PROJECT REPORT ON

RECRUITMENT AND SELECTION

OF

ASAHI INDIA GLASS LIMITED

SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE AWARD

OF THE DEGREE OF MBA

SUBMITTED BY

ABHISHEK KUMAR SHARMA

SUBMITTED TO: SUBMITTED BY:

MR. AMAR JOHRI ABHISHEK KUMAR SHARMA

LECTURER MBA 3RD SEM.

GRAPHIC ERA UNIVERSITY GRAPHIC ERA UNIVERSITY

GRAPHIC ERA UNIVERSITY 566/6 BELL ROAD, CLEMENT TOWN DEHRADUN-248002,

INTRODUCTION

when the theoretical is opted with practical then its process more beneficial and

fruitful.

In the present dynamic scenario, it has become quite challenging trend of

business

As a management student we learn different theories and methods applied

within an

organization. But all these aspects remains theoretical imbibed in the

mind .unless and until due adequate practical training is also undergone. This

opportunity of summer training provide a student with the much required

training in practical aspect of management and organizational functioning with

this motive I have undergone summer training at AIS (Asahi India glass limited)

AIS is one of the largest enterprises in the country with very significant

contribution in its industrial and economic growth

It is located in roorkee, in lush green serene and pollution free environment.

AIS has developed as a “centre of excellence” imparting training in all the

practices and perspectives linking oil industry to the overall development AIS is

fully responsible for training AIS executives in India and Abroad. The company has

been accredited with internationally acclaimed I.S.O -9002,14000,Q.S -9000,T.S-

16949 CERTIFICATE.

ACKNOWLEGEMENT

The accomplishment of my project has been dependent upon the coporation,

coordination and united efforts of several sources of material, knowledge and

time. Hence, this opportunity is taken to that and express my sincere gratitude

to the entire staff and employees of A.I.S for providing me ample opportunity to

learn a lot about the organization and complete my summer training project.

I gratefully acknowledge my deep sence of gratitude to Mr. Dalip Maini

H.O.D H.R. and administration , Mr. SATYAJEET SINGH AND Mr.A.M.P SINHA

MANAGER H.R and administration. I am very thankful for the inspiration, keen

interest and positive guidance given by whole staff of H.R. section of A.I.S who

rushed their services for me. I would also like to say my special thanks to Mr.

MANISH KUMAR H.O.D P.G.D.M department who helped me a lot throught the

completion of this project. I am also thankfull to Mr. ASHU KHANNA my faculty

advisor who guided and helped me a lot in clarifying the problems.

PREFACE

OLD SAYING SUGGEST -----------

“NECESSITY IS THE MOTHER OF INVENTION”

Apart from it the eagerness of manufacture producers and various other

who deeply feel and want to assert their devotion to mankind has valued the

concept of revolution. The modern age of industry is been considered as the age

of technology development and development as a whole.

The AIS is one of the among many existing organization which sinifies its

own importance .It understands the dynamic scenario and more along with it.

The report prepated, bases on the summer training field work, It has been

designed to make detailed study of the organization.

CANDIDATE’S DECLARATION

I SHARMA a bonafide student of P.G.D.M (FULL TIME) programme at the

GRAPHIC ERA UNIVERSITY, DEHRADUN, hereby declare that I have undergone

the summer training at ASAHI INDIA GLASS LTD.under the supervision of

Mr.SATYAJEET SINGH

I also declare that the present project is based on the above summer

training and is my project report has not been submitted to any other university

or institute.

Place: Roorkee Name: SHARMA

Date: Roll no.

AIS Auto Glass - Product Range

AIS Auto Glass is India's largest manufacturer of automotive safety glass. The unit manufactures the full range of automotive safety glass, which includes:

Laminated Windshield Tempered Glass for Side and Backlites

Silver Printed Defogger Glass

Antenna Printed Backlites

Black Ceramic Printed Flush Fitting Glass

Encapsulated Fixed Glass

Solar Control Glass

IR Cut Glass

UV Cut Glass

Reflective (PET) Windshield

Water Repellant Glass

Glass Antenna

Extruded Windshield

Laminated windshieldLaminated windshield comprises two sheets of glass bonded together with one layer of PVB under heat and pressure to form a single piece.

Benefits:

Safety and Security: Laminated glass cracks under impact, but typically remains integral, unlike annealed glass which typically produces long, sharp-edged splinters on breakage.

Blocking UV rays: Prevents deterioration in the appearance of interior trims.

Tempered glass Float glass is heated to a temperature near its softening point and forced to cool rapidly under controlled conditions, creating tempered glass.

Benefits:

Strength: The breaking stress of tempered glass is approximately three to four times that of annealed glass.

Safety: Fully tempered glass is used in many applications because of its safety characteristics. Safety comes from strength and from a fine fracture pattern.

Value-added glassOver the years, the Company has evolved a number of value-added glass products like zone-tempered glass for windshields, silver printed defogger glass, black ceramic printed flush fitting glass and PVC-encapsulated fixed glass

Defogger glassA glass that uses electrical heat to remove fog from the inside and outside.

Benefits:

Safety and security : Defogger glass gives a clear and undistorted vision in all-weather conditions.

Encapsulated glassGlass encapsulation involves the moulding of flexible PVC around the glass perimeter to provide an aesthetic integrated trim for the product.

Benefits:

Integrated trim to glass. Cost reduction through one supplier integration.

Lower number of components to handle at the customer end.

Overall program timing reduction.

Sub-assembled productsAIS manufactures a wide range of automotive safety glass with the option of sub-assembly like :

Laminated windshield with mirror button (for rear view mirror fitment) Garnish assembly

Garnish assembly

Locater pin and velcro

Channel

Rubber moulding

Glass with holder assembly

Glass with carrier plate assembly.

AIS   Float Glass - Service & Support

The Company improved its customer service through the following initiatives:

Cross-functional project teams that catered to the float glass requirement of processors and institutional buyers.

Creation of a Technical Service Cell to facilitate product selection, designing and installation.

A 24-hour helpline to support the distribution network with information on stock position, dispatch status and billing,

among others.

A toll-free telephone line inviting customer response.

A system-linked SMS intimating customers about product dispatch.  

Further increase in the distribution network.

Our Supply Contacts

 Sales &  Marketing Head Office

 C - 203/B, Fortune 2000 Bandra - Kurla Complex Bandra (E), Mumbai - 400 051 Tel : 91 - 22 - 3062 0101 / 07 / 13 Fax: 91 - 22 - 3062 0119

 Plant AIS (Float)

 Plot No. T-7, MIDC Industrial Area, Taloja,  District Raigad - 410 208. Maharashtra   Tel : 91 - 22 - 39256000

 Integrated Glass Plant  Village- Latherdeva Hoon, Mangalaur Jhabrera Road, PO: Jhabrera, Tehsil Roorkee District - Haridwar,  Uttarakhand - 247 667 Tel : 91- 1332 - 224 010 / 14 / 15 / 16 / 19 Fax: 91 - 1332 - 224 114

 Zonal Office        West 

 

 C - 203/B, Fortune 2000 Bandra - Kurla Complex Bandra (E), Mumbai - 400 051 Tel : 91 - 22 - 3062 0101/ 07 / 13 Fax: 91 - 22 - 3062 0119

 Asahi India Glass Ltd. 17, Okhla Industrial Area

         North

        South & East

 Phase IV New Delhi 110020 Tel: (011) 011 40548151/ 52/ 53/ 54

 No. 2-C, 1st Floor, Ruby Regency "Dinrose Estate" New No. 69, Anna Salai, Chennai - 600 002 Tel: 91 – 44 – 28586881 Fax: 91 – 44 – 28542 494 

 Export Dept 

 Contact person: Mr. B.D.Gandhi  (Head Export & Customer Service Dept)

 Tel: +91 22 39256345  Fax: +91 22 27410450 / +91 22 27410449  Mobile : +91 9820084322  Email: behram.gandhi@aisglass.com

 Projects division 

 Asahi India Glass Ltd. – (Institutional Glass Group Division)  17, Okhla Industrial Area  Phase IV  New Delhi 110020

 Tel: 011 41020670/ 71/ 72

AIS   Auto Glass - Market Position

Sole supplier to almost the entire Indian passenger car industry, with a current market share in excess of 80 %.

Significant presence in the after-market with a market share of over 43%.

Exporting auto glass to after-market in Europe and Pakistan.

AIS Float Glass – Overview

AIS began its float glass operations in 2001, when it took over the erstwhile Floatglass India Ltd., with its operations in Taloja, Maharashtra (West India). What was a separate company before the merger is now the Float Glass SBU of AIS.

With the commissioning of its second float glass plant in Roorkee, Uttarakhand (North India), AIS Float Glass has the capacity of producing various forms and value-added varieties of glass such as heat reflective glass, coloured glass & mirror for various architectural and automotive applications. AIS Float Glass commands nearly 34% share in the Indian float glass market. In addition, AIS Float Glass also sells the entire range of AGC products in India, which cater mainly to the realty sector.

AIS Float Glass has the distinct advantage of superior technology from AGC and ready customer in the form of AIS Auto Glass.

 

 MISSION

 

 GUIDING PRINCIPLES

AIS's Vision is to "SEE MORE"

This byline captures AIS's culture:

It describes AIS's products & services which delight its customers by helping them see more in comfort, safety & security.

It expresses AIS's corporate culture of merit and transparency.

It defines the quality of AIS's people to want to see, learn, and do more, in depth and detail To transcend the ordinary.

AIS's Mission is "JIKKO" - Execution for Excellence

With major investments in place, the time is now to reap the benefits by execution for excellence

AIS Auto Glass – Overview

What started as a Company in 1987, is now the Auto Glass SBU of AIS having the distinct identity of being conferred the ‘DEMING APPLICATION PRIZE’. The Deming Prize certifies the outstanding performance improvements achieved through application of Total Quality Management (TQM).

All actions of AIS are driven by the following guiding principles:

Creation of value for Shareholders Customer Satisfaction

Respect for Environment

Use of Facts

Continuous Improvement

Strengthening of Systems

Upgradation of Human Potential through education and training

Social Consciousness

AIS Auto Glass continues to be India’s largest manufacturer of automotive safety glass in India supplying high quality auto glass to almost the entire passenger vehicles industry in India. AIS Auto Glass commands almost 80% share of auto glass requirement of the passenger car industry. In addition, AIS Auto Glass also exports its products in the after-markets of Europe, South East Asian and other neighbouring countries.

Having been awarded the Deming Prize, AIS Auto Glass is committed to take forward its legacy of TQM and to continue to meet the higher aspirations and demands of its esteemed customers. AIS Auto Glass today, is the ‘first choice’ vendor for nearly all the Indian passenger car manufacturers. AIS Auto Glass has 3 plants located in Bawal, Haryana & Roorkee, Uttarakhand (North India) and Chennai, Tamil Nadu (South India) and 3 sub-assembly units / warehouses at Halol, Gujarat & Pune, Maharashtra (West India), Bangalore, Karnataka (South India).

In 1987, AIS Auto Glass started operations with manufacturing toughened glass for automobiles. Today, it produces a complete range of automotive safety glass, engineered to the highest global quality standards.

AIS   Float Glass – Clients

The diversified product portfolio of AIS Float Glass includes float glass in varying sizes, shapes and thickness.

Automotive Safety Glass Manufacturers

Processors

Dealers and Retailers

Architects

Interior Decorators

Builders

Aluminium Fabricators

Carpenters

Furniture Manufacturers

Household Consumers

 

With glass finding applications in an array of arenas, the client base of AIS Float Glass is an ever-expanding one.

Awards and Recognitions

AWARDS

CUSTOMER TYPE OF AWARD PERIOD

Maruti Suzuki India Ltd.

Outstanding Overall Performance Incoming Quality Improvement

Year 2008-09

Mahindra & Mahindra Ltd.

Best Performance in Quality

Year 2008-09

Tata Motors Ltd.

Excellence in QualityYear

2008-09

 Deming Application Prize, 2007

Year 2007-08

Hyundai Motors India Ltd.

“5 Star Award” and Award for “Best Quality Performance”

Year 2007-08

Toyota Kirloskar Motors Ltd.

Awards for “Achieving Targets of Quality” and for“Achieving Targets of Delivery”

Year 2007-08

Maruti Udyog“Overall Excellence Award” and “Trophy for Kaizen”.

Year 2006-07

Hyundai Motors

“Best Contribution Award”.

Year 2006-07

Toyota

“Award for achieving Targets in the category of Cost” and “Award for Best Cost Performance”.

Year 2006-07

Mahindra & Mahindra

“Award for Best Quality Supplier in the Body System Category”

Year 2006-07

Ford India “Q 1 Award”.Year

2006-07

Maruti Overall Commendation Year

2005-06

M & MSupplier Performance Award for Best Performance in Quality

Year 2005-06

ToyotaBest Supplier of The INNOVA Project

Year 2004

MarutiOutstanding Overall Performance

Year 2004

Hyundai Achieving the target for Quality

Year 2004

TML-LUCKNOW

Awarded to AIGL in appreciation of attaining the TS16949 System Certification

-

ToyotaAchieving Target for Quality

Year 2003

ToyotaAchieving Target for Delivery

Year 2003

FORD Q1 Award -

Maruti Overall Performance 2002-03

TUV Certificate

TS 16949Valid

upto May 2005

Toyota In appreciation of Achieving the ISO-14001 certification and their commitment to work

Year 2002

together in Preserving our Environment

ToyotaAppreciation for achieving the ISO-14001 certification

Year 2002

ToyotaAchieving Target for Quality & Delivery

Year 2002

Toyota Best Quality SupplierYear 2002

The Economic Times

The Economic Times awards for Emerging Company

2001-2002

TUV Certificate

ISO 14001Valid upto

May 2005

TUV Certificate

QS 9000Valid upto

May 2005

ToyotaAchieving Target for Delivery

Year 2001

Toyota Best Quality Award Year

2001

FordAchieving Target for Delivery, Quality and Cost

 2000-2001

MarutiExcellent Overall Performance

2000-2001

HyundaiLocalisation Award - Highest localisation value

Year 2001

HSCIL

Supplier Awards- 2000Out standing performance in the category of COST

Year 2000

Board Committees

The Audit Committee of the Board of Directors has been constituted in conformity with the requirements of Section

292 A of the Companies Act, 1956 and Clause 49 of the Listing Agreement.

The composition of the Audit Committee is as follows :

Name of the Director

Position held in the Committee

Dr. Surinder Kapur Chairman

Mr. Gautam Thapar

Member

Mr. Rahul Rana Member

Shareholders' / Investors' Grievance Committee

The Shareholders' / Investors' Grievance Committee of the Company oversees redressal of shareholders' grievances and approves transfer, transmission, split, consolidation of securities, issuance of duplicate share certificates, etc.

The composition of Shareholders' / Investors' Grievance Committee is as follows :

Name of the Director

Position held in the Committee

Mr. B. M. Labroo Chairman

Mr. Sanjay Labroo

Member

Mr. Arvind Singh Member

Remuneration Committee

The Remuneration Committee comprises of three Non Executive Directors and one Executive Director. The

Committee determines the Company's Policy on specific remuneration package for executive directors. The

composition of the Committee is as follows:

Name of the Position held in the

Director Committee

Mr.Gautam Thapar Chairman

Dr. Surinder Kapur Member

Mr. B. M. Labroo Member

Mr. Keizaburo Kojima

Member

Mr. Rahul Rana Member

Board of Directors

The company is managed by the Managing Director & C.E.O and two Executive Directors. The Board of Directors approves and reviews strategy and oversees the actions and results of management to ensure that the long term objectives of maximising profit and enhancing shareholder value are achieved. The Board of Directors is comprised of :

Name of the Designation

Director

Mr. B. M. Labroo Chairman

Mr. Sanjay Labroo Managing Director & C. E. O.

Mr. Keizaburo Kojima

Dy. Managing Director & C. T. O. (Auto)

Mr. Masayuki Kamiya Director

Dr. Surinder Kapur Director

Mr Shinzo Nakanishi Director

Mr. Keiichi Nakagaki Director

Mr. Rahul Rana Director

Mr. Gautam Thapar Director

Mr. Arvind Singh President (Glass)

Chairman's Message

Dear Stakeholders,

2008-09 was a year of two phases. While, the first half of the year witnessed sharp increases in the prices of all commodity classes, with inflation reaching

new highs (11%) and crude oil touching US$145 per barrel, the second half of the year witnessed a financial turmoil in the western world leaving its scars on the Indian economy. What started as a housing crisis and the sub-prime crisis in the US has unexpectedly been contagious to all economies of the world, sucking out liquidity and severely restricting credit. Although Central Banks across the world intervened in an unprecedented manner hitherto, the crisis is yet to abate fully.

The Indian economy has also been negatively impacted with the global mayhem. From an average GDP growth of over 9% during the last three fiscals, India is estimated to grow around 6.5% in 2008-09 and forecast is that it will be around the same in 2009-10 also. Manufacturing growth touched an all time low at 2.4% during the above period. The automobile and the construction sectors of India – major customer sectors of your Company’s products – have been severely affected by the economic slowdown.

Your Company has not been immune to the economic effects of 2008-09. During the first half, when demand was relatively buoyant, AIS faced soaring prices of key inputs and during the second half, when commodity prices stabilised, demand stagnated.

During 2008-09, the consolidated figures of AIS reflected gross sales growth at 17% to reach Rs. 1,38,387 lakhs, while net sales, at Rs. 1,23,831 lakhs, reflected a year-on-year growth of 24%. Earning

before interest, depreciation and taxes (EBIDTA) declined by 27% to Rs. 14,583 lakhs, mainly due to increase in material costs and power & fuel costs compared to the previous year and impact of foreign exchange fluctation. Profit after tax (PAT) went into negative territory with a loss for the year amounting to Rs. 4,270 lakhs (profit after tax of Rs. 807 lakhs in 2007-08). The significant contributors to this were an increase in depreciation of 15% (Rs. 11,706 lakhs in 2008-09; Rs. 10,183 lakhs in 2007-08) and 50% increase in interest costs (Rs. 12,698 lakhs vis-à-vis Rs. 8,492 lakhs). AIS has also been negatively impacted by 30% depreciation of Indian rupee against US Dollar in 2008-09. The Company reported losses of Rs. 3,833 lakhs on account of foreign exchange fluctuation in 2008-09 vis-à-vis foreign exchange gains of Rs. 5,269 lakhs in 2007-08. In spite of the above financials, there are quite a few things of which your Company can be proud of. AIS’s Auto Glass SBU continued its dominance as the premier supplier of auto glass products.

Nearly, every automobile manufacturer in India considers AIS to be a ‘vendor of choice’ not only for its existing models but also for the new models that are developed or brought into India. During the year, your Company gained new customers and deepened its relationship with existing ones. AIS Auto Glass has also been appreciated by its customers for its quality and delivery. Maruti Suzuki India Ltd. awarded AIS for ‘Outstanding Overall Performance’ and Mahindra &

Mahindra Ltd. and Tata Motors Ltd. have separately certified your Company’s quality excellence. Toyota Kirloskar Motors Ltd. has selected your Company as one of the seven Original Equipment (OE) vendors to set up a sub – assembly unit in their proposed supplier park for their upcoming small car project.

Size, scale and presence across the entire value chain – from float glass to value-added glass and overall glass solutions – are some of the fundamentals of AIS that is unmatched by any other player in India. The skills and knowledge base that your Company has developed over the years, especially for engineered glass products, is second to none. And, most importantly, it continues to deliver on the trust and confidence reposed by its customers.

2008-09 was a tough year – no doubts on that. But great companies use tough times to learn and improve themselves and, in this, your Company is no exception. We have, therefore, embarked on a special program of ‘Look Within’. Through the ‘Look Within’ initiative, AIS is focussing on several stiffer internal targets in productivity, inventory management, receivables management, product mix and cash flow management to optimise efficiencies. Thereby, the Company is examining and adopting all possible internal measures that will enhance productivity, save costs, reduce all overheads wherever feasible and maximise working capital utilisation and cash flow. This is not a mere cost-cutting exercise – every

process and activity within the organisation is being re-examined and re-worked with the ultimate objective of getting the best return from every rupee of capital employed.

With the advent of 2009-10 there are some signs of revival in the Indian economy. There is a stable government and the fiscal & monetary policy measures initiated during the past few months are starting to show results. There is hope that the economy and demand will grow stronger, probably by the third quarter of the current financial year. With its inherent advantages and the efficiency measures being brought about through the ‘Look Within’ program, I feel confident that your Company can ‘Look Beyond’ – to a better and brighter future. ‘Look Beyond’ shall ensure that in this temporary-difficult phase, AIS does not lose sight to continue to position itself as “concept-to-completion” player in the entire glass value chain and thereby tread its focussed growth path set before the global mayhem. The ‘Look Within’ concept shall ensure that AIS emerges as a stronger and leaner Company. The focus therefore is: Look Within - Look Beyond.

During the year, Mr, P. L. Safaya, aged 62 years, resigned from the Company as Director & C.O.O. (Float) w.e.f. 17th November, 2008 after a stellar career of 23 years with AIS. On behalf of the Board of Directors of AIS, I thank Mr. Safaya for his valued contribution in the success and growth of AIS.

In conclusion, I would like to express my most heartfelt thanks to all our business partners, customers and bankers for their faith in us. My special thanks to the entire AIS team for all their valued sacrifices and unitedly facing an incredibly difficult year. I believe that, together, we will succeed in our efforts to sail through this rough tide.

B.M. Labroo

Company Profile

AIS is the largest integrated glass company in India manufacturing a wide range of automotive safety glass, float glass, architectural processed glass and glass products spanning across the entire glass value chain. AIS has the distinct advantage of being the dominant supplier in the auto glass industry with back-to-back support from indigenous manufacturing of high quality float glass. From basic raw glass to the highly complex and engineered value added glass, AIS has world-class in-house manufacturing capabilities.

Jointly promoted by Labroo family, Asahi Glass Co. Ltd. (AGC), Japan and Maruti Suzuki India Ltd. (MSIL), AIS has emerged from a single-plant single-customer company in 1987 to a world class

integrated glass company having 11 plants spanning across India.

AIS is a widely-held public limited Company listed on the National Stock Exchange and Bombay Stock Exchange with around 60,000 shareholders and stands committed to maintain highest standards of corporate governance and shareholder accountability.

AIS has 3 Strategic Business Units (SBUs):

GLASS SOLUTIONS

AIS Glass Solutions was set up in 2004 as a subsidiary of AIS, with the objective of growing the group’s presence in architectural glass solutions and value added glass products and services. Over the last 5 years, AIS Glass Solutions has emerged as India’s biggest organised player in the architectural glass segment – manufacturing branded, value-added glass products and offering end users a complete solution for all their glass needs. AIS Glass Solutions supplies the following products:

AIS StronglasTM - impact resistant glass AIS SecurityglasTM - burglar resistant glass

AIS AcousticglasTM - sound resistant glass

Glass products like AIS Shower Enclosure, AIS Tabletops,

AIS Shelves etc.

Solar-low-fe glasses

AIS Glass Solutions has 4 state-of-the-art glass processing facilities located at Bawal, Haryana & Roorkee, Uttarakhand (North India), Taloja, Maharashtra (West India) and Chennai, Tamil Nadu (South India). The unit’s distribution chain spread and initiatives ensure that the right glass and its most appropriate application are made available to the customer in the shortest possible time. To that effect, the sales people of AIS Glass Solutions are not only sellers of products; they also educate, suggest and partner with the customer for maximum value addition.

Milestones

1984-86

Joint venture agreement executed among promoters – the Labroo family, Asahi Glass Co., Ltd., Japan, Indo-Asahi Glass Company Ltd. (its equity stake subsequently transferred to Asahi Glass Co. Ltd., Japan) and Maruti Udyog Ltd.

Incorporated as public limited company.

Commenced construction activities at plant site at Bawal, District Rewari (Haryana).

1986-88

Started commercial production of toughened (tempered) automotive glass with installed capacity of 2,60,000 square metres.

Commenced supplies to sole customer – Maruti Udyog Ltd.

Made initial public offer of equity shares. Issue oversubscribed by 6.89 times.

Recorded a maiden sales turnover of Rs. 11.5 crores in the first year of operation.

1988-90

Completed expansion of toughened glass capacity by 70% ( to 4,42,000 square metres).

Installed first printing line to produce automotive glass with black ceramic and heat-lite printing – the first in India.

Obtained ECE’s ‘E’ mark certification for automotive glass to facilitate its use in vehicles for the export market.

Reported maiden profit and paid first dividend to shareholders.

1991-93

Made first export sales to Europe. Extended customer base with commencement of

supplies to new customers – TELCO, Mahindra & Mahindra and DCM Toyota.

1993-94

Set up plant to produce laminated safety glass with installed capacity to produce 70,000 windshields to meet requirements of Maruti Udyog Ltd. for its cars for the export market.

1994-95

Completed expansion of automotive toughened glass capacity by 67% to produce 7,37,000 square metres to meet growing demand.

1995-96

Completed major capacity expansion for laminated windshields so as to produce 7,50,000 laminated windshields. This was done anticipating an increase in demand of laminated windshields pursuant to changes in the Central Motor Vehicle Rules, making the use of laminated windshields mandatory for passenger vehicles starting 26th March 1996.

Commenced supplies of automotive safety glass to car majors, General Motors and Daewoo Motors.

Became the first Indian glass company to get ISO 9002 certification from TUV Bayern Sachsen, Germany.

1996-97

Sales turnover crossed the Rs.100 crore mark. Installed state-of-the-art tempering furnace to

bridge the gaps in terms of capacity and level of technology. Toughened glass capacity increased to 11,37,000 square metres with technological capabilities to produce complex glass models.

1997-98

Maiden issue of bonus equity shares to shareholders in the ratio of 1:1 with 45% dividend.

Became the first Indian glass company to get QS 9000 certification from TUV Bayern Sachsen, Germany.

1998-99

Further expanded customer base with commencement of supplies to Hyundai, Ford, Toyota and Hindustan Motors (Lancer Project).

1999-00

Sales turnover crossed the Rs. 200 crore mark. Installed new tempering furnace with enhanced

flexibility and ability as a major technology

upgradation measure. With this, toughened glass capacity enhanced to 20,90,000 square metres.

Set up MAW plant as a step towards building capacities for manufacture of encapsulated fixed glass that fixes directly on to the car body.

2000-01

Installed new laminated bending furnace, allowing greater capability for production of complex laminated windshields. Consequently, laminated windshield capacity enhanced to 12,00,000 windshields.

Installed CAD station, coupled with fully automatic coordinate machine to aid in the process of new model development and tooling design, manufacture and calibration.

Started in-house design and manufacture of key process equipment to enhance productivity in a cost-effective manner.

Started print marking on glass to improve brand visibility.

2001-02

Made second bonus issue of equity shares to shareholders in the ratio of 1:1 with 55% dividend.

As a strategic consolidation move, Asahi Glass Co., Ltd., Japan transferred Floatglass India Ltd. (FGI) to

AIS, effectively passing on control of FGI to AIS. After subsequent ‘open offer’, FGI became a subsidiary of AIS with 79.6% equity stake.

Established Environment Management Systems and received ISO14001 certification from TUV Bayern Sachsen, Germany.

Installed CNC drilling machine.

2002-03

Changed name to Asahi India Glass Ltd. to reflect expanded business profile.

Unveiled Corporate Brand ‘AIS’ and started focussed activities towards brand building.

Sub-divided each equity share of Rs. 10/- face value into 10 equity shares of Re. 1/- face value to increase liquidity on the stock exchanges.

Emerged as the largest glass company in India, with the merger of Floatglass India Ltd. becoming effective from 01.04.2002.

Total sales came close to the Rs. 500 crore mark (at Rs. 498 crores).

2003-04

AIS's expansion plan of setting up a third plant finalised. New plant, to be set up at Chennai, to manufacture automotive safety glass.

2004-05

AIS unveils its new umbrella brand AIS & positions itself as an integrated glass player.

Declared 3rd bonus issue of equity shares in the ratio of 1:1.

Declared and paid 250% dividend including interim dividend 100%.

Completed scheduled expansion and commenced commercial production at the Automotive Glass Plant at Chennai.

Enhanced capacity for tempered glass at Automotive Glass Plant in Rewari.

Completed scheduled expansion and commenced commercial production at the Architectural Processing Unit at Taloja (Mumbai).

Commenced setting up of Integrated Glass Plant (IGP) at Roorkee in Uttaranchal.

Set up AIS Glass Solutions Ltd. to capture the value chain in architectural glass.

2005-06

Re-started exports of auto glass in the after-market to Europe and Pakistan;

Completed Phase II and III expansions at the Auto Glass Plant at Chennai, adding capacities of 1-1.2

million tempered back door glass and another 500,000 laminated windshields respectively; and

Set up two architectural processing facilities at the Auto Glass Plants at Chennai and Rewari, significantly increasing architectural glass processing capacity.

2006-07

The second float glass plant at Roorkee was commissioned this year;

AIS rated the “Best Indian Company in Glass and Ceramics Category” by Dun & Bradstreet.

The Corporate Brand “AIS” was chosen as a “Superbrand” during the year.

2007-08

AIS Auto Glass was conferred the prestigious Deming Application Prize 2007 by the Union of Japanese Scientists and Engineers (JUSE).

Our Collaborators

ASAHI GLASS CO., LTD., JAPAN

Asahi Glass Co. Ltd, Japan, was established in 1907. Today, it is one of the leading glass producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in Japan and 20 and above other countries. The group’s operations comprise of flat glass, automotive glass, and have recently diversified into display glass, chemicals, electronics and energy.

AGC has evolved as a top multinational glass manufacturer with a leading share of the global market in most key glass products. AGC group is the largest glass manufacturer of the world with 12% global market share in the flat glass segment and 30% global market share in the automotive glass segment. It has further captured the top share in CRT glass, TFT display glass and PDP glass in the display field as well.

Philosophy(CORPORATE GOVERANCE)

AIS's Philosophy on Code of Corporate Governance

AIS’s philosophy on Corporate Governance envisages achieving highest standards of accountability, transparency and equity in all its spheres and in all its dealings with its stakeholders. AIS is committed to

establish and diligently follow the highest standards of Corporate Governance practices in its pursuit of profitable growth and enhancement of shareholder value.

AIS's Corporate Governance practices are driven by strong board oversight, timely diclosures, transparent accounting policies and high levels of integrity in decision-making.

AIS continues to follow procedures and practices in conformity with the Code of Corporate Governance as stipulated by SEBI.

Quality Policy

To achieve its avowed objectives, AIS’s policy is “to provide stakeholder satisfaction through QCDV”. The

customers, shareholders, suppliers, employees and society are the stakeholders of the company. AIS is committed

to their satisfaction.

AIS must provide VALUE in its activities through world class QUALITY, COST competitiveness and on time

DELIVERY. AIS must achieve QCD through team work, discipline, respect for humanity, respect for environment

and by strict adherence to procedure and systems. AIS must constantly upgrade its QCD targets through, KAIZEN

and KAIRYO.

Deming Application Prize

TS 16949

QS 9000 and ISO 9002 Certification

ISO 14000 Certification

CERTIFICATION

S NO

.

CATEGORY

CERTIFICATION

SCOPE

1QUALITY SYSTEM

ISO 14001 BVQI CERTIFICATION

2 JIS Q 14001 BVQI CERTIFICATION

3 ISO 9002

QUALITY SYSTEM STANDARD FOR PRODUCTION FROM TUV BAYERN, GERMANY IN SEPTEMBER,1995

4 QS 9000 QUALITY SYSTEM STANDARD FOR PRODUCTION FROM TUV BAYERN,

GERMANY IN DECEMBER. 1998.

5 ISO 14000

QUALITY SYSTEM STANDARD FOR ENVIRONMENT FROM BVQI (UKAS) IN MAY 2004.

6 TS 16949

QUALITY SYSTEM STANDARD FOR PRODUCTION FROM TUV BAYERN, GERMANY IN DECEMBER. 2003

7 PRODUCT E'MARK (ECE 43)

PRODUCT STANDARD FOR ALL THICKNESSES OF TEMPERED

AND LAMINATED GLASS AS PER ECE REGULATION.

8

DOT MARK (AMERICAN NATIONAL

STANDARD)

PRODUCT STANDARD FOR ALL THICKNESSES OF TEMPERED AND LAMINATED GLASS AS PER AMERICAN STANDARDS

9 ADR (AUSTRALIAN STANDARD)

AIS IS IDENTIFIED AS A TEST FACILITY BY FEDERAL OFFICE OF ROAD SAFETY, AUSTRALIA THROUGH IDENTIFICATION

NO. S561.

10

ISI (INDIAN STANDARD

IS:2553 PART 2 1992)

PRODUCT STANDARD FOR ALL THICKNESSES OF TEMPERED AND LAMINATED AUTOMOTIV SAFETY GLASS.

11JIS/JASO

(JAPANESE STANDARD)

REFERENCE STANDARD FOR FULL RANGE OF PRODUCT QUALITY.

Recruitment methods

Selection through referral panel

Following are on internal vacancy referral panel.

1. MD & CEO 2. Director : COO Float3. Director & COO Auto4. Director & COO Glass Solution5. COO Windshield Experts6. Executive director7. Executive director Commercial8. Plant Head9. Corporate Head HR & Admn

Transfer from other SBU’s Employee Referral Scheme

Relatives (Father, Mother, Spouse, Brother etc) of existing employee will not be offered employment without the specific approval of MD & CEO.

Employment from competitors Prior permission from MD & COO.

Extension

To rehire or grant extension to grant extension to an employment after superannuation (age of 58 years).Approval from MD and CEO will be taken 6 months before the date of superannuation of the concerned employee.

Time

The recruitment procedure will be completed with 12 weeks of occurrence /approval of vacancy.

Salary negotiation base

Qualification & experience, present drawing salary, salary structure & salary given to other in same grade with the same qualification & experience.

10.Corporate Head HR & Admin

Recruitment policy for worker

Minimum Qualification-ITI

Process --Test paper—Interview

Selection Panel –Respective dept head & HR Person

Recruitment policy for staff & Above

Minimum qualification –Graduate & above depends on the requirements, experience etc.

Process –Test paper--Interview

Recruitment Process

The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the recruitment strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:

Posts to be filled• Number of persons• Duties to be performed• Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees (Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

1.Identify vacancy

2.Prepare job description and person specification

3.Advertising the vacancy

4.Managing the response

5.Short-listing

6.Arrange interviews

7.Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.

S. Labroo Managing Director & C. E. O.

 K. KojimaDy. Managing Director & C. T. O. (Auto)

 A. SinghPresident (Glass)Corporate Head - Planning & I.S.

 K. NarayanDirector & C. O. O. (Glass Solutions)

 S. Agarwal Chief Financial Officer

 S. Ganjoo Chief Operating Officer (Float)

 B. S. Kanwar Chief Operating Officer (Auto)

 V. Khanna Executive Director (Commercial) -

AutoCorporate Head - Supply Chain Management

 R. ShellyJoint Corporate Head - Development

 M. JunejaHead - Legal & Company Secretary

Management Team

SELECTION

Nature and Purpose of Selection

Selection involves a series of steps by which the candidates are screened

for choosing the most suitable persons for vacant posts. The process of selection

leads to employment of persons who possess the ability and qualifications to

perform the jobs which have fallen vacant in an organisation. It divides the

candidates for employment into two categories, namely, those who will be

offered employment and those who will not be. This process should be called

'rejection’ since more candidates may be turned away than employed. That is

why, selection is frequently described as a negative. Process in contrast with the

positive nature of recruitment.3

The basic purpose of the selection process is to choose right type of

candidates to man various positions in the organisation. In order to achieve this

purpose, a well-organised selection procedure involves many steps and at. each

step, unsuitable candidates are rejected. In other words, the aim of selection

process is to reject the unsuitable candidates. But recruitment, on the other

hand, is a positive process. Its aim is to attract applica1!ts for vacant jobs in the

organisation. Various sources of recruitment are used for this purpose.

Thus, recruitment is a positive process because it aims at attracting

applicants for various jobs. But selection is a negative process because it aims at

rejecting applicants who are unsuitable and offering jobs to those who are "

found fully suitable.

Distinctive Features of Recruitment and Selection

The distinction between recruitment and selection is discussed below:

1. Recruitment is the process of searching for prospective employees and stimulating

them to apply for jobs in the organisation. On the other hand, selection means

employment of workers or establishing a contractual relationship t-between the

employer and the worker.

2. Recruitment is a positive process of searching for prospective employees, whereas

selection is a negative process because it involves rejection of unsuitable

candidates.

3. The purpose of recruitment is to create a pool of applicants for jobs in the

organisation. But selection aims at eliminating unsuitable candidates and

ensuring most competent people of! the vacant jobs.

4. Recruitment is a simple process as the candidates are required to fill in the

prescribed forms and deposit the same with the employer. But selection is a

complex process under which each candidate is required to cross a number of

hurdles before getting the offer for a job.

Both recruitment and selection are the two phases of the employment

process. Recruitment being the first phase envisages taking decisions on the choice

of tapping the sources of labour supply. Selection is the second phase which

involves giving various types of tests to the candidates and interviewing them in

order to select the suitable candidates only.

Exhibit 3 : Recruitment Vs. Selection

Basis Recruitment Selection

1. Meaning It is the process of searching candidates It is the process of selection of

for vacant jobs and making them apply right types of candidates and

for the same offering them jobs.

2. Nature It is a positive process. It is a negative process.

3. Aim Its aim is to attract more and more Its aim is to reject unsuitable

candidates for vacant jobs. Candidates and pick up the

most suitable people for the

vacant jobs.

4. Procedure The firm notifies the vacancies through The firm asks the candidates to

Signification of Selection

Selection is a critical process these days because it requires a heavy

investment of money to get right types of people. Induction and training costs

are also high. If the right types of persons are not chosen, it will lead to huge loss

of the employer in terms of time, effort and money. therefore, it is essential to

devise a suitable selection procedure. Each step in the selection procedure

should help in getting more and more -information about the applicants to

facilitate decision-making in the area of selection.

Absenteeism and employee turnover are the. Important problems which are

often faced by many organsiations. The intensity of these problems can be

reduced if in the future all selections are made carefully so that there are ‘round

pegs in the round holes'. Whenever unsuitable employees are appointed, the

efficiency of the organisation will go down. Such employees will shirk work and

absent themselves from the work more often. They may also be compelled to

leave their jobs. If this happens, all the expenses incurred on .the selection and

training of such employees will go waste.

Scientific selection and placement of personnel will go long way towards

building up a stable work-force: It will keep the rates n. absenteeism and labour

turnover low and will increase the morale If the employees. If the employees are

suitable according to the requirements of the jobs, they will show higher

efficiency and productivity. This will also enable the. organisation to achieve its

objectives effectively.

The benefits of selecting right kinds of people for various jobs are as follows:

(i) Proper selection and placement of personnel go a long way towards building up a stable

workforce. It will keep the rates of absenteeism and labour turnover low.

(ii) Competent employees will show higher efficiency and enable the organisation

to achieve its objective effectively.

(iii) The rate of industrial accidents will be considerably low if suitable employees

are placed on various jobs. .

(iv) When people get jobs of their taste and choice, they get higher job

satisfaction. This will build up a contended workforce for the organisation.

(v) The morale of the employees who are satisfied with their jobs is often high.

Scientific SelectionFitting the worker to the job is the first and the most 4nportant step in

promoting individual efficiency in industry. Scientific selection. of employees. is

an important function of the Personnel Department. The object of scientific

selection is .to place on each job a worker who can maintain a given output with

minimum expenditure of energy and who will be best fitted to the job.

The factors to be considered for selecting the right person for the right job

are as under

1. Physical Characteristics. Sound body, limbs, height, weight, sight, etc.

2. Personal Characteristics. Age, sex, marital status, number of children, family

background, etc.

3. Proficiency or Skill and Ability. Qualifications and previous experience. .

4. Competency. Potential of an individual for learning and becoming proficient in

a job. Competency points out capacity to acquire knowledge and skill for success

on the job.

5. Temperament and character. Emotional; moral and social qualities, honesty,

loyalty, etc. A high degree of intellectual competency can never serve as a

substitute for such qualities as honesty and trust worthiness. It is important to

know about individual’s character, his habits of work, his way of reacting in this

or that situation, his driving forces in determining his fitness for the job.

6. Intenst. Without interest, work is colourless and monotonous. With interest,

work seems meaningful and worthwhile to the individual and abilities are

developed as well as accomplishments are realised. If a person has skill, and

competency, but he has no interest in the job, he will be happy in his work.

Role of Personnel Department in Selection .

Personnel department plays an important role in the selection process. However, it should be

kept in mind that decision to add persons on the payroll in a particular department of the

organisation is not made by the personnel department. The requisition for the employees must

originate from the department where it is necessary to hire some persons to man particular jobs

in the near future. For this purpose, the use of a standard requisition form by the

departmental head is preferable as it will make clear the number of vacancies,

types of jobs, pay scale and any special characteristics or skills required. After

receiving the requisition, the personnel department will see the catalogue of job

descriptions and job specifications to obtain a picture of the job and will tap

some source or sources of recruitment according to the circumstances of the

case.

Selection process will start when some applications are received from the

candidates. The personnel department will classify and file the applications and

will screen. out the applicants which are found unsuitable. After this, it may call

the other applicants for initial interview or employment tests.

SELECTION PROCEDURE

The procedure of selection will vary from organisation to organisation and

even from department to department within the same organisation according to

the kinds of the jobs to be filled. The number of steps in the procedure and the

sequence of steps also varies. For instance, some organisations do not hold

preliminary hold preliminary interview, test or screening, whereas in other

organisations such as commercial banks, preliminary tests are given to eliminate

a large numbers of applicants. Similarly, in some cases, medical examination is

given before final selection and in others, medical check up .follows final

selection. Thus, every organisation will design a selection procedure that suits its

requirements. However, the main steps or stages that could be incorporated in

the selection procedure are as under:

1. Preliminary interview. 2. Receiving applications.

3. Screening of applications. 4. Employment test

5. Employment interview. 6. Physical examination.

7. Checking references. 8. Final selection.

Preliminary Interview

Receiving Applications

Screening of Application

Employment Tests

Interview

Reference Checking

Medical Examination

FINAL SELECTION

REJECTION

If

Found

unsuitable

Fig. 2. Steps in Selection Procedure.

As shown in Fig. 2, every candidate for a job has to clear a number of hurdles

before getting selected for the job. If he is not found suitable at any stage, he is

not considered for the further stages. Thus, he will be rejected. For instance, if a

candidate's particulars in the application are not found suitable, he will not be

called for the tests. Similarly, if a candidate fails in the tests, he will not be called

for the interview. The successive stages in the selection process are discussed

below:

Stage 1 : Preliminary Interview

In most of the orgarusations, the selection programme begins with

preliminary interview or screening. The preliminary interview is generally brief

and does the job of eliminating the totally unsuitable candidates. The preliminary

interview offers advantages not only to the organisation, but also to the

applicants. If an applicant is eliminated at this stage, the organisation will be

saved from the expenses of procesding him through the remaining steps of the

selection procedure and the unsuitable candidate will be saved from the trouble

of passing through the long procedure. Preliminary interview may take place,

across the counter in the organisation's employment office. It may consist of a

short exchange of information. with respect to organisation's interest in hiring

and the candidate's enquiry. It may serve primarily to determine whether it is

worthwhile for the applicant to fill into the application, blank. Candidates who

pass this crude screening are usually asked to fill in the application blank available

with the employment office of the organisation.

Stage 2 : Receiving ApplicationsWhenever there is a vacancy, It is advertised or enquiries are made from

the suitable sources, and applications are received from the candidates. Standard

application forms may be drawn up for different jobs and supplied to the

candidates on request. The application form is useful for several reasons. It gives

a preliminary idea the candidate to the interviewer and helps him in formulating

questions to have more information about the candidate. The written

information about age, qualifications, experience, etc. may prove to be. of

greater value to the interviewers. It makes the processing of applications very

easy since there is uniformity of filling the data in the application form.

Stage 3 : Screening of ApplicationsAfter the applications are received, they are screened by a screening

committee and a list. is prepared of the candidates to be interviewed. applicants

may be called for interview on some specific criteria like' sex, desired age group,

experience and qualifications. The number of candidates be called for interview

is normally five to seven times the number of posts the filled up. The screened

applications are then reviewed by the Personnel tanager and interview letters

are. dispatched by registered post or under certificate of post.

Stage 4: Employment TestsIndividuals differ in almost all aspects one can think of. They differ with

respect to physical characteristics, capacity, level of mental ability, their likes and

dislikes and also with respect to personality traits. The pattern of physical, mental

and personal variables gives rise to thousand and one combinations and the

particular pattern makes the individual suitable for several classes of activities,

jobs or fields of work. Matching of individual's physical, mental and

temperamental pattern with the requirements of job or field of. training is a

difficult task. But where this matching takes place, the result is happiness for the

individual and prosperity for the organisation and the society. But instances of

round pegs in square holes and vice versa are not rare. So before deciding upon

the job or jobs suitable for a particular individual, one should know the level of

his ability and the knowledge, the pattern of his interest and aptitudes in detail.

This will require the use of employment tests which are listed below :

(i) Intelligence tests. (ii) Aptitude tests

(iii) Trade or proficiency tests. (iv) Personality tests. (v) Personality

tests.

Employment tests are widely used for judging the applicant's suitability for

the job.They bring out the qualities and weaknesses of individuals which could be

analyzed before offering them jobs. The tests must. be designed properly: If they

are biased, they will not be good indicators of one's knowledge and skills.

Selections based on such tests will be faulty. That is why tests should not be

relied upon fully. .

Stage 5 : Employment Interview

Although application blank and employment tests provide a lot of valuable

information about the candidate, yet they do not provide' the complete

information required of the applicant. Interview may be used to secure more

information about the candidate. The main purposes of an employment

interview are: (a) to find 'out the suitability of the candidate, (b) to seek more

information about the candidate, and (c) t9 give him an accurate picture of the

job with details of terms and conditions and some idea of organisation's policies.

For the selection of right types of people, employment interview is very

important. The communication skill of the candidate can be judged in the

interview. His way of thinking can also be known. Interview is very important

where the candidate has to go through employment tests. The information

contained in the application blank can be checked during the interview.

The factual data of the applicant given in the application form may be checked

and more information may be obtained from the candidate. This occasion is also

utilised for testing the capability and personality of the applicant. Thus, interview

affords an opportunity to develop a clear picture of the candidate. It is customary

to have an interview in several stages especially for senior positions. There may

be a preliminary interview by the head of the department. The final interview is

taken .by the Interview or selection Committee consisting of chairman of the

organisation, head of department, human resource manager and outside

expert$. During the interview, the members of the selection committee appraise

each candidate according to merit. At the end of interview of each candidate, the

chairman

consults the members and after a brief discussion finalizes the grading of the

candidate. After all the candidates have been interviewed, a panel is prepared.

The number of persons in the panel is generally about two to three times the

number of vacancies to be filled up.

A proper physical arrangement for the interview is of great importance. It

enhances the reputation of the organisation in the eyes of the candidates. The

interview should be conducted in a room free from any disturbance noise and

interruption so that interview may be held confidentially and in a quiet

environment. Another important condition for successful interviewing is that the

interviewers should look ready for the meeting and the room should look ready

for a private discussion. Privacy and comfort are recognised as aids to free talk.

People generally speak more freely and frankly when they are at ease. and do not

feel threatened.

Stage 6 : Checking References

A referee is potentially an important source of information about a

candidate's ability and personality if he holds a responsible position in some

organisation or has been the boss or employer of-the candidate. Prior to final

selection, the prospective employer normally makes an investigation on the

references supplied by the applicant and undertakes more or less a thorough

search into the candidate's past employment, education, personal reputation,

financial condition, police record, etc. However, it is often difficult to persuade a

referee to give his opinion frankly. The organisation may persuade him to do so

by giving an assurance that all information provided by him will be treated as

strictly confidential.

Stage 7 : Medical Examination

The pre-employment physical examination or medical test of a candidate is

an important step in the selection procedure. Though in the suggested selection

procedure, medical .test is located near the end, but this sequence need not 'be

rigid. The organisations may place the medical examination relatively early in

process so as to avoid time and expenditure to be incurred on the selection of

medically unfit persons. Some organisations either place the examination

relatively early in the selection procedure or they advise the candidates to get

themselves examined by a medical expert so as to avoid disappointment at the

end. .

The physical examination should disclose the physical characteristics of the

individual that are significant from the standpoint of his efficient performance of

the job he may be assigned or of those jobs to which he may reasonably be

expected to be transferred or promoted. A proper medical examination will

ensure higher standard of health and physical fitness of the employees and will

reduce the rates of accident, labour turnover, and absenteeism.

The advantages of physical examination are: (i)it serves to ascertain the

applicant's physical capability to meet the job requirements (ii) It serves to

protect the organisation against the unwarranted claims under workers'

compensation laws or against law suits for damages and (iii) it helps to prevent

communicable diseases entering the organisation.

Stage 8 : Final Selection and Appointment Letter

After a candidate has cleared all the hurdles in the selection procedure, he is

formally appointed by issuing him an appointment letter or by concluding with

him a service agreement. Generally, the candidates are not appointed on

permanent basis because it considered better to try them for a few months on

the job itself. This is because no procedure of selection is complete in itself to

find out the whole picture of the personality and qualities of a candidate. It is

only by observing a person at work that one can find out I how he does his work

and pehaves with fellow employees and supervisors. If duririg the probation

period, an etrlployee is found unsuitable, the management may transfer him to

some other job to which he may be expected to do justice. But if the organisation

cannot offer him a job which he can do well, the management may either sack

him or give him time and training to improve himself.

Induction : The candidate selected is issued the appointment lettel and is requested to join the organisation within a specified period. The induction function follows this step and is generally considered to be apart of the hiring procedure. Induction is concerned with introducing or orienting a new employee to the organisation and its procedures, rules and regulations.EMPLOYMENT TESTS

The use of tests is, perhaps, the most controversial of all personnel

procedures. Attitudes range from those who place complete reliance on test

scores to those who refuse even to consider their use and instead prefer to place

complete reliance on their own personal judgment of the applicants. In practice,

neither point of view is realistic. No personnel manager ever expects to provide

perfect prediction because even the most comprehensive battery of tests gives

only a small sample of an individual behavior. Similarly interview method of

selection has its own limitations., The interviewer may have some biasness in his

mind and may not be able to take objective decisions. Thus, it is very risky to fully

depend on personal judgment. But tests can effectively supplement other

personnel procedures by improving the. Efficiency with which job performance

can be predicted.4

RECRUITMENT AND SELECTION

Introduction

After having determined the number and kinds of personnel required, the

Human Resource or Personal Manager proceeds with the identification of sources

of recruitment and finding suitable candidates for employment. Both internal and

external sources of manpower are used depending upon the types of personnel

needed.

The selection procedure starts with the receipt of applications for various

jobs from the interested candidates. Totally unsuitable candidates are rejected at

the screening stage. The personnel department administers various kinds of tests to

the candidates to determine if they would be able to do their jobs efficiently. Those

passing this stage are called for employment interview. Candidates found suitable

for employment are required to go through medical examination and reference

checking. The employment is completed when appointment letters are issued to

the candidates clearing all the stages in the selection procedure.

RECRUITMENT

Meaning and Nature of Recruitment

The process of identification of different sources of personnel is known as

recruitment. 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”1 It is a linking activity that brings together those offering jobs

and those seeking jobs.

Dale S. Beach observed, “Recruitment in the development and maintenance

of adequate manpower resources. It involves the creation of a pool of available

labour upon whom the organization can draw when it needs additional employee”2

Recruitment refers to the attempt of getting interested applicants and creating a

pool of prospective employees so that the management can select the right person

for the right job from this pool. Recruitment precedes the selection process, i.e.,

selection of right candidates for various positions in the organization.

Recruitment is a positive as it attracts suitable applicants to apply for

available jobs. The process of recruitment : (i) identifies the different sources of

labour supply, (ii) assesses their validity, (iii) chooses the most suitable source or

sources, and (iv) invites applications from the prospective candidates for the

vacant jobs.

SOURCES OF RECRUITMENT

As shown in Fig. 1, the various sources of recruitment may be grouped into the

following two categories :

Internal sources (recruitment from within the enterprise);and

External sources (recruitment from outside).

RECRUITMENT

(Searching Sources of Labour)

Internal sources

1. Transfer2. Promotion

External Sources

1. Recruitment at factory gate2. Casual callers3. Advertisement4. Employment agencies5. Management consultants6. Educational institutions7. Recommendations8. Labour contractors

Fig. 1 Sources of Recruitment

INTERNAL SOURCES

There are two important internal sources of recruitment, namely, transfers

and promotions which are discussed below :

(i) Transfer. It involves the the shifting of an employee from one job to

another one department to anoter or from one shift to another. Transfer is a good

source of filling vacancies with employees from overstaffed departments or shifts.

At the time of transfer, is should be ensured that the employee to be transferred to

another job is capable of performing it. In fact, transfer does not involve any

drastic change in the responsibilities, pay and status of the employee. Transfers or

job rotations are also used for training of employment in learning different jobs.

(ii) Promotion. It leads to shifting an employee to a higher position, carrying

higher responsibilities, status and pay. Many companies follow the practice of

filling higher jobs by promoting employees who are considered fit for such

positions. Filling vacancies in higher jobs from within the organization has the

benefit of motivating the existing employees. It has a great psychological impact

over the employees because a promotion at the higher level may lead to a chain of

promotions at lower levels in the organization.

Why should Internal Sources be used ?

Filling vacancies in higher jobs from within the organization or through

internal transfers has the following merits:

I. Employees are motivated to improve their performance.

II. Morale of the employee is increased.

III. Industrial pease prevails in the enterprise because of promotional avenues.

IV. Filling of jobs internally is cheaper as compared to getting candidates from

external sources.

V. A promotion at a higher level may lead to a chain of promotions at lower

levels in the organization. This motivates the employees to improve their

performance through learning and practice.

VI. Transfer or job rotation is a tool of training the employee to prepare them

for higher jobs.

VII. Transfer has the benefit of shifting workforce from the surplus departments

to those where there is shortage of staff.

Drawbacks of Internal Sources

Internal sources of recruitment have certain demerits also. These are listed

below.

i. When vacancies are filled through internal promotions, the scope for fresh

talent is reduced.

ii. The employee may becomes lethargic if they are sure of time bound

promotions.

iii. The spirit of competition among the employees may be hampered.

iv. Frequent transfers of employees may reduce the overall productivity of the

organization.

Some organizations completely overlook the value of recruitment from

within. It is not only reasonable but wise also to let the existing employees know

of vacancies by internal advertisement. Now it is being realized that a good source

of supply for higher posts is the personnel already in the organization. The existing

talented employees may be given adequate training to be eligible for promotion to

higher positions in the organization.

EXTERNAL SOURCES

Every enterprise has to tap external sources for various positions. Running

enterprises have to recruit employees from outside for filling the positions whose

specifications cannot be met by the present employees, and for meeting the

additional requirements of manpower. The following external sources of

recruitment are commonly used by the big enterprises :

(i) Direct Recruitment. An important source of recruitment is direct

recruitment by placing a notice on the notice board of the enterprise specifying the

details of the jobs available. It is also known as recruitment at factory gate. The

practice of direct recruitment is generally followed for filling casual vacancies

requiring unskilled workers. Such workers are known as casual or badli workers

and they are paid remuneration on daily-wags basis.

This method of recruitment is very cheap as it does not involve any cost of

advertising vacancies. It is suitable for filling casual vacancies when there is

greater rush of work or when a number of permanent workers are absent.

(ii) Casual Callers or Unsolicited Applications. The organizations which are

regarded as good employers draw a steady stream of unsolicited applications in

their officers. This serves as a valuable sources of manpower. If adequate attention

is paid to maintain pending application folders for various jobs, the personnel

department may find the unsolicited applications useful in filling the vacancies

whenever they arise. The merit of this source of recruitment is that it avoids the

costs of recruiting workforce other sources.

(iii) Media Advertisement. Advertisement in newspapers or trade and professional

journals is generally used when qualified and experienced personnel are not

available from other sources. Most of the senior positions in the advertising is that

more information about the organization, job descriptions and job specifications

can be given in advertisement to allow self-screening by the prospective

candidates. Advertisement gives the management a wider range of candidates from

which to choose. Its disadvantage is that it may bring in a flood of response, and

many times, from quite unsuitable candidates.

(iv) Employment Agencies. Employment exchanges run by the Government are

regarded as a good source of recruitment for unskilled, semi-skilled and skilled

operative jobs. In some cases, compulsory notification of vacancies to the

employment exchange is required by law. Thus, the employment exchanges bring

the job givers in contact with the job seekers. However, in the technical and

professional area, private agencies and professional bodies appear to be doing

most of the work. Employment exchanges and selected private agencies provide a

nation-wide service in attempting to match personnel demand and supply.

(v) Management Consultants or Head Hunters. Management consultancy

firms help the organizations to recruit technical, professional and managerial

personnel. They specialise in middle level and top level executive placements.

They maintain data bank of persons with different qualifications and skills and

even advertise the jobs on behalf their clients to recruit right type of personnel. A

few examples of head hunters are A.F. Ferguson and Co., ABC Consultants,

Godman’s International, Mantec Consultants, etc. These days, professional bodies

of accountants, engineers, etc. also help their members to get suitable placements

in industrial organizations.

(iv) Educational Instructions or Campus Recruitment. Jobs in commerce and

industry have become technical and complex to the point where college degrees or

diplomas are widely required. Consequently, big organizations maintain a close

liaison with the universities, vocational jobs. Recruitment from educational

institutions is a well-established practice of thousands of business and other

organizations. It is also known as campus recruitment. Reputed industrial houses

which require management trainees send their officials to campuses of various

management institutes for picking up talented candidates doing MBA.

Organisations which seek applicants for continuing apprenticeship programme

usually recruit from technical institutions or polytechnics offering vocational

courses.

(vii) Recommendations or Referals. Applicants introduced by friends and

relatives they prove to be a good source of recruitment. In fact, many employers

prefer to take such persons because something about their background is known.

When a present employee or a business friend recommends some one for a job, a

type of preliminary screening is done and the person is placed on a job. Some

organizations have agreements within trade unions to give prefernce to blood

relations of existing or retired employees if their qualifications and experience are

suited to fill the vacant jobs.

(viii) Labour Constractors. Labour constractors are an important source of

recreuitment in some industries in India. Workers are recruited through labour

contractors who are themselves employees of the organization. The disadvantage

of this system is that if the contractor leaves the organization, all the workers

employed through him will also leave. That is why, this source of labour is not

preferred by many business, organizations. Recruitment through labour

constractors has been banned for the public sector units. However, this practice is

still common in case of construction industry.

(ix) Telecasting. The practice of telecasting of vacant posts over T.V.

(Doordarshan and other channels) is gaining important these days. Special

programmes like ‘Job Watch’ ‘Youth Pulse’, ‘Employment News’, etc. over the

T.V. have become quite popular in recruitment for various types of jobs. The

detailed requirements of the job and the qualities required to do it are published

along with the profile of the organization where vacancy exists.

T.V. as a source of recruitment is used less as compared to other sources.

The reasons for this are:

Telecasting is an expensive medium.

The advertisement for the job appears for a very short time and it is not repeated.

The candidates may not be able to understand it fully.

The candidates who don’t watch T.V. miss the information about job vacancies.

If there is a power failure in any area, the candidates living in such area miss the

vacancies telecast, during the period of power failure.

Why should External Sources be used ?

The merits of external sources of recruitment are as under :

(i) Qualified Personnel. By using external sources of recruitment, the

management can make qualified and trained people to apply for vacant jobs in the

organization.

(ii) Wider Choice. When vacancies are advertised widely, a large number of

applicants from outside the organisation apply. The management has a wider

choice while selecting the people for employment.

(iii) Fresh Talent. The insiders may have limited talents. External sources

facilitate infusion of fresh blood with new ideas into the enterprise. This will

improve the overall working of the enterprise.

(iv) Competitive Spirit. If a company can tap external sources, the existing staff

will have to compete with the outsiders. They will work harder to show better

performance.

Demerits of External Sources

The demerits of filling vacancies from external sources are as follows:

(i) Dissatisfaction among Existing Staff. External recruitment may lead to

dissatisfaction and frustration among existing employees. They may feel that their

chances of promotion are reduced.

(ii) Lerigthy Process. Recruitment from outside takes a long time. The business

has to notify the vacancies and wait for applications to initiate the selected

process.

(iii) Costly Process. It is very costly to recruit staff from external sources. A lot

of money has to be spent on advertisement and processing of applications.

(iv) Uncertain Response. The candidates from outside may not be suitable for

the enterprise. These is no guarantee that the enterprise will be able to attract right

kinds of people from external sources.

Exhibit 1 : Comparison of Internal and External Recruitment

Internal Sources External Sources

1. Internal recruitment is a quick process. It involves search of candidates from within the organisation.

2. This process is cheaper. It does not involve any cost of contracting the external sources.

3. The existing staff members are

1. External recruitment is a lengthy process. It involves finding candidates from outside the organisation.

2. The process is costly as vacancies have to be notified in newspapers, etc.

3. The workers feel dissatisfied if

motivated to improve their performance4. Choice of candidates is limited. The

scope of fresh talent is diminished.5. Internal sources help in saving time of

officials responsible for recruitment.

external sourcesareused.4. The businees can hope for talented

candidates from outside. This means infusion of new blood and new ideas into the enterprise.

5. External sources of recruitment are time consuming.

RECENT TRENDS IN RECRUITMENT

Outsourcing

Under this arrangement, a company may draw the required personnel from

the outsourcing firms or agencies on commission basis rather than offering them

employment. This is also caned leasing of human resources. The outsourcing

firms develop their human resource pools by employing people for them and

make available the personnel to various companies (called clients) as per their

needs. The outsourcing firms get payment for their

services to their clients and give salary directly to the personnel. The

personnel deputed by the outsourcing agencies with the clients are not the

employees of- the clients. They continue to be on the payroll of their employees;

i.e., the outsourcing agencies.

Several outsourcing companies or agencies have come up which supply (or

lease) human resources of various categories to their clients. A company in need

of employees of certain categories can approach an outsourcing agency and avail

the services of its human resources on lease basis against payment.

of agreed amount. The human resources so deputed will report back to the

outsourcing agency after their assignment is over. This system facilitates the

organisation to hire security personnel from the security agency, computer

professionals from a computer firm, or accountants from an accountancy firm.

The advantages of getting human resources through the outsourcing

agencies are as follows:

(i) The companies need not plan for human resource much in advance. They

can get human resources on lease basis outsourcing agency.

(ii) The companies are free from industrial relations problems as human

resources taken on lease are not their employees.

(iii) The companies can dispense with this category of employees

immediately after the work is over.

Poaching or Raiding

Poaching means employing a competent and experienced person already

working with another repurted company which might be a rival in the industry. A

company' can attract talent from another firm by offering attractive pay

packages' and other terms and conditions. For instance, several executives of

HMT left to join Titan Watches and several pilots of Indian Airlines left to join

private air taxi operators.1J1ere are several other examples where the firms have

raided the rival firms to procure their key personnel to enhance their competitive

advantage (See Exhibit 2). Whatever may be the.

means used to raid rival firms for potential candidates, it is often seen as an

unethical practice and not openly talked about. In fact, raiding has become a

challenge for the human resource managers of modern organisations because

poaching of a key executive by a rival firm will weaken the competitive strength

of the firm.

Exhibit 2 : Poaching of Executive Talent

Apparel companies poach talent from FMCG &. Auto firms

APPAREL companies have begun talent-hunting from fast moving consumer

goods (FMCG) and automobile industries, signalling their appetite for fresh ideas

for brand promotion and marketing initiatives in .the wake of the impending

abolition of export quotas m 2005. They have already roped some senior and

middle-level execute as from companies such as Britannia Industries/Ford and

Swatch, etc.

Arvind Brands, the subsidiary of Arvind Mills, has recruited around 1Z

executives, mainly from FMCG and automobile sectors in the last four months.

Two weeks ago, Gautam Kale joined the company as head of retail planning from

liquor major Seagram. Alok Dubey, who was with Swatch, has joined the

company recently as national manager (key accounts). The. company has

recruited brand managers from Ford, FCB Ulka, Asian Paints and Hindustan Lever

(HLL). The head of the company’s western zone has recently joined from Ford

Zodiac Clouting, Which Das recruited many executives from the advertising

and FMCG sectors, continues to fill up senior positions with people from those

sectors. Recent recruitment include the appointment of Rajeev P Dutta as the

regional sales manager (west). He joined the company from Johnson & Johnson.

Zodiac roped in Vinay Bajaj from HLL to head its national sales team a few

months ago.

The industry buzz is that S Kumars Nationwide is roping in a top executive

with a FMCG background as chief operating officer for its apparel business. "We

are in the process of recruiting someone to head our apparel business. The FMCG

background comes handy for building brands," said Nitin Kasliwal, MD; S Kumars

Nationwide.

The Wadias have shifted Alok Banerjee from group company Britannia

Industries to head Its domestic textile. Business. While leading apparel

companies such as Madura Garments have been recruiting executives at the

entry level from other sectors, it is yet to make a high-profile appointment in

recent times.

The apparel companies are also looking at professionals who can bring

innovative technical applications to the business For instance, Mumbai-based

Creative Garments has recently recruited technical managers from engineering

majors such as Larsen & Toubro. Apparel companies are also poaching a number

of experienced people from the real estate business for executing their retail

expansion plans. Mumbai based apparel majors like Provbgue are in the process

of recruiting people from real estate companies.

The industry is divided over the efficacy of bringing in executives with FMCG

backgrounds to handle crucial operations.

Source: The Economic Times, New Delhi, 9,2003.

Web site or e-Recruitment Many big organisations use internet as a source of recruitment. They advertise the

job vacancies through the worldwide web (www). The job seekers send their

applications or Curriculam Vitae, i.e., CV, through e-mail using the internet.

Alternatively, job seekers place their CVs in the worldwide web/ internet, which

can be drawn by the prospective employers depending upon their requirements.

The advantages of net recruitment are as follows:

(i) Low cost of recruitment per candidate.

(ii) Reciuction in time for recruitment.

(iii) Recruitment of right type$ of people.

(iv) Efficiency in the process of recruitment.

RECRUITMENT PROCEDURE

Responsibility for Recruitment.

In a small organisation, recruitment is usually done rather informally by the

owner or manager. But in a larger organisation, the human resource department

is usually responsible for developing sources of applicants. Within the human

resource department, there is likely to be an employment office to do the

recruiting and even initial selection of candidates for a job: Big organizations

employing larger number of professional and' managerial employees,' may have

a separate department engaged entirely in recruiting.

At the same time, individual managers and employees may be referring

promising applicants to the human resource department. Similarly, the human

resource department may be requesting recruitment assistance from the managers

as may be the case when campus recruitment IS proposed at the alma mater of one

of the mangers. Still other firms prefer to put together recruiting teams consisting

of human resource specialists and other executives. For example, one or more

engineers may accompany the team of campus recruiters for recruitment of

engineering personnel at technical institutes.

Regardless of who does the recruiting, It is Important for one department to

coordinate the recruitment function in order to develop adequate sources, avoid

duplication, and ensure. That human resource needs for the whole organisation

are met. .

Factors Affecting Recruitment

There are many factors that limit or affect the recruitment policy of an

organisation. The important factors are listed below:

( i) Size of the organisation and the kinds of human resources required.

(ii) Effect of past recruitment efforts.

(iil) Nature of labour market of the region.

(iv) Extent and strength of unionisation Lt1 the region.

(v) Working conditions, wages and other benefits offered by other concerns.

(vi) Social and political environment.

(vii) Legal obligations created by various statutes.

Requisition for Recruitment.

Recruitment is. an on-going process whereby the firm attempts to develop a pool of

qualified applicants for future human resource needs even though specific vacancies do

not currently exist. This practice is also necessary to maintain contacts with

sources of recruitment.

In most cases, recruitment starts when a manager initiates an employee

requisition for a specific vacancy (or anticipated vacancy). The requisition should

contain the basic information describing the position to be filled, the' duties to be

performed, and the experience and qualifications required of the candidate for

the job. The standard format of a personnel requisition form is given below:

PERSONNEL REQUISITION FORM

Name of the Initiating Deptt. Date………..

Date Required Payroll classification Code Pay Grade Location of Work

Cost Centre Job No. Employee Division/Deptt. Section Supervisor Ext.

Will Report To

Name of Person Hired Effective Date Social Security No. Other Information

Contact for interviews Ext. Travel Yes Referred by

Required No

Description of duties:

QUESTIONNAIRE

Q1: Is recruitment a very important and crucial process for ASAHI INDIA GLASS LTD?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

This shows that majority supports that recruitment is a important process for company’s existence.

Q2) : At the time of recruitment is your competitor promotion portrayed authentically ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

This also shows that majority agrees to the question.

3) : Should the process of recruitment be transparent ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

The figure shows that maximum people supports that recruitment process should not be transparent and should not be biased one.

Q4) Is internal recruitment beneficial for the organisation ?

1) Strongly agree 2) Agree

1

2

3

4

5

12

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

It shows that 17% agrees to the question while majority of 28% strongly disagree with the internal recruitment process.

Q5) Is direct recruitment important at higher levels to introduce new blood in the organization ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

33% people strongly strongly agree while only 17% strongly disagrees to introduce new blood at higher level in the organization.

Q6) Before any recruitment process is it important to develop a hiring strategy?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

In this maximum people agrees to develop a hiring strategy before recruitment process.

Q7) Do you think that the recruitment team of AIS is better than that of other organizations ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

1

25% of the recruitment team is in the favour of the question while majority are neutral.

Q8) Should AIS go for modern techniques like online recruitment etc . ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

1

This shows that large chunk to go for modern techniques of recruitment.

Q9) To make the recruitment process more transparent is it beneficial to outsource the recruitment process ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

1

The pie shows neutral aspect of people.

Q10) Does the company’s recruitment process is aligned with the promotion policy ?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

Q11) ‘Right person at right job’ is this concept strictly followed in the company?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

Maximum agrees with this concept of ‘Right person at right job ‘.

Q12) Are you satisfied by the recruitment process of the company?

1) Strongly agree 2) Agree

3) Neutral 4) disagree

5) Strongly Disagree

1

2

3

4

5

12

42% are satisfied with the recruitment process of the company.