Larsen; Toubro Recruitment and Retention Policies

I have prepared this study paper for the “Larsen & Toubro Recruitment and retention practices”. Quite frankly, I have derived the contents and approach of this study paper through discussions with colleagues who are also the students of this course as well as with the help of various Books, Magazines and Newspapers etc. I would like to give my sincere thanks to a host of friends and the teachers who, through their guidance, enthusiasm and couselling helped me enormously.

Human Resource Department hence becomes the prime department in all concerns whether small or large & its Importance can be never ever estimated. The basic concept of summer training is to give students a new insight of practical applications of Human Resource Department of the organisation. In this modern world all human being thrive to become more skilled & hence they all work hard to achieve the predetermined goals with their wholehearted dedication towards their jobs assigned.

They always try to be close to perfection for this they need to be properly trained in their respective fields so that the unskilled workforce sharpen their skills & the skilled workforce move closer to their goals. Also each of the employees should be properly motivated so that he/she develops a will to work & fell that he is a part of the organisation, this help in the development of a sense of responsibility & a sense of belongingness amongst the employees. Hence the need for development of human resource was felt. The Human Resource of the organisation should be prepared in such a way that they help the employee to perform efficiently. have made an effort through this research study to understand and analyse various aspects related to Human Resource strategy of Larsen and Toubro (L & T) with special reference to recruitment and selection procedure at L & T. In the process , the aspects which have been looked into are:

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1. History of L & T
2. Industry profile
3. Research problem
4. Research methodology
5. Analysis of facts
6. Conclusions drawn

Primary Objective

The primary objective is to study , understand and analyse various aspects related to recruitment and retention procedure at L & T.

Hypothesis and Research Design

A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below.

Exploratory research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research

Nature Of Data

• Primary data: Data which is collected through direct interviews and by raising questionaires .
• Secondary data: secondary data that is already available and published . it could be internal and external source of data.
• Internal source: which originates from the specific field or area where research is carried out e. g. ublish broachers, official reports etc.
• External source: This originates outside the field of study like books, periodicals, journals, newspapers and the Internet.

Scope Of The Study

A strong, customer-focused approach and the constant quest for top-class quality have enabled the company to attain and sustain leadership position for over seven decades.

Serving the core sectors and infrastructure of the economy, LT has pioneered spectacular achievements in Indian industry. Many of the engineering and construction projects executed by LT have set new benchmarks in terms of scale, sophistication and speed. So do many buildings, ports, highways, bridges and civil structures around the country, which are widely regarded as landmarks.

An Indian Multinational

In line with its strategy of aligning capabilities to meet emerging trends, L;T recently initiated a mega-transformation process, internally to ensure that it emerges, as a knowledge-based Indian multinational.

Over the years the company has proactively created the necessary infrastructure for its global initiative with office locations in USA, Europe, Middle East and Japan. The Engineering ; Construction Division made significant progress during the year in increasing its presence in the overseas markets.

The Division secured orders from international clients located at Malaysia, USA, UK, Brazil, Saudi Arabia, UAE, Qatar, Bangladesh, Sri Lanka, etc. The export earnings of the Division amounted to Rs. 24600 million during the year 2005-06.

The Customer Profile

The customer profile includes leading names such as Samsung, Chevron, Bechtel, Kvaerner, Pirelli, Siam Michelin, Goodyear, etc. The Electrical; Electronics Division too has increased its thrust on exports and the share of export revenues during the year ended March 31, 2006 increased to 11 % as compared to 8% in the previous year.

1. believes that progress must necessarily be achieved in harmony with the environment. A commitment to community welfare and environmental protection constitute an integral part of the corporate vision. Corporate vision
2. It shall be a professionally-managed indianmultinational, committed to total customer satisfaction and enhancing shareholder value.
3. ites shall be an innovative, entrepreneurial and empowered team constantly creating value and attaining global benchmarks.
4. shall foster a culture of caring, trust and continuous learning while meeting expectations of employees, stakeholders and society.

The business sector

L;t's engineering & construction division provides 'design-build' or 'turnkey' epc solutions in all major engineering disciplines, including civil / structural, plant design / mechanical, electrical and process control / automation, playing a critical role in the core sectors of industry and infrastructure areas. We provide services right from the earliest stages of pre-project development through to start-up and bring expertise to the industries that we serve while applying core competencies and skills to all our work. The industries we serve are listed as follows: Recruitment and retention practices and procedures. Recruitment flowchart the following schematic outlines the process flow for recruitment. Internal recruitment the company believes in offering opportunities for growth and career progression to its employees; thus each time a requirement arises, internal recruitment will be a preferred mode. For every vacancy arises below.level, an option of filling the post initially will be considered. Hr will place an advertisement on the intranet. The advertisement will contain the following details:

1. Job profile
2. Educational qualifications, Skills, Experience
3. Last date of receiving Applications
4. Contact person in HR

All Applications will be screened for the eligibility against pre-determined criteria for the vacancy. HR will prepare a list of eligible applicants and seek approval from the respective Reporting Manager and Departmental Head. If approval is given, HR will send a notification to the eligible candidates via email. Applicants who are not found eligible will also be notified via email.  If no suitable applicants apply within one week from the date of posting the advertisement, external recruitment is initiated. Eligible candidates will undergo a panel interview.

Travel for Interview

As per eligibility in current grade,

• Compensation fitment: Wherever the employee is moving to a higher value job, compensation will be undertaken as if the individual is a new hire.
• Handover period: Before the employee takes over his/her new position, there will be a handover period of one month. However this maybe reduced at the discretion of the current Reporting Manager.
• Relocation: If the employee needs to relocate to a different city to take up the new position, the company will reimburse as per the relocation policy.
• External Recruitment Entry Level Recruitment Entry-level recruitment is used for fresh graduates/postgraduates who are taken as Executive Trainees and Management Trainees or for individuals joining at entry-level positions in the Company.

If candidate possess less than one year of work experience, he/she will be treated as a fresh hire (entry level recruitment).

1. Trainee Schemes
2. Management Trainees
3. Depending upon the requirements projected in the manpower plan, the company will recruit Management Trainees from Management institutes in the country.
4. Sourcing of Trainees

Management trainees will be sourced from Management Institutes across the country. The selection criteria for Institutes are described below:

• Campus rating through publications: HR will refer to the Campus ratings published in the Business Magazines, available in the country and arrive at average campus ratings. For the current year the company will target institutes that are ranked between 15th and 20th ranks according to the ranking developed. It is further recommended that by the year 2006 – 2007. The company should target campuses that range between 10th and 15th ranks.
• Recruitment days given: The company will give preference to the Institutes who are willing to give either day 0, 1 or 2
• Campus Specialization: Relevance of courses offered to the company’s business.
• Campus Relationship: The Company will develop close relationships with targeted campus by hiring large numbers, conducting events, taking summer trainees, sending senior managers for lectures etc. An attempt will be made to include a cross – section of Institutes across the country to ensure diversity in the campus recruitment process. Additionally, freshly qualified persons from different areas shall be selected as per the requirement.
• Positioning of trainees. Selected trainees will be positioned at the following grades.
• Recruitment Process. The recruitment process for the Management trainees will be as follows:
• HR will initiate the campus recruitment process by sending the company’s literature to the campus, one month before the proposed date of recruitment. This will contain brochures of the company literature containing information about the company, the job profile and the remuneration package.
• Pre Placement Talks: HR will coordinate with the Placement Cell of short listed Institutes and schedule Pre Placement talks (PPT) The HR head and a senior line Manager will form the Pre Placement Team.

A final list of candidates selected for interviews will be sent back to the Institute no later than one week before the selection process. Selection Process Only Institutes where day 0, 1 or 2 is offered will be accepted. All eligible candidates will undergo the following 2 – step selection process:

1. Group Discussion – This will be the first step of the selection process. Two members of the Campus Recruitment Team will observe each group discussion. Observations will be recorded in the Group Discussion Observation Form and compared for a final rating at the end of the Group Discussion.Topics will be a mix of economics, business and general awareness.
2. Candidates who are selected after the Group discussion will be called for a personal interview. Interview Observation Forms will be used to evaluate the candidate’s performance during the interview. Panel composition for the interview will be as per appendix II Suggested Selection Criteria for Students It is imperative to not only recruit those students who do well academically but also those who possess a winning attitude but may not have done as well academically.

The following selection criteria can be used as a guide:

1. Academics – Focus on students who have consistently done exceptionally well
2. Extra and Co curricular activities – Focus on Leadership, Initiative
3. Personality and Attitude – Focus on Communication, Presentation and Teamwork

At the end of the selection process, the Campus Recruitment Team will compile a list of selected candidates and handover the same to the Placement Officer. An announcement can also be made to inform students at the same time. Offer Letters: Offer Letters will be sent to the selected candidates within 7 days of the selection process at the Campus. Candidates have to indicate his/her acceptance by signing and returning the copy of the letter to HR not more than15 days after receipt of the letter. Where required blank offer letters will be carried to the Campus and given at the time of placement itself.

Recruitment Process

The recruitment process for the Management trainees will be as follows: HR will initiate the campus recruitment process by sending the company’s literature to the campus, one month before the proposed date of recruitment.

Eligibility criteria for candidates will be given to the Placement Officer at the end of the PPT.

Screening of Application Blanks

• The Placement Coordinator/Administrative offices will short list candidates on the basis of predetermined eligibility criteria and send the list of short listed students to the company at least one week before the date of campus interviews.
• HR will then screen the application blanks that are received and short list them a second time according to the eligibility criteria. Any deviations will be highlighted and justified. A final list of candidates selected for interviews will be sent back to the Institute no later than one week before the selection process.

Selection Process

1. Group Discussion – This will be the first step of the selection process. Two members of the Campus Recruitment Team will observe each group discussion. Observations will be recorded in the Group Discussion
2. Observation Form and compared for a final rating at the end of the Group Discussion. Topics will be a mix of economics, business and general awareness.
3. Candidates - Who are selected after the Group discussion will be called for a personal interview.
4. Interview Observation Forms will be used to evaluate the candidate’s performance during the interview. At the end of the selection process, the Campus Recruitment Team will compile a list of selected candidates and handover the same to the Placement Officer. An announcement can also be made to inform students at the same time.
5. Offer Letters: Offer Letters will be sent to the selected candidates within 7 days of the selection process at the Campus.

• Preliminary Interview - A preliminary interview with HR will be conducted prior to the panel interview. The preliminary interview may be conducted via telephone if it is a case of an outstation candidate.
• Final Interview - HR will intimate the candidate about interview time, date and venue for the final interview

An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organisation. The organisation must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. ’  Employees are one of the most important assets, but are Companies doing everything they can to maximize the potential of this asset? The best employee attitude studies explore all aspects of an employee’s working life with an employer, covering not only what they do but also what employees think and feel about the organization.

An effectively implemented program of employee research can become one of the most powerful strategic tools in helping the company achieve its long-term corporate goals. To ensure the value of company’s investment in employee research, HR managers have to fully understand the concerns, attitudes and motivations of their employees. The way it was...... in the past, jobs were considered desirable and sufficient candidates could be found to fill most critical jobs. Moreover, once employed, workers would often spend their entire careers in the same job.

In areas where there was turnover, new employees could be recruited easily. The way it is..... today there is a high demand for workers. The supply of qualified workers is limited and good workforce planning requires a twofold approach of aggressive recruitment and innovative retention strategies. Retention policies need to focus on elimination of unwanted turnover.

• Talented employees should be identified early and proactive steps should be taken to nurture and retain them.
• Development of early racking procedures for promising new hires.
• Tracking of reasons for quits, especially among the high potential workers.
• On-going employee attitude surveys to provide information for successful retention strategies and to predict turnover.
• Tracking voluntary turnover by department then focus efforts on the problem areas.
• Providing incentives for people to remain with the organization - these are not always financial. What People Want??? “... People want to feel valued and valuable. They want to belong, to know that they, their work and their ideas matter.

They want a diversity of challenges, and the ability to make decisions without excessive red tape. They want to feel connected to upper management, knowing they can share ideas with company decision makers”.

Retention practices

1. While cash may get workers in the door, culture will keep them Create a kind of “feel good about work” culture for your employees. The staff members who stay with you the longest do so because they want to, not because they have to They will only stay if you create a positive work culture. Let staff know that you are pursuing a common purpose, which is mutually beneficial. Your goal is to frequently let staff know that this is “why I need you” and this is “why you are important. ”
2. Stop hiring the wrong people - One place to plug the leak is to stop hiring the wrong people. A manager needs to understand what kind of person will be happy in a competitive work place? It is someone who is dependable, deliberate, hates change, likes to follow repetitive processes and finishes the job at hand. Or it could be someone who has a flair for accuracy, thrives in an environment which has procedures laid down and yet does not seek variety or change. However, the system breaks down when the qualified person is put into a position that does not quite fit who they are. Instead of job match, this results in job mismatch, which causes the job and individual to suffer, limiting the company’s productivity.
3. Provide good incentives and recognition The biggest motivation to the staff is recognition and every day pat instantly when ever they do good work goes along way. Whenever sales happen, all the members stand and clap for achievement and at the end of the day each one will be appreciated for the good sales. A letter of appreciation for quality work, good dinner with the team members is always appreciated by the agents.
4. Good relationship with supervisors Many times, employees seek greener pastures because they are unhappy with their supervisors. The supervisors and trainers have an important role of giving feed back on both strengths and weaknesses, which will help them to do better. Some staff do have initial problem of getting adjusted to the office jobs and procedures or they lack confidence. Reinforcing the confidence that “you can do” is the responsibility of supervisors. It is true that staff equires money, but they always look for actions, which touches their mind and heart. Let's be honest, bosses management styles have a huge impact on employee satisfaction.
5. Coaching and Career Pathing Coaching is employee development. Your only cost is time. Time means you care. And remember your people don't care how much you know... until they know how much you care. Whenever the emphasis is on positive feedback, I make sure to do this coaching in "public. " Whenever you recognize and encourage people in "public," it acts as a natural stimulant for others who are close enough to see or hear what's taking place.

Conclusions

• Psychological testing has been voted as the best technique to evaluate the employees capabilities and aptitude by most of the employees
• More than half of the people questioned, admitted that they had to face in-depth interviews at the time of selection.
• More than half of the employees admit that association with the company is for more than 10 years, while a good 30% of the employees admitted to have left the company in less than 4 years
• A large majority (82%) of the employees expressed their satisfaction with the company.
• Almost 2/3rd of the employees expressed their dissatisfaction over the salary structure being offered currently.
• The employees are enjoying good interpersonal with the colleagues, subordinates and managers.
• The employees are actually divided over the working conditions of the company .
• Only 51% of the employees actually believe that their career will flourish with the company.
• Almost all the employees are confident about their growth in the company.
• A large majority of the employees admitted that their achievements are recognised in the company and thus duly awarded by the company.
• Only half of the respondents were found to be happy about positions in the company. i. e the other half wants to be promoted.
• Almost 80% of the employees believe that the company ensures the balance between their work and their personal lives through various policies and programs.
• A good 47% of the employees believe that there is free flow of communication among the supervisors and the subordinates, it is a healthy sign for any organisation.
• A big majority of the employees leave their job because of benefits and salary and -better job opportunity elsewhere
• The morale of the employees of the company is very high which is a sign of good management policies of the company.

Findings and Recommendations

• Better salary packages should be offered and periodic salary reviews should be made by the management to keep pace with the changes in the corporate world.
• Salary and working condition should be brought best global standard
• Salary difference in same grade should not be more than 10 to 15 percent Clear and faster growth path should be planned to keep every one interested.
• Job rotation should be practiced to keep the work environment interesting and untiring.
• Pain areas like getting an email id, reimbursements of mobile and other expenses are very time consuming and this should be eliminated to keep employees motivated
• Challenging assignment should be offered to the employees so as to avoid the job-dullness
• Better performance appraisal procedures should be applied to assess the true worth of an employee. An efficient employee should always be promoted and awarded accordingly. Mediclaim benefit with cashless card scheme should be provided to the employees.
• Balance between personal life and work through programs and policies should always be distinguished.
• Better communication within the organization should always be encouraged and enabled for a better working environment
• The working hours should be restricted to 8 hrs per day to keep the employees fresh and efficient.
• Enhanced limit of mobile phones usage should be allowed.

References

1. Personnel management by K. V Mishra, Aditya publishing house Madras, 1992.
2. Chabra T.N, Principles; practices of management, Dhanpat Rai and co. (p) Ltd, Delhi, 2000.
3. Practice of Human Resource by Danny Shield.
4. Manuals from the organization.
5. www. kdsgroup. com.
6. www. LarsenToubro. com
7. www. google. com
8. www. yahoosearch. com

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