A STUDY ON RECRUITMENT AND SELECTION WITH REFERENCE TO BHARAT HEAVY PLATE AND VESSELS LIMITED A project Report submitted to the BERHAMPUR UNIVERSITY in Partial fulfillment of the Award of the Degree of BACHELOR OF BUSINESS ISTRATION SUBMITTED BY SIDHARTH RAJ SAHU Exam Roll No: CB6311 Regd. No. 15979/2010 Under the esteemed guidance of Asst.Prof. MADHUSMITA CHOUDHURY College of Business istration, Berhampur

PRESIDENCY COLLEGE’S COLLEGE OF BUSINESS ISTRATION BERHAMPUR-ORISSA

DECLARATION I Mr.Sidharth Raj Sahu a student of Presidency College’s College of Business istration; bearing Roll No: CB6311 do here by declare that the facts and finding presented in this report entitled on “PARTICIPATIVE MANAGEMENT AT BHARAT HEAVY PLATE AND VESSELS LIMITED are true to the best of my knowledge and belief, which is being submitted to the Berhampur University for partial fulfillment of the degree BBA. I further declare that it has not been submitted to any other Institution, Organization or University, and also not published anywhere else earlier. Place: Berhampur Date: 29/06/2012

Asst.Prof.M.Choudhury Asst. Professor College of Business istration, BERHAMPUR

CERTIFICATE

This is to certify that Mr Siddharth Raj Sahu bearing the Roll No: CB6311 student of Presidency College’s College of Business istration of the Berhmapur University; has successfully completed his/her project work entitled on “PARTICIPATIVE MANAGEMENT AT BHARAT HEAVY PLATE AND VESSELS LIMITED

are, under my guidance & supervision. Asst.Prof.M.Choudhury Dept.Of Management Study Project Guide

ACKNOWLEDGEMENTS I would like to forward my sincere thanks and gratitude to Dr.S.K.Padhy for availing me the opportunity to do this project work. My deep gratitude also goes to Asst.Prof. MADHUSMITA CHOUDHURY, faculty member, who has patiently guided me to the successful completion of this project work. I would like to express my sincere gratitude to Shri B.V.Rao, Manager (TRAINING), HR department, BHPV, for his valuable and guidance during the entire course of the project work. I would also like extend my gratitude to my parents and friends without whose help and advice this project would not have been possible.

SIDHARTH REAJ SAHU

CONTENTS CHAPTER-1 :: INTRODUCTION       

INTRODUCTION OBJECTIVES OF THE STUDY NEED FOR THE STUDY DESIGN OF THE STUDY SCOPE OF THE STUDY METHODOLOGY LIMITATIONS

CHAPTER-2 :: COMPANY PROFILE     

INTRODUCTION TO PRODUCT OR INDUSTRY INDUSTRY SCENARIO FUTURE FOCUS GOVT. POLICY MAJOR PLAYERS

CHAPTER-3 :: INDUSTRY PROFILE a. GENERAL PROFILE  MISSION  ORIGIN & HISTORY (MILESTONES)  OBJECTIVES  S.W.O.T  UNIQUE ACHIEVEMENTS  FUTURE PLANS b. FUNCTIONAL PROFILE  RECRUITMENT PROCESS  SELECTION PROCESS

CHAPTER-4 :: FINDINGS, ANALYSIS AND INTERPRETATION CHAPTER-5 :: SUMMARY AND SUGGESTIONS CHAPTER-6 :: BIBLIOGRAPHY

CHAPTER-1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

INTRODUCTION TO MANAGEMENT

HUMAN

RESOURCE

A Human Resource Management System (HRMS, EHRMS), Human Resource Information System (HRIS), HR Technology or also called HR modules, or simply "Payroll", refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.

The function of Human Resources departments is generally istrative and not common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital" has progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these istrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the client– server architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the low capital investment necessary to buy or program proprietary software, these internally-developed HRMS were unlimited to organizations that possessed a large amount of capital. The advent of client–server, Application Service Provider, and Software as a Service or SaaS Human Resource

Management Systems enabled increasingly higher istrative control of such systems. Currently Human Resource Management Systems encom:

1. 2. 3. 4. 5. 6. 7. 8.

Payroll Work Time Benefits istration HR management Information system Recruiting Training/Learning Management System Performance Record Employee Self-Service

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encom all employeerelated transactions as well as integrate with existing financial management systems. The work time gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features was outdated. Cost analysis and efficiency metrics are the primary functions. The benefits istration module provides a system for organizations to ister and track employee participation in benefits programs. These typically encom insurance, compensation, profit sharing and retirement. The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control not in use. Human resource management function involves the recruitment,

placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to:   

produce pay checks and payroll reports; maintain personnel records; pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encom:    

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, crossposting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module. The training module provides a system for organizations to ister and track employee training and development efforts. The system, normally called a Learning Management System if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics. The Employee Self-Service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department.

RECRUITMENT AND SELECTION Recruitment and selection refers to the chain and sequence of activities pertainingto recruitment and selection of employable candidates and job seekers for an organization. Every enterprise, business, start-up and entrepreneurial firm has some well-defined employment and recruitment policies and hiring procedures. The HR department of large organizations, businesses, government offices and multilateral organizations are generally vested with the responsibilities of employee recruitment and selection. The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side. The Recruitment and Selection Process must be simple and must be robust enough to operate excellently in the moment of the insufficient number of candidates on the job market and the process must be also able to process a large number of candidates within given time limit. The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources Department.

Critical steps in Recruitment and Selection Process The Recruitment and Selection Process has several critical points. The Recruitment and Selection Process is very sensible to the changes in the internal organization of the company and to the changes on the external job market. The whole Recruitment and Selection Process must meet several criteria: 1. The process must be easy to understand for the target audience of the Recruitment and Selection Process. The process is not created for employees of HRM, the process is developed mainly for the managers in the organization. The managers are the most important clients of the Recruitment and Selection Process,

2. HRM has to follow the standard defined in the Recruitment and Selection Process. HRM cannot afford to draw the nice process maps and document flows in the organization and not to follow them. When HRM does not follow the rules defined, then HRM cannot expect the managers to define such a process .

3. HRM must be able to get a buy-in from the managers in the organization to use standards defined and to keep the process consistent. For example the graph illustrates one of the most common mistakes in the Recruitment and Selection Process. The HRM starts to fill the vacancy without a clear agreement about the profile and job content of the vacancy to be filled. This mistake takes a long time to correct and the whole cycle time of the recruitment gets too long and produces a confusion among all the participants in the process.

DESIGN OF THE STUDY

NEED FOR THE STUDY

Human resource is playing major role in the BHPV industry. It is very important to select right person for the right job at the right time, who can perform the job successfully with high standards. 1. People with friendly and outgoing personality, self discipline are mainly needed for this type of industry because a customer sees a company through its employees. 2. The employees are mainly in with the customer depending upon the jobs they are performing. 3. Recruitment and selection has been regarded as the most important function of personal istration, because unless the right people are hired, even the best plans of the organizations and control system would not do much good to the organization. 4. Human resources are the assets to the organization. Any organization will get its recognition through its employee’s performance, skills, innovativeness and their professional knowledge. 5. Hence we can say selection and recruitment plays major role in the organization. Because right people should be selected for the right job and at the right time. Its the responsibility of the organization to hire that right

personnel to increase their productivity and overall performance of the organization. 6. Thus, the study is conducted in BHPV. To know about their recruitment and selection process and what are the internal and external sources they are opting for recruitment.

OBJECTIVES OF THE STUDY

 To know about the various recruitment sources of BHPV, Visakhapatnam.

 To know about the selection process.

 To know about the various tests conducted at the time of interview.

 To know about the various recruitment techniques which are used to motivate the candidates?

SCOPE OF THE STUDY This study proposes a group decision system (GDSS), with multiple criteria to assist in recruitment and selection (R&S) processes of human resources. A two-phase decisionmaking procedure is first suggested; various techniques involving multiple criteria and group participation are then defined corresponding to each step in the procedure. A wide scope of personnel characteristics is evaluated, and the concept of consensus is enhanced. The procedure recommended herein is expected to be more effective than traditional approaches. In addition, the procedure is implemented on a network-based PC system with web interfaces to the R&S activities. In the final stage, key personnel at a human resources department of a chemical

METHODOLOGY The data for the present study is collected from primary and secondary sources. 1. Primary Sources: Data is collected by personal discussions with senior officer-management development and training manager and also s with various staff of the personnel department. 2. Secondary Sources: The information regarding the study is also collected from various reports and journals of CFL and also from various textbooks. A questionnaire of about 16 questions regarding the subject was put to the employees of CFL (Annexure-1). This

questionnaire gives us a measure of executive development and how far the training is helpful in shaping their personality and in developing their inter and intra personal relations.

SAMPLE SIZE: Selection of a representative sample size is not an easytask, which it is necessary to have information about the universe however, due to lack of time; at least 100 respondents could be interviewed.

LIMITATIONS OF THE STUDY

 As the managers of the organisation are busy with their work schedule it was difficult to collect detailed data.

 Time was the major constraint as the mentioned period was not enough to collect the data in detail.

 Survey was done only with the sample size of 100 as the employees of the company work in shifts and as they are busy with their schedule.

CHAPTER-2

COMPANY PROFILE

COMPANY INTRODUCTION HEAD OFFICE - Visakhapatnam, Andhra Pradesh. MARKETING / LIASON OFFICES Mumbai, Chennai, New Delhi and Vadodara

The Bharat Heavy Plates and Vessels Ltd is an EPC Company which under takes Engineering, Design, Manufacturing, Erection and Commissioning jobs of capital equipments as per the requirement / specification to process industries such as refineries, fertilizer plants, steel plants etc. Birth of BHPV: Fore seeing the country’s need for fabricating equipment of an exclusive factory with the main object of reducing dependence on foreign suppliers and become self sufficient ourselves - BHPV Ltd was incorporated in the year

1966 to meet the demands of growing core industry like fertilizers, petrochemicals, petroleum. BHPV LTD using different types of materials manufactured and supplied several custom built equipments such as pressure vessels, heat exchangers, columns, boilers etc. After

Bharat Heavy Plate and Vessels Limited (BHPV) is a Public Sector Undertaking (PSU) of the Government of India and is headquartered in Visakhapatnam, India. BHPV produces process plant equipment, turnkey, cryogenic, combustion and oil and gas systems. The company was established in 1971 and had aggregated revenues of Rs 12,206 lakh (US$ 244.9 million) in fiscal year 2006. BHPV was acquired by Bharat Heavy Electricals Limited (BHEL) on May 11, 2008. The detailed company profile of BHPV encoming almost all its functional area is illustrated in the following sections: INTRODUCTION

Primary Objective

To manufacture custom built capital Equipment for the Process Industries such as Fertilizers, Petrochemicals, Petroleum Refineries, Chemicals etc.

Technical Collaboration Provided M/s SKODA EXPORT, by Czechoslovakia.

Commencement of Construction

1968 1971

Completion of Construction Commencement of Production

1971 Rs. 17.5 Crores

Initial Project Cost

Heat Exchangers, Columns, Pressure Vessels, Technological Structures, Piping etc.

Initial Product Mix

23,210 M.T.

Installed Capacity Turnover for the year 2008 - 2009

Rs. 291 Crores

RESOURCES 1. FINANCIAL: (As on 31st March, 2009) Authorized Capital (Rs Crs)

:

152.00 Crores

Paid up capital (Rs Crs)

:

272.30 Crores

Gross block (Rs Crs)

:

510.15 Crores

2. PRODUCTION FACILITIES Factory Area

: 552 Acres

Total Covered Area

: 1,10,000 Sq. Metres

Covered area of Production

Shops

:

96,000 Sq. Metres

Power Requirement

: 5,000 KW from

APSEB No. of Ancillary Units

:

20 Units

3. IMPORTANT MACHINERY:  The factory is provided with comprehensive and modern manufacturing and testing facilities and suitable material handling equipment.  The maximum crane lifting capacity is 120 tonnes, but loads upto 250 tonnes can be lifted with improvisation.  Maximum Rolling Capacity is 60 mm in cold condition and 170 mm in hot condition.  BHPV has the largest heat treatment furnace in India, the size being 5.5 metres width, 5.5 metres height and 36.5 metres long. One more furnace of 200 Ton capacity and 15 mtrs. Bogie length has been added.

Other critical equipments available with BHPV are as follows: Deep Drawing Hydraulic Press of 1600 T Capacity.

Single Spindle CNC Deep hole Drilling Machine with Gun Drilling attachment and 2Nos. CNC drilling machines which can employ conventional drills. Another CNC Deep hole drilling machine has been installed recently by HMT. A number of Welding Rotators of capacity up to 250 Tonnes. Welding equipment such as Manual Arc, Sub merged Arc, TIG, MIG, Plasma including the latest high productive welding equipment such as Twin Head Welding and Bi-Cathode TIG welding. Tube Fining Machine. A number of vertical and Horizontal Boring Machines with a maximum capacity of 5Meters diameter and 200 MM Spindle diameter respectively. Different types of Non-destruction Testing Equipment. Well equipped Physical and Chemical Laboratories. Metrology section etc. HCL Super – Mini Computer, Two Mini Computers 56 CAD Machines and 118 Personal Computers.

4. MANPOWER: (As on 31st January, 2009)

Workmen

729

Staff

268

Supervisors

94

Executives

294

Total

1385

5. EMPLOYEES WELFARE AMENITIES:  Township Area

151 Acres

 No. of Quarters

1192

 20 bed Hospital  Protected Water Supply  Underground Drainage System  English Medium School with CBSE Syllabus.  Telugu Medium School with AP State Syllabus.

 Special School for Mentally handicapped children.  Vocational Training Centre for Mentally Handicapped.  Community Centre for Cultural activities & Sports Open Air Theatre facilities.  Kalyana Mandapam (Marriage Halls).

6. PROJECTS OF NATIONAL IMPORTANCE UNDER EXECUTION:

S.NO . 1. 2

CUSTOMER

PROJECT/EQUIPMENT

VALUE (RS. CRORES)

IOCL, Panipat

Hydro Cracker Reactors – 3Nos.

40.91

Reactor, Regenerator & Orifice Chamber 15.26

IOCL, Panipat

3

IOCL, Panipat

Reformer & WHR Package

38.59

4

BOKARO STEEL PLANT,Bokaro

Argon Recovery Unit

40.20

AIR FIN COOLERS/SS CLAD VESSELS, SPHERES ETC.

24.95

5

NRL, Numaligarh

6

HPCL,VREP – II Visakhapatnam

7

CLAD/CS COLUMNS/ CS HEAT EXCHANGERS ETC 21.67

BPCL MUMBAI

NITROGEN PLANT

9.52

CRYO NITROGEN PLANT - NEW DELHI

6.23

8

HYUNDAI HEAVY INDUSTRIES

9

5.5 M DIA THERMAL SPACE APPLICATION VACUUM SYSTEM 28.89 CENTRE,AHEMEDABAD

10

TECHIMONT ICB LTD MUMBAL

NITROGEN PLANT

8.47

11

12

HPCL VISAKHAPATNAM OSWAL FERTILIZER PARADEEP

CHEMI LTD -

13

IFFCO KANDLA

14

NALCO DAMANJODI

CDU HEATER WITH APH SYSTEM / VDU HEATER 14.90

WASTE HEAT LP BOILERS

18.68

15,000 MT ATM AMMONIA STORAGE TANK 17.46 MODIFICATION OF 22.01 EVAPORATOR BATTERIES

7. CUSTOMER & COMPETITOR PROFILE: MAJOR CUSTOMERS:

Fertilizer Industry Petroleum Refineries Petrochemical Complexes Steel Plants Chemical Industries Power Sector Nuclear, Defense, & Space Sectors

MAJOR COMPETITORS: Larsen & Toubro

}

GR Engg

}

for Process Plants

Lloyd Steel

}

I.O.L

}

INOX

}

L&T

}

Linda,

}

for Cryogenics &

B.O.C, UK

}

Systems.

Air Products, USA & UK } KOBE, Japan

}

Nippon Sanso, Japan

}

HOPM, China

}

PRAXAIR, USA

}

BHEL

}

L&T

}

BABCOCK THERMAX } ACC Babcock Ltd.

}

for Industrial Boilers.

BHPV has developed 11 ancillary industries in its vicinity to cater to its requirements. Apart from offering sufficient work load to these industrial units, BHPV has been asg work to a number of small sector industries. BHPV provides material, transportation and inspection services to the Ancillaries to help them rise to its quality requirements.

After 1991 BHPV become sick Industry and as a measure of revival of BHPV. Govt. of India, Ministry of Heavy Industry has given directives to BHEL to take over BHPV. Subsequently BHEL took over BHPV on May 10th. 2008 in the presence of Honorable Ministers like Finance, Industry, Power, Chief Minister of Andhra Pradesh and several others. Sri Chidambaram, Santosh Mohan Dev, Sri Raja Sekhar Reddy, Sri Seetaram Echuri are among the other prominent delegates including BHPV families.

INTRODUCTION: BHPV LTD In the liberalized economy of India and in the era of globalization a company must rethink its business mission and all functional strategies. In these days companies find themselves competing in a race where the road signs and rules keep days when it was “business as usual” companies could succeed only by having innovative ideas combined with by effective financial management.

Therefore, it is not surprising that today’s winning companies are those which foresee the future and manage the finance effectively. One can manage finance effectively by managing working capital, capital structure and taking decision on capital budgeting. Ultimately, finance is at its best about value adding, developing new products and raising the world’s standards of living.

The heavy engineering industry is a major strength of any economy. These heavy engineering industries which produce capital goods are the most modern of the entire industrial group.

In India these heavy engineering industries occupy a crucial role in its economic development in view of the huge investment as well as the critical importance to nation. These industries are mostly confined to the public sector only. BHPV Ltd. is the largest fabricator of process equipment in India for the petroleum, chemical and allied industries. Initially it was fully owned by the government of India and is managed by an board of directors appointed by Government of India. During 1980s the company was made as subsidiary to the holding company

named Bharat Yantra Nigam Limited, Allahabad, UP along with few other companies. In the year 2008, the company was taken over by Bharat Heavy Electricals Limited, a navaratna PSU as a part of rehabilitation of BHPV. This company is situated in the city of destiny Visakhapatnam on the shores of Bay of Bengal , B.H.P.V. Ltd is accessible by road, rail, sea and is well connected to all metropolitan cities by air.

In view of the above, BHPV has been selected for the study.

The topic selected is “A study on the management of working capital” with reference to BHPV.

Sri D.Sanjeevayya, the then Minister of Industry, Govt. of India laid the foundation stone to the company, on 8 th Jan 1967 in Visakhapatnam. BHPV comes under the purview of the Department of Heavy Industry, Ministry of Heavy Industries With the technical collaboration of M/s. SKODA Export Company of Czechoslovakia in the year 1968, it got expertise and guidance for establishing the projects and for the design & manufacture of various process equipments. BHPV became a fully owned subsidiary of Bharat Heavy Electricals Ltd in the year 2008.

Licensed installed capacity is 23210MT. The initial capital outlay is Rs.17.5 cores. The product mix included heat exchangers, columns, and pressure vessels, Storage vessels, piping etc. During the year of it commercial production i.e. 1971-1972 the turnover was just Rs 5 lakhs.

Past ten years turnover details: YEAR 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

TURNOVER (Rs in lakhs) Rs.12558/Rs.25670/Rs.23410/Rs.14750/ Rs.5956/Rs.10943/Rs.12205/Rs.18036/Rs.18030/Rs.8439/-

CHAPTER-3

INDUSTRY PROFILE

Licensed to start construction of plant at Visakhapatnam in 1966, BHPV confronted many obstacles such as water problems, frequent power cuts both at initial stage as well as at the time when construction was going on. In spite of all those obstacles the civil and structural work was completed to a major extent by the end of 31 st March, 1967. The licensed and installed capacity is 23210 MT. The initial capital outlay being Rs. 17.5 crores. Later after completion of installation work BHPV had received orders for the 1st time from M/S BOKARO steel plant and Fertilizer Corporation of India ltd., for fabrication and supply of equipment. The factory at initial stages had suffered a loss in fabrication and delivery of equipment to customers due to delay in the procurement of required raw material. The factory was scheduled to go into production initially in July, 1967, but due to backlog of some uncompleted construction work the Company went into commercial production only in 1971. Sir K.C.Panth then the Minister of State for Steel and Heavy Engineering inaugurated the initial production in 1970, where some production facilities had already been established by installation of fabricating machinery like bending rolls, welding equipment etc. During the first year production, the company has incurred a loss of Rs 27.47 lakhs mainly due to incidence of fixed expenditure apportion-able to Production like establishment, depreciation etc. The same loss position was continued till 1978 - 1979. The continuous losses put BHPV far from profiteering companies. The existence of excessive accumulated interest on loan taken from GOI resulted in heavy loss to the Company. In 1978-1979 the Company had suffered a loss of Rs 538 lakhs due to incidence of delayed delivery of equipment, excessive increase in cost of imported raw materials and other istration costs . In later years the situation was improved through collective and expeditious efforts of employees of the Company.

PROFITEERING YEARS FOR BHPV After a series of continuous loss years, BHPV for the first fine in its history, in1979-80 has witnessed several significant events both on financial as well as production fronts. BHPV for the first time in its years of commercial production attained a break-even level with a marginal profit of Rs 33.09 lakhs as against a net loss of Rs 129 lakhs projected at the beginning of the year. During 1980-81 the company for the second consecutive year, earned a net Profit (after tax) Rs 48.21 lakhs from its operations. This year BHPV Ltd operations included manufacturing of very critical and sophisticated equipment to core industries . Again in 1981-82 the company operations resulted in a net profit of Rs 60.19 lakhs as against a budgeted loss of Rs 20/- lakhs. Major pending interest on loan from GOI was cleared in this year. During 1982-83 BHPV reached 100% target production and resulted in a net profit of Rs 103.71 lakhs as against the budgeted loss of Rs 95 lakhs . With prestigious work orders from Visakhapatnam steel plant for supply of air and gas separation plants BHPV crossed a target production and its operations resulted in a net profit of Rs 575 lakhs. The year 1986-87 is treated to be the dark year for BHPV. Since its entrance into threshold of profit arena, it could not achieve its set motto of beyond billion barriers. Sinking of a ship carrying bulk of raw material and components slackening demand for process

equipment etc, resulted in a short fall in production and hence company suffered a loss of Rs 170 lakhs again in 1987-88 BHPV’s projects were successfully fabricated and its profits took an upward trend and its operations resulted in PAT of Rs 290 lakhs . It was expected to emerge an increasing trend in the profits of BHPV for the year 198889. After 1987-88 profits are in decreasing trend. It got a loss of Rs 590 lakhs during 1995-96. Amidst tight liquidity conditions the company has made a net profit of Rs 1.31 crores(before tax) and Rs 1 crore after tax during 1997 -98, Rs 1.23 crores PBT. Details of turnover, profitability for the period from 1996-97 to 2005-06 are as follows:

YEAR

TURNOVER (Rs in lakhs)

1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

12558 25670 23409 14750 5956 10943 12202 18036 18030 8439

PROFITABILITY (before int & tax) (-) 476 (+) 2301 (+) 2678 (-) 14512 (-) 10694 (-) 3281 (-) 2324 (+) 2189 (-) 4500 (-) 12146

REASONS FOR SICKNESS OR SUB-OPTIMAL PERFORMANCE :

Operational Issues Order Booking: The Company was performing with marginal profits until 2000. Due to globalization, the company started facing problems in normal business

operations from 2001. Due to low order bookings resulted in to huge losses. However present order book position is improving. Interest Burden on VRS Loans: The Company implemented VRS with the loans from Government of India and 2255 employees were relieved up to 2002. Then onwards the company burdened with huge interest on these loans, which severely affected profitability of company in the years 2004-05, 2005-06, 200607. Financial crisis: The Company started facing liquidity problems from 2002 onwards due to low orders book position /low turnover / heavy interest burden .The bank s with consortium of banks have become NPAs. In spite of improvement in the present order book, the company couldn’t, execute these orders because of liquidity crisis. Technology & Market Issues: The present plant & machinery & infrastructure utilizing by the company is of 40 years old and have been fully depreciated. Therefore, it needs up- gradation to cope up with present technological developments. At present the internal lead time is high when compare to competitors and needs computerization by going in LAN with Centralized control system to reduce the internal lead time. Similarly in the areas of engineering the lead time required for design and drawings is to be reduced which requires implementation of sophisticated process design software. Adverse Market Condition: The survival of any company primarily depends on its order book. However, due to Liberalization and globalization, the company faced stiff competition from multinational companies. Lump Sum turnkey (LSTK) concept adversely affected the companies’ order book. For

Quoting for LST projects, the company is not eligible the capabilities to execute the project in conventional manner.

despite

Because of all above problems, the company incurred huge losses in 2002-03 and 2003-04 and the entire net worth of the company got eroded. As the net worth of the company got eroded fully, the company was referred to BIFR as per the act in 2004. Remedial Action : Considering the past history, glory, competence, the service to the nation in building refineries, steel plants, fertilizer plants etc, Government of India has decided to revive the company by restructuring in the year 2001. Keeping in view the fact that the company is operating in hi-tech area with specialized product range for core sectors, with substantial business prospects due to expected growth in core sector and potential for revival in consideration to the present performance improvement trend in the organization, there is a need to revive BHPV which is presently sick / BIFR referred organization. This is being reflected by the interest shown by organisations like EIL, HPCL & BHEL to take over of the company as a part of revival / rehabilitation package. Revival Proposal: A Revival proposal submitted by DHI to BRPSE was discussed May 2006. During the meeting it was informed to BRPSE that M/S Engineers India Limited (EIL) & M/s. Hindustan Petroleum Corporation Limited (HPCL), PSUs under the Ministry of Petroleum and Natural gas expressed interest to take over BHPV. As per the directions of BRPSE based on the deliberations, desired actions have been taken by DHI. This note is being submitted to the board for consideration of the proposal with amendments and updated facts for financial restructuring and revival of M/s BHPV in view of latest developments.

Subsequent Developments Reference of BHEL The Department of Heavy Industry asked the comments from BHEL for merger of BHPV with BHEL. The BHEL indicated that BHEL had earlier examined the prospects which were not found encouraging but now in the changed economic scenario and with power plant orders on the upswing, the BHEL would like to re-examine and assess the position afresh and requested for carrying out due diligence of BHPV After all the above developments, finally on 09.05.2008, the company was formally taken over by BHEL, a navaratna PSU, as per the revival scheme sanctioned by GOI. The salient features of revival scheme are as below. (As per the Govt. of India, Ministry of Heavy Industries & Public Enterprises and Department of Heavy Industry)  GOI will waive and write off loan and interest amounting to Rs.415.61 Crs.  GOI to provide guarantee amounting to Rs.250 Crs to enable BHPV to raise bonds from the domestic market.  The entire paid up capital of BHPV to the tune of Rs. 33.79 Crs would be transferred to BHEL at a notional value of Re. 1/-.  BHEL will takeover both the assets and liabilities (including contingent liabilities) of BHPV as a going concern.  The takeover will entail the following concessions from the Government of Andhra Pradesh: a) Transfer of title of land measuring 386.73 acres in possession of BHPV as gift along with waiver of registration and stamp duty. b)Waiver of Sales Tax arrears amounting to Rs.42.16 Crs c)Waiver of NALA Tax of

    

Rs.43 lakh and d)Waiver of dues towards Water Tax, Property Tax, and Vacant Land Tax of Rs.3.96 Crs. The consortium of Bankers has agreed for One-Time-Settlement BHEL may take timely advantage of the offer. BHEL will infuse at least Rs.34 Crs as additional Equity Capital and adequate funds for up-gradation of manufacturing facilities, Capex and Working Capital. BHEL will take over BHPV with all its employees. DHI will assist BHEL in settling the disputed demands relating to excise, customs, income-tax etc., on a case to case basis. BHEL will takeover BHPV as its subsidiary and take all possible steps for its revival. The matter regarding reconstitution of the Board of Directors is under consideration of the competent authority.

DRAFT REHABILITION SCHEME Submitted to BIFR. Synergy of Business between BHEL and BHPV In addition to improvement in present business of BHPV, the take over by BHEL will have the following advantages:  Managerial and marketing from BHEL.  Diversification into High Pressure Power Boilers.  Technological for new products.Financial for up – gradation of manufacturing facilities, Capex and Working Capital Requirements.  Ensured flow of new orders.  Synergy between the two organizations in view of similarity of products/technologies.  Business advantage due to excellent Brand Image of BHEL.

Factors for revival of BHPV through takeover by BHEL BHEL on its part has worked out the viability of the BHPV takeover, taking into consideration the following: BHEL to enhance the capabilities & capacities of BHPV to build upon its strengths in the existing business of supplying process equipment to sectors like Oil, Petrochemicals, Fertilizers etc. In addition, BHEL plans to enhance BHPV’s capabilities & capacities in the area of industrial boilers, heat exchangers, condensers etc. A capital investment is envisaged for the up-gradation of required facilities. Expected growth in the market for BHPV’s products , especially in process equipment and cryogenics. As per Industry analysis, orders worth Rs. 1700 Crs per annum are expected in the next five years from oil Refineries and Petrochemical projects to flow to the engineering & fabrication industry. With a market share of BHPV of 15% – 18% in the past in this segment, BHPV can become more confident in addressing this market overcoming its financial constraints by participating in some of the tenders with BHEL . As such, BHPV’s financial weakness would be mitigated once its restructuring is completed and BHEL takes over its functioning. The Captive Power Projects (P) and Industrial boilers market segment is expected to grow from around Rs. 1800 Crs in 2007-08 to an estimated level of Rs. 2400 crs in next five years based on projected 12 % industrial growth in the coming years. BHPV can target a share of 25% – 30% of this market, provided market expectations on delivery and price are fulfilled. Currently, the Tricky unit of BHEL is constrained in targeting the industrial boilers market due to heavy load of boiler orders from the utility segment. In this regard, BHPV can be developed as a dedicated center for industrial boilers by BHEL. The sales turnover from this segment has been projected to reach to level of

Rs, 800 Crs by the fifth year after functional take over by BHEL, based on factors like increased volume, better financial capabilities leading to lower working capital borrowing costs etc. B H P V: AN O V E R V I E W . 1.INTRODUCTION Incorporation of the Company

:

1966

Primary Objective

:

To manufacture custom built Capital equipment for the process industries such as fertilizers, petroleum etc.

Technical Collaboration

:

M/s SKODA, Czechoslovakia.

Commencement of Construction :

1968

Completion of Construction

:

1971

Commencement of Production

:

1971

Initial Project Cost

:

Rs. 17.5 crores

Initial Product Mix

:

Heat Exchangers, Columns, Pressure vessels, Boilers

Installed Capacity

:

23, 210 M.T.

Turnover for the year 2006-07

:

Rs. 182 crores

2.RESOURCES Factory Area

:

197 Acres

Total Covered Area

:

90,000 sq. Meters

Covered area of Production Shops:

56,000 sq. Meters

Power Requirement

2500 KW from APSEB

:

IMPORTANT MACHINERY The maximum crane lifting capacity is 300 tones. Maximum Rolling capacity is 60mm in cold condition and 170mm in hot condition. BHPV has the largest heat treatment furnace in India, the size being Meters width, 5.5 meters height and 36.5 meters long . One more furnace of 200 Ton capacity and 15mtrs . Bogie length has been added. Other critical equipment available with BHPV Deep Drawing Hydraulic Press of 1600T capacity Single Spindle CNC Deep hole Drilling Machine with Gun Drilling attachment and 2Nos. CNC drilling machines which can employ conventional drills . Another CNC Deep hole drilling machine has been installed by HMT. A number of Welding Rotators of capacity up to 250 Tones.

Welding equipment such as manual Arc, Sub merged Arc, TIG, MIG, Plasma including the latest high productive welding equipment such tune head submerged arc welding, and Bi-cathode TIG welding .Tube fining Machine. A number of vertical and horizontal boring machines with a maximum capacity of 5 meters dia and 200mm spindle dia respectively. Different types of Non-destruction Testing Equipment. Well equipped Physical and Chemical Laboratories. Metrology section etc. 56 CAD Machines and 118 Personal computers. MANPOWER (As on 31st Mar, 2009) Workmen / Staff Supervisors Executives Total

850 270 170 1290

EMPLOYEE WELFARE AMENITIES  Township Area 151 Acres  No. of Quarters

-

1192

 20 bed Hospital  Protected Water Supply  Underground drainage system  English medium school with CBSE Syllabus

 Telugu medium school with AP State Syllabus  Special school for mentally handicapped children.  Vocational training centre for mentally handicapped  Community center for cultural activities & sports – open air theatre facilities 3. DIVERSIFICATION Originally established for fabrication of process equipment. As a step towards diversification signed collaboration agreement with M/s L’ Air Liquid of in 1971 for manufacture of – Air & Gas separation plants Cryogenic storage systems Further diversified into the area of industrial boilers in the range of 50 – 200 TPH in collaboration with M/s BHEL in 1981 based on the recommendation of the working group constituted by DHI. Entered into the area of oil & Gas Processing systems in 1990 in collaboration with M/s B.S & B Engg. Co., USA.

4.COLLABORATION AND ABSORPTION OF TECHNOLOGIES Some of the significant collaborations of BHPV entered include: M/s BSL, in respect of Field erected Cryogenic Storage Tanks.

M/s Delas, in respect of Dereators. M/s ABB Lummus, Netherlands for Heat Transfer Systems. Case – to – case tie ups, BHPV entered into include: Evaporators from M/s Ecodyne Corporation, USA Paper & plus digesters from M/s Kamyr AB, Sweden Gas collection modules from M/s KTO Corporation, USA Large space simulation chamber from M/s HVEC, USA. Primary reformer from M/s Halder Topse, demark Waste heat boiler from Borsig, Feed water heater from delas, . Argon recovery unit from M/s L’Air Liquide, etc. Hydro cracker reactors from M/s Neo-Pignani, Italy. Vacuum Ejector systems from M/s Korting Hannover, . LPG handling & storage system from M/s Noell-LGA, Ammonia storage system from M/s KTI, etc. By absorbing know-how from various world renowned collaborators, BHPV upgraded its status from a mere fabricator of process equipment to that of an engineering company of international repute.

6. CUSTOMER & COMPETITOR PROFILE MAJOR CUSTOMERS: Fertilizer industry Petroleum refineries Steel plants Chemical industries Power sector Nuclear, Defence & Space Sectors MAJOR COMPETITORS Larsen & Turbo GR Engg Punj Lloyd l IOL INOX Linde, B.O.C, UK

Air products, UK KOBE, Japan Nippon Sanso, Japan HOPM, China PRAXAIR, USA BABCOCK THERMAX ACC Babcock Ltd. 7. QUALITY BHPV is reputed for quality and workmanship of its products. BHPV has received a number of international accreditations such as – LLOYDS OF INDUSTRIAL CLASS I CERTIFICATE FOR FUSION WELDED PRESSURE VESSELS ASME ASME NATIONAL BOARD OF BOILER & PRESSURE VESSELS INSPECTORS, U.S.A STAMI CARBON

U & U2 STAMPS ON PRESSURE VESSELS ‘S’ STAMP FOR INDUSTRIAL BOILERS ‘R’ STAMP FOR REPAIS OF CODED VESSELS UREA REACTOR

HALDOR TOPSOE

AMMONIA REACTORS AND HIGH PRESSURE HEAT EXCHANGERS

ARBIAN AMERICAN OIL COMPANY

PROCESS PLANTS

As a part of total quality management program, BHPV has acquired ISO 9001 certification during the year 1993-94 particularly to boost up its exports and to be competitive in the international market. Re-certification of ISO 9001 has been obtained in September, 1996. In recognition of high standards of our quality, confederation of Indian industry (CII), Southern Region, AP presented the Quality Award. 8. RESEARCH & DEVELOPMENT Research & Development department was established in 1975 and is well equipped with high tech equipment to cater to Applies Research and Product Development R&D has developed 136 Projects so far. Some of the products commercialized include: Titanium Anodes Titanium Air Bottles Cryogenic Vats Individual Quick Freezing Unit Super Insulated Piping. Super Insulated Cryogenic Storage tanks D.M. Water Plants A prestigious order for Development of Heat Exchangers for Light Combat Aircraft (LCA) Phase - II has been received from Aeronautical Development Agency, Bangalore.

Some of the Awards received for excellence in R&D include: CIS Award for R&D achievement in 1992-93. “The Chelikani Atchuta Rao Memorial Award” from FAPCCI for individual achievement in R&D effort in 1996 (Mr. B.S.V. Prasad). 9. ANCILLARISATION BHPV has developed around a dozen ancillary industries in its vicinity to cater to its requirements. Apart from offering sufficient work load to these industrial units, BHPV has been asg work to a number of small sector industries. BHPV provides material , transportation and inspection services to the Ancillaries to help them rise to its quality requirements. 10. PRESENT STRENGTHS Group Company of Bharat Heavy Electricals Limited, a navaratna PSU Excellent Design & Engineering capabilities . State –of –the – Art Manufacturing facilities . Accomplished image as a supplier of Quality Products . High degree of customer confidence . Technological tie-up arrangements . Well trained and qualified work force and Engineers. Sound work culture & harmonious Industrial Relations. Extensive computerization.

THEORETICAL FRAMEWORK

RECRUITMENTAND SELECTION RECRUITMENT AND SELECTION

Recruitment - searching for and attracting candidates - external or internal – for job vacancies. New people are found and brought into the organization. This involves communicating with actual or potential job seekers, motivating them to apply and persuading candidates that they really want to come and work for the firm. The objectives are to attract candidates of the right quality in the right number. Competition and inertia exist in a labor market. Many candidates must decide to leave their present job; the best may not be looking for a job change. With high employment (labor shortage), good candidates may be scarce. Conversely where there is high employment, some good candidates may be reluctant to move from the-situation-they-know into the-situation-they don't-know. Recruitment occurs across all occupations from school and college leavers to the unskilled and semi-skilled, to technologically oriented staff and successful senior managers. The police service, forces and even judiciary have recruitment problems and systems.

Strategic Recruitment Reviews The recruitment landscape has changed dramatically over recent years with the advent of new technologies, increased business expectations of HR and a shift towards a candidate driven market. The Hudson Strategic Recruitment Review provides organisations with a way to evaluate their recruitment capability and assess their ability to meet current and future hiring needs of the organisation. By providing objective insight into your current recruitment model, processes and technology and benchmarking your current outcomes against 'best practice' standards, we can identify improved models for your consideration.

What does it include? The review is tailored to your unique needs and can cover the following:            

Direct and indirect recruitment costs Employee value proposition Workforce planning Talent acquisition strategies Assessment and selection Supplier management Candidate relationship management Internal mobility Talent pool development and maintenance On boarding Recruitment methodology and technologies Temp/Contractor management and utilisation

Recruitment activity has an element of: 1.Public Relations:

The organization opens its doors to job seekers and hence the outside

world.

Certain

organization

development,

marketing,

promotional and quality aspects take recruitment activity beyond being just a maintenance process. Strategic policy questions are raised. The organization in communicating to recruits and potential recruits wishes to present itself in the best possible light - as a virtuous, successful, worthy organization. 2) Culture Maintenance And Power: The processes of recruitment are enacted by the powerful. Gate keepers to the organization select those they feel will notonly be competent but who are acceptable to the organization - according to criteria, which are variously defined. They may recruit according to 1 Some iconic vision of an "ideal type" for the organization today. 2 Their own preferences and desires. This could be called a "doppelganger effect”.... they recruit in their own mirror image, with a slight 'phase' difference but nonetheless as a clone or doppelganger. 3 Some notion of proper and perhaps ethically guided belief. Selection - a latter stage of recruitment. It involves choosing 1 Competent and qualified applicants suited to the job.

2 New of the organization Selection Methods The prescriptions, the "how-to do-its" of selection, are problem-solving strategies (heuristics of general and specific scope) which, taken as a cocktail,may narrow down the selection decision and increase the chances of choosing the "right" candidate although probably "best available" is a better term.  Selection methods range across  Interviews - the most popular and hence the skills of interviewing are important  References  Analysis of candidate career/life data  Evaluation of candidate behaviour/ performance in group activities  Work attachments/experience (trial periods)  Skill testing with task/work simulations e.g. typing, computer programming, brick-laying and candidates making presentations etc  Knowledge, aptitude and psycho-metric tests of various facets of know-how, intelligence and personality  Graphology!

Selection is a social, interactive activity and skill development and the textbooks recommend the use of structured and tested methods to secure objectivity, reliability and reduced risk and uncertainty.

RECRUITMENT AND SELECTION METHODS Recruitment, assessment and selection are the three key steps for hiring employees. Of these, recruitment and selection are typically the most challenging for employers. The keys to finding the right candidates at the right time and hiring them are being strategic and thinking about the organization's future. External Recruitment Methods 1. Develop relationships with guidance and career counselors at colleges and universities and ask for help in recruiting for open positions. Reach out to professional organizations that are in line with the organization's mission, and ask to them to list open positions in their newsletters and emails to . Organizations with financial resources should consider working with a recruitment firm, especially if the position is at a higher level or requires a specific skill or type of experience. Internal Recruitment Methods 2. Be clear about the skills and experience an applicant must possess. Post an open position internally first to assess whether there are qualified candidates within the organization. Consider interns, volunteers, temporary workers or consultants who may have been working in a similar capacity to the open position.

Selection Methods  once the applicant pool has been narrowed and candidates have been assessed, it's time to make a selection decision. to think longterm. Is the applicant qualified for the present job as well as future positions? Look for a candidate with solid experience and new ideas and a fresh perspective. Weigh his or her willingness to learn. Also, no matter the industry, market conditions inevitably will change; select someone who not only can adapt, but also can flourish under those conditions. Don't discount candidates who are making career changes. For example, someone with five years of corporate-sector experience can bring a strategic view to a nonprofit organization, while someone from a nonprofit who has made the most with limited resources can bring a fresh approach to a corporation. Be sure to consider other needs such as diversity, and to follow the guidelines of the Equal Employment Opportunity Commission. FACTORS The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization.

The internal and external forces affecting recruitment function of an organisation are

Recruitment Vs Selection

Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation 3. Recruitment is a positive process i.e. encouraging more and more

employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests. 5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee. Recruitment Practice vs. Theory Academically, recruitment activity is treated more as experiencebased knowledge about practice than as a body of theory. There is a vacancy; an entirely new job or someone leaves the organization. We are short of a brain and a pair of hands. It is functionally necessity to fill the post. As to how best to fill the job (decision-making), its demands need to be understood and a skilled, systematic approach is needed for this "personnel" task. The literature on recruitment tends to give more space to selection processes than the wider practices of recruitment (systems & procedures for job definition, advertising, short-listing and overall istration of selection). How to do it :: Guidelines (prescriptions) on "best approaches" typically recommend 1 Common, logical sequences to follow when recruiting 2 Methods for evaluating job requirements 3 Skills and understandings associated with processes of selection e.g. for traditional interviews.

4 Further methods/techniques for ascertaining candidate suitability. These may even substitute for the interview and include tests of ability, aptitude and intelligence 5 Policy frameworks to satisfy the legal side of the recruitment problem A Systems Approach vs. "Be Systematic" Analysis of the inputs, processes and outputs and environmental contexts of recruitment and selection systems helps us to understand the strengths and weaknesses of the propositions of "take a systematic approach" prescriptions. Generally these prescriptions recommend that If those doing recruitment and selection take systematic care, use the right methods and apply specific expertise, giving attention to detail, then they will make more reliable selection decisions. This is sensible enough - but proof is difficult. The aim is to maximize  The validity of decision making criteria and testing methods  The reliability (predictability) of methods and decisions with due attention to utility (cost). However a systems approach requires definition of  The purposes, elements and relationships of the system under study  An understanding of the inputs, processing mechanisms and outputs of the system.  that recruitment and selection systems are open systems, which interact with its environment (other systems) and thus need to be adaptive. They are subject to human frailty.  They are a lost political, value-based systems Recruitment and Selection Stages Having a recruitment policy (defined procedure) in a large organization

guides managerial action. Such a policy usually reflects the prescriptions of

the

literature

on

recruitment

which

themselves

form

an

implementation checklist covering e.g. use of interviews of given sequence and composition, adoption of educational qualification standards, use of limited sources for recruits, strict regulation of references and candidate vetting, use of a psychometric test etc. The steps form a heuristic - a general, sensible chart with which to navigate the recruitment maze. Standardization serves to reduce risk and share experience. In a bureaucratic framework it circumscribes discretion and behavior of decision-makers in the organization.

Typical stages of recruitment and selection can be summarized as:

Stage What is involved? Response to vacancy 1

 Vacancy arises. Impact on staffing plan? Job re-design, re-shuffle?  Permission to recruit/replace?  Exit interviews?

2

Job analysis  Do participants in the process understand the post?  What

are

the

priorities

demands,

competences required? Analyze the job.  Produce/up-date job description, personnel specification.  Define target groups - where are they and what will attract them to apply? Employment  Define the employment. 3

and

conditions

of

 Agree the rewards package internally.  Anticipate anomalous relationships with other jobs.  Equal opportunities? Communicate Vacancy  Where will we get our candidates from (sources)?  Should the vacancy be offered openly?

4

 Is there scope for internal promotions and job transfers? Knock-on effects?  External sourcing. DIY and/or use agencies? Confidentiality?  Determine schedules.

budgets

and

placement

 Prepare copy and place. Advertising standards? 5

Process applications  Is the istrative machine ready to respond to applications? Is job documentation for candidates prepared?

 Log applications/CVs. Compare each with personnel profile  Follow-up on references/security clearances  Decide on/organize recruitment programme. Who, when (meetings, appointments), where (on-site, off-site).  Short-list and invite candidates to selection activity  Courteous rejections of candidates Carry out selection programme  Organize candidate accommodation, Cook's tour and arrangements for testing  Brief reception staff. 6

 Finalize selector briefing /training and interviewer preparation/strategy  Implement selection programme: conduct interviews, exercises, tests  Review candidate data and make selection Make job offer(s) and finalize contract  Advise unsuccessful candidates of rejection or stand-by  Process job acceptances

7

 Complete reference investigations  Confirm employment

and

conditions

 Confirm arrangements for job start  Design new starter induction programme

of

Evaluate effectiveness of  Recruitment process and methods. Validity, reliability and utility? 8

 The recruitment service - internal or external agency. Were all the costs necessary?  The selection decisions. Is the new employee really suitable? If not how was the selection process at fault?

Recruitment and Job Analysis Recruiters obviously need to comprehend job requirements fully thus methods of job analysis are needed.  Job analysis and exit interview can confirm the nature and contribution of the job role, which may often turn out to be more complex than originally thought. Information from job analysis, and sources such as exit interviews, can help to restructure the job and resolve potential difficulties;  Scope and authority  Job demands (over load, under load),choices and constraints  Ambiguities and uncertainty  Complexity and technical challenge  Incompatibility (person-job-organization)  Conflict and stress We can identify needs for supervisory and developmental opportunity etc. Job re-design is an organizational re-structuring activity.  A job description can be prepared - what needs to be done in the job - a definition of the main responsibilities and tasks/priorities. This is useful for recruiters and applicants.

 Once we understand the job we can specify the attributes (education, skills, experience, and competencies) required of a person who is likely to do the job successfully - a person profile modelling those candidates most likely to be successful in the job. Job analysis generates  Job prospectus information needed by applicants.  We will generate a recruitment campaign that will attract suitable candidates (inclusive of job advertising).  Better understanding of how applications received must be handled /processed to evaluate candidates (candidate-to-candidate and candidate-to-job) and produce an initial short-list to invite for interview.  Better information so that selection decisions as objectively as possible. It is known to be prone to unhelpful subjectivity, stereotyping and premature judgments. The soundness of decisions can be readily undermined by the perceptions, attitudes and values, arrogance and ignorance (vis a vis the job) of selectors.  A better understanding of what selection methods – interviews, tests etc might serve as valid, reliable and useful (utility) tests for different types of jobs/staff.  Clear decision-making criteria for selectors to use. Such criteria

must be relevant /valid for performance of the job in question otherwise forms of discrimination may creep in running counter to equal opportunities statutes. The Discrimination Trap Without proper definition of job requirements, performance criteria and competences required, recruiters might fall into the trap of selecting on the basis of false assumptions. Managers involved in recruitment can be very smug. They think they understand the job and its requirements but too frequently apply stereotypical views about "the ideal candidate". Sometimes they haven't even thought of a candidate profile at all but merely go on some personal whim of their own. The outcome may be that a poor fit between the job and the capacity of a new starter. They may be too good for the job, not capable of doing it or simply the job is ill suited to their needs and interests. It is not uncommon for someone to start work and leave within the first week saying "this is not the job I expected". We must not forget that recruitment and selection involves discriminating between people (applicants). But is the discrimination fair - ethically and at law (not necessarily the same thing!). Recruiters have social responsibilities in relation to (equal opportunities) and see also equal opportunities questionnaire

We may ::



Behave prejudicially (often we are blind to our own behavior)



Simply make false assumptions about job requirements. We may apply invalid, irrelevant criteria which applicants from, say, female or particular ethnic groups, are less able to satisfy.

Recruitment and Information Processing Data processing is costly. Processing applications and dealing with applicants involves a lot of work. It is no wonder that busy line managers need a recruitment service section to co-ordinate the burden for them. Processing Applications:: We can decide to receive applications for vacancies in a number of ways each with good and bad points.  Completion of a standard application form - likely to have a covering letter  Submitting a curriculum vitae with a covering letter  On spec. Telephone applications leading to invitations to an interview  On spec. Inquiries where applicants turn up at the workplace or to a recruitment centre (job shop) adjacent to it  Application via an agency - where the candidate may already be on the agency's books  Head-hunting by an agency - candidates may again be on the agency's books

 Internal vacancy notification - circulated or put on notice boards across the company. Internal candidates may apply.  Some applications may not seem like applications - no application form will be filled in! If we are recruiting from a network, for a senior management post say, we may not even use an application form. We would merely invite the candidate in to dine with us. We have to persuade them to give up a good job and our venture. The interview becomes a "mutually beneficial discussion" In other situations a telephone may be the appropriate initial interview e.g. when advertising for a telesales person. Poor applicants can be tested immediately. However for most jobs an initial meeting with the candidate is essential at which spoken, presentational and practical skills can be tested.

The application form as a test:: The application form requires ability to fill it in. It is a test of hand writing, literacy and meticulousness. The content must be composed. Questions may be asked which require an explanatory narrative. Even for manual work situations the recruiter must know that the candidate has filled out the application form personally and not a third party (their mum or spouse). If another unknown person has completed it - what additional test will the recruiter use to ascertain if the candidate

can read and write? Is this a job requirement e.g. for health and safety purposes? A Recruitment Information System:: Processing applications involves data capture, storage, processing (updating, sorting, ranking, evaluating, ing against reference data such as the job criteria, summarizing), outputting results into the next processing stage and communicating results to various system s and back to candidates. We will be involved in:  A job file Creating a job file containing all job information . Copies of some of the contents of be sent to candidates in an applicant's pack. This file will contain the job analysis documents, details of anticipated and conditions of employment etc. Copies of job ments etc. Information may be stored relating to numbers of applications from different sources and other costs associated with filling the vacancy. We may use such data to evaluate the effectiveness of the recruitment campaign.

An applicant file and the life history of an applicant::  To store the details of applicants, an applicant may:

 Begin as an inquirer  Make a formal application  Be short-listed  Invited for interview  Withdraw at any stage  Attend for a test  Make an expenses claim  Be paid an expenses claim  Be accepted for the next stage  Be rejected  Be placed on a waiting list  Made a job offer  Accept a job offer  Have agreed and conditions of employment  Start work as an employee at which time their application details become part if their employee record.  All applicants are "work in progress" whose details need to be up-dated from time to time. We can see the value - in a large firm or system. Once the details of a job vacancy are recorded, applicants can be linked to the job. Personal details of applicants are available to be merged with any letters (some of which will be pro forma) that are sent to applicants as they progress through each stage of recruitment. Every transaction that an applicant makes with the system or the system makes with an applicant can be recorded. Usually this will mean merely up-dating the current record. From the system databases we can extract summaries of expenses and costs. We can list all applicants by jobs that are in processing. We store details

of all applicants who were entered onto the system. We have to read/analyze all applications and compare these against job selection criteria. Recruitment decisions involve discrimination. Some organizations that receive thousands of applicants may use a formula approach to reject candidates. The formula approach will be based on essential job criteria e.g. education and job experience. Only those candidates who satisfy the essential (relevant but high level) requirements of the firm will be invited for interview. Nonetheless the basic application details of all candidates will be captured on computer name, address, job applied for, age, sex, basic qualifications, relevant experience etc. The application forms may themselves be stored as microfiche images. In this way the organization will be able to look up any applicant - if a claim for discrimination is made - and show that the decision to reject was based upon relevant job information.

Form letters and Mail merge. Form letters are needed. These may include:  Acknowledgement of application and we will be in touch (or otherwise)  Invitation to e.g. interview with travel and accommodation details etc  Letters of thanks and rejection with expenses paid  Letters of hold, "we are interested in you but are seeing those on our primary short-list first".  Letters/questionnaires requesting a reference  Letters of job offer with attachments detailing the and

conditions of employment including information on company codes of conduct and benefits etc. Without a computerized system all would need typing and photocopying. Even with a computerized system we still need letterhead paper, an office environment, the recruitment processing application software with its databases and integrated word processing, an , an envelope and stamp, a possible telephone follow-up, filing or storing on disk and data back-up facilities. Computerized data capture is costly but it can save time. It routinises correspondence which can be voluminous. It is only needed if you are recruiting hundreds of people a year (more than two per week?). The aim is to cost unit clerical processing costs and ensures that data on job vacancies, applications and job offers/acceptances is easily accessible and helpful to management co-ordination of the recruitment procedure

RECRUITMENT PROCEDURE IN BHPV Procedure for ment: In respect of posts to be filled by open ment will be issued in the leading newspaper in the local area or national basis employment news published by government

With the following guidelines:  The layout of the ment should be in the prescribed form  The job title ,job summary, education/technical qualification ,experiend required/desired should indicated  Upper age limits and special relaxation,  Should be specified the payscals and allower perquisites issible and number of posts are to mentioned  The mention about the application should be through proper channel where the applicant is working iin, government/semi government organization public sector enterprises, utonoums bodies or too authority or any undertaking in the public sector ELIGIBLITY OF INTERNAL CANDITATES: Internal candidates possessing the requisite qualification, experience etc. are eligible to apply an be considered on equal merits along with others posts at induction levels sought to be filled front the open market or through any other source provided that they have not been considered and rejected for a similar position of the company in course of one year preceding the previous year. VERIFICATION OF DATE OF BIRTH: The age an applicant will be determined with regard to the following documents:

If he is educated the date of birth as recorded inmatriculation/ssc or school leaving certificates If he is not educated an extract from birth of municipality or such authority or baptismal certificate The other cases determined of company’s medical officer A candidate is considered for appointment only if his age, according to matriculation/sslc/higher secondary certificate or birth certificate issued by the concerned authorities is 18 years and above but below 50 years which is the upper age limit.however the managing director may at this discripton relax the age in exceptoional cases THE SELECTION PROCESS Setting up a Selection Committee As the Chair you are required to set up a Selection Committee comprising: 

  

Dean of the Faculty as chair for Levels C & D (may be delegated to Head of School or nominee for Levels A & B and Research Academic positions) two other of the School the Head of School or nominee one member from outside the School (a member of academic staff at equivalent or higher level from another School)

At least one female and one male must be on the committee to provide gender balance. The issue of diversity should also be considered in establishing the committee.

If the appointment is to a clinical or para-clinical department in a teaching hospital it is usual to co-opt the chairperson of the Hospital’s appointments committee or nominee. The selection committee should not include any person who has a close personal relationship with an applicant. If that member of the committee is the most appropriate, they are required at the outset to declare their relationship to the applicant. Search and Screen committees are required for Professor Level E appointments. You may choose to establish a Search and Screen committee and to assist you with this process please refer The Search And Screen Committee. Responsibilities of the Chair and Selection Committee  





 



To read and sign the 'Statement of Confidentiality' form. To maintain confidentiality at all times. All proceedings related to the selection and appointment of staff is strictly confidential. Access to all papers, including applications, is to be limited to of the selection committee and the committee's secretary. Deliberations and decisions of the committee must not be discussed outside the committee without the specific authority of the Chair. If applicants make queries as to the progress of the selection process, or the deliberations of the , their queries should be referred to the Chair for response. To agree on selection techniques, weighting of criteria, interview questions or other evaluation tools prior to interviews to ensure all applicants are treated in an equitable manner. To structure interviews and other exercises consistently. To provide to applicants. All applicants are entitled to receive from the selection committee once they have been formally notified of the outcome. Either the Chair or previously agreed upon committee member must respond to such requests in a timely manner. To ensure the process is completed within a reasonable timeframe.

The Assessment Process Only One Application is Received For an d Vacancy:: It is a requirement that a Selection is convened to assess the application against the criteria outlined in the position description and a decision made as a as to the suitability of the applicant. If all are unanimous that the applicant meets all the requirements of the role, recourse to interview is not required. The process must be clearly outlined in the selection report provided to Human Resources. Short Listing:: Assessing the written applications is the first step in identifying competitive applicants for further assessment. All committee are to be involved in the short-listing process. As Chair, you need to ascertain, for internally d positions, the applicant’s employment status at UWA before sending the applications, together with the Statement of Confidentiality, to all of the Selection Committee for independent short listing. Set up a full committee meeting to tly rank the applicants against the criteria to determine an initial short list according to an agreed rating scale (see Appendix 1) and document the results. When you and the Selection Committee are reading the applications:    

Think about the environment in which the position functions Translate the claims made by applicants into this context Consider whether the experience described demonstrate the applicant's understanding of the requirements of the position Assess the level of their formal skill and understanding

It is helpful to assess the written applications against a matrix (refer attached). Only applicants considered competitive for the position need to be interviewed. Ensure short listed applicants have signed the Privacy Authorization and if not them to get authorization. Seek referees’ reports for all short-listed candidates including from of the Committee who have been approached to act as a referee for one or more of the short listed applicants. Providing a report before the applicant’s performance at interview is considered a way of minimizing bias and maintaining transparency of decision making. Advise non-short listed INTERNAL applicants of their performance relative to the criteria and the reasons for not granting an interview. Document the short-listing process and outcomes. Return all non-short listed applications to HR Services, Human Resources by hand so they can prepare and send ‘regret to advise’ letters.

CHAPTER-4

DATA

ANALYSIS AND

INTERPRETATION

TABLE NO.1 IDENTIFICATION OF RECRUITMENT NEEDS : S.NO 1 2 3 4

IDENTIFICTION OF NO.OF RECRUITMENT NEEDS RESPONDENTS While planning about human 20 resources When there is a vacancy

25

While expansion of 30 organization Depending upon the present 25 strategies of the organization TOTAL GRAPH NO.1

100

PERCENTAGE 20% 25% 30% 25% 100%

Interpretation: According to the above chart of employees say that recruitment need

is

identified while planning about human resource, when there is a vacancy and while expansion of organization

. TABLE NO.2

PROVISIONS FOR TRAVELLING ALLOWANCE TO MOTIVATE CANDIDATES ATTENDING INTERVIEW FROM DISTANT PLACES.

S.N O

Provisions for Travelling Allowance to Motivate No. Of Percentage Candidates Attending Respondents Interview from Distant Places.

1

YES

100

100%

2

NO TOTAL

100

100%

GRAPH NO.2

Interpretation:

interview from distant places.

TABLE NO – 3 QUALIFICATIONS THE ORGANIZATIONS LOOKS WHILE RECRUITING APPLICANTS

S.No

Qualifications the No. of Organization looks while Respondents Recruiting Applicants

Percentage

1

Good communication

10%

10

2 3 4 5

Skills Attitudes Honest

and

personality study back ground TOTAL

10 55

10% 55%

15 10 100

15% 10% 100%

pleasant

GRAPH NO.3

+Interpretation:

According to the above chart 55% of respondents say attitude and good communication skills, 10% of respondents say study background and 10% of respondents say skills are required for recruiting applicants. TABLE NO.4 DOES THE ORGANISATION USE T0 ATTRACT EXTERNAL CANDIDATES Does the Organization use S.NO To attract External Candidates 1 Advertising 2 Present employees references Recommendation from various 3 sources 4 All TOTAL

NO.OF PERCENTAGE RESPONDENTS 20 25

20% 25%

10

10%

45 100

45% 100%

GRAPH NO.4

Interpretation: According to the above chart 100% of respondents say advertising,

present

employee’s

reference

and

recommendations from various sources are used by CFL to attract external candidates. TABLE NO.5 CONDUCTING THE PRELIMINARY INTERVIEWS Conducting The S.NO Preliminary Interviews 1 HRD manager 2 Technical persons TOTAL

NO.OF RESPONDENTS 75 25 100

PERCENTAGE 75% 25% 100%

GRAPH NO. 5

Interpretation: According to the above chart 50% of respondents say HRD manager conducts preliminary interviews and other 50% of respondents say technical person conducts preliminary interviews.

TABLE NO.6 FREQUENCY DONE RECRUITMENT AND SELECTION S.NO 1

FREQUENCY DONE RECRUITMENT & SELECTION ONE WEEK

NO. RESPONS

2

2-3 WEEK

3

ONE MONTH

4

BASED ON RECRUITMENT TOTAL GRAPH NO.6

Interpretation: According to the above chart 100% of respondents say that based on recruitment, the recruitment & selection process is conducted.

TABLE NO.7 TYPE OF INTERVIEWS CONDUCTED

S.NO 1 2 3

TYPE OF INTERVIEWS CONDUCTED Written examination Group discussions Preliminary interview TOTAL

GRAPH No. 7

Interpretation:

NO. OF RESPONDENTS 25 30 45 100

PERCENTAGE 25% 30% 45% 100%

According to the above chart 100% of respondents say written examination, group discussion and preliminary interviews are conducted in CFL.

TABLE NO.8 CRUCIAL LEVEL IN RECRUITMENT AND SELECTION PROCESS S.No 1 2 3 4

Crucial level In recruitment and Selection Process Executive level Supervisory level Staff level All the above TOTAL

GRAPH NO – 8

Interpretation:

No. Of Respondents

Percentage

30 20 40

30% 20% 40%

10

10% 100%

100

According to the above chart 100% of respondents say crucial level in recruitment and selection process is done by executive level, supervisory level and staff level.

TABLE NO – 9 INFORMING THE CANDIDATE ABOUT THE DESIGNATION AND SALARY OFFERED

S.No 1 2

Informing the candidate about the designation and salary offered HRD manager HR head Total

GRAPH NO 9

Interpretation:

No. Of respondents

Percentage

100 100

100% 100%

According to the above chart 100% of respondents say HR head will inform the candidate about the designation and salary offered. TABLE NO – 10 DEVELOPING THE RELATIONSHIP BETWEEN EXISTING EMPLOYEE AND NEWLY RECRUITED S.No 1 2 3

Developing Training Induction Others TOTAL

No. of Respondents 25 55 20 100

Percentage 25% 55% 20% 100%

GRAPH NO – 10

Interpretation: According to the above chart 100% of respondents say induction will develop the relationship between existing employee and newly recruited.

TABLE NO- 11 SATISFACTIN OF THE EMPLOYEES REGARDING EXISTING RECRUITMENT AND SELECTION PROCESS S.No

1 2

Satisfaction Of The Employees Regarding Existing Recruitment And Selection Process Yes No Total

GRAPH NO – 11

Interpretation:

No. Of Respondents

Percentage

70 30 100

70% 30% 100%

According to the above chart 100% of respondents say that they are not satisfied with the existing recruitment and selection process.

CHAPTER-5

CONCLUSION Bharat Heavy Plate & Vessel Limited is a public company which was incorporated in the year 1966 and its

production was started in the year 1968 with a capital investment of 17.5 crores and presently its turnover is around 108 crores. Recruitment and selection at bhpv is being given much importance and is followed in a systematic and preplanned way. The following are suggestions offered to the management for improving effectiveness of recruitment and selection programmes

SUMMARY AND SUGGESTIONS

SUMMARY OF THE STUDY The information collected from the sample size of 20 respondents the following findings are ascertained from the above analysis & interpretation  Most of the respondents have completed 10-35 years of service in the organisation and are post graduates and have good educational background.  Majority of the respondents are assistant mangers, Sr. officers and Dy. Managers.  Majority of the respondents are satisfied with the recruitment programmes conducted.  All the respondents felt that there is an improvement in the work area after completion of recruitment  All the respondents agreed to the fact that improves their skill & knowledge recruitment and also s their future personal requirements.  Most of the respondents recommended more number of recruitment programmes which would be helpful in their work area and which improves their efficiency.

SUGGESTIONS: 1. BHPV can conduct campus interviews to get potential candidates to the organization. 2. Depending upon the job description BHPV can take graduates. 3. BHPV can motivate internal employees with promotions and good increments. 4.

BHPV can recruit and select fresh candidates depending upon their skills and knowledge. So that they can get chance to prove them.

5. Some online methods should be adopted to satisfaction of the employees regarding existing recruitment and selection process.

BIBLIOGRAPHY

Human Resource Management & Industrial Relations - MISHRA

Human Resource and Personnel Management - CHANDRA SEKHAR

Records and Reports of BHPV

www.bhpvl.com/

Questionnaire 1. How did you organization?

identify

the

recruitment

need

a) While planning about HR b) When there is vacancy c) While expansion of the organization d) Depending upon the present strategies organization e) All the above 2. What is the organization?

method

of

interview

conducted

a) Walk-in

b)

telephonic

c) Internet

d)

Others

in

the

of

the

in

your

3. Does the organization provide any travelling allowance to motivate candidates attending the interview from distant places? a) Yes

b) No

4. Does the organization appoint any representatives who make the people know about the vacancies in the organization? a) Yes

b) No

5. What is the qualification that the organization looks for while recruiting the applicants? a) Good communication skills b) Attitude c) Honest and pleasant to work with d) with skills required e) Study background

6. What does the organization use to attract external candidates? a) Advertising b) Present employees reference c) Recommendation from various sources d) All 7. On what basis the organization scrutinizes the applicants? a) Based on information in application forms b) Based on age, qualification& experience c) All

8. Who conducts the preliminary interviews in your organization? a) HRD manager

b) Technical persons

9. Who conducts the final interviews in your organization? a) HRD manager

b) Concerned head of the dept.

c) General Manager

d) All

10. How frequently is the selection and recruitment done? a) One week

b) 2-3 weeks

c) One month

d) based on requirement

11. What type of interviews is conducted in the organization? a) Written examinations

b) Group discussions

c) Preliminary interview

d) All the above

12. At what level do you think the recruitment and selection process is more crucial? a) Executive level

b) Supervisory level

c) Staff level

d) All the above

13. After selection of candidates who will inform him about the designation & salary offered? a) HR head

b) Others

14.How does the organization develop the relationship between existing employee and newly recruited? a) Training

b) Induction

c) Others 15.Are you satisfied with existing recruitment and selection process? a) Excellent

b) Good

c) Satisfactory