CHAPTER I

1) INTRODUCTION

Larsen & Toubro Limited, also known as L&T, is an

Indian multinational conglomerate headquartered in Mumbai, India. The company
has business interests in engineering, construction, manufacturing goods,
information technology and financial services. L&T is India's largest engineering
and construction company] Considered to be the "bellwether of India's engineering
sector", L&T was recognized as the Company of the Year in 2010
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in
India's private sector.

More than seven decades of a strong, customer-focused approach and the

continuous quest for world-class quality have enabled it to attain and sustain
leadership in all its major lines of business.

L&T has an international presence, with a global spread of offices. A thrust on

international business has seen overseas earnings grow significantly. It continues
to grow its global footprint, with offices and manufacturing facilities in multiple
countries.

The company's businesses are supported by a wide marketing and distribution

network, and have established a reputation for strong customer support.

L&T believes that progress must be achieved in harmony with the environment. A
commitment to community welfare and environmental protection are an integral
part of the corporate vision.
In response to changing market dynamics, L&T has gone through a phased
process of redefining its organization model to facilitate growth through greater
levels of empowerment. The new structure is built around multiple businesses that
serve the needs of different industries.

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2) HISTORY

The company was founded in Mumbai in 1938 by two Danish engineers, Henning
Hock Larsen and Soren Kristian Toubro. The company began as a representative
of Danish manufacturers of dairy equipment. However, with the start of the
Second World War in 1939 and the resulting restriction on imports, the partners
started a small workshop to undertake jobs and provide service facilities.

Germany's invasion of Denmark in 1940 stopped supplies of Danish products.

The war-time need to repair and refit ships offered L&T an opportunity, and led
to the formation of a new company, Hilda Ltd., to handle these operations. L&T
also started to repair and fabrication shops signaling the expansion of the
company. The sudden internment of German engineers in India (due to suspicions
caused by the War), who were to put up a soda ash plant for the Tata‘s, gave L&T
a chance to enter the field of installation.

In 1944, ECC was incorporated by the partners; the company at this time was
focused on construction projects (Presently, ECC is the construction division of
L&T). L&T decided to build a portfolio of foreign collaborations. By 1945, the
company represented British manufacturers of equipment used to manufacture
products such as hydrogenated oils, biscuits, soaps and glass. In 1945, the
company signed an agreement with Caterpillar Tractor Company, USA, for
marketing earth moving equipment. At the end of the war, large numbers of war-
surplus Caterpillar equipment were available at attractive prices, but the finances
required were beyond the capacity of the partners. This prompted them to raise
additional equity capital, and on 7 February 1946, Larsen & Toubro Private
Limited was born
Post Independence

Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In
1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai,
Mumbai. That uninhabitable swamp subsequently became the site of its main
manufacturing hub. In December 1950, L&T became a public company with a

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paid-up capital of Rs. 20 lakhs (2 million rupees)(20,00,000.00). The sales
turnover in that year was Rs. 1.09 crore (10.9 million rupees). In 1956, a major
part of the company's Mumbai office moved to ICI House in Ballard Estate,
Mumbai; which would later be purchased by the company and renamed as L&T
House, its present corporate office. The sixties witnessed the formation of many
new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic
Welding Alloys (1962) and TENGL (1963).

3)OPERATING DIVISIONS

L&T has delivered Engineering and Construction (EPIC) services for many
projects in the upstream hydrocarbon sector over the last two decades, in India,
Middle East, Africa, South-East Asia and Australia.L&T has formed a joint
venture with Sapura Crest Petroleum Berhad, Malaysia for providing services to
offshore construction industry worldwide. The joint venture will own and operate
the LTS 3000, a Heavy Lift cum Pipe lay Vessel. L&T has more than 38000
employees in India.

L&T Power has set up an organization focused on coal-based, gas-based and

nuclear power projects.[7] L&T has formed two joint ventures with Mitsubishi
Heavy Industries, Japan to manufacture super critical boilers and steam turbine
generators.

L&T is among the top five fabrication companies in the world.[9] L&T has a
shipyard capable of constructing vessels of up to 150 meters long and
displacement of 20,000 tons[10] at its heavy engineering complex at Hazira. The
shipyard is geared up to take up construction of niche vessels such as specialized
Heavy lift Cargo Vessels, CNG carriers, Chemical tankers, defense & Para
military vessels, submarines and other role specific vessels.

The design wing of L&T ECC is called EDRC (Engineering Design and Research
Centre). EDRC provides consultancy, design and total engineering solutions to
customers. It carries out basic and detailed design for both residential and
commercial projects.

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 CHAPTERII
1) SIGNIFICANCE OF THE STUDY
This project has been taken up to evaluate the effectiveness of SAP recruitment
process of L&T InfoTech and suggest techniques to further enhance the process.
It also aims at analyzing and comparing the existing sources which have a major
role to play in the recruitment process. The time constraint and knowledge
constraint have limited me from exploring the recruitment process to tell whether
the recruitment process has been effective and efficient enough to fulfill the
requirement .
followed in the IT Industry. Overall the project will be able to help the
organization
The scope and objective of the project was to have an in-depth understanding of
the recruitment process followed in L&T InfoTech. The areas covered in the
project include:
 Recruitment and Selection
 Buddy referral System

2) METHODOLOGY FOLLOWED

The basic idea was to start the project by firstly getting an in-depth knowledge of
the recruitment process and identifying the positives and the negatives and later
on analyzing the data to suggest proper changes For the initial 40 days I was on
the job of understanding the entire process by handling the job of Vendor
Management. Later on in the project I started collecting data and then analyzing it
to find what all were the positives and what all were the negatives. The data
collected was from January 2007 to April 2007. The data was collected from the
Resume software, the tracker sheet maintained for the consultants and the record
of the offers made in a particular month.

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3) PROFILE OF L&T

 Corporate Profile
Larsen & Toubro InfoTech Limited (Estd. 1997), a 100 percent subsidiary of the
multifaceted and diversified US$ 2.8 billion Larsen & Toubro Limited, offers
comprehensive, end-to-end software solutions and services. Leveraging the
heritage and domain expertise of the parent company, its services encompass a
broad technology spectrum, catering to leading international companies across the
globe
 A Range of Products & Services
Committed to a focused business approach, L&T InfoTech offers its services
across a wide spectrum of technologies to include:
 Focus Areas
Offshore outsourcing of Application Maintenance as well as Application
Development
ERP-II implementations, upgrades, rollouts, production support, maintenance and
enhancement Integration of systems within and across enterprises
 Industry Solutions
Manufacturing, Banking & Securities, Insurance, Utilities, Communication &
Embedded Systems
 Services
Package Implementation & Support, Application Development & Maintenance,
Enterprise Application Integration, Data Warehousing & Business Intelligence,
Infrastructure Management Services, Strategy Consulting, & Value Added
Services
 Delivering Total Solutions
With its wide-ranging technical expertise and experience, L&T Infotech offers
flexible engagement models for involvement in all or any of the phases; from the
inception stage of identifying the problem space for the customer and
recommending the appropriate solution to the execution and deployment of the
solution. It offers structured methodologies and frameworks for a faster time-to-

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marked awing upon its resource pool of business and technology experts, L&T
InfoTech consultants offer customized solutions for a range of services like
architecting, integrating, developing and maintaining the system. These flexible,
tailored solutions provide onsite or offshore execution or a combination of both.
 Commitment to Quality
With an unswerving commitment to quality, L&T InfoTech‘s well-defined quality
policy for technological and managerial processes has helped to establish the
company's quality credentials through objective assessments:
 Among the first few software entities in India to be awarded the ISO
9001:2000 certification
 CMM-related processes conforming to SEI-CMM Level-5 guidelines
 Assessed at PCMM Level 5, ver-2.0 across Bangalore, Chennai, and Mysore
 Innovating for Excellence
L&T InfoTech has set up a dedicated Center of Excellence (Coe) to adapt cutting
edge technologies for business solutions. Identifying and researching on generic
as well as specific technologies, the Coe team focuses on initiatives aimed at
assimilating and disseminating knowledge from different technology areas to the
various delivery groups within the organization.

 Alliances
The Center of Excellence works towards identifying leading companies in the
varied technological space to create new partnerships and alliances in niche as
well as general areas.
L&T InfoTech has alliances with:
 EAI Solutions: Web Methods, TIBCO, IBM (MQ-Series), Microsoft
(BizTalk)
 Business Intelligence: Informatics, Business Objects, Oracle, Computer
Associates
 CRM: Siebel, Oracle, SAP, People Soft, Computer Associates, SCM, i2, SAP
 Collaborative Product Commerce: Matrix One, SAP/ PLM
 Enterprise Application Systems: SAP, Oracle, People Soft, JD Edwards.

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  Our People - Our Strength
A world-wide network of more than 4000 vibrant, well-focused professionals,
from leading academic institutions, play a critical role in L&T InfoTech‘s
successful implementation of the key business and technological needs of its
customers. Besides 14 international offices and six software development centers
in India, the company has a Proximity Development Center in the US.A Wide
Area Network connects the development centers in India with business offices in
the US, Europe and Japan, through a combination of high-speed satellite and
terrestrial links that can be extended to the client premises at a short notice.

 VISION

Larsen & Toubro InfoTech Limited shall be:

 A globally benchmarked solution provider
 A preferred partner, through creation of high value for customers
 An enriching workplace for employees to excel through innovation &
teamwork committed to delivering high fidelity services and solutions, Time
Tested institutionalized processes, with a firm belief that quality is a cost-
saver

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 CHAPTER III

1)Introduction Human Resource Management

Human resources management is a specialty within the broader field of

management that focuses on managing employees. Human resource management
consists of a framework of activities and practices that support and develop a
motivated workforce while at the same time complying with legislation and
regulations that govern the employer/employee relationship.
"Human resources management refers to the management of people in an
organization."
– Human Resources Management in Canada by Dressler.
"The design of formal systems in an organization to ensure the effective and
efficient use of human talent to accomplish organizational goals."
– Human Resources Management by Mathis and Jackson.
 Human Resources Management related to other management task
Every organization begins with a mission or reason for being that guides the
activities of the organization. Based on the mission, many organizations develop a
strategic plan to guide the work of the organization for a period of two to three
years. On an annual basis, the strategic plan of the organization is expressed in the
annual operating plan and annual budget. However, your organization can have
great strategic and operational plans and all the money it needs, and still fail to
achieve result because of 'people' issues. A good human resources management
framework and practices are also part of the solid foundation for organizational
success.

 Guiding factors of Human Resources Management practices in an

organization:
First and foremost, human resources management practices and activities must
comply with all legislation and regulations that govern the employer/employee

8
relationship. All voluntary/non-profit organizations from the largest organization
to an organization with just one paid employee are responsible for complying with
employment legislation and regulations.
Secondly, good human resources management practices are based on human
resources policies, which establish the parameters for fair and consistent decision
making on people issues and reflect good workplace practices. The HRVS section
on HR Policies and Procedures provides examples of different human resources
policies. The policies that are developed for each organization should reflect the
values and ethics of the organization as well as its culture.

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  The typical Human Resources Management practices and activities
Human resources management is usually organized into broad management
practices or tasks with their associated activities. These include:

Human resources practice Human resources activity

Staffing  Job Analysis
Meeting your staff requirements  Job Design
 Job Descriptions
 Recruitment
 Selection
 Orientation
Training and Development  Training
Developing effective staff  Employee Development
Compensation and Benefits  Job Evaluation
Establishing fair compensation  Compensation Plan
 Benefits
 Retirement Plans
People Management  Work Plans
Building effective  Supervision
employer/employee relationships  Performance
Management
 Recognition
 Conflict resolution
 Discipline
 Termination
 Day-to-Day
HR Administration
Workplace Management  Work-life Balance
Creating a good place to work  Health and Safety
 Diversity

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The human resources management practices adopted by an organization should be
tailored to reflect the size of the organization.

Example: When establishing pay, a good human resources management practice

is to base pay on factors such as level of responsibility and experiences as well as
the principles of fairness, equity, and transparency (staff should know what
factors are used in the decision making process). In a small organization, this may
mean that a very simple look at the skills and experience required to do one job
relative to another will be used to set pay. In a larger more complex organization a
full job evaluation process, which assigns value to various components of each
job, would be used.

 Getting started
Many voluntary/non-profit organizations have no framework for their human
resources management. There is little structure and no consistent approach to the
human resources management decisions that are made. For organizations without
formalized human resources practices the following are usual priorities:
 Ensure that management understands and complies with all legislation related
to employment
 Develop human resources policies that comply with legislation and reflect the
priorities of your organization
 Develop written job descriptions for each job in the organization and
 Establish a reporting structure.

Once these key pieces are in place, you can establish a human resources
framework, which consists of the tasks, and activities that will become part of the
way people are managed in your organization. In doing this, it is important to
remember that all the human resources management practices are interrelated and
begin with a good job description.

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Good human resources management requires a thoughtful, planned approach.
Your investment of time in developing and implementing a supportive human
resources management framework should result in:
 Staff with the knowledge and skills needed to achieve organizational goals;
 Staff who understand what is expected of them and how their work
contributes to the mission of the organization;
 Employees who are committed to the goals of the organization;
 A work environment which brings out the best in your employees;
 Employees who are continuously learning;
 Employees who understand and respect the diverse nature of the organization:
its staff, clients and the communities it works in; and
A work environment that is safe and healthy.

2) HR IN L&T INFOTECH

The HR department in L&T InfoTech is divided into corporate HR and Central

HR. The function of Corporate HR is to frame the policies and guidelines while
the function of Central HR is to look after all HR administration of a particular
center. Thus the central HR implements these policies and guidelines. The
corporate HR is located in Powai (Gate No : 5) while the central HR is located in
various development centers like Mumbai, Chennai, Bangalore etc. At L&T
InfoTech, people are their greatest pride and resource. Their focus lies in bringing
aboard some of the finest professionals in the software industry and providing
them with opportunities that match their drive and ability. With one of the lowest
attrition rates in the industry, L&T InfoTech‘s people-force is inspired,
committed, and thoroughly professional. If you have what it takes to become an
integral part of an organization that's built and driven by people, then you are the
person they are looking for. Simply access the "We Need You" section to post
your resume on their site. It could be your first step towards getting closer to an

12
organization full of self-driven people. And closer to becoming a part of the
collective people-energy that's L&T InfoTech- "A software force that's driving
relationships globally." At L&T InfoTech you are faced with a challenging Work
Environment that is shared by a highly motivated group of over 4000 people who
choose L&T InfoTech because they believe that it's all happening here. They
provide:

3) HR ACTIVITIES IN L&T INFOTECH

 Mentoring
Here in L&T InfoTech they have two types of mentoring taking place at different
levels. Firstly they have a mentor for each module via (ABAP, BASIS, MM, PM,
PP) etc. Each module will have one mentor and some modules that are similar in
functions are clubbed together with one mentor. The role of the mentor is to take
care of his Mentee with regards to any help or guidance required by the Mentee.
The other type of mentoring is done for People Capability Maturity Model
(PCMM). Here each PCMM trainee is attached to a mentor for 2-3 months where
the mentee develops certain skills and this is attached to a contractual agreement.
 Career Planning
The company conducts career workshops. Their policy for career planning is a
well thought out, planned process. Aim is to develop and prepare people for
higher responsibilities. It assists them by identifying various roles they could
undertake and skills they may need to develop in order to do full justice to their
new role within the organization. At L&T InfoTech, they place People first. In
this knowledge industry, they empower their employees with the strength of
knowledge and create a 'climate' that is conducive to learning and personal and
professional growth. They are a People driven organization that helps it's
employees gain a level of freedom that provides security, satisfaction and, most
importantly, a sense of professional fulfillment.
 Work culture (Competency based HR)
L&T InfoTech is one of the sixteen companies in
the world to get the PCMM level 5 certification. For

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an organization, which takes great pride in its rich HR culture, it is not surprising
that many of L&T InfoTech‘s centre‘s in India have achieved the coveted PCMM
level 5 certification. Incidentally, L&T InfoTech is among the 16 companies in
the world that have earned this batch of recognition. The company got the award
thanks to its people processes and practices and a dynamic HR team which
actively spearheads all people-centric activities.
The company currently has a workforce of more than 4,000 professionals. L&T
has always been focused on HR. The organization believes that there are four
major pillars of HR—acquiring talent, enabling talent, grooming talent and
building ‗the culture‘. Competency-based HR is the essence of good HR. ―It is the
dream of all HR people that everything in the organization be linked through the
competency matrix. Competency for every role is well defined (technical as well
as behavioral), even at the time of recruitment and succession planning. Adding
that once people are shown a particular career path, they should be equipped with
the skills to reach that particular position. And enhancing competencies enables
this. Competency development is at PCMM level 3. The HR vision of the
organization is to maximize ‗Sigma motivation‘ and the organization believes that
implementing the PCMM model in letter and spirit will help it achieve that.
L&T InfoTech, a PCMM Level 5 company, has a successful competency-based
HR system. Recruitment, training, job rotation, succession planning and
promotions-all are defined by competency mapping. Competencies are enhanced
through training and job rotation. All people who have gone through job rotation
undergo a transformation and get a broader perspective of the company. For
instance, a person lacking in negotiation skills might be put in the sales or
purchase department for a year to hone his skills in the area.
In no two organizations can competency frameworks be the same, it will vary
over time even in one organization. It is not timeless, it is contextual. "We call it
the DNA of success…it is what makes star performers work in a particular way.
Isolate the DNA and make it available to ten others. When the company started
competency mapping the whole process took eight months for six roles and two
variations. Eventually, 16-18 profiles were worked out. The company uses People

14
Soft for competency mapping. Behavioural competencies do not change every
month. Two appraisals are done subsequently… every project-end for skills, and
annual for behavioural competencies.

4) HR DEPARTMENT HEIRARCHY

15
 CHAPTER IV
1) RECRUITMENT

 INTRODUCTION

According to Edwin B. Flippo, ―Recruitment is the process of searching the

candidates for employment and stimulating them to apply for jobs in the
organization‖.
A few definitions of recruitment are:
 A process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications
are submitted. The result is a pool of applications from which new employees
are selected.
 It is the process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient
working force.
The main objective of the recruitment process is to expedite the selection process.

 Importance of recruitment
 Attract and encourage more and more candidates to apply in the organization.
 Create a talent pool of candidates to enable the selection of best candidates for
the organization.
 Determine present and future requirements of the organization in conjunction
with its personnel planning and job analysis activities.
 Help increase the success rate of selection process by decreasing number of
visibly under qualified or overqualified job applicants

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 2) SOURCES OF RECRUITMENT FOR PROCURING KNOWLEDGE
WORKERS

1. BUDDY REFERRAL SYSTEM

Objective:
 To encourage L&T Info knight‘s to refer suitable candidates for the
specified posts.
 To encourage them to refer the kind of employees they wish to work with.
 To create an environment of healthy competition where each work with
their friends for mutual all-round enhancement.
 To reward L&T Info knight‘s in appreciation of their efforts if their
referred candidate joins L&T InfoTech.
 To motivate all by making them a partner in the strategic activities of the
organization.

The category in which the referred candidate joins Equivalent Reward

L&T INFOTECH Grade Amount
Associate Software Engineer/Software Engineer A-1-0/A-1-1 Rs.15000
Sr. Software Engineer/Project Leader A-1-2/A-1-3 Rs.20000
Project Manager and Above B and Above Rs.25000

These rewards tend to increase with the criticality of the module and goes up to
30,000; 40,000; 50,000 Rs respectively.

L&T Info knight‘s will receive the reward only if:

The candidates referred by him/her are selected for the post advertised.
Both the referee and the referred candidate are on the rolls of L&T InfoTech three
months after the date of joining of the referred candidate, as the reward payment

17
is made after duration of three months. However, as a special case, Rs. 5000/- will
be paid in advance which will be credited to the referee‘s salary account once the
referred person joins. Candidate referred should not have either applied to or been
referred to HR in the past six months directly or through any employee/ agency
etc.Selection of ex-employees who have resigned in the past 18 months will not
attract any monetary reward In case the same resume is received from different
sources, date and time of the receipt of the resume will be considered, and the
person who has sent the resume first will be considered for the reward. The
reward amount is taxable as per the provision of Income Tax act
2. EXTERNAL JOBSITES:
Apart from the L&T InfoTech website, various CV‘s are also downloaded from
external jobsites by the recruiters in the SAP department. The jobsites are one of
the biggest cost components in the entire recruitment process. Recruiters also post
the job opening advertisement on these jobsites and mass mail the advertisement
to the candidates who have posted their resume on these sites. Jobsites include the
following
www.naukri.com
www.monster.com
www.timesjob.com

3. JOB FAIRS:
The concept of a job fair is to bring those interested in finding a job into those
companies who are searching for applicants. L&T InfoTech use Job fairs to attract
talent in their organization. Job fairs are open forum where they can exhibit the
best their companies have to offer so that job seekers can make informed choices.
Generally HR professional from various SBU‘s go to the Job fair to represent
their SBU and collect the resume of their respective domain to process it further.
Then the resumes are given to the recruiters to work upon.
4. CONSULTANTS:
One of the recent practices of sourcing candidates which L&T has adopted is
through Placement Consultants. Consultants usually shortlists candidates and

18
conduct preliminary interview thus saving lot of time for HR department and
enabling them to recruit the best talent available. The Fees which L&T InfoTech
pays to these consultants is approximately 8% to 14% of the CTC given to the
candidates which were referred by them (subject to the candidate working with
the company for a minimum of six months).
Name of the consultant include the following
 ABC consultant
 Manpower consultant
 Proton consultant and many more
5. RESUMER:
This is Company‘s Database, which consists of all candidate s who had applied
earlier for different job vacancies, some of which were selected and few others
who were not selected because their profiles did not match the job profile back
then, or those who were working on different technology, or those who did not
have relevant work experience but this database could prove to be rich resource
for sourcing of candidates for some future vacancies.

6. ADVERTISEMENTS THROUGH NEWSPAPER:

The oldest and most popular method having maximum reach is through
advertisements in the daily newspapers. Ads regarding various job vacancies are
placed in newspapers along with information like Position, Number of vacancies,
skills required, educational qualifications, location and job code with email
address where candidates can apply.

3) THE RECRUITMENT PROCESS

The recruitment process in L&T InfoTech SAP SBU starts with the resource
manager of different modules sending in their requirements to the recruiting
managers also stating as to what the prerequisites are which the candidate must
have. The resource manager then allocates a panel which would be available to
help the recruitment team in evaluating the candidate as in conducting interviews

19
to evaluate the technical skills of the candidates. This involves the co-ordination
of the following 3 teams:
 The Database Management team
 The Recruiters team
 The Offer team

 The Database Management Team

The database management team consists of people who have to check the
following details:
o Candidate‘s Full Name
o DOB
o Current Location
o Contact Details
o Current Employer
o Education
o Work Experience
There are different sources through which a resume can reach the database
management team, the different sources are:
o Consultancy agency
o Direct
o Job posting
o Buddy referral scheme

Incase of CVs that come from consultancy agencies the details of the candidate is
maintained with the help of a tracker sheet. Then once this is done they proceed
further with the first duplicity check and if found then the status is changed to
―Already in database‘‘ after this the second round of duplicity check is done with
the help of ‗Resume‘ which is a software that maintains the record of all the CVs.
The ‗Resume‘ software compares the Email id of the CV with the already existing
CVs in the database now here if a CV is found duplicate then again the status is
changed to Already in database in the tracker sheet and then the CVs that were

20
new would be sent to the respective recruiters for different modules for the further
process of recruitment and would be added to the database as well with a status as
―Not referred ‘‘. A weekly status update is maintained which is sent to the
different consultancy agencies to keep them informed as to what is the status of
the CVs sent by them.

4) The Recruiters
The different status given by the various recruiters could be:
 Screen reject
 Short listed
This is the initial stage of screening where the recruiters on the basis of the
resumes shortlist a candidate if it matches the prerequisites like the experience
criteria etc set by the different resource managers else the CV is screen rejected
The process could be summarized as:
The CV comes in the recruiter‘s inbox. He conducts an HR screening. Here the
recruiter with the help of the CV shortlists the candidate or rejects the candidate.
Once through with this, candidates who get short listed are then scheduled for the
1st round of interviews which is a telephonic discussion round which is taken by
the panel members where in the basic technical aptitude of the candidate as well
as communication skills of the candidate is checked . If a candidate clears the first
round of interview the panel member assigns certain grade (1-10) on the basis of
the discussion, while if a candidate is rejected then the status is sent to the
database management team as ― 1st Interview Reject ‘‘. Once a candidate is
selected he is then scheduled for the second round of interview which is technical
but has to be in person, this has now become mandatory as earlier when second
round could also be a telephonic round if the candidate was from some other city
where there was no L&T office many problems were found like the candidate
faking the interview etc. After clearing the second round of interview an HR
interview is conducted where the candidate and the panel discuss the various
issues relating to pay etc. It also helps in knowing as to whether the candidate is
suitable for the job or not, for ex for the post of sales where in a person has to deal

21
with different clients it is not possible to recruit a person with poor
communication skills with excellent technical knowledge.
 The Offer Team
Once the candidate is selected all the details are then passed on to the Powai
development center where the REX sheet is filled. Here REX stands for Relevant
Experience and Qualification. After the preparation of the REX sheet the offer is
closed. If the candidate has accepted the offer then the candidate is asked to
submit relevant documents on the date of joining and a final verification of the
documents are done by the Central HR on the Date of Joining.

22
 5) RECRUITMENT PROCESS IN L&T INFOTECH

Database

Management Team Recruiters Offer Team

Check and
Screening verify the
Receive the Resume Necessary
Documents

Interview I

Creation of REX
Check for Duplicity
(Relevant
Experience)
Interview II

Send Papers to
Entry in Resumer
Corporate Office
HR Interview

Issue the
Move them in
Document Checklist &
Appointment
Respective Folder
Employment Verification Letter /
(Module wise)
Joining follow-
up

& Formalities

23
 6)PROCESS AFTER SELECTION

Once the candidate is selected the preparation of REX is done which helps in the
generation of the salary card. After the salary card is generated the soft copy is
sent to the candidate as the soft copy of the offer letter.
Candidate may either:
 Accept the offer
 Ask for the offer to be revised
 Reject the offer
In case of offer acceptance the candidate is asked to go for a medical examination
and is asked for a probable date as to when the candidate could join the
organization. After this the hard copy of the offer letter is prepared and
dispatched.
This is followed by the candidate‘s joining formalities like PS Number
generation, induction etc.
When a candidate asks for the offer to be revised, it is done only incase of
deserving candidates and this can be done for maximum two times. After the offer
has been revised the new offer is sent to the candidate and if he accepts the offer
then the same process is followed as in case of acceptance while if the candidate
rejects the offer then it is taken as an offer decline case and the entire folder of the
candidate is sent to the concerned person who is responsible for maintaining the
data regarding offer rejection.
The candidates rejecting the offer right away are considered as offer decline case
and the folder is sent to the concerned person immediately so that the database
could be updated.

24
PROCESS AFTER SELECTION

25
  EFFECTIVENESS OF CONSULTANTS V/S OTHER SOURCES OF
RECRUITMENT

The analysis is done department wise and it is done on the basis of data for the
last four months i.e. from January 2007 to April 2007. The analysis is focused on:
 Total number of CVs received
 CVs received from the consultancies and the other sources
 Short listed CVs from consultancies
 Number of selected candidates v/s Number of CVs Short listed
(Consultancies) / Hit Ratio

TOTAL NUMBER OF CVs RECEIVED:

TABLE – 1

MONTH STATUS

No. of Duplicate CVs Screen Rejected CVs Total CVs Received

JANUARY 428 863 1568
FEBRUARY 378 548 1006
MARCH 772 418 2563
APRIL 1331 404 3014
TOTAL 2909 2233 8151

There are different sources through which CVs come for screening, some of them
are:
Consultancies
 Direct CVs sent by the Candidates

26
  CV‘s from the Job Sites
 Buddy referral scheme

Due to unavailability of data the CVs that come from consultancies will be
clubbed in one while the CVs other than that would be considered as ‗CVs from
Other Sources‘. The total number of CVs received were sufficient in terms of
numbers i.e. quantity but were not that good in terms of quality.
The consultancies send in CVs on a per day basis and few consultancies send in
CVs in huge numbers but the striking fact here is that the huge number is not
helping the cause since most of the CVs sent come out to be Duplicate CVs which
were already in the database.
The very fact that consultancies are paid a handsome amount for their services is
not a guarantee of them doing a good job. Many a times it is found that even after
telling them what the basic minimum criteria for selection is, the consultancies
forward the CVs of candidates who do not fulfill the basic minimum criteria.
The consultancies on a weekly basis are informed about what are the requirements
of the organization as in which modules have an urgent requirement and what are
the basic minimum qualification in terms of education and work experience the
organization is looking for, still a lot of CVs that are received are not meeting the
criteria. Majority of the CVs received come out to be duplicates which are
updated as ‗Already in Database‘ and most of the remaining CVs come out to be
‗Screen Reject‘ because they do not fulfill the minimum requirement. The data
submitted proves this.

27
 TABLE – 2
TOTAL NUMBER OF FAKED CVs RECEIVED:

Ratio:

MONTH STATUS

Fake Candidates Total CVs Received

JANUARY 7 1568
FEBRUARY 3 1006
MARCH 8 2563
APRIL 12 3014
TOTAL 30 8151

Ratio (Fake candidates:CVs Received) 1:270

One of the striking facts that can be seen is that consultancies are not taking the
burden of screening the CVs at least once because of which ―Fake CVs‖ are also
received this could be seen in the data submitted along with the report. At times
the identification of the fake CVs is at a very late stage like in the final round of
interview which leads to a wastage of money as well as time behind interviewing
the fake candidate. The idea behind employing consultancies for the job, was to
save time by getting in a huge number of quality CVs which would not be
needing any initial screening, but this is not what is really happening, the actual
scenario is that the CVs still require a lot of time for its initial screening.

28
  CVs RECEIVED FROM THE CONSULTANCIES AND THE
OTHER SOURCES
TABLE-3

MONTH
CVs Received from other Total CVs
CVs from Consultancies sources Received
JANUARY 1141 427 1568
FEBRUAR
Y 745 261 1006
MARCH 1859 704 2563
APRIL 2580 434 3014
Total 6325 1826 8151

Ratio:
Ratio (Consultant: Total Received) 1:2(1.3)

Ratio (Other Sources: Total Received) 1:5(4.5)

The organization in the past five months has relied mostly on the CVs from
consultancies. The only reason was the belief of the organization that it would
help the organization to save time and the employees who were earlier employed
for the initial screening of the CV could utilize their time doing something that
could add value to the organization. The other reason was that the organization
believed that the CVs would be better in terms of quality. Due to this the other
sources like the CVs that come directly from candidates, CVs from Job Sites and
the CVs that come through Buddy referral scheme were not given much
importance in the past four months

29
  CVs RECEIVED V/S CVs SELECTED

TABLE – 4

MONTH STATUS
Selected Candidates(other
CVs Received from other sources
sources) Total CVs Received

JAN 427 68 1568

FEB 261 37 1006
MAR 704 46 2563
APR 434 28 3014
Total 1826 179 8151

MONTH STATUS
Selected
CVs Received from Consultancies Candidates(consultancies) Total CVs Received
JAN 1141 1 1568
FEB 745 30 1006
MAR 1859 12 2563
APR 2580 25 3014
Total 6325 68 8151

The only time that the CVs from other sources are screened is when the
organization has a requirement that can not be met only with the help of CVs
from Consultancies.

30
 The situation demands that the consultancies work with more responsibility and
pay attention to the quality aspect needed by the organization. They should see to
it that they not only send in CVs in great numbers but also CVs should be of good
quality which could be short listed at least for the first round of interviews.
The numbers above in the table give a clear indication that the consultants are not
keeping up with the expected level of performance as compared to the other
sources like the Job Sites, Walk Ins etc which have very high conversion rates.
The ―Buddy Referral Scheme‖ is in its very nascent stage and needs to be
encouraged because most of the times it has been seen that a good performer
brings with him a good performer.

 SHORTLISTED CVs FROM CONSULTANCIES:

TABLE-5

MONTH
Short listed CVs CVs Received from Consultancies Total CVs Received
JANUAR
Y 265 1141 1568
FEBRUA
RY 187 745 1006
MARCH 574 1859 2563
APRIL 634 2580 3014
Total 1660 6325 8151

The CVs that are received from the consultancies are first of all checked for
duplicity and the CVs that were already in the database are updated as ―Already in
the Database‖, after this the fresh CVs Are sent for screening to the respective
recruiters for the different modules.

31
 The CVs found satisfactory which fulfill the minimum criteria get shortlisted and
are then scheduled for interviews. The data above shows that the maximum
numbers of CV‘s get sorted out in the initial stage of screening because of which
the number of candidates that are interviewed are less and thus the number goes
on decreasing after each stage, this needs a definite attention immediately.

 HIT RATIO
TABLE-6

MONTH

Selected Shortlisted CVs Received from Total CVs

Candidates(consultancies) CVs Consultancies Received

JANUARY 1 265 1141 1568

FEBRUARY 30 187 745 1006
MARCH 12 574 1859 2563
APRIL 25 634 2580 3014
Total 68 1660 6325 8151

Ratio
consultancies

Ratio (Selected: Shortlisted) 1:25

The total number of candidates that come through consultancies is a good number
but the hit ratio is an area of concern which in turn leads to a huge wastage of
resource which is invested in following up the recruitment process. The selected
candidate referred here includes both the candidates who join the organization and
the candidates who decline the offer. The idea behind considering the joined as
well as the decline cases was to focus on the candidates who really are good and
do get through the entire recruitment process.

32
7) The Problem
In today‘s organizations recruitment has become one of the major HR functions.
But the question generally raised in any organization is that ―is the recruitment
process being followed in the organization the best in the industry which is
helping the organization in meeting the requirement in time?‖ forces the HR
department to derive techniques to prove to the organization that the process
followed in the organization is the best in the industry and the various sources are
helping them in meeting the requirement. For this purpose the HR department has
to evaluate the recruitment process on a whole at all the stages and finally needs
to compare the various sources.
 Genesis: SAP applications, built around their latest R/3 system, provide
the capability to manage financial, asset, and cost accounting, production
operations and materials, personnel, plants, and archived documents. The
R/3 system runs on a number of platforms including Windows 2000 and
uses the client/server model. L&T InfoTech has a very stringent
requirement and the criteria set for the candidates is to assure that the
organization gets in employees who are the best in the industry. Thus the
recruitment process plays a major role in helping the organization gaining
that extra edge in this competitive world where human resource is the only
differentiating factor.
 Rationale: L&T InfoTech is a rapidly growing organization. The demand
for its products and services is increasing at a very high rate. With this
increase the number of employees needed to keep the momentum going is
also increasing. So to cope up with the rapid growth in business the
recruitment process has to be the best in the industry and if it is not then it
has to rectified according to the changing needs. The recruitment at L&T
InfoTech SAP SBU is done for two categories
The process followed is nearly the same except for the criteria set for both is
different and the sources to meet both the requirements is also different. For
example for FTR the work experience is not necessary and also FTR recruitment
is done through consultancies while the laterals is entirely dependent on the

33
consultancies. So the project would concentrate on comparing the various sources
through which recruitment is done.
 Benefits: Evaluating the recruitment process will :
 give a detailed feedback about the recruitment process as a whole
 test the various sources which help in the recruitment process
 help in identifying the areas which need immediate attention
 Problem Formulation
As mentioned above this project aims at evaluating the effectiveness of the SAP
recruitment process. This project will give a descriptive comparison between the
various sources of recruitment.
8) CORPORATE STRUCTURE

In January 2011, Mr. A.M. Naik announced that the company will be restructured
into nine virtual companies] Each will be called an independent company, and
will have a CEO, CFO and HR head, its own profit and loss account, and a board
of directors with at least three independent directors. Each board will not have any
legal or statutory standing, but will merely advise management.

The nine virtual companies will operate in different segments,]The nine sectors
for which companies are formed are:]

1. Building and Factories

2. Civil Infrastructure
3. Mechanical-Metal Handling and Supply of Equipment for steel
industry
4. Electric Power transmission and distribution
5. Hydrocarbon and Chemicals
6. Heavy Engineering Catering to defense and Aerospace
7. Electrical Equipment and Automation Products
8. Mechanical and Industrial Products
9. Power Equipment and building Power Plants

34
35
 CHAPTER V

1) RECOMMENDATIONS
The recruitment team needs to pool in a lot of candidates, as the hit ratio in the
company is very low. Hence the company must seek ways to increase the access
for the job sites which would help the recruiters to have simultaneous login.
Another way of doing this could be, to be in constant touch with the consultancies
by meeting them on a regular basis to keep them updated about the requirements.
Then it is the job of the consultancies and recruiters to screen the CV‘s such that
there should be a 50% chance of the candidate making it.
The organization could also concentrate on working with the top 10 consultancies
on a priority basis which have been performing well for the last four months. This
could help in encouraging the consultancies to work even harder and perform
even better which would help in raising the Hit Ratio considerably.
The analysis part clearly shows that the consultancies have a very poor hit ratio
and so a lot of attention needs to be paid on this source, on which the organization
heavily depends on. The maximum number of CV‘s come from consultancies
while the number of candidates that get selected is a matter of concern. So may be
along with the consultancies its time to pay more attention towards the other
sources like the job sites to get in CVs more in number and better in quality, for
this the organization may hire more employees especially to do the job. This
would help the organization in meeting the requirements with a slight increase in
the expense
The ―Buddy Referral Scheme‖ is in its very nascent stage and needs to be
encouraged because most of the times it has been seen that a good performer
brings with him a good performer.
One more change that could be brought is that after the second round of technical
interview the REX should be prepared and given to the HR person while he/she
interviews the candidate so that the HR person can try and negotiate the salary of

36
the candidate then and there itself, thus reducing the recruitment lead time. This
not only reduces the lead time but also sees to it that the candidate is tied to the
organization as there is a good possibility that the candidate might decline the
offer if he gets a better offer from another company.
One of the major problems that could be seen was the unavailability of the panel
to conduct the interviews. Most of the times it happens that the panel which is
allocated by the mentor is not available and so its not possible for the recruiters to
schedule the interviews which adds on to the pressure. For this proper
coordination between the recruitment team and the mentors is needed, so that
whenever the interviews are scheduled the panel stays free to conduct the
interviews. This would help in reducing the time needed for the entire process.

The organization needs to take care of the decline cases. The decline cases are too
high which in turn leads to a significant amount of wastage of resources like time,
money etc. The management needs to take some initiatives as to how these
decline cases could be reduced. For this the motivation in the employees of the
organization would be quite a help. So proper training and grievance handling
programs must be held in small intervals.

Finally the management needs to understand that the SAP market in India is in its
nascent stage and therefore the pool of candidates is not that huge and the
candidates pursuing SAP as a career are less in numbers. So it would be a great
idea to evaluate the initial criteria as per the requirement. For example the
qualification needed must be adjustable and the work experience needed by the
candidate to fulfill the initial criteria should also be reduced. This would help in
getting in more candidates who because of the tough criteria set by the
organization are unable to get short listed.

37
2) CONCLUSION

The Human Resources Management (HRM) function includes a variety of

activities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel and management
practices conform to various regulations.
In Software industry more than in any other, HR has a very strong champion's
role to play. HR has to lead from the front. This will mean that all important
employee touch points need to be owned and managed by HR. HR has to serve as
the watch dog in ensuring that the demands placed on employees are balanced and
fair and reasonable and do not compromise their interests. If HR does not play
this role or is not seen as playing this role, employees may be forced to look
elsewhere.
The main objective behind my study was to find whether the Recruitment process
of Larsen & Toubro Infotech is giving the desired results and what the possible
constraints are. The study reveals some serious constraints some of which the
management is already looking into. The management is finding ways and means
to make the employees feel proud of themselves and the organisation.
L&T Infotech imparts one of the best training for SAP modules as compared to
other companies in the industry. Since it incurs heavy expenses in training there
is an additional pressure to retain its employees. The attrition rate in L&T
Infotech is about 15-20%. They impart continuous knowledge by conducting
various training programs. Special IT training is given to Non IT people so that
they are aware of the basics, which would help them, do their work in the best
way.
The company is average in terms of offering compensation. This is one reason
why the number of offer decline is high. The company follows a compensation
system where in they have a Fixed and a Variable component, where in the Fixed
component as the name suggests is fixed according to his Grade and Designation

38
 and his Variable component is given a range wherein it could not exceed a given
amount. This is also based on the grade, designation and his performance
appraisal review.
The work culture in L&T InfoTech is something to be proud of. The company
practices a culture where in each of the employees refer to other with their first
name. The superiors are also called by their first name. This helps the employees
remove that fear of talking to their seniors. The best thing noticed during my
training period was that the vision and mission of the company is passed on to the
entire L&T Group of companies either through video conferencing or directly the
CMD coming down and personally addressing the employees.

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a bcdf
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