Comparison Of Recruitment Across IT Industry Essay Example
Comparison Of Recruitment Across IT Industry Essay Example

Comparison Of Recruitment Across IT Industry Essay Example

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  • Pages: 13 (3329 words)
  • Published: October 6, 2017
  • Type: Report
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Introduction

Recruitment plays a crucial role in the overall Human Resource Planning of an organization and is essential for its success and longevity. In this paper, we aim to highlight the key differences between the recruitment policies of two organizations, namely CGI and BHEL. We will examine how these two companies, operating in different sectors - IT and fabrication respectively, differ in their approach to recruitment.

The initial hypothesis of the study was to examine the differences in recruitment policies between a service sector house and a fabrication house. However, it became evident that these disparities were not solely due to variations in sector environments but also ownership and nationality of the companies involved. CGI, a multinational corporation based in Canada, and BHEL, an Indian PSU and one of the country's nine Navaratna companies, are the focus of this paper. While entry-level recruitment is primarily discussed, mid-level re

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cruitment policies are also explored. The research methodology included comparing mission, vision, and values of both companies, surveying HR directors, conducting telephone interviews with current employees at BHEL, gathering feedback from ex-employees, exploring company websites for information, and aligning findings with course material. This paper underscores the significance of human resource planning and recruitment as essential activities carried out by organizations to identify and attract potential employees.Recruitment, as defined by William F Glueck, involves a range of activities and strategies employed by organizations to attract qualified job candidates in order to fulfill their objectives. The management of human resources commences with the vital step of recruitment, which greatly influences elements like personal policies, recruitment sources, and the traits and behavior of recruiters.

The significance of Human Resource planning extends to various

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areas. It serves as a preventive measure against sudden disruptions in production caused by shifts in demand and ensures that employees are adequately prepared to adapt to changes in technology and industry. Furthermore, it assists in determining the workforce requirements for different roles and identifying the necessary skills needed. It also plays a vital role in effectively managing any surplus or shortage of employees within an organization.

Recruitment is another crucial aspect within an organization. Not only does it provide a competitive advantage, but it also has a direct impact on efficiency, profitability, and the capabilities of individual employees. A well-defined recruitment policy is essential for the success of an organization, while an inadequate one can lead to high turnover rates.A suitable policy can increase employee retention by connecting employees and employers through the recruitment process, establishing a mutual understanding. Prioritizing qualified candidates aids in identifying individuals well-suited for specific roles, enhancing organizational and individual effectiveness. Effective identification and preparation of potential job applicants avoids ineffective steps. A robust recruitment policy attracts a wide range of top-quality candidates. It also takes into account legal and social responsibilities such as maintaining gender balance and complying with child labor laws. Additionally, a well-designed recruitment policy reduces costs by utilizing efficient methods to attract numerous applicants. Moreover, recruiting contributes to cultivating a positive perception of the organization among potential applicants, promoting job satisfaction based on skills that align with specific job requirements. Furthermore, it is crucial for estimating workforce demand in line with the new business strategy.CGI Information Systems (CGI) was founded in 1976 by Serge Godin and Andre Imbeau in Quebec City, Canada. The company's goal is to

create a pleasant work environment while also building a company they can be proud of. The name CGI comes from the French phrase "Conseillers en gestion et informatique," which translates to information system and direction adviser. With more than 30 years of experience, CGI has established itself as a leading provider of IT and business process services worldwide for major companies.

CGI, headquartered in Montreal, Canada, employs over 27,000 employees across 107 offices worldwide. It has 15 bringing centres spread across 5 states. CGI is certified ISO 9001-2004 and has CMMI Levels 3 and 5-compliant planetary bringing centres.

The thoughts behind the creation and development of CGI, known as the CGI Dream, are embraced and followed by all employees in their daily conduct. This dream originated from the motivation of Serge Godin and Andre Imbeau to establish an enjoyable work environment and a company they could be proud of as owners.

CGI's mission, as stated on their website, is to provide exceptional quality, competence, performance, and objectiveness in professional services to private and public sector organizations. They aim to offer the best solutions to meet client objectives in information technology, telecommunications, and management. CGI fosters a culture of partnership, intrapreneurship, and integrity as they strive to be a comprehensive information technology company. This mission statement reflects not only the company's intent but also its purpose and values.The coherence of the direction and employees is not compromised when they share the same values, thus allowing them considerable liberty and speed of action.

With these values, CGI is able to quickly mobilise squads and bring together the most experienced individuals from across the company to find solutions for any challenge. The

values are represented in the diagram below:

Environment Overview

The following diagram shows the environment overview of CGI. The market environment in which CGI operates is highly competitive due to many other companies offering the same services. There is also a scarcity of highly skilled employees as these companies try to attract them with better wages and benefits. Additionally, these service provider companies compete and vie for any major project that clients bring forward.

Moreover, CGI, being an engineering driven company, has always emphasized the skill sets and interpersonal skills of its employees when selecting applicants. Unlike BHEL, which follows a rigid bureaucratic system, CGI has a highly flexible structure. This allows CGI employees to directly interact with senior members of the organization. Additionally, the working hours at CGI are quite flexible. This means that depending on project requirements, employees may have to work on holidays. However, they have the option to take compensatory time off, where they can choose to take a leave on another working day instead of the extra day they worked earlier.

Forecasting- Demand Side

CGI has divisions in multiple countries, and demand forecasting for its employees is done on a division-to-division basis. Each office is responsible for recruitment and follows the recruitment policies set by the corporate office.

Overall, it is the responsibility of the Technical Manager / Project Manager / Technical Director to determine the employee demand based on the number of projects the company aims to acquire. This demand is then conveyed to the "Resource Management Group" (RMG), which verifies all details about the employee demand. RMG, after confirming everything, matches the demand information with the skill-set requirements for the recruitment team. The entire

process can be illustrated through the diagram below: In line with other service provider firms, CGI maintains a pool of employees to meet unforeseen employee demands and demonstrate their Human Resource Strength to easily attract potential clients. Additionally, the bench strength assists the company in effectively bidding for any project.

Personnel Policies

Payment Schemes
CGI implements the "Lead-the-Market Wage Schemes" to gain an advantage in recruitment. Additionally, due to many clients being located in the USA, some employees may need to work late-night hours to align with US time. As compensation for this, CGI provides a night-shift allowance on top of regular pay. When hiring entry-level employees, CGI differentiates them based on educational background and institution of graduation. The company also offers various training and development paths for different employees, with varying pay scales depending on the job profile offered. For instance, recently hired graduates from IITs/NITs undergo a 3 to 6-month training program and receive an annual salary between 4 to 5 hundred thousand based on their role.

The training program typically lasts for one year and individuals receive an annual package of $300,000.

Employment Termination Policies

CGI follows the "Employment-at-Will" policy which allows either party to end the relationship without cause. If termination is initiated by the employee, a minimum notice of two months is required. If termination is initiated by the company, they provide two months' salary or a grace period of two months to find another job. CGI does not adhere to the "Due Process Policy" to minimize bureaucratic costs due to high recruitment and turnover rates in the service sector.

Workforce Diversity and Relocation Program

To manage workforce diversity, CGI maintains a policy of having a certain percentage

of female employees as it is based in Canada.

CGI is committed to promoting diversity and inclusivity by embracing individuals from various faiths, backgrounds, castes, and races. Discrimination based on these factors is strictly prohibited within the organization. Furthermore, CGI values cultural diversity and observes major festivals throughout the year while allowing employees appropriate leaves on those days.

To address the fast-paced nature of CGI's operations and its high turnover rate, a relocation package is provided. This package includes reimbursement for travel expenses and a one-month stay at the company's guest house. In order to attract and retain top talent, CGI has introduced an "Employment Retention Amount policy" for specialized skills. Additionally, employees are rewarded with annual bonuses and salary increments based on their performance.

Recruitment Beginnings

The diagram displays the main sources for recruiting entry-level and mid-level positions at CGI. The most efficient and economical approach for entry-level roles is through "walk-in" applicants. For mid-level positions, internal recruitment is primarily utilized, while the company maintains a balanced combination of internal and external recruitment overall. To additionally support its employees, CGI has introduced an "Employee-Referral Plan". The chart indicates that around 70% of recruitment originates from this referral plan, encompassing both direct applicants and referrals.

Despite the company's policy of excluding employees from the Human Resource Department from enjoying the benefits of the "Employee Referral Program" in order to maintain an unbiased recruitment and selection process, the company heavily relies on job sites and employment agencies to meet its unexpected demand for employees. The important job sites and employment agencies that CGI recruits from include Timesjobs.com, Naukari.com, Monster.com, DynPro India, Volantis Technologies, Adecco India, and People 360D Consulting. Additionally, CGI

recruits through campus placements and visits major universities/institutes for entry-level positions. The selection of recruiters is primarily based on their domain knowledge, industry experience, and communication skills.

The enlisted panel is primarily composed of HR Specialists and Domain Experts.

BHEL

BHEL, established 40 years ago, is India's largest technology and fabrication company. The first plant was set up in Bhopal, pioneering the indigenous Heavy Electrical Equipment industry in India.

BHEL has achieved this dream with a strong track record of performance. It has been earning profits since 1971-72 and paying dividends since 1976-79. It manufactures over 180 products under 30 major product groups catering to sectors like power generation and transmission, industry, transportation and telecommunication, renewable energy etc which are essential to the Indian economy. BHEL has a wide network of 14 manufacturing divisions, 4 regional power sector centers, over 100 project sites, 8 service centers and 18 regional offices. Vision "A world class engineering enterprise committed to enhancing stakeholder value." Mission "To be an Indian multinational enterprise, providing complete business solutions through quality products, system and services in the field of industry, energy, transportation etc." Values

  • Passion to Excel and Zest for change
  • Integrity and Fairness in all Matters
  • Respect for Dignity and Potential of individuals
  • Rigorous Adherence to Commitments
  • Ensure Speed of Response
  • Foster Learning, Creativity and Team-work
  • Loyalty and Pride in the Company

BHEL aims

to become one of the world's best manufacturing organizations with world-class systems practices and technology. The emphasis is placed on employee welfare.

The company's focus on research and development is aimed at improving procedure quality and aligning the recruitment process with the objective of enhancing procedures and quality for all stakeholders, including society as a whole. Additionally, the company emphasizes transparency and accountability by considering the environmental effects of its actions.

Environment Overview

BHEL, being a PSU, ensures employees have a stable working environment that promotes long-term employment security.

The demand for the workforce in BHEL remains steady in comparison to the services industry. BHEL is a leading Navratna company in India, generating approximately Rs. 2,000 crore in total revenue. Nonetheless, BHEL faces less competition in the heavy electrical equipment industry primarily due to the significant entry cost barrier.

Like many other fabrication houses, this company has a rigid operating system. Despite having the highest R ; D expenditure in corporate India, the systems and procedures are mostly routine. The operating system is relatively inflexible, and major changes are only introduced based on the R ; D department with slow implementation of these changes. The company has a strong workforce of 47,000 employees who are skilled and semi-skilled. To promote continuous development and growth, the Human Resource Development Institute (HRDI) works together with the Advanced Technical Education Centre (ATEC) to manage the overall human resource development of the company.

It also serves as an evaluation center for senior executives.

Demand Forecasting - Demand Side

There are two sources of demand for hiring.

  1. Planned demands arise due to new business development.
  • Other expected demands arise from retirement of older employees, promotions, and lateral transfers.
  • attrition rates are low, mainly at lower levels (E1 graduate trainee), so these demands are almost negligible. The Corporate HR department determines the demand for various divisions for the next year in different units. This is based on the current manpower as well as the future business plan that will require additional manpower. Therefore, advertisements are sent to national newspapers in different languages.

    Assorted national technology and other institutes determine the enlistment process. The requirement is then passed on to various divisions, where local HR heads and technical individuals conduct interviews with the selected employees. In the case of campus recruitment, a team of HR and technical specialists is chosen based on proximity and feasibility factors to handle shortlisting and interviews. It is worth noting that no reserve list is maintained.

    Recruitment at BHEL is based on program needs, which may be unpredictable and uncertain in the future.

    Personnel Policies

    In this section, BHEL's various personnel policies are being evaluated. BHEL has implemented attractive policies to position itself as a long-term career option for potential employees.

    Payment Schemes

    BHEL does not adhere to "Lead-the-Market Wage Schemes" as it provides numerous additional benefits in addition to the salary component.

    It has the same wage scale for all employees at the same level, with a fixed increase of 3% on the basic wage every year. Along with various components like DA, HRA, and other allowances, the actual salary increases to 1.96 times the basic wage. Additionally, there are other perks such as subsidized high-quality meals, medical benefits, and guest house facilities at major tourist

    spots. BHEL offers long-term career stability and incentives to keep the employees content and fulfilled.

    Employment Expiration Policies:
    BHEL adheres to the "Due Procedure policies" for expiration. Being a PSU with a divisional structure, BHEL follows this policy in order to groom its employees for senior positions. The procedure is highly bureaucratic, involving a detailed investigation of the employee's past performance record and the seriousness of the offense prior to termination. In the unfortunate event of accidental death, there is a provision to provide employment to a family member and compensation equivalent to the employee's lifetime salary.

    Work Force Diversity & Relocation Program In order to fulfill its legal and social obligations, BHEL manages workforce diversity in accordance with the government's policy of providing caste-based reservation to socially disadvantaged castes and communities. Additionally, it offers employees the opportunity to work as close as possible to their home area. If this is not possible, there is an extensive relocation program that includes allowances for transportation and adjustments in benefits based on the cost of living in the new city. BHEL provides accommodation for all employees and also offers car facilities for office and site visits based on their designation.

    Finding; Keeping the Best Employees

    BHEL offers incentives not only for employees but also for their entire family. For special occasions such as New Year and annual award ceremonies, family members are also invited. There is a fixed bonus component which is given twice a year. The bonus amount is typically equivalent to one month's salary for the employees. In addition, BHEL rewards employees who excel in their performance with performance-related bonuses based on their eMap scores and reporting manager's feedback.

    Recruitment beginnings

    Traditionally, BHEL has relied on national newspaper dailies and periodicals because of their broad reach to the general populace. With the advent of IT, BHEL has started using E-recruitment through its Career.bhel.in website, where vacancies are regularly posted. However, BHEL does not use other websites for recruiting purposes, and it also does not utilize external advisors or recruitment agencies for this intention.

    In order to meet its recruitment needs, the company mainly depends on its own HR department. It specifically targets top colleges in India such as IITs and NITs for campus recruitment. In addition to external sources, the company also utilizes internal sources to promote labor supply. To select candidates, the company administers a nationwide written test.

    These are known as the interview procedures. The interviews primarily focus on proficiency. This indicates that BHEL heavily prioritizes proficient skills rather than interpersonal and communication skills.

    Internal recruitment

    One of the main reasons for internal recruitment is to provide opportunities for hardworking individuals to stay motivated. Those whose performance is reflected in their appraisal form are quickly promoted. It is important to have some experience at technical levels in order to have employees who understand how to operate machines and handle various details of the process.

    However, both the referral procedure and external recruitment can result in favoritism if proper checks are not maintained to prevent nepotism and ensure fairness.

    External recruitment

    External recruitment brings in new and inexperienced individuals who bring knowledge and new working methods with them, from which even older employees can learn. Another reason is that it demonstrates that the organization is providing everyone with an equal opportunity to be selected through an open trial.

    Currently, external recruitment is preferred

    over internal recruitment because it provides a wider pool of candidates to choose from. The ratio of external to internal hiring is 25/75.

    Summer Internship

    The summer internship program is not considered a source for final recruitment. One reason for this may be that the program is primarily meant to fulfill government regulations regarding mandatory training programs that PSU organizations like BHEL need to follow.

    Recruitment Procedure

    BHEL, being a major player in a stable environment, does not face significant attrition.

    It believes in establishing long-term relationships, therefore it follows an extensive paperwork procedure where all documents (High school, Inter, Graduation) are verified. Additionally, a physical trial is conducted as part of these processes, all of which are in place to ensure fairness.

    Recruiters are typically chosen internally, with senior directors often conducting the interview process. This is likely due to their experience in the professional field, which can be helpful in selecting candidates. Factors such as their knowledge and expertise are considered important, along with their high quality in terms of position. The following steps are taken when preparing the assessment form for recruits.

    Decision

    The main decision we have made from this study can be summarized as follows:

    • There is a significant difference in recruitment policies between the fabrication and service sectors.
    • Both sectors are adopting electronic recruitment to reduce costs.
    • Criteria for selection also vary, with manufacturing focusing on the applicant's technical skills and service considering additional parameters such as communication.
    • The service sector has a higher turnover rate compared to manufacturing.
    • The manufacturing sector does not offer leading market wages, while the service sector does due to its high growth.
  • Direct recruitment is the primary method in manufacturing, while referrals play a major role in the service sector.
  • Both sectors implement internal and external recruitment policies.
  • Manufacturing tends to hire more at the entry level compared to senior positions.
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