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CHAPTER 1 INTRODUCTION


1.1

Introduction

Designing and managing successful staffing process are major challenges for an organization. This process requires multiple tools, techniques, activities and participants. Careful evaluation, past experience and instinct must carefully blend together to create a process that maximizes the likelihood of effective staffing levels and be used successful person/job matches, both of which are important drivers of organizational effectiveness. And here comes the significance of recruitment and selection process.

1.2

Objective of the Study

The main objective of this report is to evaluate and analyze the effectiveness of present “Recruitment & selection process of Human Resources in ACI Limited”. The key parameters based on which the decision regarding the successfulness of the recruitment process is presented are time, budget or cost, transparency and fairness, capability of attracting applicants of sufficient number and quality and conciseness of process. Cost, reliability, transparency and fairness, validity, attrition rate, business performance (before tax net income), the degree of likely match between the selected person and job/organization, timeliness of the selection process and capability of the process of identifying the ‘type’ of candidates etc. were regarded by the researcher as the key parameter of success of the selection process of ACI. The objectives of this report can be identified as Primary objective and specific objectives: Primary objective: •

To show the recruitment and selection process of Human Resources in Advanced Chemical Industries Limited.


Specific Objectives: •

To identify the importance of recruitment and selection process;

To measure the strength and weaknesses of ACI’s recruitment and selection process;

To find out the opportunities and threats of recruitment and selection process;

To know how to select a suitable source to communicate with candidates;

To know how to get potential candidates for an organization;

Another objective of this report is to recommend any changes or improvement of this recruitment and selection practice. 1.3

Methodology of the Study

Both primary and secondary data was used in this report. To collect primary data the researcher prepared a questionnaire and then took in depth interview of Assistant HR Manager and Senior HR Executive of ACI Limited. The questionnaire included both open end and closed end questions. As the researcher is working in HR Department of ACI for three month, he also used his personal observation regarding the HR practice as input in this report. The secondary information was collected from HR Manual website and Annual Report of ACI Limited. Some secondary information was also collected from various books and related websites. After collecting data the researcher has analyzed data in accordance with the parameters established in the objective to find out the successfulness of the recruitment and selection process. Then based on the evaluation recommendation for improvement were offered. The type of the report is almost descriptive which is based on both primary and secondary data. To study and shape the report as the final format the following two main aspects are considered:

Data Collection Data Presentation Data Collection For the task I have chosen Advanced Chemical Industries (ACI) Limited, as in recent time the company is one of the top employers in Bangladesh. In preparing report, a reliable source of


collecting data is vital measures. In this report, both primary and secondary sources of information have been used. Primary data are observed and recorded as part of an original study. When the data required for a particular study can be found neither in the internal records of the enterprise, nor in published sources, it may become necessary to collect original data, i.e., to conduct first hand investigation. In the report the researcher has used the following source to collect primary data: 

Face to face conversation with the higher authority

Communicating with some staff

Direct conversation with the HR employees

Secondary data are collected through the following sources: 

Office Record

Annual Reports

Internet

Different books etc.

All the data have been collected during the internship period. Data Presentation From different sources all the information is collected regarding the company, relative competitors, and the recruitment & selection process of candidates. After collecting all the data, they are organized and assembled for final report. All the data are checked properly by the supervisor before the submission of the final report. Finally, the report is submitted on due date.


However, the flowchart for preparing the report is: Topic selection & selecting a site

Primary data

Data collection

Secondary data

Data Presentation

Submission of Final Term Paper

.

Fig 1.1: Stages of Methodology

1.4

Scope of the Study

The report covers the recruitment and selection practice of ACI Limited. While evaluating the recruitment and selection practice the researcher covered relevant areas like manpower planning and retention policies of ACI Limited. So the scope of the report is manpower planning, recruitment process, selection process, staffing process and retention management of ACI Limited. 1.5

Limitations of the Study

While preparing this report the researcher has faced a number of limitations. The major limitations of this report are as follows: •

While evaluating the effectiveness of recruitment and selection process, the main problem was regarding setting parameters based on which recruitment and selection process effectiveness will be judged. Moreover, most of these parameters are not universal and most of them are qualitative type.

•

It was difficult to collect information regarding some aspects of recruitment and selection process, as the authority regarded this information highly confidential.


ACI did not authorize to reproduce some information and relevant formats.

Legal issues can be a parameter of evaluation of the success of the recruitment and selection process. But it was not considered as a parameter in this report due to lack of comprehensive knowledge in legal issues.

CHAPTER 2 ACI – AT A GLANCE

(AN OVER VIEW OF ADVANCED CHEMICAL INDUSTRIES LIMITED)

2.1 Background of the Company ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on January 24, 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on December 28, 1976 and its first trading of shares took place on March 9, 1994. Later on May 5, 1992, ICI divested 70% of its shareholding to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on October 22, 1995. Advance Chemical Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a public Limited company with a total number of 19653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The Company has diversified into five major businesses. Besides these, the company has a large list of international associates and partners with various trade and business agreements. 2.2 Mission of the Company ACI’s mission is to enrich the quality of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products, innovative process and empowered employees to provide the highest level of satisfaction to its


customers. A mission is a blueprint for success. A company’s mission statement describes its present business scope (where we are and what we do).ACI’s mission is: “to enrich the quality of life of people through responsible application of knowledge, skills and technology”. ACI is committed to the pursuit of excellence through world-class products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers. 2.3 Vision of the Company To realize the mission, ACI will: •

Endeavor to attain a position of leadership in each category of its businesses.

Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies.

Develop its employees by encouraging empowerment and rewording innovation.

Promote an environment for learning and personal growth of its employees.

Provide products and services of high and consistent quality, ensuring

value for money to its

customers. •

Encourage and assist in the qualitative improvement of the services of its suppliers and distributors.

Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence.

2.4 Values of the Company

Quality : ACI never Compromise with the Quality. ACI always strive to provide the best possible quality for their products and services in order to meet and exceed customer’s expectation.

Customer Focus : ACI is a Customer Focused Company. ACI’s main focus is always their customers. They are always to provide the finest products and services to their customers in order to attract and retain customers.


Fairness: ACI is Fair in Dealings with all their Stakeholders. ACI always attempts to maintain fairness in what they do and produce. This helped them to gain customer’s faith and confidence and also to operate successfully in the market with their competitors.

Transparency : ACI is a Transparent Company.

ACI maintains transparency by

providing the desired goods and services to their customers and sharing their goals with their employees.

Continuous Improvement: ACI always Strive for Contentious Improvement. ACI always attempts to make improvements in their products and services in order to meet customer’s demands and cope with the current trend. In this way, they are able to compete successfully in the market in comparison to others providing the similar kind of products and services. Innovation : ACI always Strive for Innovation. ACI strongly believes in innovation. As a result, they go for frequent research and development in order to improve and upgrade their product on a frequent basis.

2.5 Activities of the Company ACI Limited is committed to providing customers with a broad range of quality products from its business operations. It has diversified its business in various sectors such as the health care division, consumers’ brands division, and agribusiness division. Besides its 3 major strategic business units, it has 11 subsidiaries, 3 joint ventures and 1 associate. 2.6 Major Businesses Units •

In 2009, ACI Pharmaceuticals ranked 6th in the Bangladesh Pharmaceuticals industry. It provides the market with a wide selection of drugs across all major therapeutic classes, and also offers some specialty medicines. ACI pharmaceutical represents AstraZeneca. Eli Lily and UCB in Bangladesh.

ACI Crop Care and public health Division is holding the leadership position in the industry; Animal health experienced one of the highest growth rates in this sector. ACI


Agribusiness has partnerships with several international conglomerates including Ceva Santhe Animal, Invesa, UCB, Isagro Asia and Borregaard taicang Chemicals Co. Ltd.

ACI Consumer brands are a leading Fast Moving Consumer goods (FMCG) company in Bangladesh. In the liquid antiseptic and mosquito repellant categories, ACI is a very strong market leader. Foreign partners represented in this division include Godrej Consumer products (for hair care and skin care products), Beiersdorf, Germany (for Nivea range of products) and Colgate.

ACI Agribusiness is the largest integrator in agricultural sector of Bangladesh. ACI Agribusiness deals with livestock and fisheries, crop protections, seeds, fertilizer and agrimachineries. Under Agribusiness, the following business units are currently operating: Crop Care & Public Health Seeds CROPEX Animal Health Fertilizer

ACI has formed joint ventures with leading FMCG and agribusiness players in the region. These are: •

Asian Consumer Care private limited:

Joint venture of ACI and Redrock Limited, for distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake in the ventures. •

Tetley ACI Bangladesh Limited:

Joint venture of ACI and Tetley Group of United Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50% shareholding. Many ACI products have crossed our national boundary and are being successfully exported to various countries in Asia, the Middle East and the CIS region. The response of foreign consumers to ACI’s products has been encouraging. Diversification into New Industries:


ACI Limited is venturing into new areas of business, as part of its diversification initiatives. Two such businesses being set up are ACI Salt Limited, ACI Godrej Agro vet Private Limited, ACI Animal Health, ACI Cropex, ACI Fertilizer, ACI Pure Flour Limited, ACI Foods Limited, Premiaflex Plastics Limited & ACI Motors Limited. •

ACI Salt Limited:

ACI has set up its salt refining plant in Rupganj, on the banks of the Shitalakhya River. The plant produces refined iodized salt through Thermal Evaporation System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. The iodine content of ACI salt will have a stability of more than 6 months. The project has been undertaken at an approximate cost of Taka 32 cores. •

ACI Godrej Agro vet Private Limited:

‘Godrej’ is a pioneer in the packaged meat business in the India. It is also the market leader in the poultry industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint venture in the Bangladesh to set up an Integrated Poultry project. Under this project, ACI Godrej Agro vet has already set up a feed mill at Sirajgonj. This is fully automatic pellet poultry and fisheries feed mill, which uses technology from Jiangsu Muyang group of China. The company has also set up a hatchery at Joynabazar, on the Dhaka Mymensingh road, with technology from Godrej. The plants for this project also include establishing Grandparents and Parents Stock breeding farms. The investment in the project was Taka 8 cores, with ACI Limited having 50% share holding of the company. •

ACI Formulations Limited

‘ACI Formulations Limited’ (ACIFL) is a subsidiary of ACI limited, located at Gazipur, in the outskirt of Dhaka. ACIFL manufactures majority of the products of ACI strategic Business unit except for the Pharmaceutical Division. The factory is equipped with the state–of-the-art facilities for product formulations and process innovation. These include modern computerized equipment like HPLC and GLC. The product range manufactured at ACI FL includes Crop Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and liquid form. Mosquito Pesticides in the forms of aerosols, vaporizers and coils: and household chemicals like toilet cleaners and hand wash.

ACI Animal Health

Since there is a short supply of protein in Bangladesh, ACI expect substantial growth of the animal health industry in the near future. To prepare for this growth, investment has been made for machines to enhance capacity. ACI plan to launch the entire range of products for aquaculture, consisting of


water sanitation, pond preparation, nutritional and medicinal products. To expand the existing business ACI will introduce hatchery vaccination to make the poultry farming safer and more profitable. ACI are screening numerous varieties of crops and identifying the appropriate crop protection chemicals to ensure that we can provide greater variety and adaptability to the farmers. •

ACI Fertilizer

Balanced fertilizer usage is the key to successful crop production and maintenance of soil health. Cropping intensity in our country is very high and consequently the soil fertility status is declining day by day. Fertilizers play the most important role in increasing crop yields. However, fertilizer marketing and distribution system is poorly organized. The problem is further accentuated because of the time sensitivity of fertilizer application. ACI Fertilizer has entered into this business with the intention to improve this sector through our strong farmer and distribution network and our ability to produce and market superior quality chemicals. ACI have launched micronutrient fertilizers like Zinc Sulphate, Magnesium Sulphate, Ammonium Sulphate, Boron, Sulphur 90% and Sulphate of Potash. They were imported from China, U.S.A, Canada, Taiwan, Argentina, Saudi Arabia and Turkey. ACI launched our products under the umbrella brand "Bumper" through integrated market communication. Micronutrient fertilizers industry is still at its early stages. With increase in yield and cultivation of hybrid crops, replenishment of nutrients will drive this business. ACI Fertilizer enters into the basic fertilizer business like TSP, DAP & MOP which will be facilitating this growth, with a view to enrich our portfolio. ACI Fertilizer will also be prepared to facilitate this growth, with a view to enrich our portfolio with supplying Urea fertilizer, Rock Sulphur & Phosphoric Acid to Bangladesh Chemical Industries Corporation (BCIC) from Russia, Ukraine, and China. •

ACI Cropex

'ACI Cropex' is a remarkable addition to the agricultural advancement in the country. The project assists the farmers in various ways - exchanging their crops at the time of their necessity, providing them with technological assistance and advisory services and so on. 'ACI Cropex' division has commenced its business with an aim to preserve and exchange potato, wheat, mustard, pulses, chili, turmeric, coriander etc. It has crop exchange centers from where farmers are able to exchange their crops as per their necessity.


The business also intends to produce various agricultural crops through contract growers and preserve the crops in warehouse and cold storage and market the preserved items at the point of sales/storage. The objective of this business is to ensure availability of crop across the country, preserve the quality of crops, balance the price of the crops and finally contribute to the national food security by introducing professionalism in cultivation, preservation and marketing. •

ACI Pure Flour Limited

‘ACI Pure Flour Ltd’ is the largest flour producing company in Bangladesh delivering cleanest, healthiest and most hygienic flour by adopting state of the art technology. Coupled with double digit growth and continuously producing pure product make 'Pure' brand a huge success & make it a household product overnight. In a very short time 'Pure' is able to become consumers' morning bell and snatched prestigious second position overtaking all other players in the market. 'Pure' flour is able to communicate to its consumers that ACI Pure is synonymous to Purity. Our plant stands by the bank of Sitalaksha River with most advanced European technology coupling with a well-equipped laboratory keeping in mind to provide the best quality flour to the consumers. •

ACI Foods Limited

The necessity of pure food in the minds of Bangladesh consumers especially in the commodity food business has pushed ACI to fill up the market demand by producing food products such as spice, edible oil, snacks, confectionary etc. ACI is engaged in manufacturing, marketing, and distribution of various branded food products and condiment. Now the customers of Bangladesh are ensured with 100% pure food products under the brand name of 'Pure'. Within the very short period of its entrance this brand has been enjoying second leading position in the market. Fun Candy and Fun Chanachur produced from high quality imported raw materials with state of the art technology have attained enormous popularity among the consumers. ACI Foods Ltd. is focusing on improving the food habit of Bangladeshi Consumers through providing more ready to cook products and ready to eat as well. ACI is also exporting its Pure Brand products to Australia, UAE, Kuwait, Saudi Arabia, Bahrain, Qatar and many other countries to come into the list. •

Premiaflex Plastics Limited

‘Premiaflex Plastics Limited’ is a private Limited company incorporated in 2007 with the register of Joint Stock Companies, Dhaka, Bangladesh under Companies Act 1994 having 80% shares by ACI Limited. The principle activities of the company are manufacturing and marketing of plastic products,


flexible printing and other ancillary business associated with plastic and flexible printing. The factory of the Company is located at Sreepur, Gazipur . •

ACI Motors Limited

ACI Agribusinesses has launched a new subsidiary business, ACI Motors, from 6th November 2007 with an objective to market high quality farm machineries and light commercial vehicles. ACI Agribusinesses now ensures complete solution to the farmers with the introduction of the agri machineries. ACI Motors are now marketing the various models of Sonalika tractor which is 3rd leading position in India as well as the fastest growing brand. It also has introduced high quality Bull Power brand power tiller and mini combine harvester, Hardy Sprayer from China. It has own sales and service center at Bogra, Comilla, Jessore, and Dinajpur by which ensure highest quality after sales service, repairs and spare parts. It also provides flexible credit facilities for farmers for better customer satisfaction and service. ACI Motors are planning to introduce light commercial vehicles like pickups and mini trucks to support farmers to carrying agricultural goods. Also, high quality diesel engines and pumps for irrigation purpose will be offered in the near future. This business shows considerable promise in contributing to the agricultural productivity of Bangladesh.

International alliances ACI represents Colgate Palmolive Company as exclusive marketing partner and distributor for the territory of Bangladesh. Colgate is the worldwide leader of the oral care products category. ACI was appointed as sole distributor and marketing partner of Beiersdorf AG, Germany; the manufacturer of Nivea brand products. ACI represent Godrej Consumer Products Limited. ACI consumer Brand is also selling low calorie sweetener products of Merisant for weight conscious customers and also for them who want to avoid direct sugar. In additions to these, ACI represents significant number of world’s reputed companies in Pharma and Agriculture sectors.


2.7 Organization’s Structure

Chairman

Managing Director

Chief Operating Officer, Pharma Executive Director, Consumer Executive Director, Agribusinesses Chief Operating Officer, ACI

Director, Corporate Affairs

Head of Creative Communication Executive Director, Finance &

Fig: Overall Organization’s Structure

2.8 Code of Conduct i.

ACI shall support each other

ii.

ACI shall appreciate good performance

iii. ACI shall be helpful to each other iv. ACI shall comment judiciously v.

Head of RMIA Manager, MIS

Secretarial Affairs New Venture

Director, Business

ACI shall always uphold the dignity of the individual

vi. ACI shall behave as we expect from others vii. ACI shall ensure an open culture viii. ACI shall maintain authenticity in communication


ix. ACI shall adopt SOPs x.

ACI shall maintain proper communication channel

xi. ACI shall adopt a positive attitude

2.9 Misconduct The following acts and omissions on part of an employee shall amount to misconduct and therefore a punishable act: i.

Willful insubordination or disobedience, whether alone or in combination with others to any lawful or reasonable order of a supervisor

ii.

Theft, fraud or dishonesty in connection with the employers business or property

iii. Taking or giving bribe in connection with his or any other employees employment under the employer iv.

Habitual absence without leave or absence without leave for more than ten days

v.

Habitual late attendance

vi.

Habitual breach of any law or rule or regulation applicable to the company

vii. Habitual negligence of work viii. Falsifying, tampering with, damaging or causing loss of employers official records ix.

Going on an illegal strike or abetting, aiding/instigating or acting in furtherance thereof

x.

Willful slowing down in performance of work

xi.

Engaging in trade within the premises of the establishment

xii. Riotous or disorderly behavior in the company or any act subversive of discipline xiii. False claims/declarations xiv. Misuse of power/authority for personal gains xv. Taking out any property/document outside of the premises without prior approval of the competent authority.


CHAPTER 3 Theoretical Term of Recruitment and Selection Process 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.

3.1 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 starts to fill the vacancy without a clear agreement about the profile and job content of one of the most common mistakes in the Recruitment and Selection Process. The HRM 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 confusion among all the participants in the process.

3.1.1 What is the Corporate Recruitment Strategy? The Recruitment Strategy is a complete mix of the recruitment processes, targets to hire and approach to hire the best talents. The Recruitment Strategy is a document to define the approaches and to get the best talents from the job market. The recruitment strategy has to be connected fully with


other strategic HR documents to provide the rest of the organization with a clear picture about the HRM approach to the issue.

Sometimes the Recruitment Strategy helps to face the issue of the organization and Human Resources - this is many times a case of the older population in the organization and how to get the young potential into the organization. The recruitment strategy defines the following approaches: • •

the target group of the recruitment how the target group will be approached

the recruitment sources to be used

the recruitment processes to be used to serve the load

3.1.2 What is Recruitment It is the discovering of potential of applicants for actual or anticipated organizational vacancies. It actually links together those with jobs and those seeking jobs. Flippo’s definition: “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.” Thus the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications.

3.1.3 Factors affecting Recruitment: 1. The size of the organization.


2. The employment conditions in the community where the organization is located. 3. The effects of past recruiting efforts which show the organization’s ability to locate and retain the good performing people. 4. Working conditions, salary and benefit packages offered by the organization. 5. Rate of growth of the organization. 6. The future expansion and production programs. 7. Cultural, economic and legal factors. However these factors may be divided specifically as Internal and External factors.

3.1.4 Steps of a Recruitment Process: Personnel recruitment process involves five elements: 1. A recruitment policy 2. A recruitment organization 3. A forecast of manpower 4. The development of sources of recruitment 5. Different techniques used for utilizing these sources & a method of assessing the recruitment program.

These five elements are further elaborated below: 1. Recruitment Policy: It defines the objective of the recruitment and also provides a framework for the implementation of the recruitment program. The policy should be based upon corporate goals and needs. The criteria for selection and preferences should include merit and suitability. 2. Recruitment organization: It is necessary to centralize the recruitment and selection function in a single office. This will bring about maximum efficiency and success in hiring. This centralized office is known as the Employee Office or the Recruitment Section. 3. Forecast of Manpower: This usually specifies: a. Jobs or Operations for which the person should be available. b. Duration of their employment. c. Salary to be offered & terms of the employment


d. Necessary qualification and experience 4. Sources of Recruitment: There can be two kinds of sources for recruitment: a. Internal – This includes personnel already on the payroll of an organization. Whenever there is a vacancy, somebody within the organization fills in or is upgraded. b. External – These sources lie outside the organization. 5. Methods of Recruitment: The possible recruiting methods can be divided into three categories: a. Direct – In this method, recruiters visit colleges and technical schools, e.g. Infosys, the Tata Group, Accenture, IBM, Siemens and several other companies maintain continuous relationship with institutions to hire students for responsible positions. b. Indirect – This involves advertising in newspaper, radio, T.V., journals etc. Advertising can be very effective if its media is properly chosen. c. Third Party methods – This include use of commercial or private employment agencies, placement officials of schools, recruitment firms etc. Friends and relatives of present employees are also a good source from which employees may be drawn as part of the “Buddy Referral” programs. Thus broadly the Personnel Recruitment Process can be mapped in a Flowchart as below:

3.1.5 Recruitment strategy The recruitment strategy can also define some special programs to get the best potential candidates to the company and to attract them to be employed with the organization. The recruitment strategy cannot define the general goals as "Being the employer of choice". The strategy should define the clear actions and steps to be the real employer of choice to keep the attraction of the target audience.


The recruitment strategy has to main sources of the information. The recruitment strategy has to be based on the organizational scan inside the organization and the market research. The recruitment strategy has to target the reachable goals and it cannot be focused on attracting the candidates, who are not available on the market. In case of lack of resources on the market, the Recruitment Strategy has to define another way to grow the potential inside the organization. 3.1.6 Internal Recruitment The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment. â–şInternal Recruitment Factors: 1. Recruitment policy of the organization 2. Human resource planning strategy of the company 3. Size of the organization and number of people employed 4. Cost involved in recruiting employees 5. Growth and expansion plans of the organization The internal recruitment can offer the chance to change the job position to anyone in the organization, but the efficient internal recruitment process needs a strong help from other processes to provide managers with the additional information to work with. In case of the unknown additional information, the internal recruitment process can not offer much of the value added. The internal job candidate should be known to the organization and the HRM Function should provide the hiring manager with the information about the background information. The internal recruitment process has to be driven by strict and agreed HR Rules and HR Policies as the unclear rules for the process can bring a lot of tension inside the organization as the best employees can be easily stolen among different units and different managers. This issue looks pretty simple to solve, but the reality can bring difficult issues and conflicts among the management team and can affect the performance of the organization hardly. 3.1.7 Internal Recruitment Pros and Cons The Internal Recruitment can build a strong loyalty with the organization as the employees have a chance to change their position after a period of time. The employees are not pressed to look for opportunities on the external job market. The Internal Recruitment can be cheaper for the organization and can save the costs dedicated to the training and induction of new employees. Also, as the candidate knows the organization, the possibility of the failure is not a significant issue to the organization. The Internal Recruitment needs strong management from the HRM Function, which can lead to the conflicts and the HRM Function has to have a position to be able to act as a strong facilitator in the conflict resolution.


The Internal Recruitment can lead to huge issues when the candidates come from one department. The managers have to have the right to protect their own interests in the organization as they are responsible for the smooth operation. The Internal Recruitment does not bring new skills and competencies to the organization and organization with an intensive usage of the internal recruitment can suffer from the fresh blood. 3.1.8 Successful Internal Recruitment Process The Internal Recruitment is one of the basic HR Processes required by the employees and managers. For the employees, the Internal Recruitment process can offer more career opportunities inside the organization and for the managers can offer a delivery of skilled and oriented employees for their vacancies. In case, the Internal Recruitment process is well managed by the HRM Function, it can offer many opportunities for both sides of the clients of the process and can improve the overall satisfaction with the services provided by HRM Function. The Internal Recruitment Process also brings a huge workload to the HRM Function as all the candidates for the positions have to be managed and communicated with clear and strict Roles and Responsibilities in the Internal Recruitment Process. 3.1.9 Internal Recruitment Process The implementation of the Internal Recruitment Process is easy and can be seen as a quick win. The most important part of the process is to define clearly the conditions for the Internal Recruitment. Many employees can change themselves into tourists inside the organization and they can benefit from unclearly set rules for the Internal Recruitment Process. The HRM Function has to define the following rules. The rules must be adjusted to the needs of the organization, but the following criteria have to be considered: 3.2 Conditions for the applicant The conditions for the applicant have to be agreed by the management of the organization. The management has to agree with the minimal length of the employee, the length of the stay at one position and about other criteria. Also the performance evaluation has to be considered in the final decision process as many unsatisfactory performance evaluated employees can apply for a new position and there must be clear guidance for such circumstances. 3.2.1 Conditions for the management The manager has to be aware of his or her role in the Internal Recruitment process and has to agree with the limitations put on him or her in the selection process. The manager has to agree not to steal the best employees from other manager. The current manager has to agree to allow the employees to apply for the new position and the timeframe for the transfer from one position to another.


3.2.2 Conditions for the HRM Function in Internal Recruitment Process The HRM Function has to act as the facilitator and navigator. The Internal Recruitment Process can bring huge conflicts among the managers and can have an impact on the corporate culture hardly. The HRM Function has to be clear about the communication of open positions and when the current manager has to be informed about the potential candidate from his or her team. In case of the issue, the HRM Function has to be able to act as the facilitator between the managers to find the solution, which will not affect the performance of teams and individuals. 3.2.3 The Internal Recruitment Process Pitfalls The Internal Recruitment Process is about clearly set communication channels and Roles and Responsibilities in the process. The HRM Function has to agree the rules for the process and has to stick to these rules. The break of the rules will always be seen as an unfair game from the HRM side and it will be returned in the final evaluation of the performance of Human Resources. In many cases, the strict communication is very hard, but the HRM Function has to demonstrate its role in the corporate culture. The only strict definition of roles and responsibilities can help. 3.2.4 Internal Recruitment Benefits The internal recruitment process has a lot of benefits and it is always difficult to decide whether to use internal or external recruitment process. The internal recruitment is a right recruitment process for the large organization, which promote friendliness in their corporate culture. The corporate culture, which supports the employees to look for the opportunities in the organization, is well designed for the internal recruitment process and the process can be a big benefit for the organization. The corporate culture, which is focused on a strong competition among employees and with the external environment, this corporate culture does not support the internal recruitment process. The corporate culture should drive the decision process. In case of two candidates for the position, the corporate culture should navigate the HRM Function and the hiring manager to decide correctly about the winning job candidate. The corporate culture has to provide guidance for the last decision about the winning candidate. The career development is a huge benefit of the internal recruitment process. The career development has to be communicated openly and the employees cannot be worried about their application for a new position within the organization. The career development can define special rules for the application for the new position. The rule is usually about the necessity to stay at one position for a defined period of time before applying for a new one. In case of necessity, the HRM Function can act quicker, but the current manager of the employee has to agree to allow the transfer. When the career development functions well, the employees are motivated to train themselves to get more skilled and develop their competencies as they see the career opportunity in the organization. The cost side is a clear internal recruitment benefit. The internal recruitment can be quicker and cheaper than the external recruitment. The employee who works with the organization usually does not ask a huge salary and is available for a transfer much quicker.


Another internal recruitment benefit is a smaller pressure for the compensation and benefits. The moving employees get promoted and they do not press for a higher salary for just being with the organization. 3.2.5 Internal Recruitment Process Weaknesses The Internal Recruitment Process does not have just benefits; this process has some disadvantages as well. The Internal Recruitment Process is a very powerful tool, but it can be misused in hands of some employees and managers. The Internal Recruitment Process is not a process to steal the best employees from their departments. These employees should be treated as a very scarce resource and the internal recruitment procedures should work differently for them. The managers use the internal recruitment process as a tool to transfer their own issues to the other departments. This is very dangerous as other managers will not trust the internal recruitment process and will block the ambitions of employees to be transferred. The employees can misuse the internal recruitment process, when there are no clear rules and procedures applied. The organization can support internal rotations of employees, but the rules must be clear about the length of the stay of the employee in one department. The employee can enjoy the benefit of quick internal job hopping and the results achieved are very difficult to be recognized by the organization. No manager is able to make a full performance appraisal as the whole year in one department is unique then. The employee is just focused on his or her promotion in the organization and the salary can be increased in every step. The internal recruitment can be sometimes taken as an obligatory option by the organization. The employees suppose to be first in the queue before any applicant from the external job market. But this approach is very dangerous for the organization. The external candidates bring know how and external knowledge, which can help to the organization to perform even better. The Internal Recruitment process cannot solve all the recruitment issues in the organization, but there should be a right mixture of the internal and external recruitment to keep the organization in a healthy shape.

3.2.6 Right Internal Recruitment Job Posting The Internal Recruitment Job Posting is a key to the fair, transparent and efficient internal recruitment process. The issue is to let the employees know about new vacant positions and on the other hand not to over-communicate the vacancies in the organization. The organizations use different techniques to announce internal vacant positions. The most common technique is an email message to all the employees. This technique is simple, but has several disadvantages. The employees are confused about the number of emails they receive and have to handle with. This email is another one and most of the employees are not interested in such kind of information. They would rather not receive any email from the HRM Function. The email cannot be specifically focused on the target group of employees and the overloaded employees can easily miss the right position for them.


The other distribution channel for the internal recruitment is the Intranet of the organization. In the basic mode, just a list of vacant position is posted on the Intranet and the employees can apply for the selected position via email client. But, the Intranet can do even more for the employees. The Intranet can work as a real job website and it can be easily linked with the HRIS. The employee can select the job position and the system can work as the basis for monitoring of the recruitment process. The HRIS system can put all the fields like name and surname and also a career path in the organization can be taken from the HRIS system and the employee can see a huge benefit from providing the organization with so much information. The last good old channel for the internal recruitment is the black board at the entrance to the building where every single employee has to go. 3.3 External Recruitment ► External Recruitment Factors: 1. Supply and demand of specific skills in the labor market. 2. Political and legal factors like reservations of jobs for specific sections of society etc 3. The job seekers image perception of the company. The External Recruitment is the source of the fresh blood for the organization. As a very critical HR Process, the external recruitment process has to be set up very carefully. The external recruitment is a process, which is very sensitive to changes on the external market and the managers are very sensitive about that as well. The external recruitment process is mainly about: • •

How to be successful with the External Recruitment The Job Market Analysis

Sources for the External Recruitment o

Newspapers

o

Agencies

o

Headhunting

o

Internet

o

Recommendation

What kind of the sources to be used? Decision process

Pre-screening

Assessment

Job offer

Process monitoring


►External Recruitment Success Factors The external recruitment is the HR Process, which is not fully manageable by the HRM Function. The external recruitment involves other external parties and they have to cooperate closely to bring a common success for the organization. The external recruitment is a difficult HR Process when it has to be done properly and meeting stretching requirements and goals of the top management. The HRM Function has to take initiatives in four important areas to make the external recruitment efficient, quick and bringing the right quality of candidates: • •

Organization Brand Name Correct Positioning of Job Posting

Channels Used to promote the job vacancy

Speed of the Recruitment Process

The brand name is very important for the external recruitment. The potential job candidates will not apply for the position with the organization, which has no name. The trust of the candidates is the essential for the successful external recruitment. The only way how to hide “no name” organization is the use of the recruitment agency, which can work without announcing the name of the client. Correct Positioning of the job vacancies is a role of the HRM Function. The HR Recruiter has to recognize the correct media and approach to the advertisement of the job vacancy. The job posting is the same as the commercial advertisement. The target group has to have a chance to be approached by the job advertisement to know about it. The channels used to advertise the job vacancy. The common answer of the HR Recruiters is - use the Internet, you cannot lose anything. But the candidates for the position do not have to browse the Internet every day to look for the vacancies. The HR Recruiter has to know the habits and emotions of the target group to select the best channel, which mix the quality of the candidates and the price per one candidate. The speed of the external recruitment process is crucial condition for the success. The candidates have to catch and followed very quickly not to lose them in favor of a different organization. When the candidate decides to look for a new career opportunity, then he or she expects to find a solution pretty quickly. The candidate will not wait for a long time to be invited for the job interview and then for the final decision of the organization. The HRM Function has to arrange everything before the external recruitment starts. ►External Recruitment Process Key Issues The external recruitment process is a very complex HR Process, which involves many parties and the clear follow up of the individual process steps is essential. The HRM Function is responsible for setting and defining the external recruitment process and it has to be sure to solve several success factors in the external recruitment process. The HRM Function has to push the managers to deliver clearly defined job profiles of the vacancies and the job profile cannot be changed during the recruitment process. Or, the change of the job profile cancels the search and starts a new one again. The hiring manager has to know the rules. When the job profile changes during the search, it changes the focus of the recruitment agency and brings a lot of job candidates unsuitable for the job position.


The hiring manager can be a very weak point in the recruitment process. The hiring manager has to agree with the job profile and the hiring manager has to agree to decide quickly about the final job offer for the winning candidate. The hiring manager has to be aware of the danger of being late with inviting the job candidates and the late decision taken. The good contract with the recruitment agencies is a basis for the efficient cooperation; The recruitment agency has to know about the conditions given and the fees given for not meeting them. The recruitment agency has clearly agreed with the KPIs from the contract about the delivery of candidates, expected quality of candidates and basic competencies, which has to be met. The recruitment agency is a tool for the pre selection of the job candidates and it has to be able to meet the basic expectations to reduce the time needed from the HRM employees. The recruitment agency has to receive very clear brief about the vacancy in the organization. The HRM Function and the hiring manager have to define the best job profile and the description of the ideal candidate to navigate the recruitment agency in the external recruitment process. The HRM Function has to make a description of the team, the decision process in the department to allow the recruitment agency to find a candidate with the best fit. The communication during the selection process is very crucial. There must be one point of the contact in the HRM Function and just one point of the contact in the recruitment agency. The resumes have to sent to the one single email address in the HRM Function and the organization has to provide the basic feedback very quickly. The recruitment agency has to follow all the resumes sent to the organization as it can provide the candidates with additional information. The most crucial condition for the successful external recruitment process is a clear decision line and the agreement about the final person to decide about the new hire to the organization. The job candidates can lose their interest quickly, when the organization is not able to make a final decision and asks for additional information and time after all the job interviews are finished.

► Job Market Analysis Correct job market analysis is very important for the efficient external recruitment and the future of the organization. The job market analysis should be conducted regularly at least once a year for all the organization locations and it has to be done in the case of selecting a new location of the organization. The job market analysis always starts with the definition of internal needs of the organization and with the prediction of its targets in the near and longer future. The organization has to make the estimate of the workforce needed and the future trends in the organization, which helps to make the gap analysis in skills and competencies. The job market analysis follows the main areas: • •

inhabitants in the area universities in the area

main industries

competitors

job interviews results


The first issue to be analyzed is the number and structure of the inhabitants in the area. The HRM Function does not need to pay for a special analysis; all the information is usually available from the public sources. The organization has to make sure; the area is able to deliver expected number of employees and in the structure, the organization needs. The area does not include just the near surrounding; the organization has to make the analysis of the people traveling to their job every day. The universities are another important factor in the job market analysis. The universities provide a lot of information about their students and they are able to help with the delivery of new workforce. The HRM Function has to make the analysis of the sources available, the majors of the graduates and their interest. The universities are able to cooperate with the organization to find the best jobs for their graduates. The main industries and trends have to be analyzed. The industry in troubles can be the best source of talented and skilled workforce. The HRM Function has to cooperate with Marketing and Finance to identify the best sources in the area and to be prepared for the search of the best employees from the other industries in the area. The competitors are not competing just with the products and services. They are competing on the job market as well and the analysis used by the organization can help to gain a competitive advantage. The best prepared organization can be the first to attract the best employees and it brings a huge competitive advantage at the end. The results of the job interviews should be analyzed closely. The job candidates who refused the offer should be analyzed to find the gaps in the external recruitment process to make steps to improve the whole situation. The job candidate can provide the organization with helpful information and the HRM should value their immediate feedback. â–ş External Recruitment Competitive Advantage The external recruitment is not just about choosing the right or ideal candidate for the vacancy in the organization. The external recruitment is also about the competition. The competition is about the attractiveness of the job advert, communication and quick response from the organization. The traditional way of processing of the external recruitment was to collect enough job resumes, sorting them and then inviting the candidates for the job interview. The war for talents changes the situation. The quicker the organization is the bigger chance to hire the best candidate is. The timing of the external recruitment process becomes a very critical success factor. As the world around us gets quicker, the job candidates expect the organizations to play the same game. As the job resume can be sent within seconds, the organization has to agree the same rules and react to the job candidate within hours or several days, but there is no time enough to collect the job resumes and then to select from them. The HRM Function has to change the external recruitment process to make sure to process the job resumes immediately. As the HRM Function is not able to process all the job resumes quickly, it can easily send the auto-response emails to the job candidates with the expected deadlines of the process to allow the job candidates to set the expectations. The attractiveness of the job advert is an important component of the successful external recruitment. The job candidates of today are like the other people. They are not interested in long texts; they are interested in a very attractive package and the most important information for their decision. The shorter the texts are, the more successful the hiring process can be. We all receive a lot of information and we have issues to recognize their importance and we try to limit the information.


The communication is essential during the external recruitment process. The organization, which sends information to its potential hires, the better relationship with the job candidate can be. The organization should inform the job candidate about the step in the recruitment process and expecting time of the next message. People love to be informed about the status of the recruitment process and the organization should allow the smooth information flow.

3.3.1 Internal versus External Job Candidate The selection of the winning internal or external job candidate is a common dilemma of the internal recruitment process. Many times, the external and the internal final candidates compete for the job position. The HRM Function and the hiring manager have to make a correct decision. The efficient internal recruitment needs clear rules for the decision about the winning candidate. The organization has to clearly define the condition for the final decision based on the corporate culture and habits inside the organization. The corporate culture should be the main driver of the final decision. The internal candidate has to be sure about the evaluation not to become de-motivated. The clear rules for the preference of the internal candidate over the external candidate will help to set the clear expectations. The common rule is the “winner takes it all�. This rule can be applied in the organizations focused on the internal and external competition. The organization makes no difference between internal and external candidates. This approach looks fair to the employees, but it can bring a lot of confusion as the employees feel no preference of the internal and existing employees and they feel no interest of the organization in their own personal career development. Other organizations provide the internal candidates with some kind of the preference – in time or their competencies. The advantage in time is the simplest one to implement. The HRM Function does not look for the job candidate externally for a defined period of time and the employees in the organization have a chance to be quicker. The advantage in competencies needs to define an ideal competencies profile for the position and the internal candidate does not have to meet all to be a winning candidate. This approach is quite usual as well. On the opposite side some organizations always prefer internal candidates for job positions and they do not have to compete with the external candidates. This is also very dangerous approach as the external candidate can bring a new knowledge or the approach to the organization.

3.3.2 Referral Recruitment The referrals are very important part of the recruitment process. The organization can hire an external recruitment agency to get the candidates to the organization, but the organization can employ its own employees to bring the best candidates. The referral recruitment works best for many organizations and it can help to make the initial pre selection of the candidates as the condition for the referral recruitment is the knowledge of the potential candidate.


The employee is usually obliged to explain the position to the candidate and make the first screening. As the employee usually takes his or her own responsibility the potential candidate is well informed about the corporate culture and the job content of the position. There are organizations on the market, which use the referral recruitment as the main source of the external candidates. The employees who succeed in bringing the candidates to the organization are usually rewarded as the recruitment agency would be. The reward has to motivate employees to make the candidates attracted to join the organization and the employee has to be a couch of the new hire in the orientation process as the reward is usually paid after the trial period of the new employee.

3.3.3 Opening Job Position Opening a new job position or defining a vacancy belongs to the most important success factors in the recruitment and staffing process. The only good defined job vacancy can guarantee the successful search for the candidate. The HRM Function is responsible for setting a clear process and procedures for defining a new job position and for filling the real job content, which will help to find the right candidate internally or externally. â–ş Opening Job Position Critical Success Factors The critical success factors for the opening of a job position are a clearly defined roles and responsibilities and skilled HRM Staff to follow the processes and procedures. The HRM Staff needs two main skills: 1. The HR Front Office staff has to understand to the business of the internal client and has to be able to navigate and facilitate the manager in the process of the definition of the new job vacancy. The manager tends to define the requests, which are very difficult to meet and the ideal candidate is than rather a non-existent person. The task of the HR Front Office staff is to make a mirror and to provide immediate feedback. 2. The HR Recruiter has to have a deep knowledge of the job market and has to be able to decide about the correct method for the search of the candidates to close the job vacancy at the requested time. â–ş Opening Job Position Process The process for the opening job position is not hard, but it has to be followed pretty strictly. The ideal process definition is the following: 1. The line manager indicates to the HR Front Office the need for the new employee. 2. The HR Front Office and the line manager have a discussion to define the basic requirements from the HRM Function to open the position. 3. The HR Front Office makes a check for the possibility to have a new employee. In case of not having an empty box in the organizational structure, the line manager has to get an approval to add the additional position. 4. The HR Front Office and the line manager have a discussion about the job content of the position.


5. The HR Front Office prepares the ideal candidate profile regarding skills and competencies. Also, the HR Front Office defines the ideal level of the salary, which will be aimed during the selection procedure. 6. The HR Front Office and the manager make a final decision. 7. The HR Front Office and HR Recruiter decide about the best selection approach for the vacancy. 8. The HR Recruiter starts to search for the position.

► Opening Job Position Roles and Responsibilities The clear split in HR Roles and Responsibilities and the responsibilities of the line manager in opening the job position is very essential. The HRM Function has to have the responsibility of the navigator and the facilitator, but the HRM Function has to decide several issues in the selection process as well. The HRM Function has to decide about the selection approach, the right competencies set and the ideal salary for the candidate. The HRM Function has the knowledge of the whole organization and it is a full HR role and responsibility to choose the candidate, who fits inside the organization. Opening the job vacancy is not that easy process as it looks in the beginning.

3.3.4 HRM Role at Job Interview The job interview is not just about the selection of the best candidate for the vacancy in the organization. The role of the HRM Function during job interviews is to keep the alignment of the candidates with the corporate culture and overall recruitment strategy of the organization. The HR Recruiter has to know all the details about the corporate culture and the HR Recruiter is the person to test the fit between the candidate and the conditions inside the organization. The HR Recruiter has to be skilled and trained to recognize the values and drivers of the candidate to have a quick opinion about the fit of the candidate and the corporate culture. The HR Recruiter has two different roles in the recruitment and selection process. The HR Recruiter is responsible for the efficiency of the whole recruitment and selection process and he/she is responsible for the fit of the candidates with the organization and the final department. The HR Recruiter uses the brief from the HR Business Partner to match the age, sex and the behavior of the candidate to fit in the department, but the HR Recruiter is never briefed on the corporate culture. The HRM Function does not test the skills needed for the job tasks, the HR Recruiter focuses on the soft skills part of the candidate. The HR Recruiter asks those “stupid HR questions” to find out more about the candidate. The most skilled HR Recruiters do not ask the questions, they use the technique of the “behavioral job interview”, where the candidate is put to the different situations during the job interview. The HR Recruiter just observes the reactions and answers provided by the candidate. There are no right and bad answers, but the behavior can indicate the fit with the corporate culture and the team dynamics. The working role of the HRM Function in the recruitment and selection process needs a clear split of responsibilities between the HRM Function and the line manager. The HRM Function has to have the


right to say “NO� to the candidate, which is really skilled, but his profile does not match with the organization and its corporate culture. The managers tend to favor the hard skills as they see as the benefit for the beginning of the candidate in the new job position. But the role of the HRM Function in the recruitment and selection process is to provide the manager with the honest feedback during the process to make clear agreement about the fit with the corporate culture. The hard skills can be learned, but the fit with the corporate culture does not have to make an immediate impact, but it can generate huge conflicts later. The role of the HRM Function in the recruitment process is to protect the organization from such conflicts and to help building the common corporate culture.

3.3.5 Job Resume The Job Resume or Curriculum Vitae (also CV) is the basic document about the job candidate the HR Recruiter works with. The Job Resume has usually defined structure and the HR Recruiter has to be able to find that different one from the other job resumes. Reading and sorting of job resumes is a basic skill and competency of the HR Recruiter and they have to learn to make it quickly as the recruitment process is about quality and speed. The hiring manager and the job candidates do not wait for the long time. â–şQuick selection of Job Resumes in Graduates Campaigns The Graduate Recruitment and Job Fairs Campaigns are very special part of the year for the HR Recruiters. They are in a real flood of job resumes and they have to sort them quickly to invite the right people for the job interview. The Graduate Recruitment is even worse as there are a lot of opportunities in the organization and the job resumes of all the applicants look pretty similar and they have no idea about their dream position or department within the organization. They just simply apply for a position within the organization or their idea about the job is not correct and needs to be corrected during the job interviewing. The HR Recruiter has to find an approach to sort the job resumes quickly starting the job interviewing process as soon as possible. The HR Recruiter has to develop the simple, efficient and consistent way of sorting job resumes. The consistency is very important to make sure the results of sorting evaluate everyone correctly. The HR Recruiter has to keep in mind the corporate values and corporate culture to set the correct thresholds to the decision process. The sorting of job resumes has to be quick as well as the HR Recruiter cannot spend long time on it. The HR Recruiter has to split the selection of job resumes to several steps: 1. The HR Recruiter has to focus on the job resume cover letters and the grammar used. When there is a mistake, the resume should be refused as the job candidate should make sure the job resume contains no errors. Lack of attention to the details. Using this approach many job resumes will be refused. 2. The HR Recruiter should focus on the cover letter and job resume and their links and logics. When the HR Recruiter sees a mismatch in the cover letter and the job resume, the job resume can be refused as well.


3. The HR Recruiter has to develop a quick questionnaire for the phone job interview. This phone job interview has to be standardized with no more than 10 questions to make it quick and efficient. Every single note has to be taken and the candidates have to be evaluated after a battery of 5 phone job interviews. 1 job resume can be selected; the rest has to be refused. This approach looks very aggressive and potentially rejecting good candidates, but the Graduate Recruitment is mainly about the speed of the recruitment process and this approach allows the organization to react really quickly. ►Job Resume Components to Observe The HR Recruiters are under a huge pressure to select a lot of job resumes quickly every day and to make it consistently. The HR Recruiter has to follow some easy set of the internal rules to decide about the invitation for the job interview. The HR Recruiter has to develop a set of rules to recognize the good job resume quickly and with no a high level of mistakes. The HR Recruiter needs some time of practicing to be sure to make the best selection of the good job resumes. The HR Recruiter monitors three main components of job resumes: • •

design structure

clear message of the content

The design of the job resume is the first thing to notice. The design of the job resume expresses the personality of the job candidate. The design of the job resume should correspond with the corporate culture as the organization with the clear and quick decision process should have a mirror in a very clean job resume design. On the other hand, the design is the easiest part of the job resume to get from a specialized job resume web services, which can provide the job candidate with many job resume templates and the HR Recruiter cannot decide just on the basis of the cute job resume design. The structure of the job resume is very important as it helps to recognize the personality of the job candidate. The structure and logics behind the job resume is very important sign about the personality. When the job resume is excellently structured, the HR Recruiter can expect the same at the job candidate. The structure of the job resume looks pretty simple, but in the reality is not an easy task to accomplish. The structure of the job resume is one of the most important factors to observe during the job resume pre selection phase. The clarity of messages in the job resume is very important as well. The design of the job resume can be very cute, but the unclear messages can destroy the whole job resume. The clarity and structure of the job resume make the final decision about the job candidate at the HR Recruiter’s side. The clarity of the messages cannot be changed for the HRM Buzzwords; the clarity is about the clear statements and a clear focus of the job resume. 3.3.6 The Job Interview The Job Interview is a key step in the recruitment and staffing process. The job interview can be different for the internal and external recruitment, but the job interview is a key step in the process with a significant impact on the result of the whole recruitment and staffing process.


The job candidate also decides about the job position and the impression from the job interview is very important part of his or her decision. The job candidate can just decide based on the professionalism and information provided during the job interview. The role of the HRM Function is to prepare the job interview and be the professional part of the job interviewing, guiding all the involved parts to the successful decision at the end. The role of the HR Recruiter is to let all the participants feel they did the best. ►Job Interview Role The job interview is the moment of finding and confirming information about the job candidate. The organizations use the job interview as a formal step in the recruitment process, which enables the organization to make a selection among different candidates for the vacancy. The job interview has two main roles. The organization can make a deep check of the job candidate and on the other hand, the job interview can have a motivational role for the job candidate. The HRM Function has to be very careful in finding the optimal way of balancing the motivation and finding facts. The job interview can be tough, but the job candidate has to feel comfortable and successful at the end of the job interview. When the job candidate feels depressed, the role of the job interview was missed. Sure, this is true for the job interview, when the candidate does not lie to the HR Recruiter. The HR Recruiter has to prepare the job interview very well to make sure, the role of the job interview is met. The HR Recruiter has to collect as many information as possible before the job interview and the job interview has to focus on checking the most important facts from the job resume. The role of the job interview is not that strong as it was in the past. More and more organization use the job interview to collect the basic information, make some assumption about the candidate and to motivate the candidate to continue with the selection process. The job interview is just a part of the assessment centers, background checks and other techniques. ►HRM Job Interview Questions The job interview questions are usually the biggest worry of the young HR Recruiter who starts the career in the recruitment and selection area. Many training about the job interview are available on the market and many of them are focused on the job interviewing questions. They are not focused on need of finding the information about the job candidate, they are focused on sets of questions and the HR Recruiter just follows them. The job interview needs more clever approach from the HR Recruiter. The prepared sets of the job interview questions can lead to the ordinary job interview with no value added provided. The job interview is a moment to collect and confirm information about the job candidate. The job interview questions can be divided into two main groups: • •

questions specific for the job position questions specific for the job candidate

These two groups have to be combined to produce the results, which can be compared at the end of the day.


The job interview questions specific for the job position should be prepared by the HR Recruiter based on the skills and competencies needed for the job position. The base for their design is the job profile of the vacancy and they have to be agreed with the hiring manager. The job interview questions specific for the job position have to find out the general skills and competencies and they have to be compared at the end of the recruitment process. The job interview questions have to be constructed to make the job candidates speak about their behavior to illustrate their own skills and competencies. The job interview questions specific for the job candidate are the result of the individual job resume analysis. The HR Recruiter has to prepare specific job interview questions for the job candidate to gather enough information about the background of the job candidate. The specific job interview question has to be very specific and making the job candidate speaks about his or her past.


3.3.7 Recruitment Process Design and Development The good design of the recruitment process is a key to the successful recruitment and staffing process. The HRM Function has to focus on the design of the process and to cooperate with all the involved parties - managers, employees, agencies and web recruitment services. The recruitment process is unique for each organization and the HRM Function has to make adjustments in the general design of the recruitment process, which can be taken from any source. The recruitment process design is not an easy job, but the HR Recruiter has to be smart enough to bring the recruitment design, which will fit the organization’s need ►Designing Recruitment Process: Recruitment Measures The measurement of the recruitment process can to design the better recruitment process. The measurement of the recruitment process helps to identify gaps in the process and document them on the basis of numbers. The design of the recruitment process must be done on the basis of the numbers as the managers will try to make a benefit of the new design in their favor and the numbers are the only argument to make them sure about the benefits for the whole organization. The HRM Function has to identify the correct measures to measure the recruitment process end-toend as the design of the new recruitment process covers all the identified gaps. The measures should include: • •

time number of candidates

positions open

sources of the recruitment

cost

quality

Measuring time helps to set the realistic expectations from the new recruitment process. The HRM Function can promise a significant improvement in the time to fill the position, but it has to know the time of the recruitment process right now. Number of candidates, measured per position and in total helps to find out the potential issues in the area of insufficient number of candidates, which can identify the issue in the recruitment sources or bad cooperation with the recruitment agencies. The number of open positions at one time can indicate many issues in the organization and help the HRM Function to move more responsibilities to the line management to make the recruitment process smoother. The sources of the recruitment are very important as the sources with the highest number of candidates and with the highest success rate should be the favorite source of candidates in the future and the newly designed recruitment process should be built around.


The costs of the recruitment are very important. It is easy to use executive search for all the positions, but the cost per hire is enormous then and the HRM Function has to find the optimum way to hire the new hires at affordable cost to the organization. The quality of the recruitment is also very important. Nothing can beat the Internet job posting in number of job resumes received, but when the quality has to be proven, the Internet based recruitment can be easily the least efficient source of candidates. â–şMain Recruitment Process Steps The aim of the HRM Function is keeping the recruitment process design as simple as possible. The HR Recruiters should not forget about this main goal during the design phase of the recruitment process development. The recruitment process is simple on the high level, but it contains a lot of interaction among different participants in the recruitment process. The HRM Function, the line manager and candidates need to receive and share a lot of information and their interaction is usually the main issue during the recruitment process. The main steps of the recruitment process are: 1. Job Design 2. Opening Job Position 3. Collecting Job Resumes 4. Pre selection of Job Resumes 5. Job Interviews 6. Job Offer The job design is the most important part of the recruitment process. The job design is a phase about design of the job profile and a clear agreement between the line manager and the HRM Function. The Job Design is about the agreement about the profile of the ideal job candidate and the agreement about the skills and competencies, which are essential. The information gathered can be used during other steps of the recruitment process to speed it up. The Opening of the Job Position is generally the job of the HR Recruiter. Skilled and experienced HR Recruiter should decide about the right mix of the recruitment sources to find the best candidates for the job position. This is another key step in the recruitment process. The next step is collecting of job resumes and their pre selection. This step in the recruitment process is very important today as many organizations lose a lot of time in this step. Today, the organization cannot wait with the pre selection of the job resumes. Generally, this should be the last step done purely by the HRM Function. The job interviews are the main step in the recruitment process, which should be clearly designed and agreed between HRM and the line management. The job interview should discover the job candidate, who meets the requirements and fits best the corporate culture and the department. The job offer is the last step of the recruitment process, which is done by the HRM Function, it finalizes all the other steps and the winner of the job interviews gets the offer from the organization to join.


►Recruitment Analysis The HRM Function has to conduct regular Recruitment Analysis to identify key gaps, development and trends on the external recruitment market. The Recruitment Analysis has to be used as a basis for the decisions in the recruitment process area and for the discussions with the management. The recruitment analysis usually describes the main internal recruitment process development and changes and their impact to the overall performance of the recruitment process. The HRM Function should commit to bring regular improvement in the recruitment process to stay competitive on the job market and to gain a competitive advantage in the recruitment area. The recruitment analysis in the external recruitment should focus on the main developments and trends in the external recruitment for the organization. As the recruitment and staffing is very expensive for the organization, the serious analysis of the costs has to be done. Many organizations do not focus specially on monitoring the recruitment costs, but the HRM Function has to commit to monitor and manage external recruitment costs. The really serious recruitment analysis contains: Macroeconomic development and the impact of the macroeconomic development on the recruitment activities Detailed analysis of the open positions in different units Detailed analysis of the open positions per different level in the organization hierarchy Detailed analysis of the recruitment used – internal and external, per function and per level in the organization Detailed analysis of the recruitment sources used for different position Success rate analysis of different channels The recruitment analysis is not used for the monitoring of the mistakes done in the recruitment process; it has to show the management of the recruitment process and can be used as basis for the managerial decision. The recruitment process design cannot be done without a proper recruitment analysis as the numbers are the only evidence for some facts. The HRM Function has to have the power to provide the results of the recruitment analysis with comments and the action plan to make the changes in the recruitment process. As the HRM Function is a fully responsible owner of the recruitment process, the recruitment analysis should point the most important aspects for the HRM Function to make changes in the design of the recruitment process and to negotiate the additional changes with the impact on the organization with the top and line management. ►Recruitment Process Outsourcing The HRM Outsourcing and the recruitment outsourcing are a special issue of the day. The outsourcing is a modern way of the management of the head count employed in the organization. Generally, the outsourcing is presented as an excellent way of pushing non-core processes out of the organization and the cost for the outsourced processes is cheaper than having the processes inside the


organization. In reality, the outsourced services do not have to be cheaper and can bring huge headache to the organization. The companies specialized in outsourcing usually present excellent benefits for the organization, but they do not tell the full truth usually. The outsourcing companies are ready to run fully standardized processes and they are not ready to run custom made processes. The outsourcing of the recruitment process is not easy. The organizations usually do not have clearly defined recruitment process, with clear roles and responsibilities in the recruitment process and the recruitment process, which does not know any exception. The outsourcing recruitment organization usually does not know any exceptions, usually in the case, when the recruitment outsourcing is ran off-shore. The off-shore recruitment outsourcing becomes more popular, but it is very dangerous. The recruiters in India have no idea about the corporate culture in San Francisco, but they ask clever questions to the job candidates all around the world. The organization has to be careful in the selection of the outsourced services provider. The organization has to decide to start with the very limited scope of the outsourcing services in the recruitment area. It can start with the job interview scheduling and outsourced phone interviews. The organization has to keep the control around the recruitment process not to allow the outsourced services organization to manage the recruitment process in the organization. The outsourced recruitment processes need a bit different approach from the outsourcing provider as the outsourcing services provider has to know about the different recruitment approach in each organization and it has to respect the differences in their corporate culture. 3.4 Selection Procedure The Main Objective of a selection procedure is to determine whether an applicant meets the qualification for a specific job, and then to choose the applicant who is most likely to perform well in that job. The entire process of selection begins with an initial screening interview and concludes with a final employment decision. When a selection policy is formulated, organizational requirement like technical and professional dimensions are kept in mind. ►Steps in selection procedure: 1. Reception of applications or preliminary screening 2. Application bank that gives a detail about the applicant’s background and life history 3. A well conducted interview to explore the applicant’s background 4. The physical examination 5. Psychological testing that gives an objective look at a candidate’s suitability for that job 6. A reference check 7. Final Selection approved by the manager


8. Communication of the decision to the candidate.

Therefore the Selection Process can be pictorially represented in a flowchart as below:

Establishing Selection Process -> Identifying & choosing selection criteria -> Gathering information about potential employees -> Evaluating information for assessing applicant -> Making decision to select or reject -> Communicating decision Thus the selection process should be planned such that human resource is efficiently used. The right person for the right job and inducting her/him into the organization or department successfully is the basic criteria of the entire process.


CHAPTER 4 Recruitment Process of ACI Ltd.


In 2004 ACI changed its Personnel Department to Human Resources Department and restructured the department to provide centralized direction and control over key HR functions. HR Department of ACI is headed by Director, Corporate Affairs, who receives direct report from Assistant HR Manager and Sr. HR Executive. One HR Executive reports to Sr. HR Executive and a HR Officer and three data entry operators report to Assistant HR Manager. HR Department also assumes some additional responsibilities like, public relations, company value communications, offering suggestions for organizational development and CSR related activities. Whether it is external or internal, ACI’s recruitment process begins with planning phase during which both organizational and administrative issues regarding the identification and attraction of applicants are addressed. Exhibit 4.1: Basic elements of ACI’s Human Resources Planning

(3) Conduct

(1) Forecast Labor

Environmental Scans

Requirements (4) Determine Gaps

(5) Develop Action Plans

Compare

(2) Forecast Labor Availabilities

Next ACI outlines a recruitment policy in order to know where, how and when to look for qualified applicants. Following the formation of strategy, the message to be communicated to job applicants is established and it is decided which communication medium should be used to communicate the message. In case of internal recruitment process one additional step is considered by ACI that is development of a structure or procedure to make the transition to recruitment for job applicants. In case of internal recruitment ACI posts the job in Notice Boards and internal e-mail system. Sometimes it is verbally informed to potential internal candidates.


4.2 Forms of Recruitment ACI conducts two forms of recruitments namely Internal Recruitment and External Recruitment. Internal Recruitment is the process of identifying and attracting applicants from among individuals already holding jobs with the organization. On the other hand, external recruitment is the process of identifying and attracting job applicants from outside organization. When a position is created or become vacant, ACI first tries to fill up the position internally. If there is no suitable internal candidate the organization goes for external recruitment.

4.3 Recruitment Planning Prior to identifying and attracting applicants to vacant jobs, ACI gives attention to organizational and administrative issues that facilitate the effective matching of applicants with vacant jobs. 4.3.1 Organizational Issues During recruitment process ACI considers the following organizational issues. 1. In-house versus external recruitment agency ACI’s most recruiting is done in-house. Sometimes the organization relies on external recruitment agencies (usually it is Manpower Associates) rather than an in-house function for recruitment in top level management positions. In that case, ACI asks the recruitment agency for services like identifying candidates and checking references. 2. Centralized versus decentralized recruitment A centralized recruitment function is one for which recruitment activities are coordinated by HR department in the corporate head office. A decentralized recruitment system is one where individual business units or individual managers coordinate the recruitment activities. Like most large organizations, the recruitment function of ACI is centralized. But the local HR Division does some recruitment of field workers positions at ACI Pharmaceuticals factory in Narayanganj. At field level attrition rate is comparatively high and replacement of leaving employees is immediately required. Here, decentralized system saves time and ensures smooth flow of operations. 3. Mobility Paths Mobility paths show the relationship among jobs and mobility policy shows the roles by which people move between jobs. In case of internal recruitment, one of the important organizational


issues is mobility paths and mobility policy. A mobility path consists of possible employee movements within internal labor market structure. In ACI traditional mobility path is followed. In traditional mobility path the emphasis is primarily on upward mobility in the organization.

4.3.2 Administrative Issues During the recruitment planning the following administrative issues are considered by ACI: 1. Staff Engagement Proposal A Staff Engagement Proposal (see Exhibit 3.2 in next page) is a formal document that proposes the filling of a job opening indicated by the signature of Executive Director of Strategic Business Unit and approved by Managing Director of ACI. 2. Number of Contacts It is very difficult to identify the exact number of contacts needed to fill a particular vacant position. ACI does not have any particular approach regarding this. The HR department of ACI talks with the related department head and decides how many applicants will be contacted against this vacant position. 3. Types of Contacts In ACI the types of contacts to be made depends on two factors. First, the qualifications needed to perform the job are clearly established. This is done through the process of job analysis, which results in job requirement matrix (see Appendix-E for sample job requirement matrix of ACI). Second, consideration is given to the job search and choice process used by applicants. That is, the organization tries to identify where to search for applicants and what it will take to attract them to the organization. ACI handle the help of previous experience. For example, from response to previous job advertisements ACI recognized that for lower level management and non-management positions Bengali communications message is more effective. Exhibit 4.3.3: Staff Engagement Proposal of ACI Limited

Department

:

Location

:

Job Title

:

Job Grade/

:


Salary Range

: Number

Present

Sanctioned

Required

Strength

Strength

Total After Approval

Approval required

Type of

Permanent

Contractual

Casual

Employment:

(Please Tick)

Expected Joining Date:

Justification for Additional Manpower:

Preferred method of recruitment:

Newspaper Advertisement

HR Department CV Bank

(With/Without Company Name) Notice Board Circular

Third Party/Own Source

Already Located (CV Enclosed)

From Existing Employees

____________________ Signature of Dept. Head

_____________________ Recommended by DCA

Date

Date

_______________ Approval of MD Date


4. Development of recruitment Guide A recruitment guide is a formal document that details the process to be followed to attract applicants for a job. It is usually based on the ACI’s Recruitment and Selection Protocol. 5. Selecting Recruiters Recruiters used by ACI come from variety of sources, including HR personnel, Line Managers and Head of Business Unit/Division. Some times recruiters are hired from outside, if required. For example, for the position of a factory manager for an entirely new business unit, ACI may hire external expert to carry out some of the recruitment functions. 6. Process Flow and Record Keeping Prior to deciding where and how to look for applicants, ACI first check for suitable résumés that was received previously. These résumés results from the use of multiple sources to identify candidates, e.g. advertisements, walk-ins, employee references, internship file etc. ACI stores résumés of applicants who are selected for second interview/pass written test for at least six months. If there is any vacant position ACI checks these résumés for suitable candidates. 4.4 Strategy Development Once the recruitment planning phase is complete ACI goes for development of a strategy. Strategy development process of ACI includes: 4.4.1 Closed, Open, and Targeted Recruitment Once Managing Director has approved a staff engagement proposal, one of the most difficult aspects of recruitment knows where to look for applicants. In practice ACI goes for targeted recruitment depending on KSAO’s (Knowledge, Skill, Abilities and Other job related characteristics) required for the job and availability of suitable applicants. To target the potential job applicants ACI mainly considers•

Job requirement matrix,

Demographics,

Recruitment sources, and

Applicants’ interests.

4.4.2 Recruitment Sources Once it has been specified where and how individuals are likely to be found, there are several sources that are used to look for them. ACI’s main sources of recruitment are newspaper advertisement, employee referrals, university placement offices, and employment agencies, skill inventory and nominations. However, the following sources are used depending on the situation:


External Sources: •

Unsolicited Applications

Employee Reference and Networks

Advertisements

Résumés received online

University and Placement Offices

Employment Agencies

Job Fairs

Internships

Internal Sources: •

Job Posting

Skill Inventory

Nominations

In-House Temporary Pools

Succession Plans

4.4.3 Choice of Sources There is no single best source of recruitment; each source has its strength and weaknesses. ACI uses the following criteria to select which sources are most appropriate for each search: •

Quantity of Labor: The number of jobs to be filled up is an important determinant for choice of source(s). For example, when ACI wants to recruit large number of Medical Services Officer (MSO) it goes for Newspaper advertisement. The number of newspapers in which ad should be published also depends on the number of jobs. If numbers of vacant job is more than ad is published on two or more Newspapers and is usually published on Friday for greater coverage.

Quality of Labor: If the quality requirement is very high and the applicants are rare then the newspaper ad is prepared attractively to draw attention.

Experience Required: The choice of source(s) also depends on experience requirement of the position.

Budget Constraints: While choosing source it is always considered for less costly but more effective sources. For example, for entry level management positions, university placement offices, online, job fairs are mainly used by ACI.

4.5 Manpower Approval Process 1. Managing Director is the sole authority to approve manpower for any business or function.


2. Whenever a position becomes vacant the department head examines if the work can be redistributed amongst the remaining staff or if the job is at all relevant in the prevailing circumstances. Organizational efficiency can be achieved and manpower productivity can be improved through such critical analysis of the job and exploration of the possibility of not replacing the departing incumbent. 3. If there is a necessity to recruit and select for any position, which does not have any prior approval, the concerned department head fills up the Staff Engagement Proposal Form and forwards the same to the Human Resource Department. The Human Resource Department evaluates the proposal and forwards it to the Managing Director with comments if any. 4. Staff Engagement Proposal Form is filled up and forwarded for the approval of Managing Director only when the requirement exceeds the sanctioned strength. For replacement and selection for a position within the sanctioned strength limit; new Staff Engagement Proposal Form filling process is not necessary. 5. Before forwarding any proposal or recommendation to Managing Director, Human Resource Department makes it sure that Job Description, Person Specification and other relevant documents are there with the proposal. 6. Department Head is responsible for preparing the Job Description and Person Specification while Human Resource Department gives support to the Department Head, if required. 7. After receiving the approval from the Managing Director, Human Resource Department keeps the original Staff Engagement Proposal Form and sends a copy to the respective Department Head. 8. Only after receiving the approval from Managing Director, Human Resource Department proceeds for recruitment. 9. There is an exception for Staff Engagement Proposal in the case of entry level field forces and distribution contractual staffs. In these cases, the concerned Department Head takes approval from the Managing Director in the specified Staff Engagement Proposal Form by 31 st December every year, which is valid for next one year. During this period any replacement does not require approval from the Managing Director. But for increasing the manpower beyond the sanctioned limit, the concerned Department Head must take approval from the Managing Director.


4.6 Applicant Searching Once the recruitment planning and strategy development phases are completed, the HR Department starts candidate searching. Searching for candidates first requires the development of a message and then the selection of a medium to communicate that message. 4.6.1 Communication Message: Information presented by the organization to the job applicant is essential to the decision to apply for a job. Organizations may use any of the four types of communication message: •

Traditional Messages

Realistic Recruitment Messages

Attractive Messages

Targeted Messages

ACI generally uses traditional and attractive communication message depending on the situation. ACI portrays the organization in a manner such that applicants are induced to apply, join and stay with ACI. For non-management positions the communication message is usually Bengali. The communication message also helps an organization to create a positive image to the job seekers. See the communication message of the sample ad of ACI. R

Be Part of a Value Driven Sales Team

Advanced Chemical Industries Limited, certified under ISO 9001 for Quality Management System and ISO 14001 for Environmental Management System is one of the leading conglomerates in Bangladesh with a multinational heritage.

M

A

N

A

G

E

Exhibit 4.6.2:

Our Values: Quality, Customer Focus, Transparency, Fairness, Continuous Improvement and Newspaper ad Sample for the position of Sales Manager: Innovation

To provide the highest standards of services to our valued customers we are looking for a committed and performance driven individual for the position of Sales Manager in our Consumer Brands division.

The incumbent will be responsible for managing the entire sales related activities. He/She will manage and ensure efficient operations to make ACI Consumer Brands products available within the customer reach and thus ensure the continuous growth and profitability of the company.

▪ ▪ ▪

Sales management including setting tour program, finalizing content of an expense statement, setting up territory wise sales target, formulating incentives to field forces, formulating agenda of monthly sales meeting and regional meeting, launching new products, evaluation of the selling skills of a field force. Planning, organizing and monitoring the sales activities of the team to ensure the sales target and objective of the company. Formulating sales strategy and action plan. Distribution management that includes sales process, establishing distribution roadmap, components of a distribution expense, inventory management, setting product wise reorder level of finished goods in depots.

A

E

L

S

Key Accountabilities

S

We offer ▪ ▪ ▪

Professional working environment Attractive compensation package Performance based career progression


Committed to Excellence

4.6.3 Communication Medium: Not only is the message itself an important part of the recruitment process, so, too, is the selection of the medium to communicate the message. ACI uses the following communication medium: •

Advertisements: 

Classified advertisements

Classified displayers

Display ads

Online ads

Organizational website

University placement office/Notice Boards

4.6.4 Advertisement Guidelines: For any advertisement process ACI follows i)

the guidelines given below:

Newspaper Advertisement: Human Resource Department makes a draft for the newspaper advertisement and finalizes the contents in consultation with the concerned Department Head. After finalization, HR sends the advertisement to the Creative Communication Department for publication. The advertisement is published in such a manner that it ensures the maximum visibility as well as mass coverage. HR considers the conciseness and attractiveness of the


advertisement. In case of every vacancy advertisement, a copy of the advertisement is placed on the notice board. An advertisement contains the following items, with the exception of blind ad: •

Company Name and Logo

Brief about the Business/Company

Title and Summary of Job

Required qualification and experience

Personality attributes

Attractive and encouraging words for the candidates

Address to apply

ii) Notice Board Circular: A copy of the advertisement is placed on all the company notice boards for any recruitment so that the employees are informed about the recruitment process and can recommend suitable candidates, if any. Employee recommendation is only a way to search good candidates but by no means has it carried any significance in the selection process.


CHAPTER 5 SELECTION PROCESS OF ACI LTD.


Selection is the process of assessment and evaluation of job applicants which starts from collection of résumés of the applicants and ends up with final selection. ACI uses a variety of different assessment methods in the selection process. For the best possible person/job match, ACI first determines the steps that need to be applied in the selection process. Implementation of these steps requires creation of a selection sequence, which is an orderly flow of people through the stages of applicant, candidate, finalist, and offer receiver. Guidelines regarding employee assessment of ACI are as following: 5.1 Guidelines on Selection of Staff The Managing Director is the sole authority for any selection without any competitive examination. Otherwise, the following procedure is used by ACI for the selection of employees: 1. Written Test In ACI written test is only applicable for assessment of junior management, unionized and nonmanagerial contractual positions. In exceptional cases where specific knowledge and skill areas are needed to be identified and interview is not informative enough, written test is applied as a selection tool. However, if it is not omitted through written circular, written test is mandatory for junior management, unionized and non-managerial contractual positions. On agreed basis, HR/Business Unit prepares the question patterns, venue and time of written test. 2. IQ Test IQ test is applicable for all management and non-management contractual positions. HR is solely authorized and responsible for selecting the question patterns, venue and time of IQ test. 3. Interview Before sitting for viva, the board members agree on the predictor/criteria (for example, predictor for success in a particular position may be communication skill, team building skill and/or goal orientation etc) to be used to judge the candidate. These criteria are selected form the Interview Checklist (see Appendix-G for Interview Checklist). The criteria used in interview checklist vary for position to position. The interview rating form is also customized based on these criteria. The viva Board Members go through the résumé, interview rating form, person specification and job description of the relevant position before the viva. For appropriate predictors to be identified and used for selection process, first a selection plan is developed. A selection plan describes which predictor(s) will be used to assess the KSAO’s required to perform the job.


Exhibit 5.1.1 Interview Checklist for the position of Executive, Materials Management 1.

2.

3.

4.

5.

Organization  She plans her day systematically. She knows what has to be done and in what order.  She writes down what specific goals have to be accomplished during the day.  She talks in an organized way. She makes a point logically and systematically.  She goes into meetings and presentations well-prepared. She had taken time to do her homework.  She has demonstrated the ability to plan, organize and execute a major project. Initiative  She has strong sense of urgency- keenly aware of the need to move quickly on things.  She seems to move into action promptly and decisively when a problem arises.  She keeps on top of things, follows through and makes sure that things get done.  She has shown a willingness to cut through red tapes in order to move things ahead.  She has shown initiative-taking the bull by the horns and dealing with things.  She has shown a consistent pattern of independent decision-making and action –taking. Communication skills  She communicated ideas clearly and succinctly during the interview.  She stopped periodically to make sure we are on the same wavelength.  She used words effectively-using the right word or phrase in the right spot.  She talks in an interesting fashion. She is an interesting person to listen to.  Difficult or awkward questions were handled smoothly. She didn’t get flustered.  She listens well. She really pays attention and works hard to understand Personality(The Big Five)  Emotional stability: He/she is calm, optimistic and well adjusted.  Extroversion: He/she demonstrated the tendency to be sociable, assertive, active and upbeat.  Openness to experience: The person demonstrated the tendency to be imaginative, attentive to inner feelings, have intellectual curiosity and independence of judgment.  Agreeableness: The person demonstrated the tendency to be altruistic, trusting, sympathetic, and cooperative.  Conscientiousness: the person got the tendency to be purposeful, determined, dependable and attentive to detail. Satiability  We have discussed my concerns about hiring good people and then having them leave.  She has addressed those concerns, and I feel comfortable with how she has done that.  She has a realistic view of the job-what’s involved what it will be like.  She has a realistic view of the company and what he will be like to work here.  Her long-term career aspirations can be realistically satisfied within this company.  She has demonstrated a reluctance to ‘hop’ from one job to another without good reason.


Exhibit 5.1.2 Sample Interview Rating Form ACI LIMITED INTERVIEW RATING FORM

NAME:

ATTRIBUTE

POSITIO N:

Weight age

Appearance

1

Qualification for the Job

1

Track Record & Relevant Experience Communication Skills

2 2

Leadership Qualities

2

Enthusiasm and initiative

1

Confidence/Maturity/Personal ity

1

R

A

Outstanding 109

T

I

Very Good 87

Executive, Local Purchase

N

G

Total

Fair

Avg

Poor

6-5

4-3

2-1

(Weight age X Rating)

10

Strength for this job:

Deficiency/Doubt on any aspect

If the candidate is selected; specify any aspect to be particularly stressed during probation?

Suitability for the Job: Travel Long hours/Job Hazard Understanding of the Job Commitment to a career Motor Cycle Driving License


Following is the standard interview process followed by ACI for junior management, non-managerial contractual, unionized employees, and mid-level and senior management positions: i. For junior management, non-managerial contractual and unionized employees interview are conducted in a single phase, but before offering employment, it requires approval from Head of the Department and Director-Corporate Affairs. Usually the interview board consists of a representative from HR Department and a representative from the concerned department. ii. For mid-level management, interview is conducted in two phases. In the first phase, interview board consists of a minimum mid-level executive from HR and a senior executive from the concerned department. In final phase, the interview board consists Director-Corporate Affairs (Director, Corporate Affairs is the Head of HR Department) and the Head of Business/Function. iii. For senior-management, interview is conducted in two phases. In the first phase, the interview board consists Head of HR Department and the Head of Business/Function. The final selection is made by the Managing Director.

4. Salary Negotiation: The Head of HR Department negotiates salary with the suitable candidate whenever necessary.

5. Job Offer: The Head of HR offers the job to the selected candidate after the final approval is obtained.

6. Signing Authority: Head of HR is the sole signing authority for any employment letter up to management grade MIX, non-management and all contractual employees if not any other person is authorized (by Head of HR Department) for special reason. The Managing Director is the sole authority to sign any employment letter for management grade MX and above.

5.2 Assessment Methods ACI use two types of assessment methods in the selection process. •

Initial Assessment methods, and

•

Substantive Assessment methods.


5.2.1 Initial Assessment Methods ACI use initial assessment methods to minimize the costs associated with substantive assessment methods by reducing the number of people assessed. These methods are considered, to some degree, in selection decisions for most types of positions. These methods usually include: •

Résumés and Cover Letters

University or Educational Institution

Relevance of the Degree and CGPA

Relevant Training and Experience

Reference Check

Initial Interview

Choice of Initial Assessment Methods As there is a wide range of initial assessment methods available to organizations to help reduce applicants to bona fide candidates; it can be difficult for employers to find out which of these methods will be effective for an organization. ACI use some criteria that help the company to make the right choice of assessment methods. These criteria are: •

Cost

Reliability

Validity

Utility

Applicant Reactions, and

Adverse Impact

5.2.2 Substantive Assessment Methods Choice and use of substantive assessment methods in ACI depends on position, job nature and reporting supervisors’ preference. It also depends on whether the applicant is internal or external. ACI conducts one or a combination of the following substantive methods of assessment: •

Personality Test

Ability Test

Job knowledge Tests

Performance Tests and Work Samples

All of these assessment methods are not used for every position or every time.


Personality Test: ACI uses the following checklist during the interview to test personality of a candidate: Exhibit: 5.3: Personality Test Checklist Personality Test Checklist 

Emotional stability: He/she is calm, optimistic and well adjusted.

Extroversion: He/she demonstrated the tendency to be sociable, assertive, active and upbeat.

Openness to experience: The person demonstrated the tendency to be imaginative, attentive to inner feelings, have intellectual curiosity and independence of judgment.

Agreeableness: The person demonstrated the tendency to be altruistic, trusting, sympathetic, and cooperative.

Conscientiousness: the person got the tendency to be purposeful, determined, dependable and attentive to detail.

During selection interview the interviewers ask questions to identify these traits of the candidate. In ACI, personality test is used for mid and top level management positions. Ability Tests: In ACI, ability tests are used for non-management and entry level management positions. There are two major types of ability tests: aptitude test and achievement test. But ACI uses (do not use all the time) only ability test that is usually written test. Ability tests are used to test a persons cognitive ability (perception, memory, reasoning, verbal and mathematical abilities etc).

Job knowledge Tests: Job knowledge tests attempt to directly assess an applicant’s comprehension of job requirements. Job knowledge tests can be one of two kinds. One type asks questions that directly assess knowledge of the duties involved in a particular job. For example, an item from a job knowledge test for a Medical Services Officer might be, “Describe the process to approach to a Doctor.” The other type of job knowledge test focuses on the level of experience with, and corresponding knowledge about, critical job tasks and tools/processes necessary to perform the job. For example, an applicant for the position of Executive, Support (MIS Department) might be asked to configure MS Outlook or replace hardware in a computer.


Performance Tests: For some positions (for example, Quality Control Officer, Data Entry Operator etc) ACI use these tests to assess actual performance of the job candidate. Beside these assessments, ACI sometimes assess candidates’ interest, values and preferences. But as outcome of these assessment methods are vague and decisions based on these assessment methods are not a very good predictor of a person’s future performance, these methods are not always used. Choice of Substantive Assessment methods In ACI, choice of substantive assessment methods mainly depends on the following factor: •

Available time

Convenience

Reliability

Validity

Utility

5.4 Discretionary Assessment Methods If the initial and substantive assessment methods select more suitable candidates than available vacant positions then substantive assessment method is used. Usually the relevant business head takes the discretionary assessment method. Substantive assessment methods are typically very subjective and rely heavily on the intuition of the decision maker. Substantive assessment method tries to identify whether the persons values match with values of ACI, and likely fit between the person and ACI. 5.5 Pre-employment Checklist The following documents is obtained from the candidate prior to offering the employment letter and designated person from Human Resource Department is responsible for collecting the following documents: •

Application for Employment

Medical Declaration Form

Copy of last educational and where applicable, professional certificates

One copy of passport size photograph

Resume, and

Interview rating form


CHAPTER 6 Evaluation of the Recruitment and Selection Process


Human Resource is one of the most important factors of any organization’s success. Resources make things possible but people make things happen. A company’s core competence resides in its people and in its intellectual capital, not in its assets on the balance sheet. Other assets like skill, technology, physical assets and financial assets can be easily copied by other organizations. But if an organization has highly skilled and capable workforce it cannot be easily copied by other organization. So acquisition, deployment and retention of sufficient skilled manpower are cutting edge for an organization. These things greatly depend on effective recruitment and selection process. First strengths and weaknesses of the recruitment and selection process will be presented then the successfulness of recruitment and selection process will be related with business HR outcomes and business performance. 6.1 Recruitment Process Evaluation In last two chapters’ recruitment and selection process of ACI was presented. Now in this chapter critical evaluation of the recruitment and selection process of the organization will be presented. Evaluating recruitment practice of an organization is not an easy task, because no ultimate guideline can be found regarding the recruitment and selection practice of any organization. Secondary information regarding the recruitment and selection practice of organizations in Bangladesh is not available. However, there are some sort of guidelines were found in different books and related websites. On the basis of these guidelines and previously set parameters, now ACI’s recruitment and selection process will be evaluated. 6.1.1 Strength of ACI’s Recruitment Process: •

ACI use in-house functions which ensure that recruitment searches are consistent from opening to opening. ACI can manage a résumé bank of its own and the specific needs of the organization are met. As they use in-hose functions they have greater control on the recruitment process and they can easily customize some aspects of process.

Whether internal or external; ACI usually employs centralized recruitment. That is recruitment activities are coordinated by the Human Resources Department. One of the most important advantages of this centralized recruitment functions is that duplication of effort is eliminated. For example, Administrative Officer, Coordination officer etc are common position for all business units of ACI. So if two or more business units require a coordination officer, then one advertisement is placed rather than multiple ads for multiple business units. Previously collected résumés can be used for new opening in the same business unit or another business unit.


Recruitment of factory workers of Narayanganj factory is usually done by the factory HR Department. Usually the rate of turnover among the factory workers are comparatively higher and immediate replacement of the vacant position is important. So in that case it is a good practice for ACI.

ACI uses formal Staff Engagement Proposal form along with job description for filling every job opening in the organization. This ensures that right type of applicants is being targeted.

Since it is very difficult to identify the exact number of candidates to be contacted to fill up a particular vacant position, ACI does not have any particular approach regarding this. The HR department of ACI talks with the related department head and decide how many applicants will be contacted against a vacant position. This gives HR Department flexibility and discretion for using judgments. This is an excellent practice as long as HR Executives can use their judgments appropriately.

ACI uses recruitment and selection protocol as guide to recruitment and subsequent selection process which ensures thorough analysis of the job before a position is being advertised.

ACI mainly use Newspaper ads, University placement offices and online as external sources and nominations and succession plans as major sources of internal recruitment. For example, ACI maintains close relationship with Bangladesh Agricultural University and Pharmacy Department of major public universities. From these sources ACI easily collects résumés of precise candidates virtually with no cost.

ACI is careful about selecting communication messages in ads. While developing communication message ACI reviews job description and person specification of the position. For example, for junior level management and non-management positions ACI use Bengali message and message is highly attractive. This strategy has been proved effective to attract applicants over the years.

6.1.2 Weaknesses of ACI’s Recruitment Process: •

There is no proper guideline in ACI regarding mobility path and mobility policy. In case of internal recruitment ACI does not give much attention on mobility path and mobility policy. Sometimes mobility path is violated which may lead to employee claims of favoritism and discrimination.

In ACI traditional mobility path is followed. Although the traditional mobility path is straight forward and easy to administer it is not that flexible and may inhibit the matching of the best person for the job. For example, the best person for the job may be at two levels down and in another business unit from the vacant job.

There is no proper guideline/policy in ACI regarding recruitment budget. The recruitment process is the most expensive component of organizational staffing system. The high costs of recruitment point to the importance of establishing well-developed recruitment budget.


There is no proper guideline in ACI regarding selecting recruiters which may lead to poorly conducted recruitment for the organization.

There is no system of rewarding recruiters for successful/effective recruitment which may have motivated the recruiters for better recruitment practice and inspire for recruitment process development.

ACI does not have long term record keeping system of the previous applicants. If they had a formal and well-organized record keeping system they were able to dig out the system and find some suitable résumés for positions that were advertised earlier.

Although ACI uses different sources to attract job applicants it generally emphasizes on newspaper advertisement which is comparatively a costly source (external source). ACI has contract with www.bdjobs.com for posting job advertisement and according to the contract ACI can place as many ads it wish. But in many cases ACI do not use this source simply because of little coordination effort.

In HR Department of ACI there is little effort for continuous development in recruitment process development. The world is changing and recruitment process as well. For example, ACI is using same strategy and searching method year after simply because they are familiar with the practice and it is working. But there are lots of scopes for development out there in present practice. The grey areas should be identified and developed.

6.2 Evaluation of Selection Process of ACI Ltd Use of right selection process is the bottom line for an organization’s long run success. Earlier in this report, it was pointed out that an organization can achieve competitive advantage by selecting capable and motivated manpower. We know selection process starts with collection of résumés of the applicants and ends up with the final selection. For the best possible match to be achieved, a series of well-thought-out activities need to take place. Realizing the importance of selecting capable and motivated employees, ACI has developed a system of selecting best possible employees for the organization. While analyzing the selection process, the following strengths and weaknesses have been identified. 6.2.1 Strength of ACI’s Selection Process: •

ACI use guidelines on selection of staff which is really helpful.

ACI develops selection plans for each department at beginning of the year which helps the organization in selecting the right employee at right time.

ACI uses the Job Requirement Matrix to find out the necessary KSAOs for a particular position.


Before any selection interview ACI customize the selection checklist and interview rating form or that particular position and send the rating form and checklist to the interviewers. This system has been helping the interviewers to ask right questions and remain focused on interview rating form.

Recently ACI has formed a panel of interviewers and decided to train up them for increasing assessment capability of the interviewers.

6.2.2 Weaknesses of ACI’s Selection Process: •

Most of the interviewers (except from HR Department representative) are from not professional enough in taking interview. They do not review the job description and person specification carefully.

ACI does not have any proper methods of reviewing the selection process. As a result if any selection went wrong it is difficult to take necessary immediate action.

Some KSAOs can be brought to the job by the candidate and others might be acquired on the job (through training and/or job experience). ACI only considers the candidates who currently possess the desired KSAOs. KSAOs mean Knowledge, Skills, Abilities and Other Characteristics. In other words, ACI hunts talents but it can take necessary steps to develop talents. If an organization always hunts talents and do not develop potential internal candidates it creates frustration and disappointment among them. If the internal candidates are developed and promoted it will create a better working environment.

Interviews are the most commonly used selection practice in ACI. At present ACI’s interview is not structured enough. A structured interview is a very standardized, job related method of assessment. If the interview is more structured then the reliability and validity of the interview will be increased. For example, in many cases the interviewers are unable to agree among themselves in their evaluation. This happened because they did not consider same set of criteria for judging the candidate. And this was the consequences of poorly structured interview.

ACI do not conduct medical checkup of the candidates before offering employment letter. After the final selection, candidates only give a medical declaration. But, the reliability of this declaration is very low. In the medical declaration form job seekers rarely disclose any medical information that might affect the organizations decision to offer job or not.

As with recruitment, there is little effort for continuous development in selection process.

There is no proper guideline regarding discretionary or contingent assessment methods.

Over the last few years ACI has expanded and diversified into various businesses and has done huge recruitment over these years. Total manpower (permanent) has increased from 741 in December 2002


to 9872 in December 2011. At the same time net sales and profit before tax has increased has significantly. So we see that with the deployment of additional manpower, ACI has been able to run its business successfully. Surely performance of a business depends on lots of factors and effective deployment of manpower is one of them. And performance of organizations manpower is largely dependent on effective recruitment and selection process.

Exhibit: 6.3: Attrition Rate During the period of 2007 to 2011(31 December, 2011) the attrition rate in ACI was within reasonable range. Attrition rate is highly correlated with performance of recruitment and selection process which also justifies the effectiveness of the process.

Attrition Rate 9.73

10 9

7.68

8 7

5.95

6 5 4 3 2

1.92

1.45

1

2007

At tri tio n Ra te (% )

0

2008

2009 Year

2010

2011


CHAPTER 7 Conclusion and Recommendations


7.1 Conclusion ACI’s recruitment and selection process is more or less structured, efficient and it is capable of achieving its desired objectives. After thorough evaluation, we can say that ACI’s recruitment and selection process is satisfactory. ACI can try to improve its recruitment process in some areas, like, preparation of detailed outline regarding mobility paths and mobility policy, preparation of a recruitment and selection budget, use of cost effective but more flexible communication medium like university placement office, company website, corporate presentation etc. Sometimes there is allegation that the selection process is not fair enough. So ACI should try to bring transparency and fairness in the selection process. ACI should be careful in selecting the assessment methods, because the successfulness of the selection process is mostly dependent on these assessment methods. The interview should be more structured to ensure reliability and validity of the recruitment process. 7.2 Recommendations But there are some grey areas where ACI is not performing up to the mark and can improve. To improve the present recruitment and selection process following recommendations has been proposed.

ACI should use innovative mobility path which means mobility in the organization may be in any direction, including up, down and from side to side.

There is no proper guideline or policy in ACI regarding recruitment budget. The recruitment process is the most expensive component of organizational staffing system. The high costs of recruitment points to the importance of establishing well-developed recruitment budget. So ACI should develop a recruitment budget every year.

There is no proper guideline in ACI regarding selecting recruiters. A guideline regarding this area may be helpful for better recruitment planning.

There is no proper guideline or policy in ACI regarding recruitment budget. ACI should establish detailed recruitment budget by consulting with the departments or divisions.

Recruitment performance may be incorporated in the Balanced Scorecard which is performance appraisal system of the recruiters to motivate the recruiters.

ACI do not have a well-developed record keeping system of the applicants. ACI may work to develop a record keeping or data storage system to keep record of the previous applicants.

ACI can successfully use internet and university placement offices as a better source of recruitment which can reduce HR Department time and is capable of attracting applicants with precise KSAOs with little cost.


ACI should be flexible in the use various assessment methods and employ assessment method that is most appropriate for a particular position.

ACI should continuously try to develop its recruitment and selection process and use interview that is more structured.

Before offering employment letter, ACI should check medical report of the finally selected candidates by the medical institutions which have corporate agreement with ACI.

There should have initiative in the organization for continuous improvement of process.


Appendix


Appendix-A ACI Human Resources Department Organogram

Director, Corporate Affairs

HR Manager Assistant Manager, HR (2)

HR Executive (1)

Sr. HR Executive (4)

HR Officer (3)


Appendix-B

B.1 Goal of HR Department •

Creating a work-environment to foster creativity, innovation and productivity for achieving business excellence through dynamic and dedicated people.

B.2 Objectives of HR Department 1. To be an employer of choice 2. Effective implementation & evaluation of the new performance appraisal system 3. Creating a positive & enthusiastic working environment 4. Establishing the values in the company 5. Creating an environment for learning & growth for developing internal human capital 6. Establishing proactive & customized role of HR & ensuring compliance with HR policies 7. Creating a culture of positive attitude to gain significant competitive advantage 8. Ensuring a safe & healthy working environment

B.3 Actions for Objectives Objectice-1: To be an employer of choice. Actions: 1. Conducting four “Meet the Students” program in a year. 2. Attending job fairs & making presentations to the prospective candidates 3. Communicating industry average salary to the businesses 4. Developing web enabled CV bank with effective search engines 5. Greetings in daily newspapers in different occasions like victory day, “Pohela baishakh” etc 6. Different sponsorships in renowned educational institutions 7. Permanent branding in different high visibility areas 8. Making a database of talents in the industry & maintaining a network with the HR professionals 9. Making HR related brochure to circulate among the students in job fairs Objective-2: Effective implementation & evaluation of the new performance appraisal system


Actions: 1. Survey regarding the reflection of transparency & fairness in this appraisal system 2. Identify and list non performers & blockers 3. Establishing Meaningful linkage of the appraisal system to strategy & career growth 4. Meaningful integration of inflation in the increment system Objective-3: Creating a positive & enthusiastic working environment Actions: 1. Arranging team building programs 2. Ensuring the dignity of the individual by addressing the issues immediately 3. Opening channels for top management & junior management integration (informal events, meetings etc) 4. Enhancing the visibility of our logo, motto, vision & mission 5. Encouraging the bottom-up communication through informal meetings 6. Ensuring a culture where everyone will treat others like family members Objective-4: Establishing the values in the company Actions: 1. Making a film related to values & showing it in different forums 2. Value presentation on a regular basis to different segments of employees 3. Enhancing the visibility of the values in the form of notice board circular, poster, banner etc 4. Putting the values in table accessories 5. Communicating values to field forces & distribution staff Objective-5: Creating an environment for learning & growth for developing internal human capital Actions: 1. Productivity enhancement related articles to be published in Beams & Synergy 2. Having effective career planning program & establishing a system of high potential identification 3. While filling up any vacancy, exploring the internal sources 4. Encouraging the supervisors for coaching & counseling 5. Encouraging the supervisors for having a succession plan Objective-6: Establishing Proactive & customized role of HR & ensuring compliance with HR policies Actions: 1. Quarterly discussion session to different business heads regarding HR related improvement areas 2. Monitoring the compliance with HR policies 3. Conducting regular industry wise compensation survey & different HR related surveys 4. Developing SOP for disability, sexual harassment, employee diversification 5. Setting up KRA’s ( Key, Result, Area) for service departments & evaluate at the end of the year


6. Setting timelines for different HR services (example: for selection the candidate will be selected within 15 days of raising the requisition) 7. Managing the payroll of contractual & casual staff 8. Developing a comprehensive manual for communicating ACI Logo, motto, slogans etc 9. Introducing best in class HR practices 10. Taking initiatives for cost reduction & technology up-gradation 11. Having meaningful manpower planning for next two years Objective-7: Creating a culture of positive attitude Actions: 1. Providing tips to the supervisors on Recognizing & rewarding hard work 2. Encouraging trust, empowerment & delegation through discussion with the supervisors 3. Ensuring a culture of respect & dignity through continuous communication Objective-8: Ensuring a safe & healthy environment Actions: 1. Selecting one Executive, Safety for ACI Centre 2. Conducting bi- annual safety training/drills 3. Providing safety trainings to outsourced employees

Appendix-C Financial Performance of ACI Limited. C.1 Capital Structure The major sources of raising company’s capital are the Equity (share capital), Long term Liabilities and Bank Loan. Here it has mentioned the portion of these three categories in raising capital over last five years from 2005 to 2009.


3500

Tk. in million

3000 2500 Total Equity Long term Liabilities Bank Loan

2000 1500 1000 500

20 09

20 08

20 07

20 06

20 05

0

Year

Graph 2.1: Capital Structure (Source: Annual Report)

The graph shows the main source of raising capital is Equity (Share Capital) from the year 2005 to 2009. Besides Equity, a large number of funds come from the Bank loan. The company has also a small portion of long term liabilities in lifting up the capital. C.2 Sales Contribution by Business Unit As per audited accounts for the year ended 31.12.2009, relative position to total revenue of the products (by Business Unit) are in next page:

Name of the Products

Revenue

Value contribution

Taka (million) Pharmaceuticals Consumer Brands Agribusiness

Total

(%)

2451 1817 Crop Care & Public health 1406

32 25 19

Animal Health Fertilize Seeds Cropex

6 8 5 5 100%

433 580 346 332


Table 2.1: Sales Contribution by Business Unit Source: Annual Report C.3 Net Profit (after Tax)

2,000 1,800

Tk in Million

1,600 1,400 1,200 1,000

Net Profit

800 600 400 200 0 2005

2006

2007

2008

2009

Year

Graph 2.2: Net Profit (Source: Annual Report)

From the graph, the continuous progress of net income of the company over five years has been shown. It demonstrates ACI in a very profitable position in its overall business.


C.4 Competitor Analysis Pharmaceuticals The major competitors of ACI in the pharmaceutical market in the year 2009 are as follows: Company Square Pharmaceuticals Limited Incepta Pharmaceuticals Limited Beximco Pharmaceuticals Limited The Acme Laboratories Limited Eskayef Pharmaceuticals Limited ACI Limited Opsonin Chemical Industries

Share (%) 20.06 7.53 7.09 5.25 4.64 4.52 4.30

Limited Renata Limited Aristopharma Limited Drug International Limited Others Total

4.22 4.18 3.39 39.00 100%

Table 2.2: Competitors of Pharmaceuticals (Source: IMS forth quarter, 2009)

From the table 2.2, it has been shown that the largest market share of Pharmaceuticals business has been captured by Square Pharmaceuticals Limited. In comparing with this company ACI’s position is comparatively lower. However, here to mention that Pharma business of ACI Limited has become the 3rd fastest growth company in 2009 in Bangladesh.

C.5 Consumer Brand The table in next page depicts the major market share (Consumer Brands) of the major players of the market in the year 2009. Brand Name

Share (%)


ACI Aerosol

84.29

Reckitt-Benkeizer Square Toiletries ACI Mosquito Coil

7.83 6.40 28.99

Liquid Antiseptic

Reckitt-Benkeizer Globe Bangladesh Ltd Maladesh International Ltd Savlon Liquid Antiseptic (ACI Limited)

54.63 5.97 4.15 78.95

Antiseptic Cream

Reckitt-Benkeizer Savlon Antiseptic Cream (ACI Limited)

12.10 72.40

Millat Chemicals Ltd

3.40

Aerosol

Mosquito Coil

Table 2.3: Competitors of Consumer Brands (Source: In house source) C.6 Agribusiness The main competitors of ACI Agribusiness (deals with several fields) and their relative market share for the year 2009 are as follows: Animal Health

Graph 2.3: Competitors of Animal Health (Source: In house source)

Here to mention that in Animal Health of ACI Limited has created a strong position (having 8% market share) comparing to its competitors in 2009 in Bangladesh. Fertilizer Major Competitors ACI Limited Padma Agrochemical Limited

Market Share (%) 19.60 8.00


Global agrovet Limited Syngenta Bangladesh

6.00 6.20

Limited Alpha Agro chemical Limited Others Total

5.60 54.60 100%

Table 2.4: Competitors of Fertilizer (Source: In house source) From the information above it becomes clear that ACI Limited has got the upmost position (having 19.6% market share) in fertilizer business comparing to its nearer competitors having below 10% of market share.

Seeds

Graph 2.4: Competitors of Seeds (Source: In house source) Though the market position of ACI Limited is very strong in Fertilizer business, the company still couldn’t create the same in Seeds business (having 6% market share) relative to its competitors. CROPEX Major Competitors Chowdhury

Market Share (%) 20.00

Enterprise M.S. Trading

10.00


Madina enterprise Trade excel Agro ACI Limited Others

10.00 5.00 5.00 50.00

Total

100%

Table 2.5: Competitors of CROPEX (Source: In house source)

ACI Limited. has started this business sector not long and the company is trying to make a good position in this field. Table 2.5 shows the market share of CROPEX of ACI Limited. is now 5% which is relatively lower than its competitors.

C.7 Future Plans Plans of Human Resource Department The vision of Human Resource (HR) department of ACI is creating a work environment to foster creativity, innovation and productivity for achieving business excellence through dynamic and dedicated people. Towards this vision HR plans the following to achieve in coming year: •

To be an employer of choice;

Creating a positive & enthusiastic working environment;

To create an environment for learning and growth for developing internal human capital;

Establishing the value of the company through making a firm related to values & showing it in different forums;

Creating a culture of positive attitude to gain significant competitive advantages.

Other Plans To expand the business the company always takes initiatives by enlarging its existing businesses as well as entering new businesses. ACI Pharmaceuticals is expected to be introducing three new lines of medicine products namely:


Anti Cancer,

Hormone & Steroid and

Amino Acid.

For this new initiative, Company needs funding facilities to allow it to import capital machinery and carry out construction of physical facilities. Out of the total proceeds of BDT 1.00 billion that will be raised through issuance of 20% convertible zero-coupon bond, BDT 597,194,166 (i.e. approx. 60%) is earmarked for the expansion scheme of the company.

Appendix-D Bibliography 1. Annual Report 2004, 2005, 2006, 2007, 2008, 2009 & 2010” ACI Limited. 2. Anthony, William P; Perrewe, Pamela L and Kacmar, K. Michele, “Strategic Human Resource Management,” (2003) The Dryden Press, Harcout Brace Jovanovich Inc. ISBN: 003096543-8. 3. Christopher, Elizabeth M and Smith, Larry E “Managing Recruitment, Training and Development” (2005)Viva Books Private Limited, New Delhi, , ISBN: 81-7649-016-4. 4. Filippo, Edwin B “Personnel Management,” 1984 , McGraw-Hill Inc, Singapore, ISBN: 007-021321-6. 5. http://cpanel.aci-bd.com 6. http://en.wikipedia.org/wiki/Cold_calling 7. http://humanresources.about.com/cs/selectionstaffing/a/hiringchecklist_2.htm 8. http://www.profilesinternational.com/Articles/Hiring_Guide.pdf 9. http://www.profilesinternational.com/SOL_Hiring.aspxhttp://www.profilesinternation om/SOL_Hiring.aspx 10. http://www.selectinternational.com/about_us/SelectAnswers.pdf 11. http://www.selectinternational.com/about_us/SelectAnswers.pdf

al.c


12. http://www.therainmakergroupinc.com/add.asp?ID=65 13. http://www.totaljobsgroup.com/factsfigures/RecruiterSurveySummary.pd 14. www.aci-bd.com 15. www.citehr.com


Recruitment & selection process of human resources in aci limited