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Recruitment and Selection of Work
Associates for the „Easyday‟ Supermarket
and Hypermarket Stores At
Bharti-Retail
A Summer Internship Project Report
Submitted in the partial fulfillment of the requirement for the award of the
Master of Human Resource and Organizational Development (MHROD)
Batch: 2009-2011
Submitted By:
Rohit Kumar Singh, R-982/04
MHROD Semester III
Under the Guidance of:
Mr. Dev Mani Pandey
Regional Manager, People, Bharti-Retail
Submitted to
Department of Commerce
Faculty of Commerce and Business
Delhi School of Economics
University of Delhi, Delhi – 110007
Bharti-Retail (Summer Internship Project Report)
Rohit Kumar Singh, MHROD 2011 Page 2
CERTIFICATE
CANDIDATE‟S DECLARATION
This is to certify that the report titled “Recruitment and Selection of Work Associates for
Supermarket and Hypermarket stores of Bharti-Retail” which is submitted by me in
partial fulfillment of the requirement for the award of “Master of Human Resource and
Organisational Development” from “Department of Commerce, Faculty of Commerce
and Business, Delhi School of Economics, University of Delhi, Delhi” comprises only
my original work and has not been submitted in part or full for any other degree or
diploma of any university.
Rohit Kumar Singh
R-982/04, MHROD
Semester III
Bharti-Retail (Summer Internship Project Report)
Rohit Kumar Singh, MHROD 2011 Page 3
CERTIFICATE
Bharti-Retail (Summer Internship Project Report)
Rohit Kumar Singh, MHROD 2011 Page 4
ACKNOWLEDGEMENT
I wish to express my gratitude to Bharti Academy of Retail team members,
especially Ms. Sailaja, Mr. Dev Mani Pandey and Mr. Deepak Mittal for their prompt
and sincere guidance. They stood by me all the way and provided me additional insight
and ideas with painstaking attention to details. Their comments and criticism have been
valuable. I would also like to thank other team members, with whom I got a chance to
work during my summer internship project.
I would also like to express my special gratitude to Mr. Dheeraj Deshmukhh, my friend
and colleague at Bharti Academy of Retail for helping me during internship, whenever I
needed some help from him.
Last but not the least, I would like to extend the gratitude and appreciation towards all my
friends and family members whose help and support has been instrumental in completion
of this project report.
Rohit Kumar Singh
MHROD, Semester III
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Rohit Kumar Singh, MHROD 2011 Page 5
CONTENTS
TITLE PAGE .................................................................................................................... 1
CANDIDATE‟S DECLARATION .................................................................................. 2
CERTIFICATE ................................................................................................................. 3
ACKNOWLEDGEMENT ................................................................................................ 4
CONTENTS....................................................................................................................... 5
LIST OF TABLES AND FIGURES ................................................................................ 8
LIST OF FIGURES ...................................................................................................... 8
LIST OF TABLES ........................................................................................................ 8
1. LITERATURE REVIEW: RECRUITMENT AND SELECTION .......................... 9
1.1 RECRUITMENT .................................................................................................... 9
1.1.1 Introduction ........................................................................................................ 9
1.1.2 Meaning of Recruitment ..................................................................................... 9
1.1.3 Purpose and Importance of Recruitment .......................................................... 10
1.1.4 Steps in Recruitment ......................................................................................... 11
1.1.4 (a) Identification of Job Vacancy ..................................................................... 11
1.1.4 (b) Job Description and Person Specification .................................................. 12
1.1.4 (c) Advertise the Vacancy ................................................................................. 12
1.1.4 (d) Managing Response .................................................................................... 12
1.1.4 (e) Short listing of Applicants ........................................................................... 13
1.1.4 (f) Arrange the Interviews ................................................................................. 13
1.1.5 Sources of Recruitment ..................................................................................... 13
1.1.5 (a) Internal Sources of Recruitment ................................................................. 13
1.1.5 (b) External Sources of Recruitment ................................................................ 14
1.1.6 Factors Affecting Recruitment .......................................................................... 16
1.1.6 (a ) Internal Factors ......................................................................................... 17
1.1.6 (b) External Factors ......................................................................................... 17
1.1.7 Recent trends in recruitment ............................................................................. 18
1.1.8 Recruitment Strategies ...................................................................................... 20
1.2. SELECTION ............................................................................................................ 22
1.2.1 Preliminary Interview ....................................................................................... 22
1.2.2 Selection Test .................................................................................................... 22
1.2.3 Interview ........................................................................................................... 25
1.2.4 Reference Test ................................................................................................... 27
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1.2.5 Selection decision ............................................................................................. 28
1.2.6 Physical Examination ....................................................................................... 28
1.2.7 Job Offer ........................................................................................................... 29
1.2.8 Contract Of Employment .................................................................................. 29
1.2.9 Review of Hiring Process ................................................................................. 31
1.2.10 Types of Job Seekers ....................................................................................... 31
2. BHARTI GROUP OVERVIEW ................................................................................ 33
2.1 VISION & VALUE ............................................................................................... 34
2.1.1 Vision: ............................................................................................................... 34
2.1.2 Values: .............................................................................................................. 34
2.2 BHARTI GROUP COMPANIES .......................................................................... 35
2.2.2 Bharti Infratel Limited ...................................................................................... 35
2.2.3 Bharti Realty Limited ........................................................................................ 35
2.2.4 Beetel Teletech Limited .................................................................................... 36
2.2.5 Comviva ............................................................................................................ 36
2.2.6 Jersey Airtel and Guernsey Airtel .................................................................... 37
2.2.7 Centum Learning Limited ................................................................................. 37
2.2.8 Bharti Walmart ................................................................................................. 37
2.2.10 Bharti AXA Life Insurance ............................................................................. 38
2.2.11 Bharti AXA General Insurance....................................................................... 38
2.2.12 Bharti AXA Investment Managers Pvt. Ltd. ................................................... 39
2.2.13 Indus Towers................................................................................................... 39
2.2.14 Field Fresh Food Pvt. Ltd. ............................................................................. 39
3. THE GLOBAL RETAIL SCENARIO ..................................................................... 40
3.1 RETAIL SECTOR IN INDIA ................................................................................ 41
3.2 EVOLUTION OF RETAIL SECTOR ................................................................... 44
3.3 MANAGING HUMAN RESOURCE IN RETAIL SECTOR ................................. 45
3.4 HR CHALLENGES IN RETAIL SECTOR ........................................................... 48
3.4.1 Lack of Talent: .................................................................................................. 48
3.4.2 Unavailability of Experienced Manpower ........................................................ 48
3.4.3 Lack of Formal Retailing Education ................................................................ 49
3.4.4 Threat of Poaching ........................................................................................... 49
3.4.5 Stressful Environment ....................................................................................... 50
3.4.6 High Turnover .................................................................................................. 51
3.5 COMPLEX HUMAN RESOURCE ENVIRONMENT .......................................... 51
3.6 WOMEN IN RETAILING ..................................................................................... 52
3.7 REQUIREMENT FOR CREATIVE HR PRACTICES ......................................... 53
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3.8 RECRUITMENT CHALLENGES & EMPLOYING STRATEGY ......................... 53
3.9 COMPENSATION STRATEGIES ........................................................................ 54
3.10 ENGAGING AND RETAINING TALENT ......................................................... 55
3.11 CAREER ADVANCEMENT ............................................................................... 56
3.12 HEALTHY MANAGEMENT PRACTICES ........................................................ 57
3.13 ETHNIC DIVERSITY MANAGEMENT ............................................................. 58
3.14 FUTURE EXPECTATIONS ............................................................................... 58
4. RECRUITMENT AND SELECTION OF WORK ASSOCIATES FOR
“EASYDAY” STORES OF BHARTI-RETAIL LTD. ................................................ 59
4.1 STORE DEFINITION: ......................................................................................... 59
4.2 RECRUITMENT & SELECTION AT BHARTI RETAIL LTD. ............................ 60
4.2.1 Eligibility .......................................................................................................... 60
4.2.2 Sections At “Easyday” Stores .......................................................................... 60
4.2.3 Categories to be Recruited as Work Associates ............................................... 61
4.2.4 Recruitment and Selection process ................................................................... 63
5. KEY LEARNINGS AND SUGGESTION‟S ............................................................ 66
5.1 LEARNINGS ........................................................................................................ 66
5.2 SUGGESTIONS: .................................................................................................. 67
6. REFERENCES ............................................................................................................ 69
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LIST OF TABLES AND FIGURES
LIST OF FIGURES
FIGURE 1: AIRTEL LOGO .................................................................................................... 35
FIGURE 2: BHARTI INFRATEL LTD LOGO ............................................................................ 35 FIGURE 3: BEETEL TELETECH LTD. LOGO .......................................................................... 36 FIGURE 4: COMVIVA LOGO ................................................................................................ 36 FIGURE 5: CENTUM LEARNING LOGO ................................................................................ 37
FIGURE 6: BHARTI WALMART LOGO.................................................................................. 37 FIGURE 7: EASYDAY LOGO ................................................................................................. 38 FIGURE 8: BHARTI AXA LIFE INSURANCE LOGO ............................................................... 38 FIGURE 9: BHARTI AXA GENERAL INSURANCE LOGO ....................................................... 38
FIGURE 10: BHARTI AXA INVESTMENT MANAGERS LOGO ................................................ 39 FIGURE 11: INDUS TOWERS LOGO ...................................................................................... 39 FIGURE 12: FIELD FRESH FOOD PVT. LTD. LOGO ............................................................... 39 FIGURE 13: FLOWCHART SHOWING EVOLUTION OF RETAIL SECTOR .................................. 45
FIGURE 14: MANPOWER REQUISITION FORMAT FOR SMALL FORMAT “EASYDAY STORE”. 62
LIST OF TABLES
TABLE 1: ADVANTAGES AND DISADVANTAGES OF INTERNAL SOURCES OF RECRUITMENT .......... 14
TABLE 2: ADVANTAGES AND DISADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT ......... 16
TABLE 3 : FACTORS AFFECTING RECRUITMENT ............................................................................. 16
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1. LITERATURE REVIEW: RECRUITMENT AND SELECTION
1.1 RECRUITMENT
1.1.1 Introduction
People are integral part of any organization today. No organization can run without its
human resources. In today‟s highly complex and competitive situation, choice of right
person at the right place at right time has far reaching implications for an organization‟s
functioning. An employee well selected and well placed would not only contribute to the
efficient running of the organization but also offer significant potential for future
replacement. Thus, hiring is an important function. The process of hiring begins with
human resource planning (HRP) which helps to determine the number and type of people
an organization needs. Job analysis and job design enables to specify the task and duties
of jobs and qualification expected from prospective job. HRP, job analysis and job design
helps to identify the kind of people required in an organization and hence hiring. It should
be noted that hiring is an ongoing process and not confined to formative stages of an
organization. Employees leave the organization in search of greener pastures, some retire
and some die in the saddle. More importantly an enterprises grows, diversifies, take over
the other units all necessitating hiring of new men and women. In fact the hiring function
stops only when the organization ceases to exist.
1.1.2 Meaning of Recruitment
According to Edwin B. Flippo, “Recruitment is the process of searching the candidate for
employment and stimulating them to apply for jobs in the organization. (Flippo, 1984)” It
is the activity which links the employer and the job seekers.
According to Yoder, “Recruitment is a process to discover the sources of manpower to
meet the requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective selection of an
efficient working force.”
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“Recruitment is the development and maintenance of adequate manpower resources. It
involves the creation of a pool of available labor upon whom the organization can draw
when it needs additional employees.” (Beach, 1975)
Thus, we can say that:
Recruitment is the activity that links the employers and the job seekers.
It is a process of finding and attracting capable applicants for employment. It
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.
Recruitment of candidates is the function preceding the selection, which helps
create a pool of prospective employees for the organization so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool
of qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger
initiates an employee requisition for a specific vacancy or an anticipated vacancy.
1.1.3 Purpose and 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.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
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Help increase the success rate of selection process by decreasing number of
visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will
leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of
its workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants
1.1.4 Steps in Recruitment
The process of recruitment can be divided into following steps:
Identification of job vacancy
Job Description and person specification
Advertise the vacancy
Manage the response
Short-listing
Arranging interview
1.1.4 (a) Identification of Job Vacancy
The first step in recruitment process is requisition for recruitment by planning
department. The human resource department or its wing responsible for recruitment
receives information about the job vacancies to be filled. The details provided to
recruitment people contain information about:
Post to be filled
Number of people required
New vacancy or replacement etc.
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1.1.4 (b) Job Description and Person Specification
Once the job vacancy has been identified, it is important to understand the job for which
a person is to be hired. It involves looking into the duties to be performed, the
qualifications required. One has to take holistic approach during this stage, it is important
that the job environment should also be taken into account. This helps in understanding
the person specification in terms of behavioral attributes rather than just the technical
parameters and qualifications. For example it is important to know whether the job
requires cross-functional approach which requires working in teams having people from
different departments and background which may be problematic for some people
whereas for some it may be the best condition.
1.1.4 (c) Advertise the Vacancy
Once the job vacancy has been identified and the job description and person
specifications have been understood. It is important to advertise the vacancy, so as to find
the job seekers with relevant skills and qualifications. This is one of the most crucial
phases of recruitment where a recruiter has to strike a fine balance between the
advertising costs, the legal provisions and quality sources for recruitment. The
recruitment team has to identify appropriate sources of recruitment (which have been
described in following text) and manage the advertisements in judicious manner. It is
important for the recruitment team to comply with all legal provisions, and to build the
employer‟s brand in job seekers.
It is also important to advertise the desired qualification and necessary
qualifications in the clearest term possible.
1.1.4 (d) Managing Response
A carefully managed advertising campaign results in a large pool of applicants with
desired occupational and educational qualifications. Such a large pool of applicants has to
be managed for further short listing. This stage may involve scheduling of candidates or
informing them about next stage of recruitment, collecting more information about
applicants etc.
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1.1.4 (e) Short listing of Applicants
After receiving the applications and details about applicants, a short-listing has to be done
in order to find people with most appropriate skills and qualifications required for the job
and to reject any under-qualified candidate. This stage helps in saving a lot expenditure
and time which is to be incurred in later stages of hiring. It also increases the chances of
finding the best fit for the job.
1.1.4 (f) Arrange the Interviews
The last step in recruitment involves arrangement of final interview for selection of right
candidates.
1.1.5 Sources of Recruitment
The sources of recruitment can be broadly classified into 2 types:
Internal sources of recruitment
External sources of recruitment
1.1.5 (a) Internal Sources of Recruitment
1. TRANSFERS: The employees are transferred from one department to another
according to their efficiency and experience.
2. PROMOTIONS: The employees are promoted from one department to another
with more benefits and greater responsibility based on efficiency and experience.
3. UPGRADING AND DEMOTION: Upgrading and Demotion of present
employees according to their performance.
4. RETIRED AND RETRENCHED EMPLOYEES: Retired and Retrenched
employees may also be recruited once again in case of shortage of qualified
personnel or increase in load of work. Recruitment such people save time and
costs of the organizations as the people are already aware of the organizational
culture and the policies and procedures.
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5. DEPENDANTS AND RELATIVES OF EMPLOYEES: The dependents and
relatives of Deceased employees and Disabled employees are also done by many
companies so that the members of the family do not become dependent on the
mercy of others.
6. JOB POSTINGS: Job vacancy can also be posted on company notice board for
finding a suitable candidate from within the organization.
Advantages and Disadvantages of Internal Sources Of Recruitment
Advantages Disadvantages
Motivated employees and Higher
morale
Employees familiar with the
organization
Higher probability of success
Industrial Peace
Relatively inexpensive
Training and skill enhancement
Overcoming surpluses and shortages
Reduced scope for fresh talent.
Employees may become lethargic
if they are sure of time bound
promotions
Spirit of competition may be
hampered
Frequent transfers of employees
may reduce the overall
productivity of the organization.
Political infighting for promotion
1.1.5 (b) External Sources of Recruitment
PRESS ADVERTISEMENTS: Advertisements of the vacancy in newspapers and
journals are a widely used source of recruitment. The main advantage of this
method is that it has a wide reach.
EDUCATIONAL INSTITUTES: Various management institutes, engineering
colleges, medical Colleges etc. are a good source of recruiting well qualified
Table 1: Advantages and Disadvantages of internal sources of recruitment
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executives, engineers, medical staff etc. They provide facilities for campus
interviews and placements. This source is known as Campus Recruitment.
PLACEMENT AGENCIES: Several private consultancy firms perform
recruitment functions on behalf of client companies by charging a fee. These
agencies are particularly suitable for recruitment of executives and specialists. It
is also known as RPO (Recruitment Process Outsourcing)
EMPLOYMENT EXCHANGES: Government establishes public employment
exchanges throughout the country. These exchanges provide job information to
job seekers and help employers in identifying suitable candidates.
LABOUR CONTRACTORS: Manual workers can be recruited through
contractors who maintain close contacts with the sources of such workers. This
source is used to recruit labor for construction jobs.
UNSOLICITED APPLICANTS: Many job seekers visit the office of well-known
companies on their own. Such callers are considered nuisance to the daily work
routine of the enterprise. But can help in creating the talent pool or the database of
the probable candidates for the organization.
EMPLOYEE REFERRALS / RECOMMENDATIONS: Many organizations have
structured system where the current employees of the organization can refer their
friends and relatives for some position in their organization. Also, the office
bearers of trade unions are often aware of the suitability of candidates.
Management can inquire these leaders for suitable jobs. In some organizations
these are formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
RECRUITMENT AT FACTORY GATE: Unskilled workers may be recruited at
the factory gate these may be employed whenever a permanent worker is absent.
More efficient among these may be recruited to fill permanent vacancies.
PROFESSIONAL & TRADE ASSOCATION‟S: Many associations provide
placement service to its members. It consists of compiling job seeker‟s lists and
providing access to members during regional or national conventions. Also, the
publications of these associations carry classified advertisements from employers
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interested in recruiting their members. These are particularly useful for attracting
highly educated, experienced or skilled personnel. Also, the recruiters can zero on
in specific job seekers, especially for hard-to-fill technical posts.
Advantages and Disadvantages of External Sources Of Recruitment
Advantages Disadvantages
Qualified Personnel
Wider Choice
Fresh Talent
Competitive Spirit
Dissatisfaction amongst existing staff
Lengthy process (Increased
adjustment period)
Costly Process
Uncertain Process
1.1.6 Factors Affecting Recruitment
The recruitment function of the organizations is affected and governed by a mix of
various internal and external forces. The internal forces or factors are the factors that can
be controlled by the organization. And the external factors are those factors which cannot
be controlled by the organization.
Factors Affecting Recruitment
Internal External
Recruitment Policy
Human Resource Planning
Size Of The Firm
Cost
Growth And Expansion
Supply & Demand
Labour Market
Employer‟s Brand/ Goodwill
Socio - Political - Legal Environment
Competitors
Table 2: Advantages and Disadvantages of external sources of recruitment
Table 3 : Factors affecting recruitment
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1.1.6 (a ) Internal Factors
1. RECRUITMENT POLICY: The recruitment policy of an organization specifies
the objectives of recruitment and provides a framework for implementation of
recruitment strategy. It may involve organizational system to be developed for
implementing recruitment strategies and procedures by filling up vacancies with
best qualified people. The recruitment policies of an organization may be affected
by following factors:
Organizational Objectives
Personnel policies of the organization
Government policies on reservation
Preferred sources of recruitment
Need of the organization
Recruitment costs and financial implications
2. HUMAN RESOURCE PLANNING: Effective human resource planning helps in
determining the gaps present in the existing manpower of the organization. It also
helps in determining the number of employees to be recruited and what
qualification they must possess.
3. SIZE OF THE FIRM: The size of the firm is an important factor in recruitment
process. If the organization is planning to increase its operations and expand its
business, it will think of hiring more personnel, which will handle its operations.
4. COST: Recruitment incur cost to the employer, therefore, organizations try to
employ that source of recruitment which will bear a lower cost of recruitment to
the organization for each candidate.
5. GROWTH AND EXPANSION: Organization will employ or think of employing
more personnel if it is expanding its operations.
1.1.6 (b) External Factors
1. SUPPLY AND DEMAND: The availability of manpower both within and outside
the organization is an important determinant in the recruitment process. If the
company has a demand for more professionals and there is limited supply in the
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market for the professionals demanded by the company, then the company will
have to depend upon internal sources by providing them special training and
development programs.
2. LABOUR MARKET: Employment conditions in the community where the
organization is located will influence the recruiting efforts of the organization. If
there is surplus of manpower at the time of recruitment, even informal attempts at
the time of recruiting like notice boards display of the requisition or
announcement in the meeting etc will attract more than enough applicants
3. EMPLOYER‟S BRAND/ GOODWILL: Image of the employer can work as a
potential constraint for recruitment. An organization with positive image and
goodwill as an employer finds it easier to attract and retain employees than an
organization with negative image. Image of a company is based on what
organization does and affected by industry.
4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT: Various government
regulations prohibiting discrimination in hiring and employment have direct
impact on recruitment practices. For example, if Government introduces
legislation for reservation in employment for scheduled castes, scheduled tribes,
physically handicapped etc. it becomes an obligation for the employer. Also, trade
unions play important role in recruitment. This restricts management freedom to
select those individuals who it believes would be the best performers.
5. COMPETITORS: The recruitment policies of the competitors also affect the
recruitment function of the organizations. To face the competition, many a times
the organizations have to change their recruitment policies according to the
policies being followed by the competitors.
1.1.7 Recent trends in recruitment
1. RECRUITMENT OUTSOURCING:
Recruitment outsourcing has emerged as one of the preferred solution for
companies. A company may draw required personnel from outsourcing firms. The
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outsourcing firms help the organization by the initial screening of the candidates
according to the needs of the organization and creating a suitable pool of talent for
the final selection by the organization. Outsourcing firms develop their human
resource pool by employing people for them and make available personnel to
various companies as per their needs. In turn, the outsourcing firms or the
intermediaries charge the organizations for their services.
2. POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by
the organizations today. Poaching means employing a competent and experienced
person already working with another reputed company in the same or different
industry; the organization might be a competitor in the industry. A company can
attract talent from another firm by offering attractive pay packages and other
terms and conditions, better than the current employer of the candidate. But it is
seen as an unethical practice and not openly talked about. Indian software and the
retail sector are the sectors facing the most severe brunt of poaching today. It has
become a challenge for human resource managers to face and tackle poaching, as
it weakens the competitive strength of the firm.
3. E-RECRUITMENT
E- Recruitment is the use of technology to assist the recruitment process. Many
big organizations use Internet as a source of E-Recruitment. They advertise job
vacancies through worldwide web. The job seekers send their applications or
curriculum vitae i.e. CV through e mail using the Internet. Alternatively job
seekers place their CV‟s in worldwide web, which can be drawn by prospective
employees depending upon their requirements. The two kinds of e- recruitment
that an organization can use are –
Job portals i.e. posting the position with the job description and the job
specification on the job portal and also searching for the suitable resumes
posted on the site corresponding to the opening in the organization.
Creating a complete online recruitment/application section in the
company‟s own website. Companies have added an application system to
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in their website, where the „passive‟ job seekers can submit their resumes
into the database of the organization for consideration in future, as and
when the roles become available.
1.1.8 Recruitment Strategies
Recruitment is of the most crucial roles of the human resource professionals. The level of
performance of an organization depends on the effectiveness of its recruitment function.
Organizations‟ have developed and follow recruitment strategies to hire the best talent for
their organization and to utilize their resources optimally. A successful recruitment
strategy should be well planned and practical to attract more and good talent to apply in
the organization.
For formulating an effective and successful recruitment strategy, the strategy should
cover the following elements:
1. Identifying and prioritizing jobs
Requirements keep arising at various levels in every organization; it is almost a
never-ending process. It is impossible to fill all the positions immediately.
Therefore, there is a need to identify the positions requiring immediate attention
and action. To maintain the quality of the recruitment activities, it is useful to
prioritize the vacancies whether to focus on all vacancies equally or focusing on
key jobs first.
2. Candidates to target:
The recruitment process can be effective only if the organization completely
understands the requirements of the type of candidates that are required and will
be beneficial for the organization. This covers the following parameters as well:
Performance level required: Different strategies are required for
focusing on hiring high performers and average performers.
Experience level required: the strategy should be clear as to what is the
experience level required by the organisation. The candidate‟s
experience can range from being a fresher to experienced senior
professionals.
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Category of the candidate: the strategy should clearly define the target
candidate. He/she can be from the same industry, different industry,
unemployed, top performers of the industry etc.
3. Sources of recruitment:
The strategy should define various sources (external and internal) of recruitment.
Which are the sources to be used and focused for the recruitment purposes for
various positions? Employee referral is one of the most effective sources of
recruitment.
4. Trained recruiters
The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They
should also be aware of the major parameters and skills (e.g.: behavioral,
technical etc.) to focus while interviewing and selecting a candidate.
5. How to evaluate the candidate
The various parameters and the ways to judge them i.e. the entire recruitment
process should be planned in advance. Like the rounds of technical interviews,
HR interviews, written tests, psychometric tests etc.
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1.2. SELECTION
The selection process is a decision making process. This step consists of a number of
activities. A candidate who fails to qualify for a particular step is not eligible for
appearing for the subsequent step. Employee Selection is the process of putting right men
on right job. It is a procedure of matching organizational requirements with the skills and
qualifications of people. Effective selection can be done only when there is effective
matching. By selecting best candidate for the required job, the organization will get
quality performance of employees. Moreover, organization will face less of absenteeism
and employee turnover problems. By selecting right candidate for the required job,
organization will also save time and money. Proper screening of candidates takes place
during selection procedure. All the potential candidates who apply for the given job are
tested.
The process of selection starts with preliminary interview of candidates and ends with
contract of employment. Following are the steps which are generally involved in any
selection process:
1.2.1 Preliminary Interview
The applications received from job seekers are subjected to scrutiny, so as to eliminate
unqualified applicants. This is usually followed by a preliminary interview the purpose of
which is more or less the same as scrutiny of application, that is, eliminate of unqualified
applicants. Scrutiny enables the HR specialists to eliminate unqualified jobseekers based
on the information supplied in their application forms. Preliminary interview, on the other
hand, helps reject misfits for reason, which did not appear in the application forms.
Besides, preliminary interview, often called „courtesy interview‟, is a good public relation
exercise.
1.2.2 Selection Test
Job seekers who pass the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant‟s ability, aptitude and personality.
Following are the types of tests which may be used:
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1. Ability test: Assists in determining how well an individual can perform tasks
related to the job. An excellent illustration of this is the typing tests given to a
prospective employee for secretarial job. Also called as „ACHEIVEMENT
TESTS‟. It is concerned with what one has accomplished. When applicant claims
to know something, an achievement test is taken to measure how well they know
it. Trade tests are the most common type of achievement test given. Questions
have been prepared and tested for such trades as asbestos worker, punch-press
operators, electricians and machinists. There are, of course, many non-
standardized achievement tests given in industries, such as typing or dictation
tests for an applicant for a stenographic position.
2. Aptitude test: Aptitude tests measure whether an individual has the capacity or
latent ability to learn a given job if given adequate training. The use of aptitude
test is advisable when an applicant has had little or no experience along the line of
the job opening. Aptitudes tests help determine a person‟s potential to learn in a
given area. An example of such test is the general management aptitude tests
(GMAT), which many business students take prior to gaining admission to a
graduate business school programme.
Aptitude test indicates the ability or fitness of an individual to engage successfully
in any number of specialized activities. They cover such areas as clerical aptitude,
numerical aptitude, mechanical aptitude, motor co-ordination, finger dexterity and
manual dexterity. These tests help to detect positive-negative points in a person‟s
sensory or intellectual ability. They focus attention on a particular type of talent
such as learning or reasoning in respect of a particular field of work. They can be
of three types which are as follows:
Mental or Intelligence Test: They measure the overall intellectual ability
of a person and enable to know whether the person has the mental ability
to deal with certain problems.
Mechanical Aptitude Test: They measure the ability of a person to learn
a particular type of mechanical work. These tests helps to measure
specialized technical knowledge and problem solving abilities if the
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candidate. They are useful in selection of mechanics, maintenance
workers, etc.
Psychomotor or Skill Test: They are those, which measure a person‟s
ability to do a specific job. Such tests are conducted in respect of semi-
skilled and repetitive jobs such as packing, testing and inspection, etc.
3. Intelligence test: This test helps to evaluate traits of intelligence. Mental ability,
presence of mind (alertness), numerical ability, memory and such other aspects
can be measured. The intelligence test is probably the most widely administered
standardized test in industry. It is taken to judge numerical, skills, reasoning,
memory and such other abilities.
4. Interest Test: This is conducted to find out likes and dislikes of candidates
towards occupations, hobbies, etc. such tests indicate which occupations are more
in line with a person‟s interest. It is used to measure an individual‟s activity
preferences. This test is particularly useful for students considering many careers
or employees deciding upon career changes. Such tests also enable the company
to provide vocational guidance to the selected candidates and even to the existing
employees.
5. Personality Tests: It is conducted to judge maturity, social or interpersonal skills,
behaviour under stress and strain, etc. this test is very much essential on case of
selection of sales force, public relation staff, etc. where personality plays an
important role.
6. Projective Tests: This test requires interpretation of problems or situations. For
example, a photograph or a picture can be shown to the candidates and they are
asked to give their views, and opinions about the picture.
7. Graphology Test: It is designed to analyze the handwriting of individual. It has
been said that an individual‟s handwriting can suggest the degree of energy,
inhibition and spontaneity, as well as disclose the idiosyncrasies and elements of
balance and control. For example, big letters and emphasis on capital letters
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indicate a tendency towards domination and competitiveness. A slant to the right,
moderate pressure and good legibility show leadership potential.
8. Perception Test: At times perception tests can be conducted to find out beliefs,
attitudes, and mental sharpness.etc.
9. General Knowledge Test: days G.K. Tests are very common, they are used for
finding general awareness of the candidates in the field of sports, politics, world
affairs, current affairs.
10. Polygraph Test: Polygraph is a lie detector, which is designed to ensure accuracy
of the information given in the applications. Department store, banks, treasury
offices and jewellery shops, that is, those highly vulnerable to theft or swindling
may find polygraph tests useful.
1.2.3 Interview
The next step in the selection process is an interview. Interview is formal, in-depth
conversation conducted to evaluate the applicant‟s acceptability. It is considered to be
excellent selection device. It is face-to-face exchange of view, ideas and opinion between
the candidates and interviewers. Basically, interview is nothing but an oral examination
of candidates. Interview can be adapted to unskilled, skilled, managerial and profession
employees. Interviews can be of various types depending upon the setting, number of
interviewers, structuring. Some of them are as follows:
1. Non- Directive Interview: Non-directive interview or unstructured interview is
designed to let the interviewee speak his mind freely. The interviewer has no
formal or directive questions, but his all attention is to the candidate. He
encourages the candidate to talk by a little prodding whenever he is silent e.g.
“Mr. Ray, please tell us about yourself after your graduation from high school”.
The idea is to give the candidate complete freedom to “sell” himself, without the
encumbrances of the interviewer‟s question. But the interviewer must be of higher
calibre and must guide and relate the information given by the applicant to the
objective of the interview.
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2. Stress Interview: It is designed to test the candidate and his conduct and
behaviour under conditions of stress and strain. The interviewer may start with
“Mr. Joseph, we do not think your qualifications and experience are adequate for
this position,‟ and watch the reaction of the candidates. A good candidates will
not yield, on the contrary he may substantiate why he is qualified to handle the
job. This type of interview is borrowed from the Military organisation and this is
very useful to test behaviour of individuals when they are faced with disagreeable
and trying situations.
3. Panel Interview: A panel or interviewing board or selection committee may
interview the candidate, usually in the case of supervisory and managerial
positions. This type of interview pools the collective judgment and wisdom of the
panel in the assessment of the candidate and also in questioning the faculties of
the candidate.
4. Structured Interview: A panel or interviewing board or selection committee may
interview the candidate, usually in the case of supervisory and managerial
positions. This type of interview pools the collective judgment and wisdom of the
panel in the assessment of the candidate and also in questioning the faculties of
the candidate.
5. Unstructured Interview: It is also known as „Un-patterned‟ interview, the
interview is largely unplanned and the interviewee does most of the talking.
Unstructured interview is advantageous in as much as it leads to a friendly
conversation between the interviewer and the interviewee and in the process, the
later reveals more of his or her desire and problems. But the Unstructured
interview lacks uniformity and worse, this approach may overlook key areas of
the applicant‟s skills or background. It is useful when the interviewer tries to
probe personal details of the candidate it analyse why they are not right for the
job.
6. Mixed Interview: In practice, the interviewer while interviewing the job seekers
uses a blend of structured and unstructured questions. This approach is called the
Mixed Interview. The structured questions provide a base for interview whereas
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unstructured questions permit greater insights into the unique differences between
applicants.
7. Dinner Interview: These interviews may be structured, informal, or socially
situated, such as in a restaurant. Decide what to eat quickly, some interviewers
will ask you to order first (do not appear indecisive). Avoid potentially messy
foods, such as spaghetti. Be prepared for the conversation to abruptly change from
friendly chat to direct interview questions, however, do not underestimate the
value of casual discussion, some employers place a great value on it. Be prepared
to switch gears rapidly, from fun talk to business talk.
8. Telephonic Interview: On many occasions when it is not possible to arrange face
to face interview with the candidates, telephonic interviews are used by
companies. A candidate should be ready for such interview and can do following
preparations. Have a copy of your resume and any points you want to remember
to say nearby. If you are on your home telephone, make sure that all roommates
or family members are aware of the interview (no loud stereos, barking dogs etc.).
Speak a bit slower than usual. It is crucial that you convey your enthusiasm
verbally, since the interviewer cannot see your face. If there are pauses, do not
worry; the interviewer is likely just taking some notes.
1.2.4 Reference Test
Many employers request names, addresses, and telephone numbers of references for the
purpose of verifying the information and perhaps, gaining additional background
information on an applicant. Although listed on the application form, references are not
usually checked until an applicant has successfully reached the fourth stage of a
sequential selection process. When the labour market is very tight, organisations
sometimes hire applicants before checking references. Previous employers, known public
figures, university professors, neighbours or friends can act as references. Previous
employers are preferable because they are already aware of the applicant‟s performance.
But, the problem with this reference is the tendency on the part of the previous employers
to over-rate the applicant‟s performance just to get rid of the person.
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Organisations normally seek letter of reference or telephone references. The latter is
advantageous because of its accuracy and low cost. The telephone reference also has the
advantage of soliciting immediate, relatively candid comments and attitude can
sometimes be inferred from hesitations and inflections in speech.
1.2.5 Selection decision
After obtaining information through the preceding steps, selection decision (the most
critical of all the steps) must be made. The other stages in the selection process are meant
for narrowing down the number of the candidates. The final decision has to be made from
pool of individuals who pass the tests, interviews and reference checks. The view of the
line manager is generally considered in the final selection because it is he/she who is
responsible for the performance of the new employee. The supervisor is better able to
evaluate the applicant's technical capabilities and is in a better position to answer the
interviewee's job-related questions. Further, the supervisor's personal commitment to the
success of the new employee is higher if the supervisor has played a role in the hiring
decision.
In fact, in a majority of firms, the supervisor has the authority to make the final hiring
decision. In these cases, it is the role of the HR department to do the initial screening and
to ensure that hiring does not violate laws such as Human Rights legislation or Labour
legislation.
This step may or may not be followed be followed by realistic job previews which
involves showing the applicant(s) the job site in order to acquaint them with the work
setting, commonly used equipment, and prospective co-workers . The realistic job
preview is intended to prevent initial job dissatisfaction with a job by presenting a
realistic view of the job. Research shows that job turnover is lower when realistic job
previews are used.
1.2.6 Physical Examination
After the selection decision and before the job offer is made, the candidate is required to
undergo a physical fitness test. A job offer is, often, contingent upon the candidate being
declared fit after the physical examination. The results of the medical fitness test are
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recorded in a statement and are preserved in the personnel records. There are several
objectives behind a physical test. Obviously, one reason for a physical test is to detect if
the individual carries any infectious disease. Secondly, the test assists in determining
whether an applicant is physically fit to perform the work. Thirdly, the physical
examination information can be used to determine if there are certain physical
capabilities, which differentiate successful and less successful employees. Fourth,
medical check-up protects applicants with health defects from undertaking work that
could be detrimental to them or might otherwise endanger the employer‟s property.
Finally, such an examination will protect the employer from workers compensation
claims that are not valid because the injuries or illness were present when the employee
was hired.
1.2.7 Job Offer
The next step in the selection process is job offer to those applicants who have crossed all
the previous hurdles. Job offer is made through a letter of appointment. Such a letter
generally contains a date by which the appointee must report on duty. The appointee must
be given reasonable time for reporting. This is particularly necessary when he or she is
already in employment, in which case the appointee is required to obtain a relieving
certificate from the previous employer. Again, a new job may require movement to
another city, which means considerable preparation, and movement of property.
1.2.8 Contract Of Employment
After the job offer has been made and the candidate accepts the offer, certain documents
need to be executed by the employer and the candidate. One such document is the
attestation form. This form contains vital details about the candidate, which are
authenticated and attested by him/her. Attestation form will be a valid record for the
future reference. There is also a need for preparing a contract of employment. The basic
information that should be included in a written contract of employment will vary
according to the level of the job, but the following checklist sets out the typical headings:
1. Job title
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2. Duties, including a parse such as “The employee will perform such duties and will
be responsible to such a person, as the company may from time to time direct”.
3. Date when continuous employment starts and the basis for calculating service.
4. Rate of pay, allowance, overtime and shift rates, method of payments.
5. Hours of work including lunch break and overtime and shift arrangements.
6. Holiday arrangements:
i . Paid holidays per year.
ii . Calculation of holiday pay.
iii . Qualifying period.
iv. Accrual of holidays and holiday pay.
v. Details of holiday year.
vi. Dates when holidays can be taken.
vii. Maximum holiday that can be take at any one time.
viii. Carryover of holiday entitlement.
ix. Public holidays.
7. Length of notice due to and from employee.
8. Grievances procedure (or reference to it).
9. Disciplinary procedure (or any reference to it).
10. Work rules (or any reference to them).
11. Arrangements for terminating employment.
12. Arrangements for union membership (if applicable).
13. Special terms relating to rights to patent‟s and designs, confidential
information and restraints on trade after termination of employment.
14. Employer‟s right to vary terms of the contract subject to proper notification being
given.
Alternatively called “employment agreements” or simply “bonds”, contracts of
employment serve many useful purposes. Such contracts seek to restrain job-hoppers,
from disclosing knowledge and information that might be vital to a company‟s healthy
bottom line and to prevent competitors from poaching highly valued employees. Great
care is taken while drafting of contract forms. Often, services of law firms are engaged to
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get the forms drafted and finalized. Most employers insist on agreements being signed by
newly hired employees. But high turnover sectors such as software, advertising and
media are more prone to use contracts.
1.2.9 Review of Hiring Process
After completing the hiring, the process ought to be evaluated. Here are some
considerations in the evaluation:
What about the number of initial applicants? Were there too many applicants?
Too few? Does the firm need to think about changing its advertisement and
recruiting to get the result desired?
What was the nature of the applicants' qualifications? Were the applicants too
qualified? Not qualified enough? Perhaps the advertisement needs to be re-
worded to attract more appropriate candidates. In this case, using a job description
can help.
How cost-effective was the advertising? A simple way to measure is to divide the
cost (not only in dollars but in your time) by either the number of total applicants
or the number of applicants that you considered seriously.
Were there questions that needed to be asked but weren't?
How well did the interviewers do? One way to determine this is to ask the new
employee to critique the interviewing process.
Did employment tests support or help the hiring decision? If not, maybe the firm
will have to reconsider the kinds of tests it is administering. Further, the
evaluation process should help the firm decide if the cost and time involved in the
testing is worth it. Would you have come to the same hiring decision without
testing?
1.2.10 Types of Job Seekers
1. Quid-Pro-Quo: These are the people who say that “ I can do this for you, what
can you give me” These people value high responsibilities, higher risks, and
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expect higher rewards, personal development and company profiles doesn‟t
matter to them.
2. I-will-be-with-you: These people like to be with big brands. Importance is given
to brands. They are not bothered about work ethic, culture mission etc.
3. I-will-do-you-what-you-want: These people are concerned about how
meaningful the job is and they define meaning parameters criteria known by
previous job.
4. Where-do-you-want-me-to-come: These people observe things like where is
your office, what atmosphere do you offer. Career prospects and exciting projects
don‟t entice them as much. It is the responsibility of the recruiter to decide what
the employee might face in given job and thus take decision. A good decision will
help cut down employee retention costs and future recruitment costs.
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2. BHARTI GROUP OVERVIEW
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of
bicycle parts to one of the largest and most respected business groups in India. With its
entrepreneurial spirit and passion to undertake business projects that are transformational
in nature, Bharti has created world-class businesses in telecom, financial services, retail,
and foods.
Bharti started its telecom services business by launching mobile services in Delhi (India)
in 1995. Since then there has been no looking back and Bharti Airtel, the group's' flagship
company, has emerged as one of the top telecom companies in the world and is amongst
the top five wireless operators in the world,
Through its global telecom operations Bharti group has presence in 21 countries
across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey,
Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone,
Tanzania, Uganda, and Zambia.
Over the past few years, the group has diversified into emerging business areas in the fast
expanding Indian economy. With a vision to build India's finest conglomerate by 2020
the group has forayed into the retail sector by opening retail stores in multiple formats -
small and medium - as well establishing large scale cash & carry stores to serve
institutional customers and other retailers. The group offers a complete portfolio of
financial services - life insurance, general insurance and asset management - to customers
across India. Bharti also serves customers through its fresh and processed foods business.
The group has growing interests in other areas such as telecom software, real estate,
training and capacity building, and distribution of telecom/IT products.
What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the
years some of biggest names in international business have partnered Bharti. Currently,
Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom.
Walmart is Bharti's partner for its cash & carry venture. Axa Group is the partner for the
financial services business and Del Monte Pacific for the processed foods division.
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Bharti strongly believes in giving back to the society and through its philanthropic arm
the Bharti Foundation it is reaching out to over 30,000 underprivileged children and
youth in India.
2.1 VISION & VALUE
2.1.1 Vision:
By 2020 we will build India's finest conglomerate by:
Always empowering and backing our people
Being loved and admired by our customers and -respected by our partners
Transforming millions of lives and making a positive impact on society
Being brave and unbounded in realizing our dreams
2.1.2 Values:
Empowerment
We respect the opinions and decisions of others. We encourage and back people to do
their best
Entrepreneurship
We always strive to change the status quo. We Innovate with new ideas and energise with
a strong passion and entrepreneurial spirit.
Transparency
We believe we must work with honesty, trust and the innate desire to do good.
Impact
Are driven by the desire to create a meaningful difference in society
Flexibility
We are ever willing to learn and adapt to the environment, our partners and the
customer's evolving needs.
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2.2 BHARTI GROUP COMPANIES
2.2.1 Bharti Airtel
Bharti Airtel Limited is a leading emerging market telecom
services provider with operations in 19 countries across Asia
and Africa. The company is structured into four strategic
business units - Mobile, Telemedia, Enterprise and Digital TV.
The mobile business offers services across 19 countries in Asia
and Africa. The Telemedia business provides broadband, IPTV
and telephone services across India. The Enterprise business
provides end-to-end telecom solutions to corporate customers and national and
international long distance services to carriers. The Digital TV business provides DTH
services across India. All these services are provided under the Airtel brand.
2.2.2 Bharti Infratel Limited
Bharti Infratel Limited is amongst India's leading telecom
passive infrastructure service providers. The company
deploys, owns and manages telecom towers and
communication structures, for various mobile operators
across 18 states of India. It has a vast footprint of over
30,000+ towers and holds a 42% stake in Indus Towers Ltd
- a Joint Venture between Bharti Infratel, Vodafone & Idea
Cellular - that has the distinction of being the world's largest
tower company. Bharti Infratel has not only pioneered the passive infrastructure space in
the Indian telecom sector, but has also continued to lead the industry in developing and
providing innovative solutions and setting service delivery benchmarks.
2.2.3 Bharti Realty Limited
Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding
interests in commercial, retail and residential real estate. It has grown from strength to
Figure 1: Airtel Logo
Figure 2: Bharti Infratel Ltd Logo
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strength, constructing and managing over ten top of the line facilities for Bharti group
companies and third party clients.
Spurred by its accomplished success and acquired expertise, Bharti Realty Limited has
now forayed into developing quality commercial real estate in the central business district
(CBD) areas of metropolitan cities, retail real estate in the up-market localities of
metropolitan cities and in a few prominent cities of Punjab, and high end residential real
estate in the Delhi NCR region, Mumbai and Bangalore.
2.2.4 Beetel Teletech Limited
Beetel Teletech Limited is a sales and
distribution company with focus on
emerging markets of SAARC, Middle
East, Africa, Latin America and is engaged
into distribution & marketing of wide range
of products that include Smart Phones, High quality cordless phones, Modems, Audio /
video conferencing products, Free To Air Set Top Boxes, Fixed Cellular Phones & Fixed
Wireless Terminals.
2.2.5 Comviva
Comviva is a global player in offering mobile
solutions beyond VAS. With an extensive portfolio of
products and solutions that encompass content,
commerce and community-related offerings, Comviva
enables mobile operators to offer services that enrich
users‟ lives. Comviva enhances operator
efficiencies and revenue performance by adding value
at every stage of the customer lifecycle – from prepaid subscription and etop-up to
customer care, and from real-time promotions and loyalty management to billing
solutions. Comviva has extensive expertise in delivering and managing mobile solutions
Figure 3: Beetel Teletech Ltd. Logo
Figure 4: Comviva Logo
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that extend beyond VAS, powering solutions to mobile operators in more than 80
countries worldwide and reaching over 550 million subscribers globally.
2.2.6 Jersey Airtel and Guernsey Airtel
Jersey Airtel and Guernsey Airtel are subsidiaries of Bharti group and offer mobile
services on the islands of Jersey and Guernsey respectively in the Channel Islands
(Europe). All services are offered under the Airtel-Vodafone brand under a partnership to
bring a range of Vodafone global products together with other exciting services from
Bharti to customers in Jersey and Guernsey.
2.2.7 Centum Learning Limited
Centum Learning Limited provides end-to-end learning
and skill-building solutions that enhance business
performance to Bharti Group and several large
corporates. Centum Learning has received the Gold
Award for "Excellence in Training" at the World HRD
Congress, 2010 and has been adjudged as one of the 'Top
15 Emerging Leaders in Training Outsourcing' 2009 Worldwide. Centum Learning
provides industry oriented employability programmes through a network of 130 Centum
Learning Centres spread across 90 cities. It has also launched a new education initiative,
Centum U Institute of Management & Creative
Studies. http://www.centumu.edu.in which offers UG and PG programmes in association
with world renowned institutions.
2.2.8 Bharti Walmart
Bharti Walmart is a B2B joint venture between Bharti
Enterprises and Walmart for wholesale cash & carry and
back-end supply chain management operations in India to
serve small retailers, manufacturers, institutions and
farmers. The Company operates Cash & Carry stores under
the Best Price Modern Wholesale brand. A typical cash-and-carry store stands between
Figure 5: Centum Learning Logo
Figure 6: Bharti Walmart Logo
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50,000 and 100,000 square feet and sells a wide range of fresh, frozen and chilled foods,
fruits and vegetables, dry groceries, personal and home care, hotel and restaurant
supplies, clothing, office supplies and other general merchandise items.
2.2.9 Bharti Retail
Bharti Retail is a wholly owned subsidiary of Bharti Enterprises.
The Company operates easyday neighbourhood stores and
compact hypermarket stores called easyday Market. Bharti Retail
provides consumers a wide range of good quality products at
affordable prices. easyday stores are a one stop shop that cater to
every family's day-to-day needs. Merchandise at easyday Market stores include apparels,
home furnishings, appliances, mobile phones, meat shop, general merchandise, fruits and
vegetables among others.
2.2.10 Bharti AXA Life Insurance
Bharti AXA Life Insurance is a joint venture between Bharti and
AXA Group. The company launched national operations in
December 2006. Today, Bharti AXA Life has a national
footprint of distributors trained to provide quality financial
advice and insurance solutions to the large Indian customer
base. Bharti AXA Life offers a range of innovative products and
services that cater to specific insurance and wealth management
needs of customers.
2.2.11 Bharti AXA General Insurance
Bharti AXA General Insurance is a joint venture between
Bharti Group and AXA Group. The company is one of the
fastest growing in the general insurance segment and is the
first in the industry to receive dual certifications of ISO
9001:2008 & 27001:2005 within the a year of
launching operations. The company offers an extensive
Figure 7: Easyday logo
Figure 8: Bharti AXA Life Insurance Logo
Figure 9: Bharti AXA General Insurance Logo
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product range for retail, rural and commercial clients with cashless facilities in over 4000
hospitals and 1600 garages as well as 24/7 multi-modal claims registration.
2.2.12 Bharti AXA Investment Managers Pvt. Ltd.
Bharti AXA Investment Managers Private Limited is a joint
venture between Bharti and the AXA Group. With a presence
in more than 34 locations across the country within one year
of the launch, Bharti AXA Investment Managers boasts one of
the largest footprints for any AMC in the country during
launch. This indicates the retail focus of the AMC. With best
practices brought in from world leaders in financial protection, Bharti AXA Investment
Managers aim to be an aggressive player in the Indian Asset Management Industry.
2.2.13 Indus Towers
Indus Towers, a JV between Vodafone Essar (42%), Bharti Group (42%)
and Aditya Birla Telecom Limited (16%) and is India‟s leading mobile
towers company. The company, which operates in 16 telecom circles
across India, provides services to all telecom operators and other wireless
service providers such as broadcasters and broadband service providers
on non-discriminatory basis.
2.2.14 Field Fresh Food Pvt. Ltd.
Field Fresh Foods Pvt. Ltd, a joint venture company
between Bharti Enterprises and Del Monte Pacific Ltd. The
company offers branded Field Fresh fruits & vegetables
across India and international markets, including Europe and
the Middle East. The company produces markets and
distributes farm fresh products.
FieldFresh Foods Pvt. Ltd aims to become one of the most
trusted providers of premium quality fresh farm products,
processed foods and beverages.
Figure 10: Bharti AXA Investment managers Logo
Figure 11: Indus Towers Logo
Figure 12: Field Fresh Food Pvt. Ltd. Logo
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3. THE GLOBAL RETAIL SCENARIO
Retail has played a major role world over in increasing productivity across a wide range
of consumer goods and services .The impact can be best seen in countries like U.S.A.,
U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore,
Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.
Retail is the second-largest industry in the United States both in number of
establishments and number of employees. It is also one of the largest world-wide. The
retail industry employs more than 22 million Americans and generates more than $3
trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the
world‟s largest retailer. Already the world‟s largest employer with over 1million
associates, Wal-Mart displaced oil giant Exxon Mobil as the world‟s largest
Company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the
most successful retail brand in the world due its ability to leverage size, market clout, and
efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500
companies in the world. Forbes Annual List of Billionaires has the largest number
(45/497) from the retail business.
The top 10 players in the retail industry worldwide are as follows:
1. Walmart
2. Tesco, UK based retailer
3. Carrefour, France
4. Home Depot, USA
5. Kroger, USA
6. Costco, USA
7. Target, USA
8. Metro AG, Germany
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3.1 RETAIL SECTOR IN INDIA
The Retail Sector of Indian Economy is going through the phase of tremendous
transformation. The retail sector of Indian economy is categorized into two segments
such as organized retail sector and unorganized retail sector with the latter holding the
larger share of the retail market. At present the organized retail sector is catching up very
fast. The impact of the alterations in the format of the retail sector changed the lifestyle of
the Indian consumers drastically. The evident increase in consumerist activity is colossal
which has already chipped out a money making recess for the retail sector of Indian
economy.
With the onset of a globalized economy in India, the Indian consumer's psyche has been
changed. People have become aware of the value of money. Nowadays the Indian
consumers are well versed with the concepts about quality of products and services.
These demands are the visible impacts of the Retail Sector of Indian Economy.
Large format retail businesses dominate the retail landscape in the United States and
across Europe, in terms of retail space, categories, range, brands, and volumes. Indian
retail industry cannot hope to learn much by merely looking at the Western success
stories in retail. Their scales of operations are very huge, the profit margins that they earn
are also much higher and they operate in multiple formats like discount stores,
warehouses, supermarkets, departmental stores, hyper-markets, convenience stores and
specialty stores. The economy and lifestyle of the West is not in line with that of India
and hence the retailing scene in India has not evolved in the same format as the West nor
can we learn valuable lessons from their style of operations. In retailing, the conventional
wisdom used to be, that, the critical success factor was location. But precise location no
longer matters and geo-demographics are increasingly becoming irrelevant. The leading
multiple chain retailers, superstores and malls create their own centers of gravity,
attracting customers by car, bus, train or even by plane to wherever they are located.
Since the liberalization policy of 1990, the Indian economy, and its consumers are getting
whiff of the latest national & international products, with the help of print and electronic
media. The social changes with the rapid economic growth due to trained personnel, fast
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modernization, and enhanced availableness of retail space are the positive effects of
liberalization. The growth factors of the retail sector of Indian economy are:
Increase in per capita income which in turn increases the household consumption
Demographical changes and improvements in the standard of living
Change in patterns of consumption and availability of low-cost consumer credit
Improvements in infrastructure and enhanced availability of retail space
Entry to various sources of financing
The infrastructure of the retail sector is evolving radically. The emergence of shopping
malls is going steady in the metros and there are further plans of expansion. As the
count of super markets is going up much faster than rate of growth in retail sector, it is
taking the lions share in food trade. The non-food sector, segments comprising
apparel, accessories, fashion, and lifestyle felt the significant change with the
emergence of new stores formats like convenience stores, mini marts, mini
supermarkets, large supermarkets, and hyper marts. Even food retailing has became an
important retail business in the national arena, with large format retail stores,
establishing stores all over India. With the entry of packaged foods like MTR, ITC
Aashirvaad, fast foods chains like McDonald's, KFC, beverage parlors like Nescafe,
Tata Tea, Cafe Coffee and Barista, the Indian food habits has been altered. These
stores have earned the reputation of being 'super saver locations'.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will
confront the following round of alterations. At present the Foreign Direct Investments
(FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in
they would try to muscle out their Indian counterparts. This would be challenging for
the retail sector in India. Following are the future trends of the retail sector of Indian
economy:
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The most encouraging format now would be the hyper marts
The hyper mart format would be further encouraged with the entry of the
TNC's
No one single format can be assumed as there is a huge difference in cultures
regionally.
Demographic movements in India over the last two decades have made organized retail a
necessity. The rapid growth of this industry is confirmation that the idea of organized
retailing has taken root in India. The industry is today valued at around US$ 320 billion.
Within the organized retail sector, food and groceries account for around 14 per cent of
the total market with potential to garner an even bigger share of the market.
Retail Sector is the most booming sector in the Indian economy. Some of the biggest
players of the world are going to enter into the industry soon. It is on the threshold of a
big revolution after the IT sector. Organized retail sector is growing manifolds this year.
This sector is estimated to show 20% annual growth rate by the end of this decade. The
CRISIL report says that the retail market is most fragmented in the world and only 2% of
the entire retailing business is in the organized sector. There are about 300 new malls,
1500 supermarkets and 325 departmental stores being built in the cities.
The retail boom will face a strong competition from the 12 million mom-and-pop stores,
which are easily accessible and approachable and provide services like free home
delivery and goods at credit. But buying from Malls, Supermarkets and Department
stores like Subhiksha, Marks & Spencer‟s, etc gives a different feeling and the
environment of pick and choose from a variety of products. A number of retail giants are
exploring the market such as Reliance Retail Ltd and Walmart. The revolution is driven
by large expectations where both domestic and international players will be channel
through which other large stores in India are spreading themselves across the country.
The Indian retail sector is the most fast moving and growing industry. It is expected to
offer 50,000 jobs in the coming five years. The sector has vacancies from the entry level
to senior management level. To excel in this challenging sector the candidate must have
an outgoing personality to interact with customers or sellers. As it is a people-oriented
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business, the candidate should be dynamic, versatile and should have the right attitude to
be successful. The profession demands excellent command over language and spirit of
working in teams. The promotions and growth entirely depends upon the skills,
achievements and efforts of the candidate.
There are various profiles specific to this industry such as:
Staff member, Department manager, Store manager, retail manager, retail buyers, product
development, merchandise planning, visual merchandise.
Companies like Pantaloon Retail India Ltd. and Reliance Retail have been recruiting a lot
to grow in the terms of employees and business.
In 2008 the following companies were the top 10 recruiters in the retail industry:
1. Reliance Retail
2. Lilliput
3. Pantaloons Retail India Ltd
4. Shopper‟s Stop
5. Unisource group
6. Welspun retail Ltd
7. Homestore India Ltd
8. Express Retail Services
9. HAS Lifestyle Private Ltd
10. Wadhawan Food Retail (P) Ltd
3.2 EVOLUTION OF RETAIL SECTOR
Today‟s retail sector as we see it now, has evolved from Weekly Markets, Village and
rural fares. The rural used to be a source of entertainment and can be found even today.
These markets provide all amenities to people of far flung areas and help them in getting
all things needed for them. This system was more evolved in sub-urban areas where
kirana stores can be found in all neighborhoods and cater to retail demands of goods. This
model evolved further in the form of Government PDS (Public Distribution System)
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stores which helped the government in reaching larger masses and in providing goods at
low cost. This low cost model of PDS provided an opportunity for big businessmen with
good amount of capital to invest in retail store chains which later evolved into exclusive
brand outlets, supermarkets and hypermarkets which were capable of catering to all retail
needs of the customer.
3.3 MANAGING HUMAN RESOURCE IN RETAIL SECTOR
The impact of human resource management (HRM) policies and practices on firm
performance is an important topic in the field of human resource management, industrial,
and industrial and organizational psychology (Boudreau 1991, Jones & Wright 1992,
Kleiner 1990). A number of texts have appeared in recent years promoting the advantages
of using high involvement human resource practices (Arthur 1994, Kochan & Osterman,
1994, Levine 1995, Pfeffer 1998, Guthurie 2001) as well as on the use of High
Performance Work Practices, which can improve the knowledge, skills, and abilities of a
Exclusive Brand outlets, Hypermarkets and Supermarkets, Department stores and Shopping malls
PDS outlets, Khadi stores, Cooperatives
Government supported Availability/low costs/distribution
Convenience stores, Mom-and-pop / Kirana shops
Neighborhood stores/convenience, Traditional and pervasive reach
Weekly Markets, Village and Rural Melas
Source of entertainment,Rural and historic reach
Figure 13: Flowchart Showing Evolution of Retail sector
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firm's current and potential employees, increase their motivation, reduce shirking, and
enhance retention of quality employees (Jones & Wright 1992). In the existing literature,
focus on the issue that human resource management practices is developing rapidly as it
helps to create a source of sustained competitive advantage, especially when they are
aligned with a firm's competitive strategy (Cappelli & Singh 1992, Jackson & Schuler
1995, Wright & McMahan 1992).
In India, the rapid development in this sunrise sector accelerates the need for the right
kind of employees who can take care of retail operations. The success of any player in
this lucrative sector depends not only on understanding target market and implementing
marketing mix strategies but also on how effectively a retailer develops systems of high
performance work practices including comprehensive employee recruitment and selection
procedures, incentive compensation and performance management systems, and
extensive employee involvement and training. An increasing body of work evaluated the
links between systems of High Performance Work Practices and firm performance
(Arthur 1994, Miller & Cardinal 1994, macDuffie 1995, Huselid 1995).
In India, sudden and unprecedented growth in organised retailing poses a challenge to
human resources development. Therefore, it would be useful to look at the dimension of
human resource practices in retail industry, emerging requirements and challenges and
measures to improve work atmosphere in Indian scenario. Although a few studies have
initiated their efforts on analyzing HR challenges in Indian retail sector (Chella 2002,
Chakraborthy 2007, Abraham & Kumudha 2007), there are gaping holes in the existing
research: in particular the factors leading to the type of HR policy carried out in the
Indian retail sector is largely neglected. The focus of this paper is on examining the
various factors affecting human resources in Indian retail sector and accordingly
suggesting measures for HR policy. Before discussing the HR challenges, it is important
to specify tasks to be performed for effective retailing to occur. Some of these tasks are
as follows:
Buying merchandise for retailer
Buying merchandise for retailer
Receiving merchandise and checking incoming shipments
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Marking merchandise, inventory storage and control
Preparing merchandise and window display
Facilities maintenance, facilitating shopping
Setting Price
Customer contact, customer research and exchanging information
Customer follow-up and complaint handling
Sales forecasting and budgeting
Credit operations, billing customers
Handling receipts and financial records
Gift wrapping, delivery to customers
Repairs and alteration of merchandise, returning unsold or damaged
goods
Personnel management, coordination
* Source: Berman, & Evans (2006)
Generally, the retail stores use organizational arrangements which may divide all retail
activities into four functional areas
Merchandising
Publicity
Store and supply chain management
Accounting and control
These areas are organized by line and staff employees. These employees are divided in to
managerial, supervisory and working hands. In the above backdrop, let us examine HR
challenges in retail sector
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3.4 HR CHALLENGES IN RETAIL SECTOR
3.4.1 Lack of Talent:
Organized retailing is highly manpower intensive. Retailing is the second largest
employer in India; presently it employs about 22 million people. The present scenario
depicts that there will further be a very high demand for manpower to match the scope of
roll out plans of various players in the near future. It is estimated that 8 million people
will be required in organized retail by 2011 (Pant 2007). This gives a clear indication of
the extent of human resources required to support the growth of retailing in India.
Especially, at the lower levels, there is requirement for large number of support staff as
customer care associates. Moreover, due to organized retailing correlation with other
industrial and service sectors, it is generating a great deal of indirect employment viz.
security, electrical and mechanical maintenance, property management services, parking,
sorting, packaging, etc. The sector is facing talent crunch because neither the talent
required on such a large scale in the sector are available nor there is training
infrastructure facility for them.
3.4.2 Unavailability of Experienced Manpower
Organized retailing is an emerging sector in India; there are not many executives with
long and relevant experience. KPMG report (2006) reveals that there is a skill-set gap in
those manning the floors. Although, India has a huge posse of qualified human resources,
who have the required education and are highly motivated to undertake the challenging
tasks, still there, is more pronounced need for middle and senior level management.
Managers from industries such as FMCG, Telecom, BPO, and Hospitality are able to
quickly learn and adapt to the demands of retailing. Consequently, the scramble for talent
hunt amongst organized retail players will be as fierce as their battle for customers.
Therefore, developing strategies for creating, attracting, nurturing, retaining are required
in the initial stages themselves.
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3.4.3 Lack of Formal Retailing Education
KPMG report (2006) points out that there are also competency gaps in various key areas
like supply chain management, vendor development and customer relations management.
There is requirement for qualified and trained manpower to look after day-to-day
operations and cater to the wide spectrum of customer expectations. Therefore, it
necessitates appropriate training to provide them exposure and also to equip them with
progressive working methods. As there is lack of formal vocational institutes, where
students can be trained for entry-level positions, most retailers in India depend on in-
house training or fulfilling their training needs with small institutes.
Keeping in mind the growth in the retail industry, some business schools are coming
forward to pioneer courses in retail management. The Indian Retail School has a number
of such short-term courses on retail management. Pantaloon has made a tie-up with
several management schools to offer programs in retail management. RPG Enterprises
has also set up a training institute for front line staff and store managers. Tesco runs a
retail certification course with IIM-Bangalore. Reliance retail has also decided to set up
its own training centers across the country. At present, it has two such centers in Mumbai
and Kolkata. Training of the staff is the best investment in business and so in the retail
business. The lack of formal retailing education further exacerbates the problem of
recruiting. There is urgent need for management education for fraternity to fill in this
vacuum. Top management institute are not showing interest because of low salary
packages being offered to their students. Despite all these difficulties, the problem is
required to be addressed. Proactive training strategies would become a competitive
differentiator for retailers given the resource and competency shortages in India.
3.4.4 Threat of Poaching
While most of these challenges are gradually being addressed by the growing organised
retail segment, the shortage of experienced human capital across all levels leads to
poaching problem. The gap between supply and demand is resulting in high levels of
attrition, and increased costs of doing business for the industry. The growth in retail
salary in India has been one of the highest among all sectors in the past two years. The
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average yearly increment is 18-22 per cent against the all-sector average of 13-14 per
cent (Saha 2007). According to VP (HR) RPG, "The biggest poachers are the BPOs.
Every second youngster leaving us joins a BPO". At the same time, upcoming retail
chains are poaching from multinationals and the established retail players like Shopper's
Stop, Kishore Biyani's Big Bazaar and RPG Group's Spencer's for back end operations.
But for front-end operations like HR and merchandise management, the target is FMCG.
According to HR consultants, the biggest setback for FMCG companies has been at the
middle management level.
Retention of employed staff, particularly the frontline staff who constitutes 85% of a
retailer's workforce is becoming a rising concern. While Pantaloon has attrition of
8.6% per annum, RPG Retail accepts that their frontline attrition rate has drastically
increased to 16% from 5% last year. Subhiksha too is faced with an attrition of as much
as 5-6% per month. There is growth in retail sector, with many well-established business
houses like Reliance, Birla and Bharti Enterprises have drawn up ambitious plans to foray
into retail and other established players like Pantaloon Retail, Shoppers' Stop, Subhiksha
and Spencer's are also investing heavily in this sector. Apart from this, many global
players are foraying into retailing through one or the other way. All this can lead to
higher attrition or poaching problem. Battling acute attrition, retailers are throwing in
plenty of incentives to retain frontline staff, reports CNBC-TV 18
3.4.5 Stressful Environment
According to a survey carried out by Associated Chambers of Commerce and Industry of
India (ASSOCHAM), retail sector is among the top ten segments in which the menace of
stress and mental fatigue had intensified during the recent times (Tribune News Service
2007). The working pattern of retail industry requires employees to put in long hours (8-
12 hrs.) of work which generally cause fatigue and lower motivation among employees.
There is lot of work pressure in particular from work overload, time pressures and
deadlines, and staff shortages and turnover rates. This may lead to poor performance,
absenteeism, mistakes in jobs etc. Besides this, in part-time and casual jobs in retail
sector, there is job insecurity, short-and split-shifts, unpredictability of hours, low wages
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and benefits, poor working facilities, and the need to juggle multiple jobs to earn a living
wage contribute to stress and workplace problems.
3.4.6 High Turnover
According to KPMG report (2006), globally, retailing is a high staff turnover industry,
with even the larger retailers facing attrition rates of between 40 and 60 per cent a year.
As organized retailing is at a nascent stage in India, attrition is not yet an issue at least at
the middle and senior management level. However, with rapid growth in retailing, the
demand for managers with good retailing experience is set to increase, hence attrition
levels are expected to worsen. For front-end staff attrition rate is believed to be 25 to 50
per cent which may be due to large number of inexperienced and part-time staffs. With
more and more players roll out their retail initiatives, industry experts expect that attrition
will rise at the managerial level too. At lower levels some perennial issues for high
employee turnover within the sector are: seasonal employment during peak trading period
and the perceived lack of career opportunities. This is especially true amongst students
many of whom are employed by retail organizations as undergraduates but would look
for alternative employment as graduates.
3.5 COMPLEX HUMAN RESOURCE ENVIRONMENT
The development of the retail sector is dependent on the availability of skilled and
knowledgeable manpower broadly at two levels- managerial and associates. Although
growing consumerism and availability of manpower are powering the growth of
organized retail business in India but skilled human resources are woefully short in
supply. Traditionally, the task content of frontline jobs has been low and segmented,
requiring little skill or training. It leads to cycle of low wages, low morale, and high
turnover and high customer dissatisfaction and, therefore, loss of sales. But at present the
need of the hour is to hire employees with the right skill set who can take care of
operational functions and also there is necessity to engage employees with the right
attitude as they need to work long hours and also on holidays and festive occasions.
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The retail human resource environment in India is very complicated with lack of
experienced and trained people, lack of sources of employment and little focus on
human resource planning, compensation measurement and working conditions. In
addition to this, the perception of working within retail is poor with entrenched beliefs
that all roles involve long and unsocial hours, which limits the ability of employees to
manage the balance between work and life. It may be business requirement to open the
retail stores on holidays and festivals, but from employees' perspective that deprives them
of community activities.
3.6 WOMEN IN RETAILING
Retailing has made a lot of progress in career advancement for women. Women
employees account for nearly 25-30% in the organized retail sector. According to
Shoppers' Stop CEO Govind Shrikhande "No wonder, retail is among the few sectors
where the ratio of women employees is the highest in India". Women employees are
considered to be far superior in terms of service standards and interpreting consumer
mood. Some of the biggest players in the organized retail turf are looking up to the fairer
sex, especially when it comes to dealing with higher attrition rates. Reliance Retail,
Future Group, Shoppers' Stop and RPG Retail are experimenting with a host of hiring
models to improve the ratio of fairer sex in their workforce. Mukesh Ambani's Reliance
has launched an initiative to encourage the spouses of employees to work in its retail
venture. Accordingly, the employees' wives are being trained to take up jobs (full time,
part time or on call) at Reliance Retail outlets. The Future groups plans to start stores,
which will be manned entirely by women. The focus of this model is on offering flexi-
career opportunities where women will be required to work for a maximum four hours a
day (Economic Times 2007).
Despite recent progress, women still don't get enough attention at retail firms. Retailers
need to address some of the issues with regard to female employees:
Equitable remuneration
Meaningful training program
Advancement opportunities
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Flexible timings (to manage their family responsibilities)
Job sharing among two or more employees who work less than fulltime
Child care
3.7 REQUIREMENT FOR CREATIVE HR PRACTICES
Retailers need creative HR practices to win over the war for talent hunt which is
imperative for success in Industry. Indian retailers need to develop a set of good HR
practices to enhance competency and retention of employees while developing processes
and systems that will address not only the current shortfall but also future challenges viz.
indiscipline, disengagement, disputes, trade union issues, sexual harassment, attrition etc.
Any organization can succeed by being compassionate to employees' genuine needs and
initiating HR policies which harness the potential of every employee.
As retail industry is luring the employees from other industry, this strategy may lead to
another set of challenges as the industry matures. The employees who are drawn from
other sectors may be worried about their growth opportunity, career path and other future
related issues.
To deal with these challenges the Indian retail industry needs to start putting in place
strong human resource systems and processes to manage a huge workforce in a
motivating environment.
3.8 RECRUITMENT CHALLENGES & EMPLOYING STRATEGY
Indian retail sector is facing some specific recruitment challenges, even companies
known to be leaders in retail industry are experiencing recruitment challenges, especially
for entry-level store employees and for store managers. Some of the recruitment
challenges are:
Finding the right talent that is willing to commit over the long-term.
Retail jobs in the frontline are near minimum wage jobs, although players in
specialty format tend to pay a little more. But pay cannot be used to hire people.
Retail jobs are also not career builders in the short run. Thus, making career paths
clear to new talent also poses as one of the biggest challenges.
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Competition and diversity are challenging too; everyone is looking for the same
highly-qualified employees.
To overcome these challenges retailers can employ following strategies to recruit
workers.
Build the brand name of the company in the overall employment market by
communicating its attributes in a way that distinguishes the company from the
competitors. The focus of the company can be on attributes such as inclusiveness,
competitiveness, fast-paced, goal-oriented, values-based, having high integrity,
graceful under pressure, fun, entrepreneurial and so on.
Highlighting the job opportunities through company's own website as well as
major job listing websites, such as monster.com and naukri.com targeting intranet
postings current employees so they can see where new opportunities are available.
Classified ads, signs at shopping malls, radio ads, brochures, message on sales
receipts can also be used for recruitment.
Employee referrals can also be promoted with bonuses for referring new hires that
stay with the company for at least a prescribed period of time.
The culture of a company, its values, and the way in which attributes are
expressed and demonstrated appears to be a significant factor in employees
choosing the retail company for which to work. It is also important to company
managers who select employees for their temperaments as well as their skills.
To overcome the short run career image, exposure to career paths to employees is
required. Different companies have different career path models which are
aligned with the company's culture, approach to employee communications, size
and available opportunities, and management approach. Along with this, showing
wages associated with career paths, showing career paths and opportunities,
internal promotions, internal job fairs can also be useful.
3.9 COMPENSATION STRATEGIES
The biggest challenge of ensuring employees contribution to business results is in
figuring out what kind of reward and recognition program to implement. Total
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compensation comprises direct monetary payments (salaries, commission and bonuses)
and indirect payments (paid vacations, health and life insurance and retirement plans). It
should be fair to both the retailers and its employees. To better motivate employees, some
firms also have profit-sharing.
In India, the compensation strategy for front-liners is conservative, while retailers
develop a very competitive plan for store managers. But if retailers want to provide
stability to their employees and also want them to act as the custodian of their business
who can contribute to business, they should plan for devising an effective compensation
strategy. In order to get maximum contribution from employees the retailers can design a
compensation program which is low on guaranteed pay but aggressive on store
profitability linked bonuses or incentives. Even those in support functions such as
merchandising, distribution, accounts and so on need to be rewarded based on the
performance of the stores that they are servicing.
3.10 ENGAGING AND RETAINING TALENT
It is challenging enough to find the right people, but more challenging is to retain and
engage competent employees. High attrition rate in retail is acknowledged as an accepted
but inefficient practice which not only affects retailers in their ability to develop and
retain talent, but also to drive higher levels of profit. The companies are forced to spend
time on recruiting and screening new talent, rather than in growing the business. The
impact of turnover also affects the experience levels of employees who are interacting
with customers and, therefore, may also impact the quality of service and the quantity of
sales. Hence, retailers must examine different strategies which they can use to engage
their employees, reduce turnover and boost morale. These strategies are given below:
Fairness/equitable treatment.
Better hiring processes and improved efforts to meet employee training needs.
Providing good work environment with clear values and goals.
Ensuring equitable pay and fair treatment.
Helping employees maintain a balance between personal and work life is a vital
strategy that can help retailers develop a happier, more productive and more loyal
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employee culture. Retailers should focus on sufficient hours of work and
flexibility in the scheduling of those hours to meet employees' personal needs as
well as those of the company.
To retain their people, the retailers should take every opportunity to tell
employees about the career paths and opportunities that exist to move ahead and
earn more money.
Leading retail companies of all sizes make investments in training. Although
some of the key retention strategies for entry-level employees are competitive
pricing (i.e. salary) but giving them the right training can also be a tool for
retention. Most of the companies gear a basic training to employees. But focusing
on training for specific competencies required for the positions within the
company and requirements at each job progression is also advisable for retention.
Retail companies emphasize on performance, although to achieve this they
provide the support needed to assure the employees will be successful in their
positions. Retailer can supplement this by emphasizing on special assignments,
rotations, and training which can be used by retail companies to keep their
employees.
In India, some leading retailers focus a lot on this issue. Reliance Retail has a
talent transformation program where people are made to identify their skill sets.
Employee retention through job enlargement in retail plays a crucial role as the
job markets perform better for skilled personnel.
Focusing on poly-chronic orientation (an employee's preference for switching
between multiple tasks within the same time-block) can be very useful. It has
been demonstrated empirically that a poly-chronic orientation has both direct
(employee fit) and indirect (through fairness perceptions) effects on retail
employee satisfaction.
3.11 CAREER ADVANCEMENT
Any Company's ability to recruit and retain a high-quality employee diminishes as the
perception grows that it offers limited advancement potential. This limited advancement
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potential within individual retail firms leaves many qualified employees with few options
other than to look elsewhere for employment, which, in turn, contributes to the turnover
costs paid by employers. Thus, providing opportunities for career advancement can be an
important attraction point to draw top-notch talent, although this can be a way by which
retailer "brand" their company in the employment market. Due to scarcity of experienced
and talented people, one can find that there are too many companies chasing too little
talent. Thus, in this competitive environment showing that a company offers the
employee a bright future provides a competitive advantage in recruitment. Career
advancement in companies can be done though:
Developing career path
Recognizing and communicating advancement opportunities
Company's commitment to internal promotion
Identification of critical positions
Developing talent and succession planning
3.12 HEALTHY MANAGEMENT PRACTICES
In conjunction with the above mentioned human resource management (HRM) practices
it is advisable for retailers to ensure healthy management practices. The implementation
of these practices is increasingly regarded as an important determinant of an
organization‟s competitive advantage. These are as follows:
Providing safe and secure workplace
Paying salaries on time
Providing and processing leaves, loans and other requests on time
Providing neat and clean wash rooms, changing rooms and rest rooms
Providing good uniform
Ensuring the handling of grievances
Equitable treatment at workplace
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3.13 ETHNIC DIVERSITY MANAGEMENT
Many multi-nation companies (MNCs) are going to open their retail outfits in India.
Naturally, employees profile is going to be a complex and diverse one. It requires
developing a global cultural management to take care of this future HR problem.
3.14 FUTURE EXPECTATIONS
Retail is a sunrise industry and perhaps one of the biggest industries having potential for
employees. It has appeared suddenly and going to increase in future. India has no past
experience of this type and of its magnitude. We have to get ready to meet the challenges
posed by it at HR front. No doubt, the primary responsibility has to be that of
government, both center and state but the challenges are so enormous that it required
private sector also to take active part. Government has to lay down the policy, which has
to be industry friendly but real entrepreneurial role has to be played by the private sector,
especially big domestic players in retail industry. Though, some players' viz. Future
Group, Reliance etc. have already taken initiatives, this growing industry requires many
more to come in to shape of either captive institutes or private public partnership for
creating, attracting, nurturing, and retaining trained manpower.
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4. RECRUITMENT AND SELECTION OF WORK ASSOCIATES
FOR “EASYDAY” STORES OF BHARTI-RETAIL LTD.
Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Company operates
easyday neighborhood stores and compact hypermarket stores called Easyday Market.
Bharti Retail provides consumers a wide range of good quality products at affordable
prices. Easyday stores are a one stop shop that caters to every family's day-to-day needs.
Merchandise at Easyday Market stores include apparels, home furnishings, appliances,
mobile phones, meat shop, general merchandise, fruits and vegetables among others.
4.1 STORE DEFINITION:
Easyday: These are 15,000 to 25,000 sq feet area stores that provide consumers a wide
range of good quality products at affordable prices. Merchandise include day to day
needs, fruits, vegetables, FMCG products, meat, chicken, fish, milk and milk products,
groceries, etc. These are also called as Small format stores and include a work staff of
around 25 people. There are 85 Easyday stores in India operating dated September 2010.
Easyday Market: These are 35,000 to 60,000 sq feet area stores that provide apparels,
home furnishings, appliances, mobile phones, meat shop, general merchandise, fruits and
vegetables and all item found in Easyday stores as well. These are also called as Medium
format stores and include a work staff of around 200 people. There are 7 Easyday market
stores in India operating dated September 2010.
Easyday Compact Hyper Market: These are very big stores more than 60,000 sq feet
area and contain almost everything to all kind of customers from day to day needs, fruits
vegetables groceries, meat chicken fish and other non-vegetarian item, apparels,
electronics, hardware, FMCG etc.
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4.2 RECRUITMENT & SELECTION AT BHARTI RETAIL LTD.
The requirements work associates for any store is given by the Business HR team to BAR
(Bharti Academy of Retail) team which does the recruitment and selection. For this
purpose at store location the Selection and training academy is set up. The permanent
academy is called HUB and the temporary academy is called SPOKE.
4.2.1 Eligibility
The eligibility criteria for candidates to become work associate at “Easyday” are as
follow:
Any person from age of 18 years to 60 years.
Any person able to read write and understand elementary English and
Mathematics.
Any person being the permanent resident of the state where the store is proposed
to be opened.
Any person able to speak and understand Hindi/English or local language.
Any person not a current employee of Reliance/Spencer‟s or Future group or for
past three months.
4.2.2 Sections At “Easyday” Stores
Each Easyday store has a certain allotment of candidates in certain sections. Following
are the various sections at Easyday stores:
Aisle
Backroom
Cash/ Till
Fruits and Vegetables
Meat/ Chicken and Fish
Electronics
Home Appliances
Sports
Apparels
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Freezer and Chiller
4.2.3 Categories to be Recruited as Work Associates
Following are the category of work associates that are recruited:
Differently Able: Any person with physical disability with hands and legs
only, also on the discretion of Store manager.
House Wife: Any married or divorced women.
School Dropout: Any person who left studies at school or pursuing the same.
College Dropout: Any person who left studies at college or pursuing the
same.
Rural: Any person residing in rural area near store location.
Mature Urban: Any person above 28 years.
Fruits and Vegetable Seller: Any person selling fruits and vegetable with a
considerable knowledge of them.
Meat/Chicken/Fish cutter: Any person who has skill of cutting meat,
chicken and fish.
Retired: Any person who has retired from his job as per government
regulations and is below 60 years of age.
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Figure 14: Manpower Requisition Format for Small Format “Easyday Store”.
S.No. App No. Name Gender Phone Address DoB Category Shift Timings Role
1 Male
CD
8 Hrs 6-3p.m. Backroom
2 Male
CD 8
Hrs 2-11p.m. Backroom
3 Male
DA/RU/RT
8 Hrs 6-3p.m. Cashier
4 Male DA
/MU/RU 8
Hrs 2-11p.m. Cashier
5 Female
HW
4 Hrs
7:30-12p.m. Cashier
6 Female
HW
8 Hrs 7-4p.m. Aisle
7 Female HW 4
Hrs 10:30-3p.m. Aisle
8 Male
MU 8
Hrs 2-11p.m. Aisle
9 Male RU 4
Hrs 5-
9:30p.m. Aisle
10 Male
SD 4
Hrs 6-
10:30a.m Aisle
11 Male SD 4
Hrs 4:30-9p.m Aisle
12 Male SD
4 Hrs
6:30-11p.m. Cashier
13 Male MT
8 Hrs
6-3p.m. Meat
14 Male MT 8
Hrs 2-11p.m. Meat
15 Male MT 8
Hrs 2-11p.m. Meat
16 Male FV 8
Hrs 2-11p.m. FnV
17 Male FV
8 Hrs 6-3p.m. FnV
18 Male
Extra Count- MU/RU
4 Hrs
6-10:30 AM Cashier
19 Male
Extra Count- MU/RU
4 Hrs
6:30-11 PM Cashier
20 Male
Extra Count- MU/RU
8 Hrs 2-11p.m. Cashier
21 Male FV 8
Hrs 2-11 pm FnV
Legends:
CD: College Dropout SD: School Dropout DA: Differently Able
RU: Rural MU: Mature Urban HW: Housewife
MT: Meat Handler FV: Fruit & Vegetable seller RT: Retired
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4.2.4 Recruitment and Selection process
4.2.4 (a) Activation:
The process starts with Activation or Sourcing process. In this process the information
about job opening is spread through word of mouth, leaf-let distribution and visiting over
various fruits and vegetable markets, meat and chicken markets/shops, colleges,
employment exchange, coaching classes, non government organizations, old age homes
etc. The members of BAR team interact with target audience and convince them to visit
the centre (HUB/SPOKE) where the further process carried.
4.2.4 (b) Counseling:
The candidate when visits the HUB/SPOKE is first asked to fill the Log register. Then
the BAR team member or the Trainer or the Counselor explains him about the company,
job profile and attends his/her queries about the job. Then Candidate after a preliminary
interaction if suited given a form to fill that asks about his/her basic details and asked to
take attest of Basic English and mathematics. This process is followed by an interview of
the candidate if he/she secures at least 7 marks in the test. The candidate is rated on a
scale of 5 with 1 as best and 5 as poor on categories like Eye Contact & Body Language,
Energy & Enthusiasm, Clear Communication, Attitude & Confidence, Well dressed /
Clean look. The candidate is assessed on the questions like:
Why he/she wants to a job?
Why he/she want this job?
Does he/she have a prior experience in retail?
How will he/she commute for work?
What are preferred work timings?
What is his/her family background?
What was the reason to leave previous job?
For Categories like Fruits and Vegetable sellers, Meat Cutters and Electronics,
Candidates are asked trade and skill related questions.
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After the interview if the candidate is selected he/she is issued a “Letter of Intent” asking
to join for short training at the HUB/SPOKE of 2 to 4 days. The rejected candidates are
kept in database. The candidates who are considered for future possibilities are kept
under “databank”. The complete paper work is done at the end of the day and all
information is reported to head office every day.
4.2.4 (c) Preliminary Training
A batch of 30 approx. candidates is made for the training. The training tells the candidate
about the retail industry, the company Bharti retail, its partnership with Wal-Mart,
various customer services, and their responsibilities as a work associate, store lay out,
various sections etc.
After the successful completion of training, the candidates are required to appear for a
written test about what all taught in training. All those securing at least 18 marks out of
30 are awarded Training Certificate and are called for the final interview with the Store
Manager.
4.2.4 (d) Final Interview
In the final interview the panelist are Store Manager, a member of Business Unit HR
team and a member of BAR team. The candidate is examined by the Store manager and
BU HR member and then placed in the appropriate section of the store. The selected
candidates are offered “Confirmation Letter” subjective to their Medical test conducted in
later part before joining.
4.2.4 (e) Fitment:
Fitment is a very important procedure by BAR team to fix the candidates position in the
store according to the shift and role preferred by the candidate. The number of
permutation and combination are required to make best available team then the
confirmation calls are made to candidates‟ for their medical and joining.
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4.2.4 (f) Replacements:
After the final staffing when the induction of work associates is started, sometimes few
candidates drop out due to various reasons. The BAR team has responsibilities to provide
the replacements from the Deferred candidates who have been given offer letter but not
asked to joined. The replacement process is a tedious job and requires great skills to
convert candidate to required positions
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5. KEY LEARNINGS AND SUGGESTION‟S
5.1 LEARNINGS
1. On Job Work Experience :
Internship with Bharti-Retail provided a valuable opportunity to have an on job
experience and to understand the day to day working of an organization. The on-
job experience gained during this internship helped in understanding business
environment and to have a feel of organizational behavior.
2. Understanding of Recruitment and Selection:
Bharti-Retail provided an opportunity of not only learning about the process of
recruitment and selection, but also allowed us to do recruitment; during this
period I recruited approximately 1000 store associates under guidance and
supervision of senior BAR team members. This helped me in understanding the
process and practically applying the concepts learned in class.
3. Insight into Retail Sector:
My stint with Bharti-Retail gave me better insight into retail sector HR practices.
It helped me in understanding various challenges being faced by HR department
in retail industry. It helped in understanding various practices being followed in
retail sector for controlling attrition rates, for manpower planning and motivation
etc.
4. Understanding of Working Style of Virtual Teams:
Opportunity to work with Bharti-Retail gave me an opportunity to have a better
understanding of working of cross-functional, virtual team. While working with
BAR Team we had to co-operate with other teams like Centum Learning‟s
trainers, BU–HR team, Bharti‟s internal call center teams which helped in
activation and was responsible for providing support to BAR team members by
manning All-India Helpline for prospective candidates and other teams
responsible for various logistics and arrangements. This helped me understanding
how to ensure clear line of communication within our team and with other teams.
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5. Understanding of Effects of Environmental Conditions on Recruitment Efforts:
During my internship, I was able to develop a better understanding of effects of
environmental or external factors on recruitment effort. The problems faced in our
efforts at various locations helped me understanding and appreciating the role of
factors like supply and demand of labor, government legislations and
demographic factors etc.
6. Leadership style (Decision Making, Level of empowerment):
The level of empowerment in this organization is very high. Leaving the lowest
level of workers the people are empowered to take decisions on their own
regarding their immediate requirements. As almost all the jobs require a specialist
for example a person who is on field for activation is empowered to take the
decision of which one to use as his knowledge is better that in that field.
5.2 SUGGESTIONS:
Based on my experience and observation during summer internship; I would like to
suggest following measures which can help in creating greater efficiency in the process:
Higher position to people with work-experience in retail sector: Although
Bharti-Retail gives Weightage to people with prior work experience in retail
industry but it does not give any increment or higher team position to such people.
Every prospective candidate is offered the position of store associate, which is the
staring level in Bharti-Retail, irrespective of the fact that the person has work-
experience or not. Such a policy hampers recruitment of people with relevant
work experience.
Simplification Of Training Course Content For Special Categories: The
course content of preliminary training for special categories (Meat cutter and Fruit
and vegetable sellers) should be simplified and made more concise. During
training it was observed that drop-out rates of these candidates were higher in
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comparison to other categories. On subsequent follow-up it was found that
inability to understand the training content and its complexity was one of the
reasons for high drop-out rates.
Salary Structure According to Local Conditions: The salary structures for
stores were decided on state level and were uniform throughout the state. This
created difficult situation in some cities/towns where cost of living was high and
labor was in short supply. In such locations the salary being offered to candidates
were not competitive enough for hiring store associates who were qualitatively
better.
Introduction of Some More Positions in Stores: The hierarchy level in Easyday
stores is very flat and simple; it is difficult for a person to have a quick career
progression. This situation contributes towards attrition. Adding some more
positions which are a kind of dry- promotion helps in creating a sense of self
respect and importance in store associates. This also makes the job more lucrative
to a prospective candidate.
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6. REFERENCES
1. Beach, D. S. (1975). Personnel : the management of people at work. New York:
Macmillan.
2. Flippo, E. B. (1984). Personnel Management (Sixth Edition ed.). (K. A. Meyer,
Ed.) Singapore: Mc Graw- Hill Book Company.
3. Nair, N.G. and Nair, Latha. (2004). Personnel Management and Industrial
Relations, S. Chand
4. Consumer markets, Indian Retail: Time to change lanes, KPMG Research report,
2009
5. Michael, Levy and Barton A. Weitz. Retailing Management,5th Edition, Tata
McGraw-Hill
6. Berry Berman and Joel R. Evans, Retail Management - A Strategic Approach ,9th
Edition, Prentice Hall
7. http://www.thefreelibrary.com/Indian+retail+sector+HR+challenges+%26+measu
res+for+improvement-a0185430723, 21/9/2010, 10:30 am
8. http://www.articlesbase.com/marketing-articles/the-exuberant-age-of-retail-in-
india-354650.html, 21/9/10, 12:30 pm
9. http://www.citehr.com/128473-hr-challenges-retail.html , 22/09/10, 8:30 pm
10. http://www.spacedpractice.com/ , 22/09/10, 9:00pm
11. http://www.ibef.org/industry/retail.aspx, 23/09/10, 10:00pm
12. http://www.managementstudyguide.com/employee-selection-process.htm
13. http://business.mapsofindia.com/sectors/retail.html
14. http://www.naukrihub.com/top-ten-employers/india-retail/
15. http://www.sathguru.com/Note_on_Retail_Industry.pdf
16. http://www.bharti.com/about-us/group-overview.html
17. http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId
=35933316
18. http://economictimes.indiatimes.com/articleshow/2726034.cms