NAINCY PROJECT 2014-2016

1
Certificate By Guide
This is to certify that Ms. NAINCY BARANWAL of Centre for Management Development (CMD), PGDM
Semester-II has successfully completed the summer training project on the Topic: RECRUITMENT &
SELECTION under my guidance for the partial fulfillment of the requirement of PGDM.
This report is the record of authentic work carried out by the student during the academicyear 2012-13.
Faculty Guide:
Mrs. SHALINI SHEEL
(Signature of faculty guide)

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DECLARATION
I the undersigned declare that the report of the project work entitled RECRUITMENT & SELECTION is based
my own work carried out during the course of my study under the supervision of MS. ANKITA JAISWAL .I
assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that
to the best of my knowledge and belief that the project report does not contain any part of any work which has
been submitted for the award of any other degree/diploma/certificate in this Institute or any other Institute.
Name: NAINCY BARANWAL
Roll No.: 201424
(Signature of the Candidate)

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ACKNOWLEDGEMENT
I convey my sincere gratitude to DR. AMITABH ROY (Director), for providing us an opportunity to do a
training work for our betterment & good exposure & to my mentor Mrs. SHALINI SHEEL (Faculty member)
for her support and guidance.
I am highly obliged to Mr. Sanjay Srivastava( Head, H.R), Mrs. Swati (Deputy Head H.R) Ms.
AnkitaJaiswal (manager, HR), who guided & helped me a lot in my project.
I would like to thank all the employees of Cashpor Micro Credit for their valuable suggestions and
constant encouragement.
I am thankful to all the respondents for showing such a patience& cooperation because without the help of all
these persons my project will remain incomplete.
With all these I am very thankful to my parents for their support and care, and I apologized for my any omission
and mistakes in report as from my side I prepare it by my best.
NAINCY BARANWAL
PGDM(2014-2016)

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TITLE
(Declaration, acknowledgment, summary)
(CHAPTER 1 )
INTRODUCTION
(CHAPTER 2)
COMPANY OVERVIEW
(CHAPTER 3)
LITERATURE PERSPECTIVE
CHAPTER 4)
RESEARCH METHODOLOY
(CHAPTER 5)
DATA ANALYSIS
(CHAPTER 6)
FINDING S & SUGGETIONS
CHAPTER 7)
CONCLUSION
APPENDIX
BIBLIOGRAPHY
2,3,5
6-11
12-26
27-31
32-35
36-46
47- 48
49
50-60
61

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EXECUTIVE SUMMARY
INTRODUCTION OF PROJECT :
This project is been prepared to put a light on Recruitment and Selection process. This project includes Meaning
and Definition of Recruitment and Selection, Need and Purpose of Recruitment.. Sources of Recruitment
through which an Organization gets suitable application., which an Organization should follow for, right
manpower. Job Analysis, which gives an idea about the requirement of the job. Next is Selection process, which
includes steps of Selection, process.
Recruitment and Selection are simultaneous process and are incomplete without each other. They are
important components of the organization and are different from each other. Since all the aspect needs practical
example and explanation this project includes Recruitment and selection Process of CASHPOR MICRO
CREDIT. And a practical case study.
ABOUT ORGANIZATION:
The project titled “RECRUITMENT AND SELECTION” Undertaken inCASHPOR MICRO CREDIT.
CASHPOR Micro Credit is a poverty focused, not for profit Company that provides microfinance exclusively to
Below Poverty Line women in eastern U.P. and Bihar.
It is one of the leading MFI’S company in India. CASHPOR Micro Credit founder chairman ,Prof. David S.
Gibbons.
There are two types of Recruitment Department in company
 Operational recruitment  Support recruitment
The objective of selection decision is to choose the individual who can most successfully perform the job from
the pool of qualified candidates. Selection process follow a standard pattern, beginning with an initial screening
interview and concluding with final employment decision..
Right person for the right job‟ is the basic principle in recruitment and selection.

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CHAPTER: 1
1.1 INTRODUCTION
This is an internship report. Post Graduate Diploma In Management (PGDM) Course requires attachment with
an organization followed by a report assigned by the supervisor in the organization and endorsed by the faculty
advisor. I took the opportunity to do my internship in a MFI company which is one of the leading micro finance
service provider in India.
Under the proper guidance of Ms. AnkitaJaiswal, I have conducted my study on ‘Recruitment and Selection
process in CASHPOR Micro Credit. My faculty supervisor Mrs. ShaliniSheel also approved the topic and
authorized me to prepare this report as part of the fulfillment of internship requirement and gave me proper
guidance and assistance over time.
Recruitment and selection are two of the most important functions of personnel management. Recruitment
precedes selection n and helps in selecting a right candidate.
Recruitment is a process to discover the sources of manpower to meet the requirement of thestaffing schedule
and to employ effective measures for attracting that manpower in adequatenumbers to facilitate effective
selection of efficient personnel.
Staffing is one basic function of management. All managers have responsibility ofstaffing function by selecting
the chief executive and even the foremen and supervisors have astaffing responsibility when they select the rank
and file workers. However, the personnelmanager and his personnel department is mainly concerned with the
staffing function.
Every organization needs to look after recruitment and selection in the initial period andthereafter as and when
additional manpower is required due to expansion and development ofbusiness activities.
EverOrganization should give attention to the selection of its manpower, especially its managers. Theoperative
manpower is equally important and essential for the orderly working of an enterprise.
Every business organization/unit needs manpower for carrying different business activitiessmoothly and
efficiently and for this recruitment and selection of suitable candidates areessential. Human resource
management in an organization will not be possible if unsuitablepersons are selected and employment in a
business unit.

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1.2 MICROFINANCE COMPANY;
1. Microfinance is a general term to describe financial services to low-income individuals or to those who do not
have access to typical banking services. Microfinance is also the idea that low-income individuals are capable
of lifting themselves out of poverty if given access to financial services.
As these financial services usually involve small amounts of money - small loans, small savings, etc. - the term
"microfinance" helps to differentiate these services from those which formal banks provide.
It's easy to imagine poor people don't need financial services, but when you think about it they are using these
services already, although they might look a little different.
Poor people save all the time, although mostly in informal ways. They invest in assets such as gold, jewelry,
domestic animals, building materials, and things that can be easily exchanged for cash. They may set aside corn
from their harvest to sell at a later date. They bury cash in the garden or stash it under the mattress. They
participate in informal savings groups where everyone contributes a small amount of cash each day, week, or
month, and is successively awarded the pot on a rotating basis. Some of these groups allow members to borrow
from the pot as well. The poor also give their money to neighbors to hold or pay local cash collectors to keep it
safe.
Micro financing is not a new concept. Small microcredit operations have existed since the mid 1700s. Although
most modern microfinance institutions operate in developing countries, the rate of payment default for loans is
surprisingly low- more than90%of loans are repaid.
Like conventional banking operations, microfinance institutions must charge their lenders interests on loans.
While these interest rates are generally lower than those offered by normal banks, some opponents of this
concept condemn microfinance operations for making profits off of the poor.
The World Bank estimates that there are more than 500 million people who have directly or indirectly benefited
from microfinance-related operations.
1.3RECRUITMENT:

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Recruitment According to Edwin B. Flippo, recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization‖. Recruitment is the activity that
links the employers and the job seekers. A few definitions of recruitment are:
1. Recruitment is a process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The result is a
pool of applications from which new employees are selected.
2. Recruitment is the process to discover sources of manpower to meet the requirement of staffing
schedule and to employ effective
3. Recruitment measures for attracting that manpower in adequate numbers to facilitate effective selection
of an efficient working force.
1.3.1SOURCES OF RECRUITMENT
INTERNAL SOURCES EXTERNAL SOURCES
Promotion Campus recruitment
Transfers Press advertisement
Internal notification Management consultancy service
Retirement
Management training scheme
Former employees
Walk-ins, write-ins, talk-in
1.4SELECTION PROCESS:
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

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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 .But selection must be differentiated from recruitment, though these are two
phases of employment process. Recruitment is considered to be a positive process as it motivates more of
candidates to apply for the job. It creates a pool of applicants. It is just sourcingof data. While selection is a
negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing
process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required
job.
1.4.1ESSENTIALS OF SELECTION PROCEDURE
The selection process can be successful if the following requirements are satisfied..
1. Someone should have the authority to select. This authority comes from the employment requisition as
developed by an analysis of the work-load and work force.
2. There must be some standard of personnel with which a prospectiveemployee may be compared,
a comprehensive job description and job specification should be available beforehand.
3. There must be sufficient number of applicant from whom the required number of employees
may be selected.
1.5Background of the study

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There is no doubt that the world of work is rapidly changing. As part of an organization then, HRM must be
equipped to deal with the effects of the changing world of work. For them this means understanding the
implications of globalization, technology changes, workforce diversity. Changing skill requirements, continuous
improvement initiatives contingent workforce, decentralized work sites and employee involvement are the issue
for confront. Now it is a big challenge for the HRM to support the organization by providing the best personnel
for the suitable position in shortest possible to me.
Starting with recognizing the vacancies and planning for them is a great task. Moreover selecting attracting the
suitable candidates and selecting the best person in time is a challenge.
The cost of the recruitment is significant. So, proper planning and formulate those plan is the task that require
more focus and improvement. Equal opportunity and sourcing is alsoa vital part. Realizing this need we tried to
find the difference and similarities betweentheoreticalaspects with the practical steps taken by the company. We
took an attempt todemonstrate the feature for the further improvement.
1.6PURPOSE: -
The basic purpose of this study and doing Project in organization is to bridge the gap between the theoretical
knowledge and the practical applications and it is a requirement in partial fulfillment of our educational
curriculum as well.
The specific purpose of the study and survey was to know about the “Recruitment & selection process” at
Cashpor Micro Credit and its applicability

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CHAPTER : 2
2.1COMPANY OVER VIEW
CASHPOR MICRO CREDIT
Fig. 1
CASHPOR Micro Credit is a poverty focused, not for profit Company that provides microfinance exclusively to
Below Poverty Line women in eastern U.P. and Bihar.

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2.1.1Vision & Mission:
VISION
"We see all BPL women in eastern Uttar Pradesh, Bihar, Jharkhand ,Chhattisgarh, Madhya
Pradesh/Bundelkhandaccess to microfinance services, and many utilizing them to lift themselves and their
families out of poverty. At the same time, we see that their families have become healthy, and their children
are in school."
MISSION
"Our Mission is to identify and motivate BPL women in the rural areas, and to deliver financial and other
vital credit+ services to them in an honest, timely and efficient manner, so that our Vision is realized and
CASHPOR itself remains a financially sustainable microfinance institution for the poor."
2.1.2WORKING PHILOSPHY :
It is a Mission and Vision of CASHPOR Group to reduce the poverty through delivering of sustainable
financial services to poor women. We focus to develop our employees in order to become effective
contributors towards the Mission and Vision of the company and we have a clear view of what and how an
effective contribution would look like.
Our working philosophy is to attract, develop and retain the talent from all levels and create an
environment that is conducive to self development and career development for employees. We more
emphasize on training and career development having an objective to create a smarter workforce to yield the
best result. We believe that our working philosophy can only be achieved if the goals are clearly defined and
checks are established. Human work can never be absolutely error free. However, a reasonable relationship
between effort and positive attitude always must be kept in mind to minimize the error and strive to be the
best.

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`
Audit
Committee
Credit Committee
Chairman
CASHPOR- ORGANIZATIONAL STRUCTURE
BOARD
Vice-Chairperson
MD
CAO
Board & MD’s
Secretariat
COOCFO
Head Office
Operations Team
(DDOs/ADOs/
EAs)
ADFHead Planning
&Financial
Management.
ICT Account
&Taxati
on
Admin &
Establish
ment
HRD IAD
Head Admin &
Establishment
Head
IAD
BM
AM
DRM
RM
RM Regional Manager
DRM Deputy Regional Manager
AM Area Manager
BM Branch Manager
CM Center Manager
ICT Information & Communication Technology
M&R Monitoring & Reporting
IAD Internal Audit Department
HRD Human Resource Development
MD Managing Director
ADF Associate Director Finance
HOT Head Office Operations Team
COO Chief Operations Officer
DDO Deputy Director Operation
ADO Assistant Director Operation
EA Executive Assistant
GRC Grievance Redressal cell
CFO Chief Financial Officer
CAO Chief Administrative Officer
HEST Health Education Services & Training
Managers/OfficerManagers/Officer
M & R
SCM/ CM/PCM/TCM
ADO
HEST
Sub debt
Pvt. Bank
Financing
Planning
Pub. Banks
Financing
GRC
Head
ICT
Head
Account
Head
Insurance
Head
HRD
Internal
Fund &
Treasury
Managem
ent
Note – Operations handle services of Credit, Savings, Remittance, PFRDA and NPS Lite (Pension Product)

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STRUCTURE OF HRD:-
HEAD
H.R.DEP.HEAD(S
TAFFING& INTERFASE)
SR. MGR. H.R.
( H.R.I.S.)
SR.
MGR.H.R.(B.C.
)
MGR. REC.
OPERATION
N
MANAGER
OFFICER OFFICER
OFFICER
MANAGER
OFFICEROFFICER
OFFICER
OFFICER
MANAGER
OFFICER
OFFICER
JUNIOR
MANAGER
JUNIOR
MANAGER
OFFICER
OFFICER
OFFICER
OFFICER
OFFICER OFFICER
CAO

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RECRUITMENT
&
SELECTION PROCESS
IN
CASHPOR
22..22 IINNTTRROODDUUCCTTIIOONN::
Recruitment and Selection aim to search and hire suitable candidate to fill up the vacancies in Cashpor
with the view to satisfying human resources needs.
Any position within Cashpor that become vacant is filled on requisition of the Head of Department
having approval from Managing Director. A newly created position will only be activated upon approval
from the board.
2.2.1 PURPOSE:
1. Placing the RIGHT PERSON in RIGHT PLACE at RIGHT TIME.
2. Ensure that recruitment is considered an essential part of the human resource
3. Attract and encourage more and more candidates to apply in the organization.
4. To enable the selection of best candidates for the organization.
5. To increase the productivity of the organization.
6. Ensure and explain best practice for all types of recruitment.
2.2.2RECRUITMENT & SELECTION CELL IN CASHPOR:
In CASHPOR , there are two types of function for recruitment & selection process :-
1. SUPPORT
2. OPERATION

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Support function does recruitment for Head office, &
Operation function does recruitment for field work.
2.3RREECCRRUUIITTMMEENNTT&& SSEELLEECCTTIIOONN PPRROOCCEEDDUURREE IINN OOPPEERRAATTIIOONNSS::
HRD will ensure that there will always be a pool of TCM (fresher candidates) to fill up the future
vacancy of Centre Manager = 200 candidates. As soon as only 50 (fifty) candidates are left to be
absorbed in the pool, HR Department will start recruiting Trainee Centre Managers to bring the pool
back to the level of 200 candidates and will complete the recruitment exercise in a period of 10 days
from the date it reaches the level of 50 candidates.
FIG.6

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FIG.7
2.3.1 PSO ( PRE SELECTION ORIENTATION):
PSO is the additional stage or step put in the operations Recruitment in Cashpor as a new initiative to
reduce entry level employee attrition. This is to project the actual employment terms and environment
within the organization. This Includes describing the following-
a. Self Introduction.
b. Company Introduction. (Establishment, Registration, Current Position etc.)
c. Company Structures. ( Zones, Branches, Portfolio )
d. Meaning Of MFI ( Micro Finance Industries)
Vacancy
Advertisement
PSO CV'S received
3 days Field
Exposure
Training
GD, Test,
Interview
Candidate
Selection
Appointment
Induction

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e. Nature of Work done by CMC. ( How we work, Who are our Client & Why only BPL Families.
)
f. Benefits for Client.
g. Company Products.
h. Carrier Path of Candidates.
i. Benefits of Candidates.
j. Promotion Criteria.
2.3.23 DAYS FIELD EXPOSURE TRAINING-
After complete of PSO candidates go for field training ( 3 days ) to get the practical knowledge
about the work.
Minimum eligibility to apply for the post of TCM
1. Male candidate- Qualification Intermediate with 50% cut off marks*
2. Female candidate- Qualification High School with 50% cut off marks*
Age limitation:
1. Male candidate- Min-18 & Max-25*
2. Female candidate- Min-18 & Max-40

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2.3.3 WORK PERFORMED UNDER RECRUITMENT CELL OPERATION:
1. Conducting PSO in Operational Areas of Company & when required.
2. Coordinating interviews & the selection process for Operational Staff.
3. Preparation of Reports, Database of PSO & Interviews planned and conducted.
4. Follow up of Joining of TCM Staffs’
5. To conduct the Campus placement in Operational Areas.
6. Proper maintenance of CVs
7. To conduct induction of TCM Staffs
8. To work with drop out ratio.
9. To conduct the workshop for staff in operational Region.
10. To maintain & prepare report on Appointment Cancellation Cases.
2.3.4 Barriers:
1. Travelling & Health Issues of Supportive Department.
2. Awareness Issues.
3. Govt. Issues.
4. Decision Making Issues.
5. Distance Issues. Etc.

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2.3.5 SWOT ANALYSIS OF OPERATION RECRUITMENT:
Strength:
AGood Team
Work
•HighPotential.
•Ready to
accept the new
Challenges.
Weakness:
•Lackof
Manpower.
•Lesssupport
fromour
Internal
Departments.
Opportunities:
•Wider Space for
Recruitment.
•New Expansion
isalmost
interlinked.
•Chancetoget
intractedwith
newtalents
Threat:
•Language
barriers.
•Distance
Problems.
•Dropouts.
•Internal
behaviors
FFIIGG..88

21
22..44 RREECCRRUUIITTMMEENNTT&& SSEELLEECCTTIIOONN PPRROOCCEEDDUURREE IINN SSUUPPPPOORRTT::
22..44..11 RREECCRRUUIITTMMEENNTT PPRROOCCEEDDUURREE IINN SSUUPPPPOORRTT DDEEPPAARRTTMMEENNTT::
1. Identify the vacancy.
2. Receipt of requirement of manpower from various department heads.
3. Scrutinize them and take approval from concerned authorities if the position is new.
4. Prepare a recruitment budget and CTC for the employee and take approval.
5. Identify the appropriate Recruitment process.
22..44....22 RREECCRRUUIITTMMEENNTT PPRROOCCEESSSS
1. Prepare Advertisements etc for the recruitment through employee referrals, News papers, HR
Consultancies, Head Hunters and Job Portals.
2. Scrutinize and shortlist the applications received
3. Send interview call letters/mails as required.
4. Conduct written test and interviews through panels.
5. Preparation of offer letters as required.
22..44..33 CCrriitteerriiaa ooff SShhoorrtt LLiissttiinngg ffoorr SSuuppppoorrtt
Short listing of CVs as per the Qualification & requirement.
There is no maximum age bar to apply for the position in support department in case of experienced candidate.

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FIG.9
Vacancy
Job description
Sourcing candidate
Cvs recieved
Shortlist the
applications
Send interview call
Technical
screening(optional)
Panel
interview
Candidate
Selection
Appointment
Induction

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2.4.4 SWOT ANALYSIS OF SUPPORT RECRUITMENT :
Strength:
•Different
sourcesuse
Weakness:
•Not usinglatest
technologyof
recruitment
Opportunities:
•Hugeno. Of
applicantat
entry& middle
level
Threat:
• New mfi’s ( staff
retention)
FIG.9

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2.5INDUCTION
Given below are the processes and the procedures that is followed
while inducting a new joiner in CASHPOR...
1. The new joinee will be taken in as a trainee / probationers and are provided with a joining kit.
2. For fresher, the induction will include the following:
3. Completion of joining formalities
4. Overview and orientation of Departments
5. Field and Departmental Training for the prescribed period for fresher.
6. At the end of the training, trainees will be evaluated based on their performance.
7. The training period could be extended for another 30 days or terminated based on the performance of the
individual.
8. No further training beyond thirty (30) days will be provided.
9. The trainee will be given a trainee’s ID card and during their period of training, the trainee is paid
training allowance.
10. On successful completion of the training, the trainees will be taken on probation for a period of seven
months and will be referred to as a probationer.
11. The management may terminate the period of probation at the end of the prescribed period; or may
extend the period of probation (based on evaluation).
12. On successful completion of the probation period the probationer is employed on a confirmed basis and
given confirmed employee’s identity card.
13. No employee during training, probation or after confirmation; in form or service be engaged in any
business / service outside that of the company.

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CHAPTER : 3
LITERATURE PERSPECTIVE

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FIG.3
3.1HISTORY OF MICROFINANCE:
The concept of microfinance is not new. Savings and credit groups that have operated for centuries include the
"susus" of Ghana, "chit funds" in India, "tandas" in Mexico, "arisan" in Indonesia, "cheetu" in Sri Lanka,
"tontines" in West Africa, and "pasanaku" in Bolivia, as well as numerous savings clubs and burial societies
found all over the world.
Formal credit and savings institutions for the poor have also been around for decades, providing customers who
were traditionally neglected by commercial banks a way to obtain financial services through cooperatives and
development finance institutions.
One of the earlier and longer-lived micro credit organizations providing small loans to rural poor with no
collateral was the Irish Loan Fund system, initiated in the early 1700s by the author and nationalist Jonathan
Swift. Swift's idea began slowly but by the 1840s had become a widespread institution of about 300 funds all
over Ireland. Their principal purpose was making small loans with interest for short periods. At their peak they
were making loans to 20% of all Irish households annually.
In the 1800s, various types of larger and more formal savings and credit institutions began to emerge in Europe,
organized primarily among the rural and urban poor. These institutions were known as People's Banks, Credit
Unions, and Savings and Credit Co-operatives.
The today use of the expression micro financing has it roots in the 1970s when organizations, such as Grameen
Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, where starting and shaping the modern
industry of micro financing. .
Microfinance can be called a novel approach to provide saving and investment facility to the poor around world.
Improved access and efficient provision of savings, credit, and insurance facilities in particular can enable the
poor to smoothen their consumption, manage their risks better, gradually build their asset base, develop their
business, enhance their income earning capacity, and enjoy an improved quality of life.
In India, microfinance mainly operates through Self Help Group (SHGs), Non Government Organizations
(NGOs), and Credit Agencies. It provides poor people with the means to find their own way out of poverty. It
put the power squarely in their hands, giving them a larger stake in their own success than one –time donation
of food, goods, or cash.The system of microfinance was introduced about 28 years back with an organization of

27
Grameen Bank in Bangladesh by a famous economist Prof. Mohammed Yunus. He observed that most villagers
were unable to obtain credit at reasonable rates. So he began to lend them money from his own pocket, allowing
the villagers to buy materials for projects like weaving bamboo tools and making pots (New York Times, 1997).
Ten years later, DrYunus had set up Grameen Bank as a project in one of the village in Bangladesh in 1976 to
assist poor families by providing credit to them. Today micro-finance has been widely spread all over the world
as an effective tool to poverty eradication.
3.2 MICROFINANCE IN INDIA-
• India is said to be the home of one third of the world’s poor; official estimates range from 26 to 50 percent of
the more than one billion population.
• About 87 percent of the poorest households do not have access to credit.
• The demand for microcredit has been estimated at up to $30 billion; the supply is less than $2.2 billion
combined by all involved in the sector.
• Microfinance has been present in India in one form or another since the 1970s and is now widely accepted as
an effective poverty alleviation strategy
• The microfinance industry has achieved significant growth in part due to the participation of commercial
banks, despite this growth, the poverty situation in India continues to be challenging.
• The Indian Microfinance sector has been rated as one of the fastest growing sectors in the world • There are
1,000 MFIs operating in India (as of March 2009)
• MFIs have reached 234 of the 331 poorest districts identified by the government
• At present lending to the economically active poor both rural and urban is pegged at around Rs 7000 crores in
the Indian banks‟ credit outstanding.

28
• As against this, according to even the most conservative estimates, the total demand for credit requirements
for this part of Indian society is somewhere around Rs 2,00,000 crores.
• MFIs cater to over 55mn people in India, with 90% of them being women
• The total market potential is to have a reach of about 275-300mn people in India
The main features of microfinance are:
 Loan given without security
 Loans to those people who live below the poverty line
 Members of SHGs may benefit from micro finance
3.3RECRUITMENT & SELECTION
Definition:
Edwin Flippo defines Recruitment and selection process as "A process of searching for prospective employees
and stimulating and encouraging them to apply for jobs in an organization."
In simpler terms, recruitment and selection are concurrent processes and are void without each other. They
significantly differ from each other and are essential constituents of the organization. It helps in discovering the
potential and capabilities of applicants for expected or actual organizational vacancies. It is a link between the
jobs and those seeking jobs.
3.3.1 Work by Taher et al. (2000):
Toward that end Taher et al. (2000) carried out a study to critique the value-added and non-value activities in a
recruitment and selection process. The strategic manpower planning of a company, training and development
programme, performance appraisal, reward system and industrial relations, was also appropriately outlined in
the study.

29
3.3.2 Work by Korsten (2003) and Jones et al. (2006):
According to Korsten (2003) and Jones et al. (2006), Human Resource Management theories emphasize on
techniques of recruitment and selection and outline the benefits of interviews, assessment and psychometric
examinations as employee selection process. They further stated that recruitment process may be internal or
external or may also be conducted online. Typically, this process is based on the levels of recruitment policies,
job postings and details, advertising, job application and interviewing process, assessment, decision making,
formal selection and training (Korsten 2003).
Jones et al. (2006) suggested that examples of recruitment policies in the healthcare, business or industrial
sector may offer insights into the processes involved in establishing recruitment policies and defining
managerial objectives.
3.3.3Work by Alan Price (2007):
Price (2007), in his work Human Resource Management in a Business Context, formally defines recruitment
and selection as the process of retrieving and attracting able applications for the purpose of employment. He
states that the process of recruitment is not a simple selection process, while it needs management decision
making and broad planning in order to appoint the most appropriate manpower.
3.3.4(Gilmore, and Williams, 2009):
Recruitment and selection forms the foundation of the core activities and processes underlying human resource
management and such activities include the acquisition, training and development, and rewarding performance
of workers
3.3.5Dublin August 7, 2015:
Research has shown that many Australian CEOs believe that 80 per cent of their problems are ‘people issues’
resulting from poor selection, job fit, behaviour and performance. Poor selection can be costly – in terms of
high staff turnover and absenteeism, failed relationships with colleagues and less than satisfactory customer
service and quality. Putting in place effective recruitment, selection and on-boarding processes gives you
significant return on investment.

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CHAPTER: 4
RESEARCH METHODOLOGY
FIG.4

31
4.1METHODOLOGY:
The process used to collect information and data for the purpose of making business decisions. The
methodology may include publicationresearch, interviews, surveys and other research techniques, and could
include both present and historical information.
This chapter explains how the research was conducted. It starts with a brief definition of research, the design,
then followed by the method and procedures that were used in collecting data:, the population, sampling size
and sampling technique, data collection, data analysis, and limitations.
4.2SCOPE: -
The report deals with the recruitment and selection process in terms of theoretical point of view and the
practical use. The study will allow learning about the recruitment and selection issues, importance, modern
techniques and models used to make it more efficient. The study will help to learn the practical procedures
followed by the leading organizations. Moreover the study will help to differentiate between the practice and
the theories that direct to realize how the organization can improve their recruitment and selection process.
4.3OBJECTIVES OF THE STUDY:
To understand the current Recruitment Policies being followed at “Cashpor Micro Credit” conducted this
study and to know how effectively it is being implemented in the organization.
• To study the present Recruitment Policies “Cashpor Micro Credit”
• To study the different methods of recruitment & selection depending on the requirements
of the organization.
• To find the relationship whether jobs offered based on qualification to the employees
in the organization.
• To study the level of job satisfaction in the organization.
• To study the changes of recruitment policy in recent times in the organization.
• To know how the company fulfills its manpower requirements

32
4.4 SAMPLE DESIGN:
4.4.1POPULATION:There are total 200 employees in company
4.4.2 SAMPLE SIZE:
The study was conducted with sample size of 55 employees selected at random fromboth supervisory and staff
of “Cashpor Micro Credit”
4.4.3SAMPLING –
A process used in statistical analysis in which a predetermined number of observations will be taken from a
larger population. The methodology used to sample from a larger population will depend on the type of analysis
being performed, but will include simple random sampling, systematic sampling and observational sampling.
Sampling was done using randomly method.
Table no.1
DEPARTMENT NAME EMPLOYEES NO.
HRD 6
FINANCE 10
ACCOUNTING 12
IT 8
GRIEVANCE 5
ADMINISTRATION 4
TRANING & DEVELOPMENT 10
TOTAL 55

33
4.5DATA COLLECTION:
In everyday life human being has to face many problems viz. social, economical, financial problems. These
problems in life call for acceptable and effective solutions and for this purpose, research is required and a
methodology applied for the solutions can be found out. Research was carried out atCashpor Micro Credit to
find out the “Recruitment and selection process”.
4.5.1 Primary Data: A detailed and well-structured questionnaire was presented to the managerial staff at
Cashpor Micro Credit “Copies of the questionnaire being distributed to the employees at random to obtain their
views followed this. Further discussions regarding the recruitment policies were held with the HRD manager to
have an in-depth knowledge and future plans of the company for its effective implementation.
4.5.2 Secondary Data: Secondary data was gathered from academic texts and company profile from
company’s website.
4.5.3 Data collection tool:For data collection I used structure tool (QUESTIONNAIRE)
Questionnaire is a series of questions asked to individuals to obtain statistically useful information about a
given topic.
.In this project questionnaire use for knowing about right process of recruitment & selection in company.
4.6DATA ANALYSIS
The required data has to be collected through the Survey conducted so as to evaluate the extent of awareness
among the employees regarding the Recruitment & Selection in the Organization.
4.7STATISTICAL TOOLS USED: -
Pie charts has been used for the analysis and interpretation of the data collection.

34
4.8LIMITATION OF PROJECT STUDY
Every research has its limitation. Following are certain limitation while conducting this project survey
 Reliability and authenticity of data totally depends on honesty of the respondents. The findings are based
on the response from the respondents as such they may not be totally authentic.
 Due to pressure of work some employee may not give enough thoughts and attention while filling up the
questionnaire.
 Survey population is only the on-roll employees who are assigned at the head office not the other
employees working in operations.
 Inaccessibility to some of the representatives of the management.
 Upper management were not been participated in the survey.

35
CHAPTER: 5
DATA ANALYSIS
FIG 10

36
Analysis From Employees :
In survey 87% taking participant by male & 13% by female.
2)Does the organization clearly define the position objectives, requirement& candidate specification in the
recruitment process?
According to employees, 63% strongly agree, 11% agree, 13% disagree, 11 % strongly disagree &2% neither
disagrees nor agreesfor organization clearly define the recruitment process.
87%
13%
Employees in survey
Male (48) Female(7)
0%
63%11%
13%
11%
2%
Chart Title
Strongly agree(35) Agree(6)
Disagree(7) Strongly disagree(6)
Neither agree nor disagree(1)

37
3) Is the organization doing timeliness recruitment & selection process?
According to employees,58% strongly agree, 20% agree, 18% disagree, 2 % strongly disagree & 2% neither
disagrees nor agrees for organization doing timeliness recruitment & selection process.
4)Does HR provides an adequate pool of quality applicants?
According to employees, 43% strongly agree, 24% agree, 29% disagree, 2 % strongly disagree & 2% neither
disagrees nor agrees for HR provides an adequate Pool of quality applicants.
58%
20%
18%
2%2%
Chart Title
43%
24%
29%
2%2%
Chart Title

38
5) Rate the effectiveness of the interviewing process & other selection instruments, such as testing?
According to employees they give 69% adequate, 20% poor, 11% excellent rating for effectiveness of the
interviewing process & other selection instruments, such as testing.
6) Rate how well HR finds good candidates from non- traditional sources when necessary?
According to employees they give 69% adequate, 20% poor, 11% excellent rating for HR finds good candidates
from non- traditional sources when necessary.
20%
69%
11%
Chart Title
Poor(11) Adequate(38) Excellent(6)
15%
76%
9%
Chart Title

39
7) The employees competency match with the job specification?
According to employees, 7% strongly agree, 60% agree, 12% disagree, 7% strongly disagree & 1% neither
disagrees nor agrees for .employees competency match with the job specification
8) Morale of the existing employees can be lowered due to poor process of recruitment & selection.
disagrees nor agrees for morale of the existing employees can be lowered due to poor process of recruitment &
selection.
7%
60%
19%
12%2%
Chart Title
11%
55%
25%
2%7%
Chart Title

40
9) The hiring helps in identifying the competence both visible & hidden aspects?
disagrees nor agrees for hiring helps in identifying the competence both visible & hidden aspects
10)Is internal hiring helps in motivating the employees?
disagrees nor agrees for internal hiring helps in motivating the employees.
20%
60%
11%
4%5%
Chart Title
30%
54%
7%
4%5%
Chart Title

41
11) HR department on being result oriented?
disagrees nor agrees for .HR department on being result oriented
12) Do you think organization look for experienced employees in selection process?
disagrees nor agrees for .organization look for experienced employees in selection process.
7%
62%
13%
13%
5%
Chart Title
16%
64%
9%
6%5%
Chart Title

42
13) Do you think organization prefers referred candidates?
According to employees, 7% strongly agree, 64% agree, 13% disagree, 7% strongly disagree & 9%
neither disagrees nor agrees for .organization prefers referred candidates.
14) Rate the working relationship between the HR department 7 other department in the organization?
According to employees they give 56% adequate, 22% poor, 22% excellent rating for relationship between the
HR department 7 other department in the organization
7%
64%
13%
7%
9%
Chart Title
22%
56%
22%
Chart Title

43
15) How would you rate the HR department’s performance in recruitment & selection?
According to employees they give63% adequate , 22% poor, 15% excellent rating for HR department’s
performance in recruitment & selection.
16) What should be the best recruitment sources according to your preference?
According to employees they give preference, 85% for both, 11% for external recruitment ,4% for internal
recruitment .
24%
62%
14%
0%
chart
Poor adequate Exellet
5%
11%
84%
0%
chart
Internal resource External resource Both

44
Analysis From HR Manager in support department:
1) Source use in recruitment:
According to hr. manager they use 43% internal sources & 57% external sources for recruitment.
2) Method use in recruitment & selection:
According to hr. manager they prefer 43% direct methid, 21% indirect method , 36% by help of other party.
43%
57%
Chart Title
Internal source(43%) External source(57%)
43%
21%
36%
Chart Title
Direct (43%) Indirect (21%) Third party (36%)

45
3) Prefer to go for manpower planning:
According to hr. manager they prefer 90% yearly, & 10 % without fixed time for manpower planning.
4) Sources for external recruitment:
According to hr. manager they prefer 40% from casual applicants, 40% from data bank , 10% from campus
interview, 10% from placement agencies for external recruitment.
90%
0%
10%
Chart Title
Yearly (90%) Quartly(0%) No fixed time(10%)
10% 10%
40%
40%
Chart Title
Campus interview(10%) Placement agencies(10%)
Data bank(40%) Casual applicants(40%)

46
CHAPTER:6
FINDINGS
&
SUGGETIONS

47
6.1 FINDING:
1. There are different types of Recruitment& selection steps in “Cashpor Micro Credit”
2. There are different types of recruitment& selection methods use in a micro finance organization.
i. Direct method
ii. Indirect method
iii. Third party
3. Different type of department needs different type of qualification.
Position Qualification
Tcm Intermediate
HR manager Professional qualification
Junior It specialist Software knowledge
Finance manager Tally + PG
Receptionist Graduation
Guard Matriculate
4. Organization uses the different type of sources for external recruitment.
i.) Casual applicant
ii.) Data bank
iii.) Campus agencies
iv.) Placement agencies
5. In cashpor, they prefer to go yearly for manpower planning..

48
6.2PROBLEMS:
1. Throughout the survey I got that some of employees have some issues with the recruitment & selection
process.
2. Some employees want selection should not base on personal relation.
3. Recruitment & selection process should not improve.
4. Vacancy should not disclose to everyone on time.
5. Advertisement should not give.
6.3SUGGETIONS:
1. The information should be clearly passed to the lower level of organisation.
2. Ccandidateshould not select on only relation or referral base ,give to equal chance to every one
3. . Latest technology should be use for recruitment & selection process.

49
CHAPTER ; 7
CONCLUSION:
The conclusion is drawn from the study and survey of the company regarding the recruitment & selection
process carried out from CASHPOR MICRO CREDIT.
1. In company, they recruit the candidates from difference resources. Online portal also use in company.
2. The recruitment process at CASHPOR MICRO CREDIT to some extent is done objectively and
therefore lot of bias hampers the future of the employees. THAT is why the search or headhunt of
people should be of those whose skill fits into the company’s values.
3. Most of the employees were satisfied but changes are required according to the changing scenario as
recruitment process has a great impact on the working of the company as a fresh blood, new idea enters
in the company.
4. In company, Selection process is good. Difference type of process for difference department. But it
should also be modified according to the requirements & should job profile so that main objective of
selecting the candidate could be achieved.

51
FORMAT OF 3 DAYS FIELD EXPOSURE TRAINING LETTER:-
dS”kikWjekbØksØsfMV
ch@4Mh-vkbZ-thdkyksuh] okjk.klh
fnukad------------
FOUR DAYS ACTIVITY AT BRANCH
vH;kFkhZdkuke -------------------------------------------------------------------------
firkdkuke -----------------------------------------------------------------------------
czkWpijfjiksZVdjusdhrkjh[k --------------------------------------------------- ls -------------------------------------------
---------------- rd
ijh{kkvkSjlk{kkWRdkj dh rkjh[k---------------------------------------------------------- LFkku--------------------------
czkWpeSustjdkuke---------------------------------------------------czkWpdkuke-----------------------------------------
-- eks0u0----------------------------------czkWpeSustj ds }kjkvH;kFkhZ ds ckjsesfd;kx;kewY;kadu-------------
--------------------------------------------------------------------------------------------------------
czkWpeSustjdkgLRkk{kj o czkWpeksgj
Fnu dk;Z czkWpeSustj ds
}kjkHkjktkukpkfg,]
fdD;kmUgkasus ;g
tkudkjhnhA¼gkW ;k
ugha½
igysfnudkdk;Z lsaVjfefVax ds ckjsestkudkjhnsuk
nqljsfnudkdk;Z lh ,p vkbZvkSjihihvkbZdhtkudkjhnsuk
rhljsfnudkdk;Z VkWjxsfVax ds ckjsestkudkjhnsuk
pkSFksfnudkdk;Z czkWp ds dk;ksZ ds
ckjsestkudkjhnsuktSls&jftLVj] yksunsusfdizfdz;
vkSjcUngksus ds rjhds] dh tkudkjhnsuk

53
FORMAT OF APPOINTMENT LETTER
CMC/HRD/ DD/MM/YYYY
Mr. ABC (Staff ID- 0000)
S/O Late XYZ
Address: Vill. – Samardihan,Post :- MardanRaiKePipara ,Thana:- Karghar,
, Dist.:- Rohtas, Pin Code:- 221002
Contact. No. XXXXXXXXX
Dear Mr. ABC,
Your appointment as Office Executive
Congratulations!
On the basis of your performance in the interview held at Varanasi, we are pleased to offer you the position
of Office Executive at the rank of Officer on Contract for a period of six months w.e.f DD/MM/YYYY.
At the address is mentioned as below :
Siwan
CASHPOR Micro Credit
C/O Mrs.NituSrivastava
W/O Mr..Vinod Kr. Srivastava
East Of Khurmabad,
Beyand Of Lalit Narayan Bus Stand,Siwan
RM – XXXXXXX
Admin – XXXXXXX
Accordingly, you will report to RM - Siwanfor further instruction regarding your duties on DD/MM/YYYY
at 9:30 am.

54
Duties & Responsibilities for Saving Project
1. You will match the number of forms received from the Branches entered in top sheet with total number
of forms you actually received and if found correct the receiving will be given on register along with
carbon paper. So, the receiving will be imprinted on carbon copy as well.
2. You will keep the carbon copy with yourself for record. And while receiving the SAOCF forms you will
enter the batch number, number of forms and date of receiving in register and will sign thereabout.
3. After receiving the form, You will verify the forms within T+2 means two working days with the help of
provided ICT link (IDBI Saving Client verification) and will enter the mobile number on the Link. It is
important to note here that you will be able to change/enter only mobile numbers of clients on the ICT
Link and nothing else could be changed.
4. You will generate an excel sheet of the verified forms on the basis of the link provided by ICT (IDBI
Saving Client verification) and will ensure that the digitization done matches with the information in
SAOCF form. Also, you will make a call to client and ask whether they are interested to open their
Savings Account or not.
5. Once you receive the information of approved clients for saving from Bank through PM-BC Relations,
you have to get two copies of this printed and will keep one copy with you for record and will send other
copy to branch through BM or CM on coming Wednesday or Saturday and maintaining the records of
receiving properly.
Along with above, you will do the work as instructed by your RM related to services of Admin, HRD,
Accounts, Credit, PFRDA, Insurance and other products.
Terms & Conditions:
1. Extension of contract, renewal or confirmation at position will depend upon your performance, after
completion of six months of your services. In case if your performance is not found satisfactory or your
service is not required any more to company, your contract of employment will automatically be ceased.
2. The Company reserves the right to utilize your services within the Group, anywhere in operational area.

55
3. You will be governed by all the rules, regulations, staff Circulars, Office Order etc. of the company
issued time to time.
4. You will be entitled for one non-encashable leave per month during contract period.
Salary and Benefits:
During the contract period of six months, you will be getting consolidated salary as per company policy.
Exit Clause:
The employment can be discontinued, by either party serving one month notice in writing or making the
payment of one month salary in lieu of such notice to the other party. If you become unauthorized absent for
more than eight days your contract will be ceased automatically.
We wish you all the best and expect that you will continue to perform with excellence.
We look forward for working with you, with the aim “reduction of poverty” in India.
Head HRD
1) Cc:
2) The RM, Siwan
3) The Head Accounts, Siwan
4) The Head, Claims & Bonus, HO.
5) The Head Insurance, HO

56
Format of Exit Interview
Exit Interview for support / Operation Staff
Source of Interview – Telephone (Ph. no)/ Face to face
Date
1.) Name: -
2.) ID: -
3.) Supervisor’ Name: -
4.) Base Station: -
5.) DOJ: -
6) Date of Resignation: -
7)Date of Reliving/Last working day-
8.) Reason of Resignation:
a. Personal reason.
b. Supervisor’s behavior
c. Salary issue
d. Any other
9) What did you like good during your working period?
10) What did you not like good during your working period?

57
11) How is training work in Company?
12) How is the working environment for female staff in Company?
13). Suggestion for Company to do better –
14). Ageing of Employee in Cashpor Micro Credit:
a. More than 5 year
b. Between 1 to 5 year
c. Less than 1year
d. Months
15). Status of the Employee: (from 360* Evaluation)
a. Very Good
b. Good
c. Satisfactory
d .Unsatisfactory
Specific Remark:
Employee Name: Exit interview Taken By:
Date:

58
Questionnaire
Name (optional): Designation: Gender:
Q1. Since how many years have you been working with this organization?
a. 0-5 Years
b. 5-10 Years
c. 10 to 15 Years
d. More than 15 Years
( with reference of chart no. 1)
Q2. Does the organization clearly define the position objectives, requirements and candidate specifications in
the recruitment process ?
a. Strongly Agree
b. Agree
c. Disagree
d. Strongly Disagree
e.Neither Agree nor Disagree
Q3. Is the organization doing timeliness recruitment and Selection process ?
a. Strongly Agree
b. Agree
c. Disagree
Q4. Does HR provides an adequate pool of quality applicants ?
a. Strongly Agree
b. Agree

59
c. Disagree
Q5. Rate the effectiveness of the interviewing process and other selection instruments, such as testing?
a. Poor
b. Adequate
c. Excellent
Q6. Rate how well HR finds good candidates from non-traditional sources when Necessary?
a. Poor
b. Adequate
c. Excellent
Q7. The employees competency match with the job specification ?
a. Strongly Agree
b. Agree
c. Disagree
Q8. Morale of the existing employees can be lowered due to poor process of Recruitment &Selection .
a. Strongly Agree
b. Agree
c. Disagree

60
Q9. The hiring process helps in identifying the competence both visible (like Knowledge, Skill) and Hidden
aspects (like behavioral, social role, Self Image, Trait)
a. Strongly Agree
b. Agree
c. Disagree
Q10. Is internal hiring helps in motivating the employees?
a. Strongly Agree
b. Agree
c. Disagree
Q11. Rate the H.R. Department on being result oriented?
a. Strongly Agree
b. Agree
c. Disagree
Q12. Do you think Organization look for experienced employees in selection process?
a. Strongly Agree
b. Agree
c. Disagree

61
Q13. Do you think organization prefers referred candidates?
a. Strongly Agree
b. Agree
c. Disagree
(With reference of chart no. 13)
Q14. Rate the working relationship between the H.R. Department & other department in the organization?
a. Poor
b. Adequate
c. Excellent
Q15. How would you rate the HR department’s performance in recruitment and selection?
a. Poor
b. Adequate
c. Excellent
(with reference of chart no. 15)
Q16.What should be the best recruitment sources according to your preference?
a. Internal Recruitment
b. External Recruitment
c. Both

62
BIBLIOGRAPHY
1. H.R. Manual of CASHPOR.
2. Operation Manual of CASHPOR.
3. Report of Human Resource Management in Microfinance Institutions.
4. http://en.wikipedia.org/wiki/Microfinance.
5. http://www.microfinanceinfo.com/history-of-microfinance/.
6. http://www.slideshare.net/vivekthota/recruitment-selection-15721860.
7. http://www.slideshare.net/jyoti_g/ppt-on-recruitment-selection-process.
8. http://www.investopedia.com/terms/m/microfinance.asp
9. www.kiva.org/about/microfinance
10. https://en.wikipedia.org/wiki/Microfinance
11. http://www.businessdictionary.com/definition/research-methodology.html
12. http://www.ukessays.com/essays/business/literature-review-recruitment-and-selection-process-business-
essay.php
13. http://www.investopedia.com/terms/s/sampling.asp
14. http://stattrek.com/statistics/dictionary.aspx?definition=simple_random_sampling
15. https://en.wikipedia.org/wiki/Questionnaire_construction
16. https://www.peterberry.com.au/recruitment-and-selection

NAINCY PROJECT 2014-2016

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