of Job
 Job Duties
 Machines, Materials and Equipment
 Process of Supervision
 Working Conditions
 Health Hazards
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2.1.6 Job Specification
Job specification focuses on the specifications of the candidate, whom the HR team is going
to hire. The first step in job specification is preparing the list of all jobs in the organization
and its locations. The second step is to generate the information of each job.
This information about each job in an organization is as follows −
 Physical specifications
 Mental specifications
 Physical features
 Emotional specifications
 Behavioural specifications
A job specification document provides information on the following elements −
 Qualification
 Experiences
 Training and development
 Skills requirements
 Work responsibilities
 Emotional characteristics
 Planning of career
2.1.7 Job Evaluation
Job evaluation is a comparative process of analysing, assessing, and determining the relative
value/worth of a job in relation to the other jobs in an organization.
The main objective of job evaluation is to analyse and determine which job commands how
much pay. There are several methods such as job grading, job classifications, job ranking,
etc., which are involved in job evaluation. Job evaluation forms the basis for salary and wage
negotiations.
2.1.8 Recruitment Strategy
Recruitment strategy is the second step of the recruitment process, where a strategy is
prepared for hiring the resources. After completing the preparation of job descriptions and job
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specifications, the next step is to decide which strategy to adopt for recruiting the potential
candidates for the organization.
While preparing a recruitment strategy, the HR team considers the following points −
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but having a right strategy is
mandatory to attract the right candidates. The steps involved in developing a recruitment
strategy include −
 Setting up a board team
 Analysing HR strategy
 Collection of available data
 Analysing the collected data
 Setting the recruitment strategy
2.1.9 Searching the Right Candidates
Searching is the process of recruitment where the resources are sourced depending upon the
requirement of the job. After the recruitment strategy is done, the searching of candidates will
be initialized. This process consists of two steps −
 Source activation − Once the line manager verifies and permits the existence of the
vacancy, the search for candidates starts.
 Selling − Here, the organization selects the media through which the communication
of vacancies reaches the prospective candidates.
Searching involves attracting the job seekers to the vacancies. The sources are broadly
divided into two categories: Internal Sources and External Sources.
2.1.10 Internal Sources
Internal sources of recruitment refer to hiring employees within the organization through −
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 Promotions
 Transfers
 Former Employees
 Internal Advertisements (Job Posting)
 Employee Referrals
 Previous Applicants
2.1.11 External Sources
External sources of recruitment refer to hiring employees outside the organization through −
 Direct Recruitment
 Employment Exchanges
 Employment Agencies
 Advertisements
 Professional Associations
 Campus Recruitment
 Word of Mouth
2.1.12 Screening / Shortlisting
Screening starts after completion of the process of sourcing the candidates. Screening is the
process of filtering the applications of the candidates for further selection process.
Screening is an integral part of recruitment process that helps in removing unqualified or
irrelevant candidates, which were received through sourcing. The screening process of
recruitment consists of three steps −
2.1.13 Reviewing of Resumes and Cover Letters
Reviewing is the first step of screening candidates. In this process, the resumes of the
candidates are reviewed and checked for the candidates’ education, work experience, and
overall background matching the requirement of the job
While reviewing the resumes, an HR executive must keep the following points in mind, to
ensure better screening of the potential candidates –
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 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping
 Lack of career progression
2.1.14 Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening candidates. In this
process, after the resumes are screened, the candidates are contacted through phone or video
by the hiring manager.
This screening process has two outcomes −
 It helps in verifying the candidates, whether they are active and available.
 It also helps in giving a quick insight about the candidate’s attitude, ability to answer
interview questions, and communication skills.
2.1.15 Identifying the top candidates
Identifying the top candidates is the final step of screening the resumes/candidates. In this
process, the cream/top layer of resumes are shortlisted, which makes it easy for the hiring
manager to take a decision. This process has the following three outcomes −
 Shortlisting 5 to 10 resumes for review by the hiring managers
 Providing insights and recommendations to the hiring manager
 Helps the hiring managers to take a decision in hiring the right candidate
2.1.16 Evaluation and Control
Evaluation and control is the last stage in the process of recruitment. In this process, the
effectiveness and the validity of the process and methods are assessed. Recruitment is a
costly process; hence it is important that the performance of the recruitment process is
thoroughly evaluated.
The costs incurred in the recruitment process are to be evaluated and controlled effectively.
These include the following −
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 Salaries to the Recruiters
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees.
 Administrative expenses and Recruitment overheads
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Cost incurred in recruiting suitable candidates for the final selection process
 Time spent by the Management and the Professionals in preparing job description, job
specifications, and conducting interviews.
Finally, the question that is to be asked is, whether the recruitment methods used are valid or
not? And whether the recruitment process itself is effective or not? Statistical information on
the costs incurred for the process of recruitment should be effective.
2.2 Type of Recruitment:
There are severaltypes of recruitment:
 Online recruitment
 Principles of help wanted advertising.
 Executive recruiter.
 Using government job service.
 Campus recruiting.
 Referral and walk-ins as a source of candidate.
 Computerized employee database.
 Recruiting a more diverse work force.
2.3 Factors Influencing Recruitment
1. Size of the Enterprise:
The number of persons to be recruited will depend upon the size of an enterprise. A
big enterprise requires more persons at regular intervals while a small undertaking employs
only a few employees. A big business house will always be in touch with sources of supply
and shall try to attract more and more persons for making a proper selection. It can afford to
spend more amounts in locating prospective candidates. So, the size of an enterprise will
affect the process of recruitment.
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2. Employment Conditions:
The employment conditions in an economy greatly affect recruitment process. In
under-developed economies, employment opportunities are limited and there is no dearth of
prospective candidates. At the same time suitable candidates may not be available because of
lack of educational and technical facilities. If the availability of persons is more, then
selection from large number becomes easy. On the other hand, if there is a shortage of
qualified technical persons, then it will be difficult to locate suitable persons.
3. Salary Structure and Working Conditions:
The wages offered and working conditions prevailing in an enterprise greatly
influence the availability of personnel. If higher wages are paid as compared to similar
concerns, the enterprise will not face any difficulty in making recruitments. An organisation
offering low wages can face the problem of labour turnover. The working conditions in an
enterprise will determine job satisfaction of employees. An enterprise offering good working
conditions like proper sanitation, lighting, ventilation, etc. would give more job satisfaction to
employees and they may not leave their present job. On the other hand, if employees leave
the jobs due to unsatisfactory working conditions, it will lead to fresh recruitment of new
persons.
4. Rate of Growth:
The growth rate of an enterprise also affects recruitment process. An expanding
concern will require regular employment of new employees. There will also be promotions of
existing employees necessitating the filling up of those vacancies. A stagnant enterprise can
recruit persons only when present incumbent vacates his position on retirement.
2.4 IMPORTANCE OF RECRUITMENT
 Attract and encourage a good number of candidates to apply for the organisational
vacancies.
 Create a talent pool of prospective candidates that enables the selection of best
candidates to suit for the organizational need.
 Determine present and future organizational requirement taking into consideration of
personnel planning and job analysis activities.
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 Links the employers with the potential employees.
 Increase potential candidates’ pool at less cost.
 Increases success rate of selection process by reducing the number of under qualified
or overqualified job applicants.
 Reduce the probability of leaving the organization only after a short period of time,
once recruited and selected.
 Meet the organizations’ legal and social obligations maintaining its workforce
composition.
 Determine the appropriateness of the candidates by identifying and preparing
potential job applicants.
 Increase organizational and individual effectiveness regarding application of various
recruitment techniques and taping different sources of recruitment concerned.
2.5 Methods of Recruitment: Direct, Indirect and Third Party Method
Some of the most important methods of recruitment are as follows:
1. Direct Method
2.Indirect Methods
3.Third Party Methods.
Recruitment methods refer to the means by which an organisation reaches to the potential job
seekers. In other words, these are ways of establishing contacts with the potential candidates.
lt is important to mention that the recruitment methods are different from the sources of
recruitment. The major line of distinction between the two is that while the former is the
means of establishing links with the prospective candidates, the latter is location where the
prospective employees are available. Dunn and Stephen have broadly classified methods of
recruitment into three categories.
These are:
1. Direct Method
2. Indirect Method
3. Third Party Method.
A brief description of these follows in seriatim.
1. Direct Method:
26
In this method, the representatives of the organisation are sent to the potential candidates in
the educational and training institutes. They establish contacts with the candidates seeking
jobs. These representatives work in cooperation with placement cells in the institutions
Persons pursuing management; engineering, medical etc. programmes are mostly picked up
in this manner. Sometimes, some employer firms establish direct contact with the professors
and solicit information about students with excellent academic records. Sending the recruiter
to the conventions, seminars, setting up exhibits at fairs and using mobile office to go to the
desired centres are some other methods used to establish direct contact with the job seekers.
2. Indirect Methods:
Indirect methods include advertisements in newspapers, on the radio and television, in
professional journals, technical magazines etc. This method is useful when:
(i) Organisation does not find suitable candidates to be promoted to fill up
the higher posts
(ii) When the organisation wants to reach out to a vast territory, and
(iii) When organisation wants to fill up scientific, professional and
technical post
The experience suggests that the higher the position to be filled up in the organisation, or the
skill sought by the more sophisticated one, the more widely dispersed advertisement is likely
to be used to reach to many suitable candidates. Sometimes, many organisations go for what
is referred to as blind advertisement in which only Box No. is given and the identity of the
organisation is not disclosed.
However, organisations with regional or national repute do not usually use blind
advertisements for obvious reasons. While placing an advertisement to reach to the potential
candidates, the following three points need to be borne in mind:
1. First, to visualise the type of the applicant one is trying to recruit.
2. Second, to write out a list of the advantages the job will offer.
3. Third Party Methods:
These include the use of private employment agencies, management consultants, professional
bodies/associations, employee referral/recommendations, voluntary organisations, trade
27
unions, data banks, labour contractors etc., to establish contact with the job- seekers. Now, a
question arises: which particular method is to be used to recruit employees in the
organisation? The answer to it is that it will depend on the policy of the particular firm, the
position of the labour supply, the Government regulations in this regard and agreements with
labour organisations. Notwithstanding, the best recruitment method is to look first within the
organisation.
2.6 DEFINTION OF SELECTION
The Selection is a process of picking the right candidate with prerequisite qualifications and
capabilities to fill the jobs in the organization. Selection is defined as a process which
differentiates between job applicants to filter and hire those who can achieve greater success
in the job. Selection is the screening and filtering process of job applicants who have been
invited to apply for the vacant positions through which the process comes to an end. Selection
is the process of choosing form the candidates, from within the organization or from outside,
the most suitable person for the current position or for the future positions.
2.7 SELECTION PROCESS
Fig 2.7.1
The various steps in selection procedure are given as follows:
1. Inviting applications:
28
The prospective candidates from within the organization or outside the organization
are called for applying for the post. Detailed job description and job specification are
provided in the advertisement for the job. It attracts a large number of candidates from
various areas.
2. Receiving applications:
Detailed applications are collected from the candidates which provide the necessary
information about personal and professional details of a person. These applications
facilitate analysis and comparison of the candidates.
3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive
applications ends, the applications are sorted out. Incomplete applications get
rejected; applicants with un-matching job specifications are also rejected.
4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications, the
written test is conducted. This test is conducted for understanding the technical
knowledge, attitude and interest of the candidates. This process is useful when the
number of applicants is large.
5. Psychological tests:
These tests are conducted individually and they help for finding out the individual
quality and skill of a person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test
6. Personal interview:
Candidates proving themselves successful through tests are interviewed personally.
The interviewers may be individual or a panel. It generally involves officers from the
top management. The candidates are asked several questions about their experience
on another job, their family background, their interests, etc. They are supposed to
describe their expectations from the said job. Their strengths and weaknesses are
identified and noted by the interviewers which help them to take the final decision of
selection.
29
7. Reference check:
Generally, at least two references are asked for by the company from the candidate.
Reference check is a type of crosscheck for the information provided by the candidate
through their application form and during the interviews.
8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job.
Inspite of good performance in tests and interviews, candidates can be rejected on the
basis of their ill health.
2.8 RECRUITMENT PROCESS IN IBS:
1. Review requirement from various projects
2. Sourcing of suitable candidates
3. Shortlisting of candidates
4. Conduct Interview
5. Screening of Candidates
6. Offer Generation
7. Offer Acceptance
8. On-boarding and Induction
2.9 Recruitment Process in IBS Software Services
Review manpower
requirement from
various Projects
Sourcing of
suitable
candidates
Shortlisting of
Candidates
Conduct
Interview
On-boarding and
Induction
Offer
Acceptance
Offer Generation
Screening of
Candidates
Fig 2.9.1
30
2.10 Step involved in Recruitment in IBS Software Services:
Step 1: whenever there is a vacancy in the company, it will be first known by the project
manager. The project manager informs about the vacancy to hiring or recruitment team.
Step 2: Once the Recruitment manager comes to know about the vacancy in the company he
will inform it to the conducted authorities to get approval for the recruitment
Step 3: After getting the approval the process will be carried out by the HR manager.
Moreover the, recruitment of the company internally, that is the existing employees will be
given priority first.
2.11 Review requirement from various projects:
The recruitment planning is mainly done on the basis of requirement from various projects in
the company. The Resource Management Group of the company provides information to
the Human Resource Department regarding the vacancies or requirements. The Human
Resource Department the recruits the suitable candidates through their recruitment process.
Recruitment process commences with the identifying the manpower requirement for various
projects.
The project leads convey their requirement to the Human Resource Department. The HR
executives then recruits the suitable candidates according to the guidelines given by their
managers. Recruitments happen on a daily basis through walk in interviews, telephonic
interview and Skype interview
2.12 Source of Recruitment
Internal Sources:
• Present permanent Employees:
The company considers the candidates from their sources for same industry because
of:
a. Availability of most suitable candidates.
b. The policy of organization to motivate the present employees.
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• Retired Employees:
Generally, the organisation takes the candidates for the employment from the retired
employees due to obligation. Sometimes the company re-employs the retired
employees’ as a token of their loyalty to the organisation.
External Sources
• Employee Referrals:
Employee Referrals is one of the most popular sourcing methods. Existing employees
of the company are asked to refer candidates for the available vacancies. The
employees will also be given suitable bonuses or benefits for the same.
• Consultancy:
IBS Software Services has a group of vendors or consultancies who provide them
with suitable candidates at the time of vacancies. Whenever there is a vacancy in the
company, the recruitment head contact their vendors for references. The vendors send
the selected profiles as per the required designation from which the recruitment team
shortlist the most talented candidates.
• Portals:
Internet is the modern of recruitment. If a company wants to place or fill a vacancy
within a short period of time through the external sources, then internet is the best
source. Most commonly used online job portals are Naukri.com and LinkedIn.
HR would tap various sources/channels for getting the right candidates. Depending on the
nature of the position/grade, volume of recruitment and any other relevant factors, the
regional HR would use any one multiple sources such as:
a. Existing database (application from talent management system)
b. Employee referral as per any company scheme that may be approved from time to
time
c. Portals
d. Consultancies
The norms for using any of the sources are not water tight. Number of position, critically of
position and the urgency of the position, confidentiality requirement and relative efficacy
would play a role in the choice of the appropriate sourcing mechanism.
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2.13 Shortlisting the Candidates:
The third step in the recruitment process is the shortlisting of candidates. The recruitment
team verifies the profile of the candidates that they have received from different sources and
shortlisting them on the basis of the JD. The team contacts the shortlisted candidates to check
for their availability for attending the interview. the team then schedules an appropriate date
and time and venue for the interview.
2.14Screening the Candidates
• First level Screening
The candidates would be screened by the HR Manager for the respective locations.
Screening would be on the basis on the profile of the candidates and the departmental
requirements. This assessment will be with respect to: a. The general profile of the
candidates
b. Sources
c. Motives of the person to join the company
d. Basic skill level on the set of requirements
e. Establish the annual guaranteed cash compensation of the individual and check
whether the person would fit into the system.
In case of need, the Regional HR may take a telephonic interview of the candidate for further
assessment process.
• Second Level Screening:
Written test- if the first assessment is positive, the candidates will give the written
test, once such test is selected approved by the company. The scoring, interpretation
and the generation of the interview probes from that test will also be done at this time.
People who qualify the minimum criteria on this test will be put up on to functional
assessment and suitability into the role.
2.15 General Norms Regarding Interview Process:
• Interview should consider the entire data provided by the candidate either through the
formal CV or otherwise before coming to a conclusion about the candidates. They
many insist on seeing the proof of the claims made by the candidates regarding
33
qualifications, experience and other achievements. They may, as their discretion,
decide to meet the candidate on more than one occasion or to refer the candidates to
another panel.
• Rating on various attributes of the candidates shall be recorded in the interview
evaluation sheet, soon after the interview is over. Along with these numerical ratings,
qualitative observation about the candidates and overall decision regarding selection
or otherwise (including a decision to defer the induction, referral to another panel,
considering for another position) shall be forwarded to the associated recruitment
manager. Individual’s panel members have the option of appending their additional
remark/observations.
• Any discrepancies notices by the panel members regarding the authenticity of the data
provided by the candidates should be specially and formally recorded on the
evaluation forms and suitably high lightened.
• Specific points to be probed during the reference check process, if any, must also be
clearly recorded and high lightened on forms.
• The Recruitment manager then sends the evaluation sheets to the Corporate HR who
process it and generates the offer letter.
2.16 Administrative Actions Regarding Interviews:
• Scheduling and the venue of the interview would be handled by the recruitment team
in consultation with the short-listed candidates and the selection panel members, after
taking mutual convince into account. For the field position, respective branch/regional
heads would undertake this co-ordination.
• After the final round, if the candidates is selected, the complete set of papers personal
data from CV, interview evaluation sheet, reference check details, educational details,
along with the interview’s recommendation and reference check a form should be
forwarded by the recruitment manager to recruitment head. Allotment of the
candidates into grade and compensation fitment shall be on the assumption of the
authenticity of the informational provided in the CV /application form.
• An appropriate formal communication shall be sent to the candidates whose
application is not being taken forwarded, or details of the verbal/telephonic
communication provided to the candidates shall be recorded on the candidates’ papers
by the recruitment team/ associated line managers. In the case of interview’s taking
34
place at the branch/regional levels, similar noting should be recorded on the
individual candidate’s papers.
2.17 Negotiation of the terms and conditions and other pre-appointment formalities:
• The recruitment manager, after selection, conducts an official telephonic conservation
with the candidates for the negotiation of CTC. The HR refers to the candidates
previous CTC and negotiates accordingly.
• Responsibility for negotiation and finalization of the terms shall rest with the
associated HR Manager. They may seek the assistance of the recruitment managers,
whenever required. Reference check process should not normally be initiated unless
the candidates has indicated his firm acceptance of the offer being made by us.
2.18 Reference Checks and Background Verification:
Background check of all employees is done by the Corporate HR, parallel to the generation of
offer letter. In case of recruitment of management trainees, fresher such background checks
will not be done.
2.19 Employment Offer Letter:
When a recruitment manager is fully satisfied about the selection of the right candidates and
about completion of all the formalities connected with the appointment of candidates, he/she
would ask the Corporate HR to change the status of the vacancy as ‘filled’ by generating an
offer letter along with the on-boarding forms and login details of the employees in IBS.
Joining formalities of the new employees of the IBS Software Services is done by the
Corporate HR team. Once the employee joins, he/she will undergo the induction program to
make sure they are familiar with the organisation and the role they have to hand. The
employees will be given an orientation which will include handling over their login details
and a personal kit.
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CHAPTER 3
PROFILE
36
3.1 INDUSTRYPROFILE
Information Technology (IT) Industry in India has played a key role in putting India on the
global map. IT industry in India has been one of the most significant growth contributors for
the Indian economy. The industry has played a significant role in transforming India’s image
from a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global
player in providing world class technology solution and business services. The industry has
helped India transform from a rural and agriculture-based economy to a knowledge-based
economy. Information Technology has made possible information access at gigabit speeds. It
has made tremendous impact on the lives of millions of people who are poor, marginalized
and living in rural and far flung topographies. Internet has made revolutionary changes with
possibility of e-government measures like e-health, e-education, etc. Today, whether its filing
Income tax returns or applying for passports online or railway e-ticketing, it just need few
clicks of the mouse. India’s IT potential is on a steady march towards global competitiveness,
improving defence capabilities and meeting up energy and environment challenges amongst
others.
IT- ITeS sector in India, with the main focus on increasing technology adoption and
developing platforms, has aggregated revenue of USD 88.1 billion in FY2011, while
generating direct employment for over 2.5 million people. Out of 88.1 billion, exports
revenue (including Hardware) has reached USD 59.4 billion in FY2011 while domestic
revenues (including Hardware) of about USD 28.8 billion. The information Technology
industry has gained a brand image knowledge economy due to its development from software
exporters to providing IT –BPO sectors in India has aggregated revenues of US $ 100 billion
I FY 2012, where exports comprises of us$69.1 billion and US$ 31.7 billion respectively
growing by over 9%.
IT industry has registered a notable growth because of rich and varied expansion into
verticals, well differentials service offering and increasing growth penetration. The
phenomenal success of this industry is attributable to favourable government policies, rich
and burgeoning demand conditions, healthy growth of the related industries and competitive
environment prevalent in the industry. The interplay of these forces has put the industry on
the global map.
37
3.1.2 EVOLUTION OF IT INDUSTRY: The evolution of the IT industry can be studied
in 4 phases
Phase I: Prior to 1980 Indian IT industry was basically started with the hardware products
and software industry was literally non- existent in India until 1960. Government protected
the hardware sector through high tariff barriers and licensing. In the west, there was greater
demand for software development as the inbuilt software with the systems was insufficient to
perform all the operations. The government of India realizing the potential of this sector to
earn foreign exchange. In 1972, the government formulated a software exports scheme in
which it was decided to import hardware and export software. TCS Ltd. became the first firm
to agree to this condition. The beginning of software exports was made in the year 1974.
Phase II: 1980-1990 During this phase, in spite of the government initiatives the software
exports could not reach the expected level because of two reasons. The exports of the
software were dependent on the imports of hardware and the procedural aspects were too
cumbersome. There were no proper infrastructure facilities for software development. In
order to encourage more participants in this sector, relaxation to procedural activities and
reduction in import duty was mandatory. To counter the prevailing problem a New Computer
Policy to policy was formulated. According to this policy the import procedure was
simplified and the import duty for import on hardware for software developers reduced.
In 1986, the government took a step ahead to sustain and grow the benefits received as a
result of the New Computer Policy. It formulated software policy and liberalized the IT
industry. In this policy the imports of hardware were de-licensed and were also made duty
free for the exporters. This policy has reduced a number of entry barrier making the growth in
this sector inevitable. In 1990, government gave impetus and establish software technology
park of India in order to increase the exports of software and services.
Phase III: 1990-2000: This period has witnessed intensified competition in the IT industry.
With companies investing in research and development and variety of software services. As
this decade marked the beginning of significant changes in the economy, including trade
liberalization, opening up of India economy for foreign investment, devaluation of the rupees
and relaxation of the entry barrier. Due to the advantage this policy had attracted foreign
investment in India and MNCs in India were introduced. “Offshore Model” “Onsite Model”
38
Global Delivery Model (GDM) were introduced as part of their distinguished services
Phase IV: Post 2000 The global problem like Y2k, the dotcom crash and the recession in the
US economy has forced many US firms to utilise the services of the Indian firms. This has
resulted in placing the Indian IT industry on the global map. Posy 2002-03.the industry has
registered a robust growth rate. During this period there was an increase in the Indian client
base, large sized contracts and a strong global delivery model.
India is the largest sourcing destination for the Information Technology (IT) industry,
accounting for approximately 67 per cent of the US$ 124 – 130 billion markets. The industry
employs about 10 million workforces. More importantly, the industry has led the economic
transformation of the country and altered the perception of India in the global economy.
India’s cost competitiveness in providing IT services, which is approximately 3 – 4 times
cheaper than the US, continues to be the mainstay of its Unique Selling Proposition (USP) in
the global sourcing market. However, India is also gaining prominence in terms of
intellectual capital with several global IT firms setting up their innovation centres in India.
The IT industry has also created significant demand in the Indian education sector, especially
for engineering and computer science. The Indian education sector, especially for engineering
and computer science. The Indian IT and ITeS industry is divided into four major segments –
IT services, Business Process Management (BPM), Software products and engineering
services and hardware.
The IT-BPM sector which is currently valued at US$ 143 billion is expected to grow at a
Compound Annual Growth Rate (CAGR) OF 8.3 percent year-on-year to US$ 143 billion for
2015-2016. The sector is expected to contribute 9.5 percent of India’s Gross Domestic
Product (GDP) and more than 45 percent in total services export in 2015-16.
3.1.3 MARKET SIZE:
The Indian IT sector is expected to grow at rate of 12 – 14 percent for FY2016- 17 in constant
currency terms. The sector is also expected triple its current annual revenue to reach US$ 350
billion by FY 2025.
India ranks third among global start-up ecosystems with more than 4, 200 start-ups.
39
India’s internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018,
accounting for 5 percent of the country’s GDP.
India’s internet user base reached over 400 million by May 2016, the third largest in the
world, while the number of social media users grew to 143 million by April 2015 and
smartphones grew to 160 million.
Public cloud services revenue in India is expected to reach US$ 1.26 billion in 2016, growing
by 30.4 percent year-on-year(y-o-y). The public cloud market alone in the country was
estimated to treble to US$ 1.9 billion by 2018 from US$ 638 million in 2014. Increased
penetration of internet (including in rural areas) and rapid emergence of e-commerce are the
main drivers for continued growth of data centre co- location and hosting market in India.
The Indian Healthcare Information Technology (IT) market is valued at US4 1 billion
currently and is expected to grow 1.5 times by 2020 whereas the business to business (B2B)
e-commerce market is expected to reach US$ 102 billion by 2020.
3.1.4 INVESTMENTS:
Indian IT’s core competencies and strengths have attracted significant investments from
major countries. The computer software and hardware sector in India attracted cumulative
Foreign Direct Investment (FDI) inflows worth US$ 21.02 billion between April 2000 and
March 2016, according to data released by the Department of Industrial Policy and Promotion
(DIPP).
Indian start – ups are estimated to have raised US$ 1.4 billion across 307 deals in quarter
ending March 2016.
Most large technology companies looking to expand have so far focused primarily on bigger
enterprises, but a report from market research firm Zinnov highlighted that the small and
medium businesses will present a lucrative opportunity worth US$ 11.6 billion in 2015,
which is expected to grow to US$ 2508 billion in 2020. Moreover, India has nearly 51
million such businesses of which 12 million have a high degree of technology influence and
are looking to adopt newer IT products, as per the report
Some of the major developments in the Indian IT and ITeS sector are as follows:
• Rolta, an Information Technology (IT), engineering and geospatial services provider,
has been awarded a seven-year, multi-million-pound contract by a UK based major
40
utility company UK Power Networks, to manage and update the firm’s spatially
enabled network asset information.
• Orange Business Services, the business services arm of Orange Group, has launched a
state data centre for Himachal Pradesh government, which will be the first data centre
in India to be designed using ‘green’ data centre concepts that minimise power
requirements and increase power utilisation efficiency.
• PurpleTalk Inc, a US based mobile solutions company, has invested US$ 1 million in
Nukkad shops, a Hyderabad based uber-local commerce platform that helps
neighbourhood retail stores take their businesses online through a mobile app.
• KartRocket, a Delhi based e-commerce enabler has completed its US$ 8 million
funding round by raising US$ 2 million from a Japanese investor, which will be used
to enhance Kraftly, a mobile- first online – to – offline marketplace targeting smaller
sellers, individuals and home - based entrepreneurs in India in product categories
such as apparel and accessories.
• Just Ride, a self-drive car rental aggregator, has raised US$ 400.000 in pre- series A
round of funding from a Facebook co-founder Mr Eduardo Saverin, which will help
the firm in growth and expansion of its technology platform.
• MoMark Services, a mobile based customer engagement platform for small and
medium businesses, has raised US$ 600.000 from Yournest Angel fund and LNB
Group, to scale up its product offerings and talent acquisitions.
• Shout, a social discovery app by Giant Tech Pvt Ltd, which helps consumers discover
deals, buy event tickets or redeem coupons, has raised US$ 500.000 in angel funding
from a high net- worth individual angel investor based in India.
• Apple Inc. plans to set up its first technology development centre outside the US in
Hyderabad with an investment of US$ 25 million , which is expected to create 4,500
jobs, as per Mr Jayesh Ranjan, secretary, IT for the state of Telengana.
• Xpressbees,an e-commerce logistics firm operated by Busybees Logistics Solutions
Private Limited, has raised US$ 12.5 million in a series A funding, led by its existing
investors SAIF partners,IDG Ventures, Vertex Ventures AND Valiant Capital, which
will be used to strengthen technology initiatives and processes of the firm.
41
• Housejoy, an online home services provider, has raised Rs 150 crores(US$ 22
million) in a series B round of funding led by Amazon, and which also includes new
investors such as Vertex Ventures, Qualcomm and Ru-Net Technology Partners.
• Global PE firm Blackstone Group has acquired a minority stake in an Indian travel,
transportation and logistics software firm, IBS Software, for US$ 170 million, by
buying the stake from General Atlantic and Few other shareholders.
• India’s top-tier IT company, Infosys Ltd, has bought a minority stake worth US$3
million in Whoop, which is a US-based start-up that makes activity trackers worn by
athletes.
• Microsoft Ventures is planning to incubate 500 starts-ups in India in the next five
years with a vision to create a viable and profitable business out of the booming start-
up sector in India.
• National Association of Software & Services Companies (NASSCOM) plans to open
four more tech start-up incubation centres in different parts of India, in addition to
existing three, in support of government of India’s ‘start-up India’ initiatives.
• Nasscom Foundation, a non –profit organisation which is a part of Nasscom, has
partnered with SAP India to establish 25 National Digital Literacy Mission (NDLM)
centres in 12 cities across India, as a part of Government if India’s digital India
initiatives.
• Infosys, India’s second largest Information Technology services company has
acquired US-based Noah Consulting, a provider of advanced information
management consulting services for the oil and gas industry.
• US-based Callidus Software Inc. cloud-based sales, marketing, learning & customer
experience solution provider, has opened its centre in Hyderabad & also launched its
‘The Lead to Money’ suite in Indian markets.
• Wipro Venture, Wipro’s US$ 100 million corporate venture arm, plans to invest in
early –stages Venture Capital (VC) funds based in the US to pursue a strategy of
investing/partnering country-focused VCs.
• A recent study by research firm International Data Corporation (IDC) suggests that
India may soon be able to catch up with the global technology trends that have
disrupted enterprise, industry and the way consumers behave and transact.
42
• Reliance is building a 650,000 sq.ft data centre in India –its 10th data centre in the
country-with a combined capacity of about 1 million sq.ft & an overall investment
of US$ 200 million.
• Intel Corp plans to invest about US$ 62 million in 16 technology companies, working
on wearable, data analytics and the Internet of Things (IoT), in 2015 through its
investment arm Intel Capital. The Indian IoT industry is expected be worth US$ 15
billion and to connect 28 billion devices to the internet by 2020.
• Indian e-commerce industry is expected to grow at a CAGR of 35 % to reach US$
100 billion size in the next five years.
3.1.5 GOVERNMENT INITATIVES:
Some of the major initiatives taken by the government to promote IT & ITeS sectors in India
are as follows:
• Mr. Ravi Shankar Prasad, Minister of Communication & Information Technology,
announced plan to increase the number of common services centres or e-Seva centres
to 250,000 from 150.000 currently to enable village level entrepreneurs to interact
with national experts for guidance, beside serving as a e-services distribution points.
• The Railway Ministry plans to give a digital push to the Indian Railway by
Introducing bar-coded tickets, Global Positioning System (GPS) based information
systems inside coaches, integration of all facilities dealing with ticketing issues, Wi-
Fi facilities at the stations, super-fast long-route train service for unreserved
passengers among other developments, which will help to increase the passenger’s
traffic.
• The e-Tourist Visa (e-TV) scheme has been extended to 37 more countries thereby
taking the total count of countries under the scheme to 150 countries.
• Department of Electronics & Information Technology & m/s Canbank Venture
Capital
Fund Ltd plan to launch an Electronic Development Funds (EDF), which will be a
‘Fund of Funds’ to invest in ‘Daughter Funds’ which would provide risk capital to
companies developing new technologies in the area of electronics, nano-electronics
and Information Technology (IT).
43
• The Human Resource Development (HRD) Ministry has entered into a partnership
with private companies, including Tata Motors Ltd, Tata Consultancy Services Ltd
and real estate firm Hubtown Ltd, to open three Indian Institution of Information
Technology (IIIT), through public-private partnership (PPP), at Nagpur, Ranchi and
Pune.
• Government of India is planning to develop five incubation centres for ‘Internet of
Things’ (IoT) start-ups, as a part of Prime Minister Mr Narendra Modi’s Digital India
and start-up India campaign, with at least two centres to be set up in rural areas to
develop solutions from smart agriculture.
• The Government of India has launched the Digital India program to provide several
government services to the people using IT and to integrate the government
departments, and the people of India. The adoption of key technologies across sectors
spurred by the ‘Digital India Initiative could help boost India’s Gross Domestic
Product(GDP) by US$ 550 billion US$ 1 trillion by 2025.
• India and the US have agreed to jointly explore opportunities for collaboration on
implementing India’s ambitious Rs.1.13 trillion (US$ 16.58 billion) ‘Digital India
Initiative’. The two sides also agreed to hold the US- India Information and
Communication Technology(ICT) Working Growth in India later this year.
• The Government of Telangana has begun construction of a technology incubator in
Hyderabad / dubbed T-Hub – to reposition the city as a technology destination. The
state government is initially investing Rs.35 crore (US$ 5.14 million) to set up a
60,000 sq.ft space, labelled the large start-up incubator in the country, at the campus
of International Institute of Information Technology – Hyderabad(IIIT-H). Once
completed, the project is proposed to be the world’s biggest start-up incubator
housing 1,000 start-ups.
• The Department of Electronics and Information Technology (Deity) plans to start a
digital literacy programme, aimed at training over six crore Indians in the next three
years to empower them for digital inclusion
3.1.6 ROAD AHEAD:
India is the topmost offshoring destination for IT companies across the world. Having proven
its capabilities in delivering both on-shore and off-shore services to global clients, emerging
technologies now offer an entire new gaunt of opportunities for top IT firms in India. Social,
Mobility, Analytics and Cloud (SMAC) are collectively expected to offer a US$ 1 trillion
44
opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of
approximately 30% to around US$ 650-700 billion by 2020. The social media is the second
most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020.
The Indian e-commerce segment is US$ 12 billion in size and is witnessing strong growth
and thereby offers another attractive avenue for IT companies to develop products and
services to cater to the high growth consumer segment.
3.1.7 India’s growing market size:
• India’s technology and BPM sector (including hardware) is estimated to have
generated US$146 billion in revenue during FY15 compared to US$118 billion in
FY14., implying growth of 23.72 percent.
• The contribution of the IT sector to India’s GDP rose to approximately 9.5 percent in
FY15from 1.2 percent in FY98.
• The top six firms contribute around 36 percent to the total industry revenue,
indicating the market is fairly competitive, with TCS being the leader accounting for
about 10.1 percent Burgeoning Indian talent pool.
• Availability of skilled English-speaking workforce has been a major reason behind
India’s emergence as a global outsourcing hub.
• During FY08-15 number of graduate’s addition to talent pool during FY15. India
added around 5.8 million graduates to the talent pool during FY15.
• Growing talent pool of India has the ability to drive the R&D and innovation business
in the IT-BPM space.
3.1.8 Future of IT industry in India:
IT sector alone has the potential to take Indian economy to a higher level. IT has the ability to
increase efficiency and productivity of every sector of the country. The demand for IT sector
is likely to increase due to the following reasons:
• Reduction in the price of semiconductor that in turn resulted in the reduction in price in
electronic equipment enabled more and more people to buy computers and use it wherever
possible.
• There has been significant rise in the number of internet user and the number is likely to
increase in future. This happened due to the lowering of broadband services and availability
45
of large number of portable services. The use of internet has definitely increased the number
of online users of various services. And this will surely increase in future.
• Rapid urbanization of developing countries like India has made computer household
equipment. As a result, computer literacy has increased. Since a large number of people still
live in rural areas, there’s a high probability that the increase in the number of computer and
internet user will increase exponentially.
But there are also some risks associated with this sector:
• There is uncertainty in global economy due to the slow recovery in many major markets.
Moreover, there is instability in major European nations. This could lead to cut in IT budget
which will ultimately result in declining demand.
• Rules and regulations that are being implemented in major markets like US will surely lead to
a demand compression. The VISA restrictions in US are in fact targeted at the IT industry.
This step was taken to curb outsourcing and will directly affect the demand in future.
• Increased competition could result in price competition. Indian IT majors like TCS, Infosys,
Wipro, CTS etc. are close substitutes of each other. So, there is increasing pressure on the IT
majors to make their service different from others. This, however, will not affect the overall
demand.
• Wage inflation and overall increase in cost could reduce the profit margin. Appreciating
rupee will further add to this problem. To deal with this companies have to focus on
increasing productivity.
3.2 COMPANY PROFILE
IBS Software Services is a leading global provider of new generation IT solutions to the
Travel, Transportation and Logistics industries. A specialist in the domain, IBS offers a range
of products and services that manage mission critical operations of airlines, airports, cruise
lines, hospitality partners, tour operators and oil & gas companies that help them increase
safety, maximize efficiency, improve revenue, manage growth and reduce costs. With a
domain expertise of nearly twenty years in the Travel, Transportation and Logistics (TTL)
industries, IBS understands the needs of all stakeholders. They help customers stay ahead of
the competition by facilitating business innovation and enabling transformational changes
using next generation technologies. This is why some of the best airlines, busiest airports,
leading cruise lines, top oil & gas companies and renowned travel distributors & hotel groups
in the world depend on our software to manage their mission critical operations.
46
In the aviation industry alone, our award winning end-to-end new-gen IT systems cut across
all process areas – airline passenger services, cargo operations, flight and crew operations,
airport operations and aircraft maintenance engineering. No other single enterprise in the
world offers this range of technology products to the aviation industry, making us a one-stop
shop.
In sectors such as oil & gas logistics, travel & cruise and hospitality too, our solutions have
established a reputation for effective/optimal management of mission-critical operations,
assuring successful delivery & business continuity.
IBS Software Services IT services competence includes Business & Technology Consulting,
Independent Software Testing, Application Development & Maintenance and Managed
Services in the Aviation, Travel, Hospitality and Oil & Gas industries.
IBS Software Services was founded in 1997 in Technopark Kerala. In the same year, business
activity was started in Europe. The following year, IBS Software Services initiated the
reengineering of the management training system for the Swissair crew.
In 2000, IBS Software Services is an ISO 9001 company certified . In the same year, business
was started in the USA. In 2002 KPMG certified IBS Software Services as CMMI Level 5
Company. In 2006, an office was opened in Tokyo.
V K Mathews is the Founder and Executive Chairman of The IBS Group. Mathews founded
IBS in 1997 with a vision to redefine the way the global travel, transportation and logistics
industries managed their businesses.
What started as a modest entrepreneurial venture with 55 inexperienced engineers and a
single customer is, today, a multinational corporation, serving over 170 clients worldwide,
employing over 2000 professionals from 30 different nationalities and poised to be the No. 1
IT solution provider to the global air transportation industry.
Mathews was instrumental in IBS acquiring six international companies (in Europe, USA and
India) during its 19-year journey which has added its portfolio of offerings to some of the
best airlines, busiest airports, leading cruise lines, top oil & gas companies and renowned
travel distributors & hotel groups in the world.
With over 30 years of work experience, Mathews is a thought leader and a specialist in
aviation business. He is a much sought-after speaker at various aviation events including
those organized by IATA, ICAO and AACO.
47
Mathews holds several important positions in Government agencies, academic institutions
and trade bodies in India. He is the Executive Council Member of NASSCOM, the premier
trade body of the IT-BPO industries in India and chairs several institutions including
NASSCOM Regional Council, GTECH (the association of IT companies in Kerala),
Trivandrum Agenda Task Force and Trivandrum City Connect Foundation. He is a Member
of the Board of Director of Kerala State Industrial Development Corporation, Investment
Promotion Council – Kerala, Kerala ICT Academy and Technopark, Kerala, India. Mathews
is the past Chairman of Confederation of Indian Industry (CII) Kerala and a current member
of CII Southern Regional Council. He has received several awards from the Government,
media and trade associations including Management Leadership Award, Business Man of the
Year Award, IT Man of the Year Award, Millennium Leadership Award and Enterprise
Excellence Award. Mathews holds a Masters degree in Aeronautical Engineering from Indian
Institute of Technology, Kanpur and had executive management education from Harvard
Business School, Boston, USA.
3.21 Acquisitions
Since inception we have made the following strategic acquisitions, adding depth & breadth to our
offering to the TTL industry
 Hotel Booking Solutions Incorporated (HBSi), Atlanta, an IT solutions provider to the
hospitality industry
 Moveo Systems, Bangalore, a company developing human interaction solutions for airports
and enterprises
 VISaer,a US based leader in aviation maintenance and engineering (M&E) software solution
 Discovery Travel Systems, Virginia, a B2B travel technology provider to the cruise, tour, and
vacation travel industry
 Avient Technologies from Honeywell International which caters to the flight ops needs of any
type of airlines
 TopAir from EDS which caters to the flight ops needs of small and medium-sized airlines.
3.2.2 Milestones
2017
 Top 100 Logistics IT Provider Inbound Logistics Magazine in 2017
48
 Information Technology Provider of the Year for the Airline Industry - TNI in 2017
 Celebrates 20 years of Excellence.
2016
 International IT Systems Provider of the Year 2016 - STAT Times
 National IT Excellence Award for iCargo in 2016 - CMO Asia
 National IT Excellence Award for iFly Loyalty in 2016 - CMO Asia
 SunExpress Airline signs up for IBS’ Passenger Services System (PSS)
 iCargo goes live at Turkish Cargo with over 2,000 global users spanning 284 destinations
in 113 countries
 T’way Airlines extends iFly Res for a further period of five years
 Launches iTravel Cruise at Seatrade Cruise Global 2016
 Celestyal Cruises signs up for iTravel Cruise Reservation System.
 First IBS Customer Summit in Dubai with nearly 200 delegates representing more than
50 airline companies
 IBS signs deal with Lufthansa for Crew Management Application
 IBS’ iFly Res awarded NDC Capable Level 3 status by IATA
2015
 IT Provider of the Year 2015 - Payload Asia
 Testing Project of the Year 2015 at the APAC Testing Awards
 Airline Product Innovation of the Year 2015 - CAPA
 IT Software Solutions for Aviation Industry Company of the Year 2015 - Frost &
Sullivan
 iCAP project wins Testing Project of the Year 2015 India Testing Awards
 8th edition of IBS Cargo Forum (ICF 2015) at Singapore
 First OGL Advisory workshop at ADMA & ZADCO
 Organises IBS Airline Forum (IAF) in India, in April 2015 with more than one hundred
delegates of over forty leading airlines
 Lufthansa Cargo goes live with IBS’ iCargo IT solution at 120 stations
 CWT Energy, Resources & Marine signs up for iLogistics
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Raiby mathew project front pages

  • 1. “A STUDY ON EFFECTIVES OF RECRUITMENT AND SELECTION PROCESS AT IBS SOFTWARE SERVICES PVT LTD.” PROJECT REPORT Submitted to Mahatma Gandhi University in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by RAIBY MATHEW Reg. No. 84658 Under the guidance of LIGO KOSHY Faculty Guide Accredited by NAAC with ‘A’ Grade DEPARTMENT OF MANAGEMENT STUDIES MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES TIRUVALLA JUNE, 2018
  • 2. MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES TIRUVALLA Ph: 0469 2730323 Fax: 0469 2730317 macfast@macfast.orgm, www.macfast.org CERTIFICATE This is to certify that the project report entitled “A Study on Effectiveness of Recruitment and Selection Process at Ibs Software Services pvt ltd.” is a bonafide report of the project work undertaken by Raiby Mathew, fourth semester MBA student of our college during a period of 8 weeks commencing from 8th January to 8th march 2018. Ligo Koshy Dr. Sudeep B Chandramana Faculty Guide Head, Dept. of Management Studies Fr. Dr. Cherian J Kottayil University Examiner Principal
  • 4. DECLARATION I hereby declare that this project report entitled “A Study on Effectiveness of Recruitment and Selection Process at Ibs Software Services Pvt ltd.” is a bonafide report of the study undertaken by me, under the guidance of Ligo Koshy, Department of Management Studies, MACFAST, Tiruvalla. I also declare that this project report has not been submitted to any other University or Institute for the award of any degree or diploma. Place : Tiruvalla Date : Raiby Mathew
  • 5. ACKNOWLEDGEMENT My sincere thanks to almighty god for his blessings showered on me to complete this organization study. I express my heartiest thanks to our respected principal Rev. Fr. Dr. Cherian J Kottayil for the facilities provided for the execution of the report. I also express my heartfelt thanks to Dr. Sudeep B Chandraman, Head of the Department of Management Studies for providing all the help in doing this project. I express my heartfelt gratitude to my faculty guide Mr. Ligo Koshy for the great guidance and valuable suggestions in the preparation of this project report. I am highly indebted to Mrs.Geetu Elizabeth Mathew, Lead-Human Resourses at Ibs Software Services Pvt Ltd for his guidance and constant supervision and also providing me with necessary information’s regarding the project. I would also like to express my gratitude towards my parents, friends, and the member of the organization Ibs Software Services Pvt Ltd which helped me to complete this project. The experience I have gathered will be a privilege for my future career planning and believe that this endeavor has prepared me for taking up new-challenges in future. Above all I thank almighty for showering his blessing on me. Last but not least I would like to express my thanks to all my friends for their help in completing this report. Raiby Mathew
  • 6. LIST OF TABLES Table. No Title Page.No 4.1 The gender of respondents among professionals 4.2 The age group of respondents among professionals 4.3 The marital status of respondents among professionals 4.4 The qualification of respondents among professionals 4.5 The experience of respondents among profession 4.6 The organisation's ability to clearly define the job description and job specification 4.7 The average time spent by the interviewers during interview 4.80 The company’s ability to recruit based on the candidates experience level, qualification and communication skills 4.9 The new recruit’s ability to get work along with the working environment of ibs 4.10 How well do those hired perform on the job 4.11 The quality of interview and selection process to separate performers from pretenders 4.12 The quality of information given to rejected candidates about their status of application 4.13 The consideration given to the internal candidates for all jobs before outside recruitment begins 4.14 The effectiveness of the interviewing process and other selection instruments such as test 4.15 Maximum duration taken by the recruiters for recruitment 4.16 How the rejected candidates are informed 4.17 What mode of interview do the respondents prefer 4.18 Difference in the opinion regarding the consideration given for internal candidates before external recruitment begins on the basis of gender 4.19 Difference in the opinion regarding the consideration given for internal candidates before external recruitment begins on the basis of age 4.20 Difference in the opinion regarding the consideration given for internal candidates before external recruitment begins on the basis of marital status 4.21 Difference in the opinion regarding the consideration given for internal candidates before external recruitment begins on the basis
  • 7. of qualification 4.22 Difference in the opinion regarding the cosideration given for internal candidates before external recruitment begins on the basis of experience 4.23 Difference in the opinion regarding which qualities in a candidate to be given more importance on the basis of gender 4.24 Difference in the opinion regarding which qualities in a candidate to be given more importance on the basis of age 4.25 Difference in the opinion regarding which qualities in a candidate to be given more importance on the basis of marital status 4.26 Difference in the opinion regarding which qualities in a candidate to be given more importance on the basis of qualification 4.27 Difference in the opinion regarding which qualities in a candidate to be given more importance on the basis of experience 4.28 Difference in the opinion regarding which is the best way to hire employees on the basis of gender 4.29 Difference in the opinion regarding which is the best way to hire employees on the basis of age 4.30 Difference in the opinion regarding which is the best way to hire employees on the basis of marital status 4.31 Difference in the opinion regarding which is the best way to hire employees on the basis of qualification 4.32 Difference in the opinion regarding the challenges in recruitment and selection on the basis of gender 4.33 Difference in the opinion regarding the challenges in recruitment and selection on the basis of age 4.34 Difference in the opinion regarding the challenges in recruitment and selection on the basis of marital status 4.35 Difference in the opinion regarding the challenges in recruitment and selection on the basis of qualification 4.36 The gender of respondents among professionals 4.37 The age group of respondents among employees 4.38 The marital status of respondents among employees 4.39 The qualification of respondents among employees 4.40 The experience of respondents employees 4.41 Recruitment teams ability to clearly define the job description and job specification 4.42 The recruiters approach in recruitment and selection 4.43 Rating of the interview process in the ibs 4.44 The rating of recruitment practices of ibs in terms of rigidity in eligibility criteria 4.45 Satisfaction level of respondents with the quality and relation of questions to the job
  • 8. 4.46 Satisfaction level with the frequency of the recruitment team in terms of feedback 4.47 Satisfaction level with the on- boarding activities of ibs 4.48 Rating regarding the information communicated about the selection process to the candidates by the organization 4.49 Rating on company’s consideration given to internal candidates for all jobs before outside recruitment begins 4.50 Treatment of organization in termsof respect and fairness 4.51 The opinion regarding the perception of interview process in ibs among gender 4.52 Difference in the opinion regarding the perception of interview process in ibs among age group 4.53 Difference in the opinion regarding the perception of interview process in ibs among marital status 4.54 Difference in the opinion regarding the perception of interview process in ibs among qualification 4.55 Difference in the opinion regarding the perception of interview process in ibs among experience 4.56 Difference in the satisfaction towards the on boarding activities of ibs among gender 4.57 Difference in satisfaction towards the on boarding activities of ibs among age group 4.58 Difference in satisfaction towards the on boarding activities of ibs among marital status 4.59 Difference in the satisfaction towards the on boarding activities of ibs among qualification 4.60 Difference in the opinion of getting information of the job opportunity based on gender 4.61 Difference in the opinion of getting information of the job opportunity based on age group 4.62 Difference in the opinion of getting information of the job opportunity based on marital status 4.63 Difference in the opinion of getting information of the job opportunity based on qualification 4.64 Difference in the opinion of getting information of the job opportunity based on experience 4.65 The mode of hiring in which you are placed in the organization 4.66 Best mode of interview
  • 9. LIST OF FIGURES Figure.No Title Page.No 2.1.1 Recruitment process 2.7.1 Selection process 2.9.1 Recruitment process in ibs software 3.2.5 Cargo sales and commercial solutions 3.2.6 Cargo terminal operations 3.2.7 Revenue Accounting 3.2.8 ULD Management 3.2.9 Mail Management 4.1 The gender of respondents among professionals 4.2 The age group of respondents among professionals 4.3 The marital status of respondents among professionals 4.4 The qualification of respondents among professionals 4.5 The experience of respondents among profession 4.6 The organisation's ability to clearly define the job description and job specification 4.7 The average time spent by the interviewers during interview 4.8 The company’s ability to recruit based on the candidates experience level, qualification and communication skills 4.9 The new recruit’s ability to get work along with the working environment of ibs 4.10 How well do those hired perform on the job 4.11 The quality of interview and selection process to separate performers from pretenders 4.12 The quality of information given to rejected candidates about their status of application 4.13 The consideration given to the internal candidates for all jobs before outside recruitment begins 4.14 The effectiveness of the interviewing process and other selection instruments such as test 4.15 Maximum duration taken by the recruiters for recruitment
  • 10. 4.16 How the rejected candidates are informed 4.17 What mode of interview do the respondents prefer 4.35 The gender of respondents among professionals 4.36 The age group of respondents among employees 4.37 The marital status of respondents among employees 4.38 The qualification of respondents among employees 4.39 The experience of respondents employees 4.40 Recruitment teams ability to clearly define the job description and job specification 4.41 The recruiters approach in recruitment and selection 4.42 Rating of the interview process in the ibs 4.43 The rating of recruitment practices of ibs in terms of rigidity in eligibility criteria 4.44 Satisfaction level of respondents with the quality and relation of questions to the job 4.45 Satisfaction level with the frequency of the recruitment team in terms of feedback 4.46 Satisfaction level with the on- boarding activities of ibs 4.47 Rating regarding the information communicated about the selection process to the candidates by the organization 4.48 Rating on company’s consideration given to internal candidates for all jobs before outside recruitment begins 4.65 The mode of hiring in which you are placed in the organization 4.66 Best mode of interview
  • 11. ABBREVATIONS BPM- Business Process Management CAAC - Civil Aviation Of China CAGR - Compound Annual Growth Rate CAMO - Continuing Airworthiness Management Organisation CGI - Core Group of Influence CII - Confederation of Indian Industry CRA - Cargo Revenue Accounting Deity - Department of Electronics and Information Technology DIPP - Department of Industrial Policy and Promotion DTS - Discovery Travel Systems EASA - European Aviation Safety Agency EDF - Electronic Development Funds e-TV - e-Tourist Visa FAA - Federal Aviation Administration GDP - Gross Domestic Product GPS - Global Positioning System HBSi - Hotel Booking Solutions incorporated HRD - Human Resource Development ICT - Information and Communication Technology IDC - International Data Corporation IIIT-H - International Institute of Information Technology JAA - Joint Aviation Authorities M&E - maintenance and engineering MPM - Manpower Management MRO - Maintenance Repair and Overhaul NASSCOM- National Association of Software & Services Companies NCA - Nippon Cargo Airlines NDLM- National Digital Literacy Mission PAs - Postal Administrations
  • 12. PMS - Property Management System PoB - Personnel On Board Management PPP - public-private partnership PSS - Passenger Service System SMAC - Social, Mobility, Analytics and Cloud TTL - Travel, Transportation and Logistics ULD - Unit Load Device VC - Venture Capital
  • 13. CONTENTS Page No. ACKNOWLEDGEMENT (i-ii) LIST OF TABLES (iii- iv) LIST OF FIGURES (v) ABBREVIATIONS (vi) CHAPTER I – INTRODUCTION 1.1 Statement of the Problem 1.2 Significance of the Study 1.3 Review of Literature 1.4 Objectives of the Study 1.5 Hypotheses of the Study 1.6 Methodological Design of the Study 1.7 Sampling Design 1.8 Tools for Analysis 1.9 Reference Period 1.10 Limitations of the Study 1.11 Chapterisation CHAPTER II -THEORETICAL FRAMEWORK OF THE STUDY CHAPTER III - PROFILE OF…. 3.1 Industry 3.2 Company CHAPTER IV - ANALYSIS AND INTERPRETATION OF DATA CHAPTER V - SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS BIBLIOGRAPHY APPENDICES
  • 15. 2 1. INTRODUCTION In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company or an organization is measured through the quality of products and services offered to customers are result of the genius brains working behind them. Human Resources in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore, a recruitment practice in an organization must be effective and efficient in attracting the best manpower. In the case of an expanding company like IBS Software Services there is a new post created every day. Thus, recruitment is an ongoing process carried throughout the year. The project is based on the evaluation of effectiveness of recruitment and selection process. The various recommendations suggested have been the rest of the study. The idea is to generate ways of dealing with arising need for manpower and making hiring process manageable and efficient. To pursue these, I would be going through the recruitment policies of the company. By active participation in the recruitment process, the areas where improvement can be bought about can be identified. 1.1. STATEMENT OF THE PROBLEM The success of organizations in this modern business environment depends on the calibre of the manpower that steers the day to day affairs of the organizations. The process of recruiting and selecting all categories of employees has been a matter of concerns to may organizations and needs attention. Even though it is the wish of every organization to attract the best human resource in order to channel their collective effort into excellent performances, unconventional selection practice can mar any business plan. This study will therefore, identify and assess the effectiveness of the recruitment and selection practices and procedures of IBS Software.
  • 16. 3 1.2 SIGNIFICANCE OF THE STUDY A researcher has its own importance in any business organization. It is a systematic and scientific investigation of any idea either precise or abstract from continuous basis of learning. As we know in present times, the modern world is progressing at a very high pace. Due to high competition and increased expectations, every organization needs effective recruitment and selection process. By this study new segments of recruitment and selection process has been discovered. This will help to enhance the capability of IBS Software in using the recruitment and selection process more effectively. This project would be significant for the readers as it is providing them knowledge about recruitment and selection process. 1.3 REVIEW OF LITERATURE The study of Odiorne (1984) indicates that the quality of new recruits depends upon the organization’s recruitment practice and that the relative effectiveness of selection phase is inherently dependent upon the caliber of candidates attracted. One result of effective recruitment and selection is reduced labor turnover and good employee morale. Burack (1985) persuaded that recruitment sources are significantly linked to differences in employee performance, turnover, satisfaction and organizational commitment. Dowling and Schuler (1990) said that the primary aim of recruitment is searching for and obtaining potential job candidates in sufficient numbers and quality in order for the organization to be able to select the most appropriate people to satisfy its job needs. Huselid (1995), Enlighted in his studies that recruitment procedures provide a large pool of qualified applicants, paired with a reliable and valid selection regime that will have a substantial influence over the quality and type of skills new employees possess. The implication of this line of thought is that an organization’s human resource policies and practices represent important forces for shaping employee behavior and attitudes. Delery and Doty(1996), suggested that providing the respondents with great awareness of employment opportunities and equipping them with the ability to be proactive in approaching potential employers will lead to more effective career self-management and selection process.
  • 17. 4 In the work of Gareth Roberts (1997) it is mentioned that the process of attracting people to apply for the job requires achievement of a balance. There need to be sufficient candidates to afford an opportunity to choose and also the quality of candidates needs to be good enough to make such decisions meaningful. Elwood & James, (1996) said that recruitment and selection form a major part of an organization’s overall resourcing strategies, which identifies and secures people needed for an organization to survive and succeed in the short to long-term. Bratton & Gold (1999) suggested in their studies that recruitment and selection are the initial stages of a dialogue among applications and the company that shapes the employment relationship. This relationship being the essence of a company's manpower development, failure to acknowledge the importance of determining expectation during recruitment and selection can lead to the loss of high quality job seekers and take the initial stage of the employment relationship so down as to make the accomplishment of desirable HRM outcomes extremely difficult. Montan and Charnou (2000) in their findings suggest that recruitment and selection include sourcing candidates by advertising or other methods, screening potential candidates using tests and interviews, selecting candidates based on the results of the tests or interviews, and on-boarding to ensure that the candidates are able to fulfill their new roles effectively. The theories of Zottoli & Wanous(2000) reveals that the effectiveness of recruitment and selection process has primarily been assessed by examining the rates of turnover, job survival and job performance along with organizational issues such as referrals by current personnel, in-house job postings, and the re-hiring of former employees. The studies of Bohlander, Snell & Sherman (2001) is that it is important for managers to understand the objectives, policies and practices used for selection. More importantly, those responsible for making selection decisions should have adequate information upon which to base their decisions. Based on the theory of Barney (2001), firms should constantly evaluate their workforce to ensure that they have the right people with the right skills in the right places to ensure sustained competitive advantage and when this is not the case, firms should make-up for the shortfall by employing appropriate recruitment and selection criteria. The theory maintained
  • 18. 5 that the major part of any firm’s strength or weakness stem from the caliber of the people employed and the quality of their working relationships. Human Resource Management theories of Korsten (2003) emphasize on techniques of recruitment and selection and outline the benefits of interviews, assessment and psychometric examinations as employee selection process. It also states recruitment process may be internal or external or may also be conducted online and this process is based on the levels of recruitment policies, job postings and details, advertising, job application and interviewing process, assessment, decision making, formal selection and training. The findings of Robbins (2005), shows that organization’s human resource policies and practices represent important forces for shaping employee behavior and attitudes. The study suggests that in designing and instituting recruitment and selection criteria quality should not be compromised. This is more so as the right type of labor is hard to come by. In the work of Armstrong (2006), people and their collective skills, abilities and experience, coupled with their ability to deploy these in the interests of the employing organization, are now recognized as making a significant contribution to organizational success and also constituting a significant source of competitive advantage. In the view of Rauf (2007) there is a positive association between the extensiveness of recruiting, selection test validation and the use of formal selection procedures, organisations performance and firm profits. The sophisticated recruitment and selection procedures are positively related to performance in organizations. In the work of Dessler, G. (2008), the main aim of employee selection is person job fit. Person job fit means matching the knowledge, skills, abilities and competencies that are required for performing the job based on job analysis with the applicant’s knowledge, skills, abilities and competencies. Selecting the right employee leads to improved employee and organizational performance. Mohamed Branine (2008) has persuaded that graduate recruitment and selection process refers to the process of searching for and obtaining potential job applicants from graduates in sufficient quantity and quality so that potential employers can select the most suitable candidates to fill in their job vacancies The theory of Henry and Temtime (2009) says that recruitment is the entry point of manpower into an organization and the path an organization must follow from there on in
  • 19. 6 order to make sure that they have attracted the right individuals for their culture and vibes so that the overall strategic goals are achieved . From the work of Ezeali and Esiagu(2010) recruitment and selection in any organization is a serious business as the success of any organization or efficiency in service delivery depends on the quality of its workforce who was recruited into the organization through recruitment and selection exercises. Opatha (2010) persuaded that recruitment is the process of finding and attracting suitably qualified people to apply for job vacancies in the organization. It is a set of activities an organization uses to attract job candidates who have the needed abilities and attitudes. Recruitment is the process of generating a pool of qualified applicants for organizational job vacancies. Selection is the process of making the choice of the most suitable applicant from the pool of applicants recruited to fill the relevant job vacancy. Rao (2010) said that recruitment is the first step after which selection and placement comes in the employment process. Employers aim is to choose an appropriate candidate suitable for a particular job. Recruitment is the activity done by the HR’s in many organizations. The recruitment process differs from one organization to others. In the work of Ofori & Aryeetey (2011) recruiting and selecting the wrong candidates who are not capable come with a huge negative cost which businesses cannot afford. Thus, the overall aim of recruitment and selection within the organization is to obtain the number and quality of employees that are required to satisfy the strategic objectives of the organization, at minimal cost. Recruitment is the process of generating a pool of competent individuals to apply for employment within an organization. The insight of the work of Sinha and Thaly (2013) mention that there is a variety of recruitment approaches such as employee referral, campus recruitment, advertising, recruitment agencies/consultants, job sites/portals, company websites, social media etc, and most organizations will use a combination of two or more of these as part of a recruitment process or to deliver their overall recruitment strategy. Also which recruiting channels should be used depends on the job position, on the company’s employer brand, on the resources the company has on its recruiting team, on how much recruiting budget the company has, etc. One can use them all and find out which suits the best.
  • 20. 7 The study of Gamage (2014) suggests that recruitment and selection are vital functions of human resource management for any type of business organization. These are terms that refer to the process of attracting and choosing candidates for employment. General purpose of recruitment is to provide the organization with a pool of potentially qualified job candidates. The quality of human resource in an organization highly depends on the quality of applicants attracted because organization is going to select employees from those who were attracted. REFERENCES 1. George S Odiorne(1984), Strategic Human Resource Management, First Edition, Jossey : Bass Inc. Publishing 2. Burack EH (1985), “Linking Corporate Business and Human Resource Planning: Strategic Issues and Concerns” Human Resource Planning, 9(2) : 134. 3. Dowling, P & Schuler, R, 1990, International Dimensions of Human Resource Management, Boston, Mass: PWS-Kent Publishing 4. Huselid, A. M. (1995). “The impact of human resource management practices on turnover, productivity, and corporate financial performance”, Academy of Management Journal ,34(3) : 84 5. John E. Delery and D. Harold Doty(1996), “Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurationally Performance Predictions”, The Academy of Management Journal,56(9) : 45 6. Gareth Roberts (1997), Recruitment And Selection : A Competency Approach, London : CIPD Publishing, 7. Elwood & James A. P. (1996). “Productivity gains from the implementation of employee training Programs “, Industrial relation, 33(4): 411-425. 8. John Bratton & Jefrey Gold (1999), Human Resource Management: Theory and Practice, UK: Macmillan. 9. Montan, H., & Charnou, B. (2000). “Human resource practices and firm performance of multinational corporations: Influences of country of origin” , Journal of International Human Resource Management, 51(3) : 36 10. Zottoli, M. & Wanous, J. (2000).” Recruitment source research: Current status and future irections”, Human Resource Management Review, 10 (4) 353-382.
  • 21. 8 11. Bohlander, G., Snell, S. & Sherman, A. (2001), Managing human resources, New York: South- Western College publishing 12. Barney, J. B. (2001). “Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view”, Journal of Management,54(6): 76 13. Korsten A.D. (2003), “Developing a training plan to ensure employees keep up with the dynamics of facility management”, Journal of Facilities Management, 30(1) :34 14. Robbins, S. P. (2005), Organizational behavior: Concepts, controversies and applications, New Jersey: Prentice Hall. 15. Armstrong, M., (2006), A Handbook of Human Resource Management Practice 10th edition, Great Britain: Cambridge University. 16. Rauf, M.A. (2007), HRM sophistication and SME performance: A case of readymade garment manufacturers and exporters in Lahore -Pakistan Report, London: HMS 17. Dessler, G. (2008). Human Resource Management (11th ed), New Jersey: Prentice Hall 18. Mohamed Branine(2008), Career Development International , Emerald Group Publishing Limited 19. Henry, O., & Temtime, Z. (2009). “Recruitment and selection practices in SMEs: Empirical evidence from a developing country perspective”, Advances in Management,67(1): 15 20. Ezeali, B. O & Esiagu,L. N (2010), Public personnel management: Human capital management strategy in the 12st century, Onitsha: Book Point Limited. 21. Opatha, H.H.D.N.P. (2010), Human resource management, Colombo: Author published 22. Rao P. (2010), Human Resource Management (Text and Cases), Mumbai: Himalaya Publishing House. 23. Ofori D & Aryeetey, M. (2011), “Recruitment and selection practices in small and medium enterprises’, International Journal of Business Administration,20(3):64 24. Sinha V & Thaly, P (2013). “A review on changing trend of recruitment practice to enhance the quality of hiring in global organizations”, Management, 18(2), 141-156.
  • 22. 9 25. Gamage, A. S. (2014), “Recruitment and selection practices in manufacturing SMEs in Japan”, An analysis of the link with business performance Ruhuna Journal of Management and Finance, 1(1), 37-52
  • 23. 10 1.4 OBJECTIVESOF THE STUDY • To analyse the effectiveness of the recruitment and selection process at IBS. • To know the perception of employers and employees regarding recruitment and selection process. • To find out areas which need to be addressed in recruitment and selection process in IBS. 1.5 HYPOTHESES OF THE STUDY Ho: There is no effectiveness in recruitment and selection process. HO1: The Perception about consideration given to internal candidate for all the jobs before outside recruitment does not differ among the gender of HR Professionals HO2: The Perception about consideration given to internal candidate for all the jobs before outside recruitment does not differ among the age of HR Professionals Ho3: The Perception about consideration given to internal candidate for all the jobs before outside recruitment does not differ among the marital status of HR Professionals Ho4: The Perception about consideration given to internal candidate for all the jobs before outside recruitment does not differ among the qualification of HR Professionals Ho5: The Perception about consideration given to internal candidate for all the jobs before outside recruitment does not differ among the experience of HR Professionals H06: There is no significant difference in the perception of interview process in IBS among gender H07: There is no significant difference in the perception of interview process in IBS among different age group of employees H08: There is no significant difference in the perception of interview process in IBS among employees with different marital status H09: There is no significant difference in the perception of interview process in IBS among the employees with different qualification
  • 24. 11 H10: There is no significant difference in the perception of interview process in IBS among the employees with different experience H11: There is no significant difference in the satisfaction towards the on boarding activities of IBS among gender H12: There is no significant difference in the satisfaction towards the on boarding activities of IBS among age group H13: There is no significant difference in the satisfaction towards the on boarding activities of IBS among marital status H14: There is no significant difference in the satisfaction towards the on boarding activities of IBS among qualification 1.6 METHODOLOGICALDESIGN OF THE STUDY The nature of study is descriptive in nature. Both primary and secondary data were used for the study. Primary data were collected through distribution of structured questionnaire. Psychologist Rensis Likert’s five level likert scale is used for collection of primary data. Secondary data were mainly collected from the reports, documents and websites provided by the company. 1.7 SAMPLING DESIGN • Population The population of the study covers the employees of IBS Software. • Sample size A total number of 100 samples 80 were selected from the employees and 20 were selected from HR Professionals of IBS Software. • Sampling technique The method of sampling was simple random. Simple random is a subset of Statistical population in which each member of the subset has an equal probability of being chosen.
  • 25. 12 1.8 TOOLS FOR ANALYSIS The analysis of the study was conducted using the software package called SPSS, used for logical batched and non-batched statistical analysis. The tools for analysis used are percentage analysis and correlation test. • Simple Percentage Analysis: Percentage analysis is the method to represent raw streams of data as a percentage (a part in 100 per cent) for better understanding of collected data. Percentage of respondents = 𝑁𝑜.𝑜𝑓 𝑅𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠 x 100 • Correlation test: Correlation is a statistical technique that can show whether and how strongly pairs of variables are related. The correlation is one of the most common and most useful statistics. A correlation is a single number that describes the degree of relationship between two variables. • Anova: Analysis of variance is a collection of statistical models and their associated estimation procedures used to analyse the differences among group means in a sample. One way or two way refers to the number of independent variables in you analysis of variance test, • T-test: The t-test is any statistical hypothesis test in which the test statistic follows a students t-distribution under the null hypothesis. 1.9 REFERENCEPERIOD The data for the study covers a period of 7 weeks commencing from 08th Jan 2018 to 02nd Mar 2018. 1.10 LIMITATION OF THE STUDY 1. Employees were busy in their work so they did not spend much time in respond openly to the question asked. 2. Due to time constraint the in-depth study could not be conducted. 3. The data was collected only on current working employees not an employee who left the organization.
  • 26. 13 1.11 CHAPTERISATION The study consists of 5 chapters: 1. Introduction 2. Theoretical framework of the study 3. Profile of: A) Industry B) Company 4. Analysis and interpretation of data 5. Summary of findings, conclusions and suggestions
  • 28. 15 2. THEORETICAL FRAMEWORK OF THE STUDY DEFINITION OF RECRUITMENT According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.” He further elaborates it, terming it both negative and positive. He says, “It is often termed positive in that it stimulates people to apply for jobs, to increase the hiring ratio, i.e. the number of applicants for a job. Selection, on the other hand, tends to be negative because it rejects a good number of those who apply, leaving only the best to be hired” In the words of Dale Yoder, Recruitment is the process to “discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.” Kempner writes, “Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidates. In personnel recruitment, management tries to do far more than merely fill job openings. As a routine the formula for personnel recruitment would be simple i.e., just fill the job with any applicant who comes along. Joseph J. Famularo has said, “However, the act of hiring a man carries with it the presumption that he will stay with the company-that sooner or later his ability to perform his work, his capacity for job growth, and his ability to get along in the group in which he works will become matters of first importance.” Because of this, a critical examination of recruitment methods in use should be made, and that is the purpose of this chapter. MEANING Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organisation. When more persons apply for jobs then there will be a scope for recruiting better persons. Recruitment is the process of attracting prospective employees and stimulating them for applying job in organization. The job-seekers too, on the other hand, are in search of organisations offering them employment. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs.
  • 29. 16 In simple words, the term recruitment refers to discovering the source from where potential employees may be selected. The scientific recruitment process leads to higher productivity, better wages, high morale, reduction in labour turnover and enhanced reputation. It stimulates people to apply for jobs; hence it is a positive process. Recruitment is concerned with reaching out, attracting, and ensuring a supply of qualified personnel and making out selection of requisite manpower both in their quantitative and qualitative aspect. It is the development and maintenance of adequate man- power resources. This is the first stage of the process of selection and is completed with placement. 2.1 RECRUITMENT PROCESS Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an organization. It sources the candidates with the abilities and attitude, which are required for achieving the objectives of an organization. Recruitment process is a process of identifying the jobs vacancy, analyzing the job requirements, reviewing applications, screening, shortlisting and selecting the right candidate.To increase the efficiency of hiring, it is recommended that the HR team of an organization follows the five best practices (as shown in the following image). These five practices ensure successful recruitment without any interruptions. In addition, these practices also ensure consistency and compliance in the recruitment process Figure 2.1.1
  • 30. 17 2.1.2 Recruitment Planning Recruitment planning is the first step of the recruitment process, where the vacant positions are analysed and described. It includes job specifications and its nature, experience, qualifications and skills required for the job, etc. A structured recruitment plan is mandatory to attract potential candidates from a pool of candidates. The potential candidates should be qualified, experienced with a capability to take the responsibilities required to achieve the objectives of the organization. 2.1.3 Identifying Vacancy The first and foremost process of recruitment plan is identifying the vacancy. This process begins with receiving the requisition for recruitments from different department of the organization to the HR Department, which contains −  Number of posts to be filled  Number of positions  Duties and responsibilities to be performed  Qualification and experience required When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether the position is required or not, permanent or temporary, full-time or part-time, etc. These parameters should be evaluated before commencing recruitment. Proper identifying, planning and evaluating leads to hiring of the right resource for the team and the organization. 2.1.4 Job Analysis Job analysis is a process of identifying, analysing, and determining the duties, responsibilities, skills, abilities, and work environment of a specific job. These factors help in identifying what a job demands and what an employee must possess in performing a job productively. Job analysis helps in understanding what tasks are important and how to perform them. Its purpose is to establish and document the job relatedness of employment procedures such as selection, training, compensation, and performance appraisal.
  • 31. 18 The following steps are important in analysing a job −  Recording and collecting job information  Accuracy in checking the job information  Generating job description based on the information  Determining the skills, knowledge and skills, which are required for the job The immediate products of job analysis are job descriptions and job specifications. 2.1.5 Job Description Job description is an important document, which is descriptive in nature and contains the final statement of the job analysis. This description is very important for a successful recruitment process. Job description provides information about the scope of job roles, responsibilities and the positioning of the job in the organization. And this data gives the employer and the organization a clear idea of what an employee must do to meet the requirement of his job responsibilities. Job description is generated for fulfilling the following processes −  Classification and ranking of jobs  Placing and orientation of new resources  Promotions and transfers  Describing the career path  Future development of work standards A job description provides information on the following elements −  Job Title / Job Identification / Organization Position  Job Location  Summary of Job  Job Duties  Machines, Materials and Equipment  Process of Supervision  Working Conditions  Health Hazards
  • 32. 19 2.1.6 Job Specification Job specification focuses on the specifications of the candidate, whom the HR team is going to hire. The first step in job specification is preparing the list of all jobs in the organization and its locations. The second step is to generate the information of each job. This information about each job in an organization is as follows −  Physical specifications  Mental specifications  Physical features  Emotional specifications  Behavioural specifications A job specification document provides information on the following elements −  Qualification  Experiences  Training and development  Skills requirements  Work responsibilities  Emotional characteristics  Planning of career 2.1.7 Job Evaluation Job evaluation is a comparative process of analysing, assessing, and determining the relative value/worth of a job in relation to the other jobs in an organization. The main objective of job evaluation is to analyse and determine which job commands how much pay. There are several methods such as job grading, job classifications, job ranking, etc., which are involved in job evaluation. Job evaluation forms the basis for salary and wage negotiations. 2.1.8 Recruitment Strategy Recruitment strategy is the second step of the recruitment process, where a strategy is prepared for hiring the resources. After completing the preparation of job descriptions and job
  • 33. 20 specifications, the next step is to decide which strategy to adopt for recruiting the potential candidates for the organization. While preparing a recruitment strategy, the HR team considers the following points −  Make or buy employees  Types of recruitment  Geographical area  Recruitment sources The development of a recruitment strategy is a long process, but having a right strategy is mandatory to attract the right candidates. The steps involved in developing a recruitment strategy include −  Setting up a board team  Analysing HR strategy  Collection of available data  Analysing the collected data  Setting the recruitment strategy 2.1.9 Searching the Right Candidates Searching is the process of recruitment where the resources are sourced depending upon the requirement of the job. After the recruitment strategy is done, the searching of candidates will be initialized. This process consists of two steps −  Source activation − Once the line manager verifies and permits the existence of the vacancy, the search for candidates starts.  Selling − Here, the organization selects the media through which the communication of vacancies reaches the prospective candidates. Searching involves attracting the job seekers to the vacancies. The sources are broadly divided into two categories: Internal Sources and External Sources. 2.1.10 Internal Sources Internal sources of recruitment refer to hiring employees within the organization through −
  • 34. 21  Promotions  Transfers  Former Employees  Internal Advertisements (Job Posting)  Employee Referrals  Previous Applicants 2.1.11 External Sources External sources of recruitment refer to hiring employees outside the organization through −  Direct Recruitment  Employment Exchanges  Employment Agencies  Advertisements  Professional Associations  Campus Recruitment  Word of Mouth 2.1.12 Screening / Shortlisting Screening starts after completion of the process of sourcing the candidates. Screening is the process of filtering the applications of the candidates for further selection process. Screening is an integral part of recruitment process that helps in removing unqualified or irrelevant candidates, which were received through sourcing. The screening process of recruitment consists of three steps − 2.1.13 Reviewing of Resumes and Cover Letters Reviewing is the first step of screening candidates. In this process, the resumes of the candidates are reviewed and checked for the candidates’ education, work experience, and overall background matching the requirement of the job While reviewing the resumes, an HR executive must keep the following points in mind, to ensure better screening of the potential candidates –
  • 35. 22  Reason for change of job  Longevity with each organization  Long gaps in employment  Job-hopping  Lack of career progression 2.1.14 Conducting Telephonic or Video Interview Conducting telephonic or video interviews is the second step of screening candidates. In this process, after the resumes are screened, the candidates are contacted through phone or video by the hiring manager. This screening process has two outcomes −  It helps in verifying the candidates, whether they are active and available.  It also helps in giving a quick insight about the candidate’s attitude, ability to answer interview questions, and communication skills. 2.1.15 Identifying the top candidates Identifying the top candidates is the final step of screening the resumes/candidates. In this process, the cream/top layer of resumes are shortlisted, which makes it easy for the hiring manager to take a decision. This process has the following three outcomes −  Shortlisting 5 to 10 resumes for review by the hiring managers  Providing insights and recommendations to the hiring manager  Helps the hiring managers to take a decision in hiring the right candidate 2.1.16 Evaluation and Control Evaluation and control is the last stage in the process of recruitment. In this process, the effectiveness and the validity of the process and methods are assessed. Recruitment is a costly process; hence it is important that the performance of the recruitment process is thoroughly evaluated. The costs incurred in the recruitment process are to be evaluated and controlled effectively. These include the following −
  • 36. 23  Salaries to the Recruiters  Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.  Administrative expenses and Recruitment overheads  Overtime and Outstanding costs, while the vacancies remain unfilled  Cost incurred in recruiting suitable candidates for the final selection process  Time spent by the Management and the Professionals in preparing job description, job specifications, and conducting interviews. Finally, the question that is to be asked is, whether the recruitment methods used are valid or not? And whether the recruitment process itself is effective or not? Statistical information on the costs incurred for the process of recruitment should be effective. 2.2 Type of Recruitment: There are severaltypes of recruitment:  Online recruitment  Principles of help wanted advertising.  Executive recruiter.  Using government job service.  Campus recruiting.  Referral and walk-ins as a source of candidate.  Computerized employee database.  Recruiting a more diverse work force. 2.3 Factors Influencing Recruitment 1. Size of the Enterprise: The number of persons to be recruited will depend upon the size of an enterprise. A big enterprise requires more persons at regular intervals while a small undertaking employs only a few employees. A big business house will always be in touch with sources of supply and shall try to attract more and more persons for making a proper selection. It can afford to spend more amounts in locating prospective candidates. So, the size of an enterprise will affect the process of recruitment.
  • 37. 24 2. Employment Conditions: The employment conditions in an economy greatly affect recruitment process. In under-developed economies, employment opportunities are limited and there is no dearth of prospective candidates. At the same time suitable candidates may not be available because of lack of educational and technical facilities. If the availability of persons is more, then selection from large number becomes easy. On the other hand, if there is a shortage of qualified technical persons, then it will be difficult to locate suitable persons. 3. Salary Structure and Working Conditions: The wages offered and working conditions prevailing in an enterprise greatly influence the availability of personnel. If higher wages are paid as compared to similar concerns, the enterprise will not face any difficulty in making recruitments. An organisation offering low wages can face the problem of labour turnover. The working conditions in an enterprise will determine job satisfaction of employees. An enterprise offering good working conditions like proper sanitation, lighting, ventilation, etc. would give more job satisfaction to employees and they may not leave their present job. On the other hand, if employees leave the jobs due to unsatisfactory working conditions, it will lead to fresh recruitment of new persons. 4. Rate of Growth: The growth rate of an enterprise also affects recruitment process. An expanding concern will require regular employment of new employees. There will also be promotions of existing employees necessitating the filling up of those vacancies. A stagnant enterprise can recruit persons only when present incumbent vacates his position on retirement. 2.4 IMPORTANCE OF RECRUITMENT  Attract and encourage a good number of candidates to apply for the organisational vacancies.  Create a talent pool of prospective candidates that enables the selection of best candidates to suit for the organizational need.  Determine present and future organizational requirement taking into consideration of personnel planning and job analysis activities.
  • 38. 25  Links the employers with the potential employees.  Increase potential candidates’ pool at less cost.  Increases success rate of selection process by reducing the number of under qualified or overqualified job applicants.  Reduce the probability of leaving the organization only after a short period of time, once recruited and selected.  Meet the organizations’ legal and social obligations maintaining its workforce composition.  Determine the appropriateness of the candidates by identifying and preparing potential job applicants.  Increase organizational and individual effectiveness regarding application of various recruitment techniques and taping different sources of recruitment concerned. 2.5 Methods of Recruitment: Direct, Indirect and Third Party Method Some of the most important methods of recruitment are as follows: 1. Direct Method 2.Indirect Methods 3.Third Party Methods. Recruitment methods refer to the means by which an organisation reaches to the potential job seekers. In other words, these are ways of establishing contacts with the potential candidates. lt is important to mention that the recruitment methods are different from the sources of recruitment. The major line of distinction between the two is that while the former is the means of establishing links with the prospective candidates, the latter is location where the prospective employees are available. Dunn and Stephen have broadly classified methods of recruitment into three categories. These are: 1. Direct Method 2. Indirect Method 3. Third Party Method. A brief description of these follows in seriatim. 1. Direct Method:
  • 39. 26 In this method, the representatives of the organisation are sent to the potential candidates in the educational and training institutes. They establish contacts with the candidates seeking jobs. These representatives work in cooperation with placement cells in the institutions Persons pursuing management; engineering, medical etc. programmes are mostly picked up in this manner. Sometimes, some employer firms establish direct contact with the professors and solicit information about students with excellent academic records. Sending the recruiter to the conventions, seminars, setting up exhibits at fairs and using mobile office to go to the desired centres are some other methods used to establish direct contact with the job seekers. 2. Indirect Methods: Indirect methods include advertisements in newspapers, on the radio and television, in professional journals, technical magazines etc. This method is useful when: (i) Organisation does not find suitable candidates to be promoted to fill up the higher posts (ii) When the organisation wants to reach out to a vast territory, and (iii) When organisation wants to fill up scientific, professional and technical post The experience suggests that the higher the position to be filled up in the organisation, or the skill sought by the more sophisticated one, the more widely dispersed advertisement is likely to be used to reach to many suitable candidates. Sometimes, many organisations go for what is referred to as blind advertisement in which only Box No. is given and the identity of the organisation is not disclosed. However, organisations with regional or national repute do not usually use blind advertisements for obvious reasons. While placing an advertisement to reach to the potential candidates, the following three points need to be borne in mind: 1. First, to visualise the type of the applicant one is trying to recruit. 2. Second, to write out a list of the advantages the job will offer. 3. Third Party Methods: These include the use of private employment agencies, management consultants, professional bodies/associations, employee referral/recommendations, voluntary organisations, trade
  • 40. 27 unions, data banks, labour contractors etc., to establish contact with the job- seekers. Now, a question arises: which particular method is to be used to recruit employees in the organisation? The answer to it is that it will depend on the policy of the particular firm, the position of the labour supply, the Government regulations in this regard and agreements with labour organisations. Notwithstanding, the best recruitment method is to look first within the organisation. 2.6 DEFINTION OF SELECTION The Selection is a process of picking the right candidate with prerequisite qualifications and capabilities to fill the jobs in the organization. Selection is defined as a process which differentiates between job applicants to filter and hire those who can achieve greater success in the job. Selection is the screening and filtering process of job applicants who have been invited to apply for the vacant positions through which the process comes to an end. Selection is the process of choosing form the candidates, from within the organization or from outside, the most suitable person for the current position or for the future positions. 2.7 SELECTION PROCESS Fig 2.7.1 The various steps in selection procedure are given as follows: 1. Inviting applications:
  • 41. 28 The prospective candidates from within the organization or outside the organization are called for applying for the post. Detailed job description and job specification are provided in the advertisement for the job. It attracts a large number of candidates from various areas. 2. Receiving applications: Detailed applications are collected from the candidates which provide the necessary information about personal and professional details of a person. These applications facilitate analysis and comparison of the candidates. 3. Scrutiny of applications: As the limit of the period within which the company is supposed to receive applications ends, the applications are sorted out. Incomplete applications get rejected; applicants with un-matching job specifications are also rejected. 4. Written tests: As the final list of candidates becomes ready after the scrutiny of applications, the written test is conducted. This test is conducted for understanding the technical knowledge, attitude and interest of the candidates. This process is useful when the number of applicants is large. 5. Psychological tests: These tests are conducted individually and they help for finding out the individual quality and skill of a person. The types of psychological tests are aptitude test, intelligence test, synthetic test and personality test 6. Personal interview: Candidates proving themselves successful through tests are interviewed personally. The interviewers may be individual or a panel. It generally involves officers from the top management. The candidates are asked several questions about their experience on another job, their family background, their interests, etc. They are supposed to describe their expectations from the said job. Their strengths and weaknesses are identified and noted by the interviewers which help them to take the final decision of selection.
  • 42. 29 7. Reference check: Generally, at least two references are asked for by the company from the candidate. Reference check is a type of crosscheck for the information provided by the candidate through their application form and during the interviews. 8. Medical examination: Physical strength and fitness of a candidate is must before they takes up the job. Inspite of good performance in tests and interviews, candidates can be rejected on the basis of their ill health. 2.8 RECRUITMENT PROCESS IN IBS: 1. Review requirement from various projects 2. Sourcing of suitable candidates 3. Shortlisting of candidates 4. Conduct Interview 5. Screening of Candidates 6. Offer Generation 7. Offer Acceptance 8. On-boarding and Induction 2.9 Recruitment Process in IBS Software Services Review manpower requirement from various Projects Sourcing of suitable candidates Shortlisting of Candidates Conduct Interview On-boarding and Induction Offer Acceptance Offer Generation Screening of Candidates Fig 2.9.1
  • 43. 30 2.10 Step involved in Recruitment in IBS Software Services: Step 1: whenever there is a vacancy in the company, it will be first known by the project manager. The project manager informs about the vacancy to hiring or recruitment team. Step 2: Once the Recruitment manager comes to know about the vacancy in the company he will inform it to the conducted authorities to get approval for the recruitment Step 3: After getting the approval the process will be carried out by the HR manager. Moreover the, recruitment of the company internally, that is the existing employees will be given priority first. 2.11 Review requirement from various projects: The recruitment planning is mainly done on the basis of requirement from various projects in the company. The Resource Management Group of the company provides information to the Human Resource Department regarding the vacancies or requirements. The Human Resource Department the recruits the suitable candidates through their recruitment process. Recruitment process commences with the identifying the manpower requirement for various projects. The project leads convey their requirement to the Human Resource Department. The HR executives then recruits the suitable candidates according to the guidelines given by their managers. Recruitments happen on a daily basis through walk in interviews, telephonic interview and Skype interview 2.12 Source of Recruitment Internal Sources: • Present permanent Employees: The company considers the candidates from their sources for same industry because of: a. Availability of most suitable candidates. b. The policy of organization to motivate the present employees.
  • 44. 31 • Retired Employees: Generally, the organisation takes the candidates for the employment from the retired employees due to obligation. Sometimes the company re-employs the retired employees’ as a token of their loyalty to the organisation. External Sources • Employee Referrals: Employee Referrals is one of the most popular sourcing methods. Existing employees of the company are asked to refer candidates for the available vacancies. The employees will also be given suitable bonuses or benefits for the same. • Consultancy: IBS Software Services has a group of vendors or consultancies who provide them with suitable candidates at the time of vacancies. Whenever there is a vacancy in the company, the recruitment head contact their vendors for references. The vendors send the selected profiles as per the required designation from which the recruitment team shortlist the most talented candidates. • Portals: Internet is the modern of recruitment. If a company wants to place or fill a vacancy within a short period of time through the external sources, then internet is the best source. Most commonly used online job portals are Naukri.com and LinkedIn. HR would tap various sources/channels for getting the right candidates. Depending on the nature of the position/grade, volume of recruitment and any other relevant factors, the regional HR would use any one multiple sources such as: a. Existing database (application from talent management system) b. Employee referral as per any company scheme that may be approved from time to time c. Portals d. Consultancies The norms for using any of the sources are not water tight. Number of position, critically of position and the urgency of the position, confidentiality requirement and relative efficacy would play a role in the choice of the appropriate sourcing mechanism.
  • 45. 32 2.13 Shortlisting the Candidates: The third step in the recruitment process is the shortlisting of candidates. The recruitment team verifies the profile of the candidates that they have received from different sources and shortlisting them on the basis of the JD. The team contacts the shortlisted candidates to check for their availability for attending the interview. the team then schedules an appropriate date and time and venue for the interview. 2.14Screening the Candidates • First level Screening The candidates would be screened by the HR Manager for the respective locations. Screening would be on the basis on the profile of the candidates and the departmental requirements. This assessment will be with respect to: a. The general profile of the candidates b. Sources c. Motives of the person to join the company d. Basic skill level on the set of requirements e. Establish the annual guaranteed cash compensation of the individual and check whether the person would fit into the system. In case of need, the Regional HR may take a telephonic interview of the candidate for further assessment process. • Second Level Screening: Written test- if the first assessment is positive, the candidates will give the written test, once such test is selected approved by the company. The scoring, interpretation and the generation of the interview probes from that test will also be done at this time. People who qualify the minimum criteria on this test will be put up on to functional assessment and suitability into the role. 2.15 General Norms Regarding Interview Process: • Interview should consider the entire data provided by the candidate either through the formal CV or otherwise before coming to a conclusion about the candidates. They many insist on seeing the proof of the claims made by the candidates regarding
  • 46. 33 qualifications, experience and other achievements. They may, as their discretion, decide to meet the candidate on more than one occasion or to refer the candidates to another panel. • Rating on various attributes of the candidates shall be recorded in the interview evaluation sheet, soon after the interview is over. Along with these numerical ratings, qualitative observation about the candidates and overall decision regarding selection or otherwise (including a decision to defer the induction, referral to another panel, considering for another position) shall be forwarded to the associated recruitment manager. Individual’s panel members have the option of appending their additional remark/observations. • Any discrepancies notices by the panel members regarding the authenticity of the data provided by the candidates should be specially and formally recorded on the evaluation forms and suitably high lightened. • Specific points to be probed during the reference check process, if any, must also be clearly recorded and high lightened on forms. • The Recruitment manager then sends the evaluation sheets to the Corporate HR who process it and generates the offer letter. 2.16 Administrative Actions Regarding Interviews: • Scheduling and the venue of the interview would be handled by the recruitment team in consultation with the short-listed candidates and the selection panel members, after taking mutual convince into account. For the field position, respective branch/regional heads would undertake this co-ordination. • After the final round, if the candidates is selected, the complete set of papers personal data from CV, interview evaluation sheet, reference check details, educational details, along with the interview’s recommendation and reference check a form should be forwarded by the recruitment manager to recruitment head. Allotment of the candidates into grade and compensation fitment shall be on the assumption of the authenticity of the informational provided in the CV /application form. • An appropriate formal communication shall be sent to the candidates whose application is not being taken forwarded, or details of the verbal/telephonic communication provided to the candidates shall be recorded on the candidates’ papers by the recruitment team/ associated line managers. In the case of interview’s taking
  • 47. 34 place at the branch/regional levels, similar noting should be recorded on the individual candidate’s papers. 2.17 Negotiation of the terms and conditions and other pre-appointment formalities: • The recruitment manager, after selection, conducts an official telephonic conservation with the candidates for the negotiation of CTC. The HR refers to the candidates previous CTC and negotiates accordingly. • Responsibility for negotiation and finalization of the terms shall rest with the associated HR Manager. They may seek the assistance of the recruitment managers, whenever required. Reference check process should not normally be initiated unless the candidates has indicated his firm acceptance of the offer being made by us. 2.18 Reference Checks and Background Verification: Background check of all employees is done by the Corporate HR, parallel to the generation of offer letter. In case of recruitment of management trainees, fresher such background checks will not be done. 2.19 Employment Offer Letter: When a recruitment manager is fully satisfied about the selection of the right candidates and about completion of all the formalities connected with the appointment of candidates, he/she would ask the Corporate HR to change the status of the vacancy as ‘filled’ by generating an offer letter along with the on-boarding forms and login details of the employees in IBS. Joining formalities of the new employees of the IBS Software Services is done by the Corporate HR team. Once the employee joins, he/she will undergo the induction program to make sure they are familiar with the organisation and the role they have to hand. The employees will be given an orientation which will include handling over their login details and a personal kit.
  • 49. 36 3.1 INDUSTRYPROFILE Information Technology (IT) Industry in India has played a key role in putting India on the global map. IT industry in India has been one of the most significant growth contributors for the Indian economy. The industry has played a significant role in transforming India’s image from a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global player in providing world class technology solution and business services. The industry has helped India transform from a rural and agriculture-based economy to a knowledge-based economy. Information Technology has made possible information access at gigabit speeds. It has made tremendous impact on the lives of millions of people who are poor, marginalized and living in rural and far flung topographies. Internet has made revolutionary changes with possibility of e-government measures like e-health, e-education, etc. Today, whether its filing Income tax returns or applying for passports online or railway e-ticketing, it just need few clicks of the mouse. India’s IT potential is on a steady march towards global competitiveness, improving defence capabilities and meeting up energy and environment challenges amongst others. IT- ITeS sector in India, with the main focus on increasing technology adoption and developing platforms, has aggregated revenue of USD 88.1 billion in FY2011, while generating direct employment for over 2.5 million people. Out of 88.1 billion, exports revenue (including Hardware) has reached USD 59.4 billion in FY2011 while domestic revenues (including Hardware) of about USD 28.8 billion. The information Technology industry has gained a brand image knowledge economy due to its development from software exporters to providing IT –BPO sectors in India has aggregated revenues of US $ 100 billion I FY 2012, where exports comprises of us$69.1 billion and US$ 31.7 billion respectively growing by over 9%. IT industry has registered a notable growth because of rich and varied expansion into verticals, well differentials service offering and increasing growth penetration. The phenomenal success of this industry is attributable to favourable government policies, rich and burgeoning demand conditions, healthy growth of the related industries and competitive environment prevalent in the industry. The interplay of these forces has put the industry on the global map.
  • 50. 37 3.1.2 EVOLUTION OF IT INDUSTRY: The evolution of the IT industry can be studied in 4 phases Phase I: Prior to 1980 Indian IT industry was basically started with the hardware products and software industry was literally non- existent in India until 1960. Government protected the hardware sector through high tariff barriers and licensing. In the west, there was greater demand for software development as the inbuilt software with the systems was insufficient to perform all the operations. The government of India realizing the potential of this sector to earn foreign exchange. In 1972, the government formulated a software exports scheme in which it was decided to import hardware and export software. TCS Ltd. became the first firm to agree to this condition. The beginning of software exports was made in the year 1974. Phase II: 1980-1990 During this phase, in spite of the government initiatives the software exports could not reach the expected level because of two reasons. The exports of the software were dependent on the imports of hardware and the procedural aspects were too cumbersome. There were no proper infrastructure facilities for software development. In order to encourage more participants in this sector, relaxation to procedural activities and reduction in import duty was mandatory. To counter the prevailing problem a New Computer Policy to policy was formulated. According to this policy the import procedure was simplified and the import duty for import on hardware for software developers reduced. In 1986, the government took a step ahead to sustain and grow the benefits received as a result of the New Computer Policy. It formulated software policy and liberalized the IT industry. In this policy the imports of hardware were de-licensed and were also made duty free for the exporters. This policy has reduced a number of entry barrier making the growth in this sector inevitable. In 1990, government gave impetus and establish software technology park of India in order to increase the exports of software and services. Phase III: 1990-2000: This period has witnessed intensified competition in the IT industry. With companies investing in research and development and variety of software services. As this decade marked the beginning of significant changes in the economy, including trade liberalization, opening up of India economy for foreign investment, devaluation of the rupees and relaxation of the entry barrier. Due to the advantage this policy had attracted foreign investment in India and MNCs in India were introduced. “Offshore Model” “Onsite Model”
  • 51. 38 Global Delivery Model (GDM) were introduced as part of their distinguished services Phase IV: Post 2000 The global problem like Y2k, the dotcom crash and the recession in the US economy has forced many US firms to utilise the services of the Indian firms. This has resulted in placing the Indian IT industry on the global map. Posy 2002-03.the industry has registered a robust growth rate. During this period there was an increase in the Indian client base, large sized contracts and a strong global delivery model. India is the largest sourcing destination for the Information Technology (IT) industry, accounting for approximately 67 per cent of the US$ 124 – 130 billion markets. The industry employs about 10 million workforces. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India’s cost competitiveness in providing IT services, which is approximately 3 – 4 times cheaper than the US, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India. The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian education sector, especially for engineering and computer science. The Indian IT and ITeS industry is divided into four major segments – IT services, Business Process Management (BPM), Software products and engineering services and hardware. The IT-BPM sector which is currently valued at US$ 143 billion is expected to grow at a Compound Annual Growth Rate (CAGR) OF 8.3 percent year-on-year to US$ 143 billion for 2015-2016. The sector is expected to contribute 9.5 percent of India’s Gross Domestic Product (GDP) and more than 45 percent in total services export in 2015-16. 3.1.3 MARKET SIZE: The Indian IT sector is expected to grow at rate of 12 – 14 percent for FY2016- 17 in constant currency terms. The sector is also expected triple its current annual revenue to reach US$ 350 billion by FY 2025. India ranks third among global start-up ecosystems with more than 4, 200 start-ups.
  • 52. 39 India’s internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018, accounting for 5 percent of the country’s GDP. India’s internet user base reached over 400 million by May 2016, the third largest in the world, while the number of social media users grew to 143 million by April 2015 and smartphones grew to 160 million. Public cloud services revenue in India is expected to reach US$ 1.26 billion in 2016, growing by 30.4 percent year-on-year(y-o-y). The public cloud market alone in the country was estimated to treble to US$ 1.9 billion by 2018 from US$ 638 million in 2014. Increased penetration of internet (including in rural areas) and rapid emergence of e-commerce are the main drivers for continued growth of data centre co- location and hosting market in India. The Indian Healthcare Information Technology (IT) market is valued at US4 1 billion currently and is expected to grow 1.5 times by 2020 whereas the business to business (B2B) e-commerce market is expected to reach US$ 102 billion by 2020. 3.1.4 INVESTMENTS: Indian IT’s core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth US$ 21.02 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Indian start – ups are estimated to have raised US$ 1.4 billion across 307 deals in quarter ending March 2016. Most large technology companies looking to expand have so far focused primarily on bigger enterprises, but a report from market research firm Zinnov highlighted that the small and medium businesses will present a lucrative opportunity worth US$ 11.6 billion in 2015, which is expected to grow to US$ 2508 billion in 2020. Moreover, India has nearly 51 million such businesses of which 12 million have a high degree of technology influence and are looking to adopt newer IT products, as per the report Some of the major developments in the Indian IT and ITeS sector are as follows: • Rolta, an Information Technology (IT), engineering and geospatial services provider, has been awarded a seven-year, multi-million-pound contract by a UK based major
  • 53. 40 utility company UK Power Networks, to manage and update the firm’s spatially enabled network asset information. • Orange Business Services, the business services arm of Orange Group, has launched a state data centre for Himachal Pradesh government, which will be the first data centre in India to be designed using ‘green’ data centre concepts that minimise power requirements and increase power utilisation efficiency. • PurpleTalk Inc, a US based mobile solutions company, has invested US$ 1 million in Nukkad shops, a Hyderabad based uber-local commerce platform that helps neighbourhood retail stores take their businesses online through a mobile app. • KartRocket, a Delhi based e-commerce enabler has completed its US$ 8 million funding round by raising US$ 2 million from a Japanese investor, which will be used to enhance Kraftly, a mobile- first online – to – offline marketplace targeting smaller sellers, individuals and home - based entrepreneurs in India in product categories such as apparel and accessories. • Just Ride, a self-drive car rental aggregator, has raised US$ 400.000 in pre- series A round of funding from a Facebook co-founder Mr Eduardo Saverin, which will help the firm in growth and expansion of its technology platform. • MoMark Services, a mobile based customer engagement platform for small and medium businesses, has raised US$ 600.000 from Yournest Angel fund and LNB Group, to scale up its product offerings and talent acquisitions. • Shout, a social discovery app by Giant Tech Pvt Ltd, which helps consumers discover deals, buy event tickets or redeem coupons, has raised US$ 500.000 in angel funding from a high net- worth individual angel investor based in India. • Apple Inc. plans to set up its first technology development centre outside the US in Hyderabad with an investment of US$ 25 million , which is expected to create 4,500 jobs, as per Mr Jayesh Ranjan, secretary, IT for the state of Telengana. • Xpressbees,an e-commerce logistics firm operated by Busybees Logistics Solutions Private Limited, has raised US$ 12.5 million in a series A funding, led by its existing investors SAIF partners,IDG Ventures, Vertex Ventures AND Valiant Capital, which will be used to strengthen technology initiatives and processes of the firm.
  • 54. 41 • Housejoy, an online home services provider, has raised Rs 150 crores(US$ 22 million) in a series B round of funding led by Amazon, and which also includes new investors such as Vertex Ventures, Qualcomm and Ru-Net Technology Partners. • Global PE firm Blackstone Group has acquired a minority stake in an Indian travel, transportation and logistics software firm, IBS Software, for US$ 170 million, by buying the stake from General Atlantic and Few other shareholders. • India’s top-tier IT company, Infosys Ltd, has bought a minority stake worth US$3 million in Whoop, which is a US-based start-up that makes activity trackers worn by athletes. • Microsoft Ventures is planning to incubate 500 starts-ups in India in the next five years with a vision to create a viable and profitable business out of the booming start- up sector in India. • National Association of Software & Services Companies (NASSCOM) plans to open four more tech start-up incubation centres in different parts of India, in addition to existing three, in support of government of India’s ‘start-up India’ initiatives. • Nasscom Foundation, a non –profit organisation which is a part of Nasscom, has partnered with SAP India to establish 25 National Digital Literacy Mission (NDLM) centres in 12 cities across India, as a part of Government if India’s digital India initiatives. • Infosys, India’s second largest Information Technology services company has acquired US-based Noah Consulting, a provider of advanced information management consulting services for the oil and gas industry. • US-based Callidus Software Inc. cloud-based sales, marketing, learning & customer experience solution provider, has opened its centre in Hyderabad & also launched its ‘The Lead to Money’ suite in Indian markets. • Wipro Venture, Wipro’s US$ 100 million corporate venture arm, plans to invest in early –stages Venture Capital (VC) funds based in the US to pursue a strategy of investing/partnering country-focused VCs. • A recent study by research firm International Data Corporation (IDC) suggests that India may soon be able to catch up with the global technology trends that have disrupted enterprise, industry and the way consumers behave and transact.
  • 55. 42 • Reliance is building a 650,000 sq.ft data centre in India –its 10th data centre in the country-with a combined capacity of about 1 million sq.ft & an overall investment of US$ 200 million. • Intel Corp plans to invest about US$ 62 million in 16 technology companies, working on wearable, data analytics and the Internet of Things (IoT), in 2015 through its investment arm Intel Capital. The Indian IoT industry is expected be worth US$ 15 billion and to connect 28 billion devices to the internet by 2020. • Indian e-commerce industry is expected to grow at a CAGR of 35 % to reach US$ 100 billion size in the next five years. 3.1.5 GOVERNMENT INITATIVES: Some of the major initiatives taken by the government to promote IT & ITeS sectors in India are as follows: • Mr. Ravi Shankar Prasad, Minister of Communication & Information Technology, announced plan to increase the number of common services centres or e-Seva centres to 250,000 from 150.000 currently to enable village level entrepreneurs to interact with national experts for guidance, beside serving as a e-services distribution points. • The Railway Ministry plans to give a digital push to the Indian Railway by Introducing bar-coded tickets, Global Positioning System (GPS) based information systems inside coaches, integration of all facilities dealing with ticketing issues, Wi- Fi facilities at the stations, super-fast long-route train service for unreserved passengers among other developments, which will help to increase the passenger’s traffic. • The e-Tourist Visa (e-TV) scheme has been extended to 37 more countries thereby taking the total count of countries under the scheme to 150 countries. • Department of Electronics & Information Technology & m/s Canbank Venture Capital Fund Ltd plan to launch an Electronic Development Funds (EDF), which will be a ‘Fund of Funds’ to invest in ‘Daughter Funds’ which would provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology (IT).
  • 56. 43 • The Human Resource Development (HRD) Ministry has entered into a partnership with private companies, including Tata Motors Ltd, Tata Consultancy Services Ltd and real estate firm Hubtown Ltd, to open three Indian Institution of Information Technology (IIIT), through public-private partnership (PPP), at Nagpur, Ranchi and Pune. • Government of India is planning to develop five incubation centres for ‘Internet of Things’ (IoT) start-ups, as a part of Prime Minister Mr Narendra Modi’s Digital India and start-up India campaign, with at least two centres to be set up in rural areas to develop solutions from smart agriculture. • The Government of India has launched the Digital India program to provide several government services to the people using IT and to integrate the government departments, and the people of India. The adoption of key technologies across sectors spurred by the ‘Digital India Initiative could help boost India’s Gross Domestic Product(GDP) by US$ 550 billion US$ 1 trillion by 2025. • India and the US have agreed to jointly explore opportunities for collaboration on implementing India’s ambitious Rs.1.13 trillion (US$ 16.58 billion) ‘Digital India Initiative’. The two sides also agreed to hold the US- India Information and Communication Technology(ICT) Working Growth in India later this year. • The Government of Telangana has begun construction of a technology incubator in Hyderabad / dubbed T-Hub – to reposition the city as a technology destination. The state government is initially investing Rs.35 crore (US$ 5.14 million) to set up a 60,000 sq.ft space, labelled the large start-up incubator in the country, at the campus of International Institute of Information Technology – Hyderabad(IIIT-H). Once completed, the project is proposed to be the world’s biggest start-up incubator housing 1,000 start-ups. • The Department of Electronics and Information Technology (Deity) plans to start a digital literacy programme, aimed at training over six crore Indians in the next three years to empower them for digital inclusion 3.1.6 ROAD AHEAD: India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gaunt of opportunities for top IT firms in India. Social, Mobility, Analytics and Cloud (SMAC) are collectively expected to offer a US$ 1 trillion
  • 57. 44 opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30% to around US$ 650-700 billion by 2020. The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020. The Indian e-commerce segment is US$ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment. 3.1.7 India’s growing market size: • India’s technology and BPM sector (including hardware) is estimated to have generated US$146 billion in revenue during FY15 compared to US$118 billion in FY14., implying growth of 23.72 percent. • The contribution of the IT sector to India’s GDP rose to approximately 9.5 percent in FY15from 1.2 percent in FY98. • The top six firms contribute around 36 percent to the total industry revenue, indicating the market is fairly competitive, with TCS being the leader accounting for about 10.1 percent Burgeoning Indian talent pool. • Availability of skilled English-speaking workforce has been a major reason behind India’s emergence as a global outsourcing hub. • During FY08-15 number of graduate’s addition to talent pool during FY15. India added around 5.8 million graduates to the talent pool during FY15. • Growing talent pool of India has the ability to drive the R&D and innovation business in the IT-BPM space. 3.1.8 Future of IT industry in India: IT sector alone has the potential to take Indian economy to a higher level. IT has the ability to increase efficiency and productivity of every sector of the country. The demand for IT sector is likely to increase due to the following reasons: • Reduction in the price of semiconductor that in turn resulted in the reduction in price in electronic equipment enabled more and more people to buy computers and use it wherever possible. • There has been significant rise in the number of internet user and the number is likely to increase in future. This happened due to the lowering of broadband services and availability
  • 58. 45 of large number of portable services. The use of internet has definitely increased the number of online users of various services. And this will surely increase in future. • Rapid urbanization of developing countries like India has made computer household equipment. As a result, computer literacy has increased. Since a large number of people still live in rural areas, there’s a high probability that the increase in the number of computer and internet user will increase exponentially. But there are also some risks associated with this sector: • There is uncertainty in global economy due to the slow recovery in many major markets. Moreover, there is instability in major European nations. This could lead to cut in IT budget which will ultimately result in declining demand. • Rules and regulations that are being implemented in major markets like US will surely lead to a demand compression. The VISA restrictions in US are in fact targeted at the IT industry. This step was taken to curb outsourcing and will directly affect the demand in future. • Increased competition could result in price competition. Indian IT majors like TCS, Infosys, Wipro, CTS etc. are close substitutes of each other. So, there is increasing pressure on the IT majors to make their service different from others. This, however, will not affect the overall demand. • Wage inflation and overall increase in cost could reduce the profit margin. Appreciating rupee will further add to this problem. To deal with this companies have to focus on increasing productivity. 3.2 COMPANY PROFILE IBS Software Services is a leading global provider of new generation IT solutions to the Travel, Transportation and Logistics industries. A specialist in the domain, IBS offers a range of products and services that manage mission critical operations of airlines, airports, cruise lines, hospitality partners, tour operators and oil & gas companies that help them increase safety, maximize efficiency, improve revenue, manage growth and reduce costs. With a domain expertise of nearly twenty years in the Travel, Transportation and Logistics (TTL) industries, IBS understands the needs of all stakeholders. They help customers stay ahead of the competition by facilitating business innovation and enabling transformational changes using next generation technologies. This is why some of the best airlines, busiest airports, leading cruise lines, top oil & gas companies and renowned travel distributors & hotel groups in the world depend on our software to manage their mission critical operations.
  • 59. 46 In the aviation industry alone, our award winning end-to-end new-gen IT systems cut across all process areas – airline passenger services, cargo operations, flight and crew operations, airport operations and aircraft maintenance engineering. No other single enterprise in the world offers this range of technology products to the aviation industry, making us a one-stop shop. In sectors such as oil & gas logistics, travel & cruise and hospitality too, our solutions have established a reputation for effective/optimal management of mission-critical operations, assuring successful delivery & business continuity. IBS Software Services IT services competence includes Business & Technology Consulting, Independent Software Testing, Application Development & Maintenance and Managed Services in the Aviation, Travel, Hospitality and Oil & Gas industries. IBS Software Services was founded in 1997 in Technopark Kerala. In the same year, business activity was started in Europe. The following year, IBS Software Services initiated the reengineering of the management training system for the Swissair crew. In 2000, IBS Software Services is an ISO 9001 company certified . In the same year, business was started in the USA. In 2002 KPMG certified IBS Software Services as CMMI Level 5 Company. In 2006, an office was opened in Tokyo. V K Mathews is the Founder and Executive Chairman of The IBS Group. Mathews founded IBS in 1997 with a vision to redefine the way the global travel, transportation and logistics industries managed their businesses. What started as a modest entrepreneurial venture with 55 inexperienced engineers and a single customer is, today, a multinational corporation, serving over 170 clients worldwide, employing over 2000 professionals from 30 different nationalities and poised to be the No. 1 IT solution provider to the global air transportation industry. Mathews was instrumental in IBS acquiring six international companies (in Europe, USA and India) during its 19-year journey which has added its portfolio of offerings to some of the best airlines, busiest airports, leading cruise lines, top oil & gas companies and renowned travel distributors & hotel groups in the world. With over 30 years of work experience, Mathews is a thought leader and a specialist in aviation business. He is a much sought-after speaker at various aviation events including those organized by IATA, ICAO and AACO.
  • 60. 47 Mathews holds several important positions in Government agencies, academic institutions and trade bodies in India. He is the Executive Council Member of NASSCOM, the premier trade body of the IT-BPO industries in India and chairs several institutions including NASSCOM Regional Council, GTECH (the association of IT companies in Kerala), Trivandrum Agenda Task Force and Trivandrum City Connect Foundation. He is a Member of the Board of Director of Kerala State Industrial Development Corporation, Investment Promotion Council – Kerala, Kerala ICT Academy and Technopark, Kerala, India. Mathews is the past Chairman of Confederation of Indian Industry (CII) Kerala and a current member of CII Southern Regional Council. He has received several awards from the Government, media and trade associations including Management Leadership Award, Business Man of the Year Award, IT Man of the Year Award, Millennium Leadership Award and Enterprise Excellence Award. Mathews holds a Masters degree in Aeronautical Engineering from Indian Institute of Technology, Kanpur and had executive management education from Harvard Business School, Boston, USA. 3.21 Acquisitions Since inception we have made the following strategic acquisitions, adding depth & breadth to our offering to the TTL industry  Hotel Booking Solutions Incorporated (HBSi), Atlanta, an IT solutions provider to the hospitality industry  Moveo Systems, Bangalore, a company developing human interaction solutions for airports and enterprises  VISaer,a US based leader in aviation maintenance and engineering (M&E) software solution  Discovery Travel Systems, Virginia, a B2B travel technology provider to the cruise, tour, and vacation travel industry  Avient Technologies from Honeywell International which caters to the flight ops needs of any type of airlines  TopAir from EDS which caters to the flight ops needs of small and medium-sized airlines. 3.2.2 Milestones 2017  Top 100 Logistics IT Provider Inbound Logistics Magazine in 2017
  • 61. 48  Information Technology Provider of the Year for the Airline Industry - TNI in 2017  Celebrates 20 years of Excellence. 2016  International IT Systems Provider of the Year 2016 - STAT Times  National IT Excellence Award for iCargo in 2016 - CMO Asia  National IT Excellence Award for iFly Loyalty in 2016 - CMO Asia  SunExpress Airline signs up for IBS’ Passenger Services System (PSS)  iCargo goes live at Turkish Cargo with over 2,000 global users spanning 284 destinations in 113 countries  T’way Airlines extends iFly Res for a further period of five years  Launches iTravel Cruise at Seatrade Cruise Global 2016  Celestyal Cruises signs up for iTravel Cruise Reservation System.  First IBS Customer Summit in Dubai with nearly 200 delegates representing more than 50 airline companies  IBS signs deal with Lufthansa for Crew Management Application  IBS’ iFly Res awarded NDC Capable Level 3 status by IATA 2015  IT Provider of the Year 2015 - Payload Asia  Testing Project of the Year 2015 at the APAC Testing Awards  Airline Product Innovation of the Year 2015 - CAPA  IT Software Solutions for Aviation Industry Company of the Year 2015 - Frost & Sullivan  iCAP project wins Testing Project of the Year 2015 India Testing Awards  8th edition of IBS Cargo Forum (ICF 2015) at Singapore  First OGL Advisory workshop at ADMA & ZADCO  Organises IBS Airline Forum (IAF) in India, in April 2015 with more than one hundred delegates of over forty leading airlines  Lufthansa Cargo goes live with IBS’ iCargo IT solution at 120 stations  CWT Energy, Resources & Marine signs up for iLogistics