PROJECT REPORT

On
RECRUITMENT AND SELECTION PROCESS

BY
ANSHUL RANA

1NH17MBA08

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI,
BANGALORE

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Dr.M.S.Vijay Rao

2018-19

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 CERTIFICATE

This is to certify that Anshul Rana bearing USN (1NH17MBA08), is a bonafidestudent of Master
of Business Administration course of the Institute 2018-19, autonomous program, affiliated to
Visvesvaraya Technological University, Belgaum. Internship report on “RECRUITMENT AND
SELECTION PROCESS” is prepared by her under the guidance of Dr.M.S.Vijay Rao , in partial
fulfillment of requirements for the award of the degree of Master of Business Administration
of Visvesvaraya Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

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 DECLARATION

I, Anshul Rana, hereby declare that the Internship report entitled “Recruitment and selection
process” with reference to “VIDI Solutions” prepared by me under the guidance ofDr.M.S.Vijay
Rao, and prof. of Management Department, New Horizon College of Engineering.
I also declare that this Internship is towards the partial fulfillment of the university regulations
for the award of the degree of Master of Business Administration by Visvesvaraya
Technological University, Belgaum.
I have undergone an internship for a period of Eight weeks. I further declare that this report is
based on the original study undertaken by me and has not been submitted for the award of a
degree/ diploma from any other University / Institution.

Signature of Student
Place:
Date

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 EXECUTIVESUMMARY

This report is prepared on the basis of my Two-month practical experience at

VIDI Solutions pvt Ltd.
VIDI’s primary purpose is to create systematic social impact by supporting the
small business eco-system in India. They do this by crafting products and
solutions with the small business owner at the center.
During the Two month internship period at VIDI, I have developed full and
complete understanding into the working of the company, how and why loans
are provided to SMEs,and what criteria is followed and how success is achieved.
I Have worked in the HR and recruitment cell of VIDI Solutions, and conducted
Recruitment for candidates – starting from screening, interviews and follow-ups.

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 TABLE OF CONTENTS

CHAPTER NUMBER TOPIC NAME PAGE NUMBER

Chapter: 1 Introduction 6-8

Chapter: 2 Literature Review 9-24

Chapter: 3 Research Methodology 25-36

Chapter: 4 Data Analysis and Interpretation 37-72

Chapter: 5 Summary of Findings , Suggestions and 73-77

Conclusion
Chapter: 6 Learning experience, Bibliography and 78-83
Annexure

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 CHAPTER: 1
THEORETICAL
BACKGROUND

INTRODUCTION

VIDI Solutions is a pioneer access to capital for micro and small businesses. Their vision is to
create a financially inclusive community by providing products and solutions to micro and
small businesses generating new jobs and improving livelihoods. It provides financing of USD
$2,000 to $20,000 to small-to-medium enterprises (SME) in India. The company is focused on
lending to growing businesses that require funding for working capital, capital assets, and
start-up needs. VIDI Solutions focuses on industries including agri-products, handicraft
production, water, food, and energy.

OBJECTIVE OF STUDY:

Internship Program of NEW HORISON COLLEGE OF ENGINEERING is a post-Graduation

requirement for the MBA students. This study is an l requirement of the Internship program of
the New Horizon College of Engineering. The main purpose of the internship program is to
get the student exposed to the job world. Being an intern the main challenge was to translate
the theoretical concepts into real life experience. An internship is like a glimpse of the real job.
The Real Purposes of the Internship Program are:

 Practical knowledge about the jobresponsibility.

 To experience the real corporateworld.

 To compare the real situation with the lessons learned in theAcademy

 To fulfill the requirement of MBAProgram.

This report is the result of two months long internship program conducted at VIDI Solutions
And is prepared as a requirement for the completion of the MBA program of New Horizon
College of Engineering.
The overview of the organization and also facilities they offer to satisfy their employees.

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SCOPE OF THE STUDY:

This report is sort of a real life case study, which means it is the illustration of the real scenario
of the selected organization. So the scope of this report is limited. The first scope of this report
is to have practical experience about how a research is done in the business organizations.

SIFNIFICANCE OF THE STUDY:

Methodology:

The study is conducted in a systematic procedure starting from selection of the topic to final
report preparation. The integral part was to identify and collect data; they were classified,
analyzed, interpreted and presented in a systematic manner to find the vital points. The
overall process of the methodology followed in the study is explained further.

Sources of Data:

Data are collected from both primary and secondary sources -

PrimarySources

 Observation of theorganization.
 Discussion with officials and concernedexperts.

SecondarySources

 Annualreport
 Newspapers
 Internet
 Textbook

Collection of Data:

Primary data I collected from observation method, face to face communication with the
officials. Secondary data was collected from VIDI websites and other related websites and
documents.

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LIMITATIONS:

Depending on the feedback from employees of Human Resource Department, Sales and
Commercial department this report has prepared. Though the report would be helpful to VIDI.
Some people were reluctant to provide feedback. Some concerned might think that the
information associated with them was confidential enough to disclose to the external world.
Another problem was time constraint. In case of research, the sample size was quite small as it
was not possible to analyze a large sample due to time constraint. The duration of my work
was only two months. But this period of time is not enough for a complete and clear study. It is
because of the limitation of information some assumptions were made. So there may be some
personal mistakes in the report. Although there were many limitations I tried to give my best
effort to furnish thereport.

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 CHAPTER: 2
LITERATURE
REVIEW

VIDI SOLUTIONS

India has been in the global spotlight recently on account of the economic progress it has been
experiencing. According to a McKinsey Report, India stands to hold the third spot as a
progressive GDP growth giant in the year 2030. One of the most critical factors behind the
economic growth of India is its thriving business environment. SMEs and MSMEs have gained
noticeable traction as investors and the government are also interested in funding startups
and nurturing innovative ideas.

While initial funding in a startup is usually personal capital or investor aligned, SME loans are a
powerful tool for any company that suffers from a liquidity crisis or is willing to expand in the
market.

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Why SMEs:

SMEs plays an important role in the economic development of a country. Their role in terms of
production, employment generation, contribution to exports & facilitating equitable
distribution of income is very critical. The SMEs broadly consists of:

1) The traditional cottage & household industries such as village industries, handicrafts, and
coir industries.

2) Modern SMEs.

The traditional village and cottage industries as distinguished from modern SMEs are mostly
unorganized and located in rural areas and semi urban areas. They normally do not use power
operated machines/appliances & use relatively lower levels of investment & technology. But
they provide part time employment to a very large number of poorer sections of the society.
They also supply essential products for mass consumption & exports.

The modern SMEs are mostly defined in terms of the size of investment &labor force. The
industries (Development & Regulation) defines, SMEs having less than 50 workers with the aid
of power or less than 50 workers with the aid of power.

Government is extending various steps towards SMEs. In addition, the SMEs has been
supported and encouraged by various government policies for infrastructure support,
technology up-gradation, preferential access to credit, preferential policy support, etc.

Specific Contributions of Small Scale Sector:

1. The contribution of Small scale sector to the manufacturing sector and GDP as a whole is
significant in terms of its share in total value added.

2. Small scale sector performs to the manufacturing sector and GDP as a whole is significant in
terms of its share in total value added.

3. SMEs can play a role in mitigating the problem of imbalance in the balance of payment
accounts through its export promotion.

4. While the large scale industries are expected to increase the inequities of income and
concentration of wealth, SMEs are expected to help widespread equal distribution of income
and wealth.

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5. Small sector may provide opportunities to a large number of capable and potential
entrepreneurs who are deprived of appropriate opportunities.

6. It can help to release scarce capital towards productive use.

7. SMEs can reap the benefits of lean production and can find new cost-efficient techniques of
lean production.

8. As small units can use resources more efficiently to the full capacity without any wastage,
they may have higher allocation efficiency.

9. As the element of risk is low in SMEs, more resources will be employed by large number of
labor force.

Here’s how banks and non-banking financial companies (NBFCs) categorize the small medium
business segments:

Micro-firms

For a manufacturing firm, the total value of capital should be INR 25 Lakhs. In case of a service
sector organization, the value of total capital can be INR 10 Lakhs

Small Firms

The range of capital value for a manufacturing firm can be INR 25 to 500 Lakhs. In case of a
service organization, the range is INR 10 lakh to 200 lakh

Medium-Sized Firm

The range of capital value for a manufacturing firm can be INR 500 lakh to 1000 lakhs.
Moreover, for a service organization, the value ranges from INR 200 to 500 Lakhs.

VIDI Solutions, is a registered trademark of Visage Holdings and Finance Private Limited
(NBFC), a Bangalore based social business that provides loans in the range of Rs.1 Lakh to
Rs.15 Lakhs to micro and small enterprises (MSMEs) filling the gap between micro-finance and
commercial capital.

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THE “MISSING MIDDLE”
There are 171 banks operating in India with 76,000 branches and over 12,000 NBFCs (non-
banking financial companies). There are 26 million small enterprises in India employing 60M+
people. Only about 5% of these enterprises have access to the capital they require. Lending to
MSMEs has repeatedly been emphasized as priority sector lending by the Reserve Bank of
India. However, the credit gap is not getting better, as traditional banks are struggling to serve
this market. These small and growing enterprises are in dire need of capital. In fact a report
released by Intellecap for the International Finance Corporation (IFC), part of the World Bank
Group, estimates that the debt gap for micro & small enterprises in India is about $198 billion,
growing at 11% per year.
Traditional banks are generally unwilling to make small ticket loans to these micro and small
enterprises due to the perceived risk of such businesses especially without some form of
collateral. Microfinance institutions have been able to successfully provide small
uncollateralized loans to individuals and community groups however, based on regulations in
place, microfinance loans are capped at Rs 100,000 (~$2000). Whilst informal lending through
local money lenders is readily available, the annualized interest rates charged can be as high as
80%-100%.

There is a large funding gap between microfinance and commercial capital that can be filled by
a formalized lending process to micro and small enterprises and it is this “missing middle”
market that VIDISolutions seeks to address through its innovative business models and
products.

Mission

Our mission is to pioneer access to capital for micro and small businesses

Vision

Our vision is to create a financially inclusive community by providing products and solutions to
micro and small businesses generating new jobs and improving livelihoods.

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INVESTORS:

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DEBT PARTNERS:

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TARGET CUSTOMERS:
VIDI Solutions, a brand of Visage Holdings and Finance Private Limited (NBFC) is a Bangalore
based social business that fills the gap between microfinance and commercial capital. We
provide loans to businesses that fulfill the following requirements:

– A registered business entity (e.g. SSI, TIN, VAT, DIC, etc.)

– A sole proprietor or partnership firm

– Operating for a minimum of 6 months for manufacturing businesses and minimum of 3 years
for other businesses.

– With monthly turnover of Rs. 1 to Rs. 20L

– The business owner must have a minimum of 5 years of work experience in the same
industry

– Be an established member of the local community for a minimum of 2 years

– Have excellent buyer and personal references

QUALITY POLICY
 Committed to achieve quality objective through continuous employee training
and maintaining congenial workingenvironment

 Dedicated to make every effort to understand consumer needs to provide

maximum satisfaction and to achieve marketleadership.

WORKING STRATEGY

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PRODUCTS
VIDI Solutions provides term loans and receivables financing to producers and providers across
the value chain for asset purchase or working capital needs.

 custom risk assessment methodology,

 flexible product terms,
 customer-centric processes and
 Supply chain integrationenable us to complete the loan process in 7-10 days typically.

They have two products:

Term Loan Product

Purpose:
Asset Purchase or Working Capital

Tenor:
24-60 months

Interest Rate:
26%-28% p.a. on a reducing balance basis

Utilization:
Can be used to buy a new or used asset or
For working capital needs to help grow your business

Repayment:
Monthly via ACH/Post Dated Cheques

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Line of Credit Product

Purpose:
Working Capital

Tenor:
3-12 months

Interest Rate:
26%-28% p.a. on a reducing balance basis

Utilization:
For working capital needs to help grow your business

Repayment:
Monthly via ACH/Post Dated Cheques

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SWOT ANALYSIS

STRENGTHS
 Unique, presence in high yield, high growth business segments and superior sustainable
returns
 Customers are largely drawn from VIDI Group’s chit fund subscribers leading to lower
credit risk
 Strong presence in semi-urban, and rural areas of Southern and Western India

WEAKNESS
 Operates in high-risk segments. Asset quality in these segments is cyclical
 Dependence on wholesale funding is high. The company is trying to reduce this by
exploring the NCD route 
 Gold loan business runs on cash

OPPORTUNITY
 Operates in underpenetrated business segments with huge growth potential
 Currently only 45-50% of the total branches offer the entire product suite. Expansion of
product offering at such locations would result in higher growth
 Yet to explore the whole set of customers.

THREATS:
 VIDI operates in small-ticket retail finance. High yield in this segment could attract stiff
competition  Significant concentration in southern region, especially Tamil Nadu
 SFBs, like Equitas, have access to lower cost of funds

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MCKINSEY’S 7S FRAMEWORK

McKinsey 7s model

It is a tool that analyzes firm’s organizational design by looking at 7 key internal elements:
strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are
effectively aligned and allow organization to achieve its objectives.

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The model can be applied to many situations and is a valuable tool when organizational design
is at question. The most common uses of the framework are:

 To facilitate organizational change.

 To help implement new strategy.
 To identify how each area may change in a future.
 To facilitate the merger of organizations.

 Strategy is a plan developed by a firm to achieve sustained competitive advantage and

successfully compete in the market. What does a well-aligned strategy mean in 7s
McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is
long-term, helps to achieve competitive advantage and is reinforced by strong vision,
mission and values. But it’s hard to tell if such strategy is well-aligned with other
elements when analyzed alone. So the key in 7s model is not to look at your company to
find the great strategy, structure, systems and etc. but to look if its aligned with other
elements. For example, short-term strategy is usually a poor choice for a company but if
it’s aligned with other 6 elements, then it may provide strong results.

 Structure represents the way business divisions and units are organized and includes
the information of who is accountable to whom. In other words, structure is the
organizational chart of the firm. It is also one of the most visible and easy to change
elements of the framework.

 Systems are the processes and procedures of the company, which reveal business’ daily
activities and how decisions are made. Systems are the area of the firm that determines
how business is done and it should be the main focus for managers during
organizational change.

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 Skills are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of
what skills the company will really need to reinforce its new strategy or new structure.

 Staff element is concerned with what type and how many employees an organization
will need and how they will be recruited, trained, motivated and rewarded.

 Style represents the way the company is managed by top-level managers, how they
interact, what actions do they take and their symbolic value. In other words, it is the
management style of company’s leaders.

Mckinsey’s 7S Factors Alignment

1 Strategy Market Yes
penetration

2 Structure Divisional Yes

structure

3 Systems personnel Yes

management
systems.
4 Skills Skills related to Yes
service offering
and business
support, but few
managerial and
analytical skills.
5 Staff Many employees Yes
and appropriate

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 motivation and
reward systems.
6 Style Democratic style Yes

7 Shared Values Enthusiasm and Yes

excellence

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KEY MANAGEMENT TEAM MEMBERS:

Hardika Shah, Founder & CEO

In her role, Hardika is responsible for setting the strategic direction and working with internal
and external stakeholders to deliver the vision of the company.

Thirunavukkarasu (Thiru) R., COO

As the Chief Operating Officer, Thiru is responsible for leading and managing sales, credit risk,
recovery, back-office business operations, call center operations and HR.

Aiswarya Ravi, CFO

In her role, Aiswarya is responsible for a wide range of activities from accurate management
and reporting of company financial information to building lender relationships to tracking and
managing regulatory compliance requirements

JijyOommen, CTO
In her role, Jijy is responsible for leading the digital transformation and delivering technology
innovations to drive business outcomes.

Ranga Aparna, Vice President, Credit Risk

As VP of Credit Risk, Ranga Aparna is responsible for evaluating the key risk controls in lending
and employing innovative processes to improve customer experience.

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Rajesh Agarwal, Associate Vice President, Legal & Recovery
In Rajesh's role as head of Legal and Recovery, he is responsible for all the loan recovery
processes and legal recourse for recovery in the organization.

FINANCIAL IMPLICATIONS

1 Business model: The success of the education institution lies on the ability to set up low cost
center with minimal infrastructure and low cost study material. The fixed costs have to be kept
low and SAPPERS manages to achieve this by planning for multiple programs at all the centers.
This not only helps in reducing the overheads of setting up and maintaining multiple center,
but makes it easier to monitor on a regular basis.

2 Integrating the education institution with the local branch operations: Due to the
widespread presence we leverage this network to for our centers and our branch staff.

3. Externalities: We were unsure whether facilitator would be ready to work at lower salaries
than those at other industries. However, we found that many women preferred the dignity
and respect associated with a teacher to higher earnings.

KEY SUCCESS FACTORS

FACILITATOR RETENTION: one critical factor will be facilitator retention as a significant

investment is made in their training, and there is a reputation risk associated with attrition.
Thus, SAPPERS decided to take a deposit from each facilitator upon employment, refundable
at the completion of one year.

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HIGH INVOLVEMENT OF BRANCH STAFF: successfulimplementation requires effort and
enthusiasm from the staff. It has been observed that the centers success is directly
proportionate to the branch manager enthusiasm for the program.

EFFECTIVE MARKETING: A well timed and effective marketing campaign is essential to ensure
high enrolment. Direct campaigning through meeting as well as door –to-door campaigns met
with the mixed result.

HIREING EDUCATION COORDINATORS: Education coordinators serve as back-up in case the

existing facilitator cannot attend to their responsibilities. Periodic meeting between BMs and
facilitator should be strictly enforced to ensure effectiveness of centers. The competency level
of the facilitator in handling children should be appraised during meetings. This is currently
being done through education coordinator appointed and will eventually be taken over by
hiring similar coordinators within sappers.

TECHNOLOGY BASED LEARNING: one of the important key success factor of sappers in
technology based learning means learning through video based teaching will be more
effective.

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 CHAPTER:-3
RESEARCH
METHODOLOGY

OBJECTIVE:
SME finance is the funding of small and medium-sized enterprises, and represents a major
function of the general business finance market – in which capital for different types of firms
are supplied, acquired, and costed or priced. Capital is supplied through the business finance
market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements;
equity/corporate bond issues; venture capital or private equity; asset-based finance such as
factoring and invoice discounting,[1] and government funding in the form of grants or loans.
However, not all business finance is external/commercially supplied through the market. Much
finance is internally generated by businesses out of their own earnings and/or supplied
informally as trade credit, that is, delays in paying for purchases of goods and services.
The economic and banking importance of the small and medium enterprise (SME) sector is
well recognized in academic and policy literature. It is also acknowledged that these actors in
the economy may be under-served, especially in terms of finance. This has led to significant
debate on the best methods to serve this sector.

Although there have been numerous schemes and programmes in

different economic environments, there are a number of distinctive recurring approaches to
SME finance.

 Collateral based lending offered by traditional banks and finance companies is usually
made up of a combination of asset-based finance, contribution based finance,
and factoring based finance, using reliable debtors or contracts.
 Information based lending usually incorporates financial statement lending, credit scoring,
and relationship lending.
 Viability based financing is especially associated with venture capital.
 Reliable for all the small ticket loan.
 The entity type not depending on the value of the business

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An SME loan is given for the following purposes:

1. Working Capital Requirement

2. Expansion
Working capital (the capital of a business which is used in its day-to-day trading operations,
calculated as the current assets minus the current liabilities) requirement loans can be of the
following nature:

1. Cash Credit facility against the primary security of stocks (raw materials, work in
progress, finished goods) and book debts (receivables) less sundry creditors - This
facility is for businesses which have stocks and book debt cycle between 60 and 90
days. The cash credit facility is sanctioned for 12 months and reviewed and renewed
annually.

The limit for the entire year is computed by the MPBF method, either (i.) 20% of
Estimated Sales for the present financial year, or (ii.) 75% of (Current Assets - Current
Liabilities except Working Capital Cash Credit or Overdraft Facility).

The drawing power (or limit for a particular month) is calculated as 70% of the total of
(Stocks + Book Debts up to 90 days - Sundry Creditors).

Under this facility, the entire turnover must be routed through this single account and
interest serviced on a monthly basis.

Additionally, the statement of stocks, book debts and creditors are to be submitted on
a monthly or quarterly basis, as per the terms of sanction.

2. Overdraft facility against Fixed Property/ies - This facility is for businesses which have
unpredictable working capital cycle. The overdraft facility is sanctioned for 12 months
and reviewed and renewed annually.

The limit for the entire year is computed by the MPBF method, either (i.) 20% of
Estimated Sales for the present financial year, or (ii.) 50%-70% of the value of the
property, whichever is lower.

Under this facility, the entire turnover must be routed through this single account and
interest serviced on a monthly basis.

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 3. Letter of Credit against a cash (or fixed deposit) margin of 25% or 50% or 100%,
depending upon the terms of sanction.

4. Bill Discounting

5. Bank Guarantees

The loan facilities for expansion typically consist of a Term Loan for the purchase of factory,
plant, machinery, equipment, etc. One of the key ratios in this type of a loan is the DSCR (Debt
Service Coverage Ratio) which should be in excess of 1.1 throughout the repayment period of
the loan. This loan is to be repaid in EMI or structured repayment schedule, between 5 to 10
years.

THE IMPORTANT THINGS TO REMEMBER:

1. SME loans are given to existing companies with profit in the last 3 years or new
businesses which estimate to be profitable since inception.

2. Banks will give an exposure of up to 3–3.5 times the Net-worth of the business (Share
capital or paid-up capital + reserves + quasi equity, etc)

3. The Current Ratio, TNW/TOL Ratio, DER, ISCR, DSCR, etchave to be within the
permitted range.

4. The SME loans are to be utilized only for the purpose for which it is sanctioned.

5. SME loan is given against a primary security (Stocks + Book Debts or Plant, Machinery,
Equipment). Additionally, the Bank requires a Collateral Security (Property, FD, etc)
and guarantee of the business owners. However, in case collateral security is not
available and all things are satisfactory, the loans up to INR (Rs.) 20.00 Million (Two
Crores) may be processed under the CGTMSE Scheme where the business will have to
pay an annual premium (taxes additional) to the Trust for giving guarantee on its
behalf.

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 6. SMEs must have a project report which details the funding proposition, presents the
business opportunity for the company or firm and the industry in general, and justify
the need and repayment capability through growing business opportunities.

Ever since the economic meltdown a couple of years back many small and medium sized
enterprises are having quite a tough time to survive and progress. A lot of startups and
entrepreneurs are nervous since the market downfall. This new era of economic struggle has
affected numerous industries. Every business needs to grow and survive. Small and medium
sized businesses never have a huge cash reserve and have been hit the hardest. Without
enough money the growth slows and survival becomes a struggle.

Most business persons seek financial assistance from banks and financial institutes for meeting
cash crunch. But many a times the business loans get rejected due to lack of collateral, lengthy
paper work and/or tough regulations. This is one of the main reasons for various mid-sized
companies going out of business in the recent years. SME loan is one of the best options for
these businesses as SME loans have various benefits and are designed specifically for them.

SCOPE OF STUDY AND BENEFITS :

Tax Benefits

Many small business loans enjoy the benefits of tax exemptions and reliefs. Most of the SME
loans feat

No Collateral

If you approach a Non-Banking Financial Institute for a SME loan in most cases they do not
require collateral. This means that you do not need to provide any security deposit or stake
your assets as collateral for getting the loan money. This makes things easier for small
businesses.

Easy and Quick Disbursal

Most of the banks insist on detailed paperwork even if they do not take collateral. The NBFC’s
do not need too much of paper work and verifications. The time needed to disburse
sometimes is only a day to few hours. With the criteria of eligibility being quite relaxed and the
less need of documentation the SME loans are disbursed quickly. This is a huge benefit as
unsecured loans are taken by businesses when they are in need of quick money.

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Shorter Deadlines

The SME loans have shorter deadlines meaning that they are to be paid back within a short
term. This makes it easier as the SMEs can plan their budgets for next 3-5 years with ease. It
also helps as the debt is repaid in a short time and is not a long-term liability.

What Is a Term Loan?

A term loan is a loan from a bank for a specific amount that has a specified repayment
schedule and either a fixed or floating interest rate. A term loan is often appropriate for an
established small business with sound financial statements and the ability to make a
substantial down payment to minimize payment amounts and the total cost of the loan.

How a Term Loan Works

In corporate borrowing, a term loan is usually for equipment, real estate or working capital
paid off between one and 25 years. Often, a small business uses the cash from a term loan to
purchase fixed assets, such as equipment or a new building for its production process. Some
businesses borrow the cash they need to operate from month to month. Many banks have
established term-loan programs specifically to help companies in this way.

The term loan carries a fixed or variable interest rate – based on a benchmark rate like the U.S.
prime rate or the London Interbank Offered Rate (LIBOR) – a monthly or quarterly repayment
schedule and a set maturity date. If the money is being used to finance the purchase of an
asset, the useful life of that asset has a hand in the repayment schedule. The loan requires
collateral and a rigorous approval process to reduce the risk of default. However, term loans
generally carry no penalties if they are paid off ahead of schedule.

[Important: While the principal of a term loan is not technically due until maturity, most
term loans operate on a specified schedule requiring a specific payment size at certain
intervals.]

Types of Term Loans

Term loans come in several varieties, usually reflecting the lifespan of the loan.

 A short-term loan, usually offered to firms that don't qualify for a line of credit,
generally runs less than a year, though it can also refer to a loan of up to 18 months or
so.

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  An intermediate-term loan generally runs more than one – but less than three – years
and is paid in monthly installments from a company’s cash flow.
 A long-term loan runs for three to 25 years, uses company assets as collateral and
requires monthly or quarterly payments from profits or cash flow. The loan limits other
financial commitments the company may take on, including other debts, dividends or
principals’ salaries and can require an amount of profit set aside for loan repayment.

What is a Line of Credit (LOC)

A line of credit (LOC) is an arrangement between a financial institutions – usually a bank – and
a customer that establishes the maximum loan amount the customer can borrow. The
borrower can access funds from the line of credit at any time as long as they do not exceed the
maximum amount (or credit limit) set in the agreement and meet any other requirements
such as making timely minimum payments.

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How Line of Credit Works

BREAKING DOWN Line of Credit (LOC)

A line of credit has built-in flexibility, which is its main advantage. Borrowers can request a
certain amount, but they do not have to use it all. Rather, they can tailor their spending on the
LOC to their needs and owe interest only on the amount they draw, not on the entire credit
line. In addition, borrowers can adjust their repayment amounts as needed, based on their
budget or cash flow. They can repay, for example, the entire outstanding balance all at once or
just make the minimum monthly payments.

Why a Line of Credit (LOC) Is a Revolving Account

A line of credit is a type of revolving account, also known as an open-end credit account. This
arrangement allows borrowers to spend the money, repay it and spend it again in a virtually
never-ending, revolving cycle. Revolving accounts such as lines of credit and credit cards are
different from installment loans such as mortgages, car loans and signature loans. With
installment loans, also known as closed-end credit accounts, consumers borrow a set amount
of money and repay it in equal monthly installments until the loan is paid off. Once an
installment loan has been paid off, consumers cannot spend the funds again unless they apply
for a new loan.

Unsecured LOCs vs. Secured LOCs

Most lines of credit are unsecured loans. This means the borrower doesn't promise the
lender any collateral to back the LOC. One notable exception is a home equity line of credit
(HELOC), which is secured by the equity in the borrower's home. Unsecured lines of credit

3
tend to come with higher interest rates than secured LOCs. They are also more difficult to
obtain and often require a higher credit score.

How Credit Lines Work

All LOCs consist of a set amount of money that can be borrowed as needed, paid back and
borrowed again. The amount of interest, size of payments and other rules are set by the
lender. Some lines of credit allow you to write checks (drafts) while others include a type of
credit or debit card. As noted above, an LOC can be secured (by collateral) or unsecured, with
unsecured LOCs typically subject to higher interest rates.

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3
1. Secured and Unsecured Business Loans

Normally, all form of business loans are traditionally split into two ways – the secured and
unsecured business loans. The secured loans are those types of loans that require the
borrower to submit collateral when applying for loan, as a security in case he/she has not been
able to repay the amount after the repayment period elapse. The unsecured loan on the other
hand, does not require collateral, but the lender can charge a higher interest in order to help
adapt to any likely risk that may arise.

2. Peer-To-Peer Lending

Peer-to-peer lending, also known as p2p is another form of business loan that serves as an
alternative way of financing for start-ups. In this aspect, business owners who are looking for
non-traditional loans can utilize the peer2peer form of loans to enable help their businesses

3
grow for the better. Funding can be sourced from multiple investors, crowdfunding sites,
friends, families, etc. and it is regarded as one of the low-risks type of business loan system.

3. Revenue-Based Finance Loan System

The revenue-based financing is a different form, from the traditional type of business loans. It
is regarding as one of the most convenient form of business loans starters should have, as it
works only on the percentage of sales you make in a month. Meaning, the borrower will repay
a certain percentage of sales every month until the loan is fully repaid or settled. Experts
suggest that this type of business loan is more suitable for businesses that can be affected
with seasonality, because they only pay what they can afford in a month.

4. Government Business Loans

The government business loan is a form of loan that is aiming at contributing to the economy.
For example, the government of UK has deemed it fit to provide loans for the United
Kingdom’s SMEs to help them grow in their businesses and also help improve the economic
growth of the region. This is a good development because potential business owners can have
the opportunities to pursue their dreams through the government business loans without any
hassle.

5. Pension-Led Funding

This type of business loan is one that sees funds and capital released from business owner’s
pension plans. It signifies that businesses can have the opportunities to leverage the value of
their assets, which can be purchased or leased by the pension fund.

6. Invoice Financing

This type of lending involves the use of third party in the deal to enable business owners get
money based on outstanding invoices before they’re been paid by their customers. The third
party normally gives the business owner from 80% and above, of the expected income to use
for their pressing needs before they later repay it.

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7. eBay Loans

Small retailers who are generally comfortable with income via the internet can utilize this kind
of loan system to boost their businesses for good. The eBay loans, also called “e-commerce
loans” works by making application from your finance provider online (e.g. PayPal) where it
will be processed and money will be released to you to help boost your business.

8. Commercial Mortgages

This type of business loan is designed to help those who want to purchase commercial
properties for their businesses rather than renting them. In this aspect, commercial mortgage
can be approved by up to 85% of the property’s value and can take a loan repayment period of
more than 20 years with an option to pay an interest.

9. Loans For Young Entrepreneurs

Due to the records that the rate at which the number of young entrepreneurs keeps increasing
day-by-day have given rise to formation of the loans for young entrepreneurs. This type of
business loan involves the government and charity organizations to help young entrepreneurs
(from 18 to 30 years old) with funds to boost their start-ups.

10. Specialist business loans

Specialist business loan is one that is giving to those who have specific needs that they want to
get funds for. For example, if you want to buy a car, you can apply for a specialist business loan
to your lenders and clearly specifying your needs. Many people and business owners who have
been benefiting from this type of loan, because it only deals with a specific need and the
amount required for the loan.

HR AND SELECTION PROCESS:

1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning involves to draft a
comprehensive job specification for the vacant position, outlining its major and minor

3
responsibilities; the skills, experience and qualifications needed; grade and level of pay;
starting date; whether temporary or permanent; and mention of special conditions, if any,
attached to the job to be filled ”

2. Strategy Development:
Once it is known how many with what qualifications of candidates are required, the next step
involved in this regard is to devise a suitable strategy for recruiting the candidates in the
organization.

The strategic considerations to be considered may include issues like whether to prepare the
required candidates themselves or hire it from outside, what type of recruitment method to
be used, what geographical area be considered for searching the candidates, which source of
recruitment to be practiced, and what sequence of activities to be followed in recruiting
candidates in the organization.

3. Searching:
This step involves attracting job seekers to the organization. There are broadly two sources
used to attract candidates.

These are:
1. Internal Sources, and

2. External Sources

4. Screening:
Though some view screening as the starting point of selection, we have considered it as an
integral part of recruitment. The reason being the selection process starts only after the
applications have been screened and shortlisted. Let it be exemplified with an example.

In the Universities, applications are invited for filling the post of Professors. Applications re-
ceived in response to invitation, i.e., advertisement are screened and shortlisted on the basis
of eligibility and suitability. Then, only the screened applicants are invited for seminar
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presentation and personal interview. The selection process starts from here, i.e., seminar
presentation or interview.

Job specification is invaluable in screening. Applications are screened against the qualification,
knowledge, skills, abilities, interest and experience mentioned in the job specification. Those
who do not qualify are straightway eliminated from the selection process.

The techniques used for screening candidates vary depending on the source of supply and
method used for recruiting. Preliminary applications, de-selection tests and screening
interviews are common techniques used for screening the candidates.

5. Evaluation and Control:

Given the considerable cost involved in the recruitment process, its evaluation and control is,
therefore, imperative.

The costs generally incurred in a recruitment process include:

(i) Salary of recruiters

(ii) Cost of time spent for preparing job analysis, advertisement

(iii) Administrative expenses

(iv)Cost of outsourcing or overtime while vacancies remain unfilled

(v) Cost incurred in recruiting unsuitable candidates

WHY YOUR ORGANIZATION NEEDS A RECRUITMENT AND SELECTION POLICY

The primary aim of a recruitment and selection policy is to ensure a transparent and fair hiring
process that can assist the HR personnel to select the right candidate on the basis of merit and
relevance with the job.

Recruiting the right people carries supreme importance for the continuation of the success of
an organization. Which is why we’ve rounded up a list of reasons that will further convince you
to establish a recruitment and selection policy for your organization.

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IT ENSURES TRANSPARENCY IN THE HIRING PROCESS
A recruitment and selection policy ensures that all the procedures related to hiring and
selection are performed transparently, and all the members involved (the hiring manager, HR,
etc.) are following the recruitment process with having complete confidence over the end-
result. Moreover, being transparent also means that candidates are always informed about
the status of their application and informed if they are awarded a job.

IT PAVES THE WAY FOR MERIT-BASED HIRES

An effective recruitment and selection policy ensures that the overall recruitment process is
being conducted in a fair and legitimate manner. It makes sure that discriminatory behavior is
avoided at any stage of the overall recruitment process – a candidate should never be
discriminated on the basis of his gender, race, age, religion, or nationality. A fair and authentic
policy allows a candidate to take legal action if they feel they’re being discriminated against
any factor. Moreover, every job application should be should be treated in a confidential
manner.

IT PROVIDES CONSISTENCY
A recruitment and selection process that is not consistent gives inconsistent results. Thus,
consistency is another reason for having an effective recruitment and selection policy.
Organizations should make sure not to set different selection criteria for each candidate as it
will then not be possible to determine the effectiveness of each individual. To achieve
consistency, a standardized process should be followed. Instead, it will be more beneficial if
organizations apply pre-determined criteria at all stages of the recruitment process as it will
eliminate the risks of bias and discrimination. Also, companies should conduct reference
checks prior to making any appointment with the candidate and should be performed in a
consistent manner.

IT LENDS CREDIBILITY TO AN ORGANIZATION

Another reason for having a set recruitment and selection policy is to show that an
organization is credible enough for applying. Today, there are several job vacancies that are
not genuine and many candidates get trapped into the hands of fake companies. Hence, for
gaining reliability, a company should follow specific application procedures that will make
the candidates feel confident for the position they are applying.

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IT HELPS WRITE AN APPROPRIATE JOB DESCRIPTION
Having a good recruitment and selection policy is essential because it assists the organization
in writing an accurate job description. An appropriate job description is an integral part of the
overall recruitment process as it clearly describes what primary and secondary tasks will be
performed along with the core competencies for a particular role.

An effective recruitment and selection policy not only fulfills the requirements of a job but also
ensures that an organization will continue to maintain its commitment to providing equal
opportunity to employees. Adherence to such a policy will let you hire the best possible
candidates for your organization.

LIMITATIONS OF STUDY:

1. Recent Origin:
HRM is of recent origin.So it lacks universally approved academic base. Different people try to
define the term differently. Some thinkers consider it as a new name to personnel
management. Some enterprises have named their traditional personnel management
department as human resource management department.

Such superficial actions may not bear much fruit. What is actually required is a fundamental
change in attitudes, approaches and the very management philosophy. Without such a
change, particularly at the top management level, renaming of personnel department or
reigniting the personnel officer may not serve the purpose. With the passage of time an
acceptable approach will be developed.

2. Lack of Support of Top Management:

HRM should have the support of top level management. The change in attitude at the top can
bring good results while implementing HRM. Owing to passive attitude at the top, this work is

4
Handled by personnel management people. Unless there is a change in approach and attitude
of top management nothing remarkable will happen.

3. Improper Actualization:
HRM should be implemented by assessing the training and development requirements of
employees. The aspirations and needs of people should be taken into account while making
human resource policies. HRM is actuated half-heartedly. The organizing of some training
programmes is considered as the implementation of HRM. With this, management’s
productivity and profitability approach remains undisturbed in many organizations.

4. Inadequate Development Programmes:

HRM needs implementation of programmes such as career planning, on the job training,
development programmes, MBO, counselling etc. There is a need to create an atmosphere of
learning in the organization. In reality HRM programmes are confined to class room lectures
and expected results are not coming out of this approach.

5. Inadequate Information:
Some enterprises do not have requisite information about their employees. In the absence of
adequate information and data base, this system cannot be properly implemented. So there is
a need to collect, store and retrieval of information before implementing human resource
management.

In many organizations, even the professionals misunderstand HRM as synonymous with HRD.
Some class room training programmes are generally arranged, which are called HRD
programmes. These programmes are understood as human resources management. Such
casual class roomprogrammes are not the actual HRM programmes.

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 CHAPTER:-4
ANALYSIS AND INTERPRETAION– graphs

When it comes to lending for business activities, banks tend to prefer large business entities to
small players. This bias comes from the fact that big businesses have better assets and the
possibility of failure of these businesses is less compared to small business enterprises. In
order to gauge this preference of banks conversations with a small business enterprise, often
referred to as micro, small and medium enterprises (MSMEs) says it all. For a micro and small
business, to get loan from a bank is nightmare. This has been happening in spite of dedicated

4
MSME branches set up by various banks and MSME lending being a part of priority sector
lending.

RBI data in this regard is an eye opener. More than 92% MSMEs run their business on self-
finance and have no source of institutional finance. The chart below shows that:

It is obvious that small businesses require funds as they have limited source of self-financed
capital. Idea of schemes such as Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) came from this but somehow could not acquire acceptance from the banks in
general. Though loans were given under CGTMSE, the number has been very insignificant
compared to the size and scale of MSME business operations.
But this is not all.

There has been always a demand and supply gap in lending to MSMEs. MSMEs being the
backbone of economy have been in need of funds to grow themselves but banks have adopted
an approach which has failed to meet their needs. The chart below shows the demand supply
gap which seems to be narrowing in days to come but still very sizeable by any stretch of
imagination.

4
Story of SMEs – Present and Future:

4
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4
4
4
5
5
5
5
Here are some graphical Representations of SMEs in accordance to Indian Economy and
market:

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Key SME statistics, trends and reports:

 Number of SMEs in India: The number is estimated to be at 42.50 million, registered &
unregistered together. A staggering 95% of the total industrial units in the country.
 SME & Employment opportunity: Employs about 106 million, 40% of India’s workforce.
Next only to the agricultural sector.
 Products: produces more than 6000 products.
 GDP Contribution: Currently around 6.11% of the manufacturing GDP and 24.63% of
Service sector GDP.
 SME Output: 45% of the total Indian manufacturing output.
 SME Exports: 40% of the total exports.
 Bank Lending: Accounts for 16% of bank lending.
 Fixed Assets: Current fixed assets at INR 1,471,912.94 crore.
 SME Growth Rate: Has maintained an average growth rate of over 10%.

Comprehending the sector’s contribution towards employment numbers, towards GDP,

innovation and entrepreneurship, the Government of India has launched numerous initiatives
to further the cause of SMEs. Mentioned below, in a table form, are the performances of some
of the key schemes:
Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).

 Objective: To make available collateral free credit facility to new and existing Micro &
small businesses subject to a limit of Rs.100 lakh per unit.

 Performance during 2015-16 (up to 31/12/2015): 350056 Application approved with

guarantee coverage of Rs.14,673 crore.

 Performance since inception: 2160975 Application approved with coverage of

Rs.103,864 crore.

Export Promotion of Capital Goods (EPCG).

 Objective: To allow import of capital goods on zero duty subject to meeting export
obligations.

 Performance during 2015-16: Number of authorization 22544 with FOB value of

Rs.78,860 crore and duty savings of Rs.12619 crore.

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  Performance during 2016-17 (up to October 2016): Number of authorization 13,585
with FOB value of Rs.50,359 crore and duty savings of Rs.8,668 crore.

Credit Linked Capital Subsidy Scheme (CLCSS).

 Objective: To facilitate technology up-gradation. To enable beneficiary enterprises to

avail institutional credit towards the purchase of machinery and technologies.

 Performance during 2015-16 (up to 31/12/2015): 3,142 benefited units with an

expenditure of Rs.203.76 crore.

 Performance since inception: 22,380 benefited units with an expenditure of Rs. 1349.63
crore.

Lean Manufacturing (National Manufacturing Competitiveness Programme).

 Objective: To make accessible the use of various Lean Manufacturing techniques to

SMEs and thus improve their manufacturing competitiveness.

 Performance during 2015-16 (up to 31/12/2015): Benefits to 670 units with an

expenditure of Rs.11.26 crore.

 Performance since inception: Benefits to 3041 units with an expenditure of Rs.45.26

crore.

Intellectual Property Rights.

 Objective: To enhance competitiveness through increased awareness of IPR.

 Performance during 2015-16 (up to 31/12/2015): Awareness programs held-26,

Workshops-05, and IPR Facilitation Centre-03. Expenditure Rs.1.73 crore.

 Performance since inception: Awareness programs held-308, Workshops-95, and IPR

Facilitation Centre-31. Expenditure Rs.13.69 crore.

Marketing Development Assistance (MDA) Scheme.

 Objective: To help & encourage SMEs to tap & develop overseas market.

 Performance during 2015-16 (up to 31/12/2015): Units participated 233. Expenditure

Rs.4.77crore.

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  Performance since inception: Units participated 1476. Expenditure Rs.28.76 crore.

Source: MSME at a glance.

Future Trends:
The future outlook looks very bullish for Indian SMEs, which are far more optimistic than their
Asian counterparts in China, Japan and other dynamic and large economies. Consider what this
survey result from American Express Global SME Pulse 2017 has to convey:
71% of the SME respondents hold an optimistic view about their domestic economy, followed
by Japan with 62% and Japan with 54%. IBEF.
The year 2017 has all the makings of an interesting year with GST following close on the heels
of demonetization. Those who have survived the effects of demonetization are more likely to
see sunnier days ahead.
The implementation of GST is generally expected to bring good tidings to this sector. Some key
points in favor of SMEs are:

 Market Base: Set to grow as interstate sales complexities are a thing of the past. Since
there is no longer any tax burden on interstate sales, big corporates and manufacturers
can procure materials & components from small players from across any state borders.

 Increased Competitiveness: Low-cost imports are no longer a cause for worry since tax
levied on imports goods and local manufacturers will be the same.

 Freight Cost: Expected to come down by 1 to 2%, thus bringing down the cost of raw
material and finished products.

 Cost of Raw Materials: Expected to come down with the disappearance of 2% CST on
interstate sales.

 Sales & Service: Treatment of sales & services will be the same under GST means
no additional tax burden on SMEs with a business model of sales and service.

 Transparency and Ease of Doing Business: The new indirect tax regime replaces multiple
tax rules. Physical interface of bureaucracy expected to be nonexistent or minimal since
registration, tax payment, input tax credit & tax liability adjustment, tax returns, and
refunds will all happen online electronically.

6
The same American Express Global SME Pulse 2017 was found stating that 37% of Indian SMEs
considered flexible lending and repayment and 49% high-interest rates as important factors
affecting business. Addressing these pain points will definitely make the road ahead much
smoother.
With the Indian economy expected to touch $5 trillion by 2025, and with groundbreaking
economic reforms kicking in, SMEs are expected and bound to play a much more important
role. B2B e-commerce, food processing, pharma, and homeland security and defence are the
areas to watch out for.

INTERPRETATION FOR HIRING AND SELECTION:

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so.

Scientific research relies on the application of the scientific method, a harnessing of curiosity.
This research provides scientific information and theories for the explanation of the nature
and the properties of the world around us. It makes practical applications possible. Historical
research is embodied in the historical method. Scientific research can be subdivided into
different classifications according to their academic and application disciplines.

Aim To analyze the recruitment and selection process of IT personnel in VIDI SOLUTIONS and
review HR policies pertaining to recruitment and selection Research Design:

Descriptive research Source of Data collection:

The primary as well as the secondary sources was used for collection of data.

Primary data:
Questionnaire and interview

Secondary Data:
Books and Journals Primary data involves the collection of data that does not already exist.
This can be through numerous forms, including questionnaires and telephone interviews
amongst others.
Secondary research involves the summary, collection and/or synthesis of existing research

6
rather than primary research, where data are collected from, for example, research subjects or
experiments.
Thus the sources of data collection were as follows:

PRIMARY:

1. Interview Schedule
2. Questionnaires
3. Observation Method
4. Discussion
SECONDARY:

1. Company records
2. Magazines
3. Other records
4. Website of Company Data type: Primary as well as secondary data was collected.

Sources used in Recruitment and selection

Which of the sources of recruitment and selection are used at VIDI?

1: INTERNAL
2. EXTERNAL
3. BOTH

Options Internal External Both Total

Responses 2 7 11 20
Percentage 10 3.5 55 100%

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Which of the following external sources are used for recruitment?

a. Advertisement
b. Internet
c. Campus Recruitment
d. Consultancies
e. All of the above

Options Advertisement Internet Campus Consultancies All of the Total

drives above
Responses 5 3 2 8 2 20
Percentages 25 15 10 40 10 100%

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Which of the following methods are used for hiring?
a..Written
b GD
c .PI
d.GD & PI
e. All

Options Written GD P1 GD & PI All Total

Responses 1 3 6 8 2 20
Percentage 5 15 30 40 10 100

6
DATA ANALYSIS & INTERPRETATION:

From the responses, certain statistical analysis was used to determine the significance of the
relationship between certain factors and employee/candidate’s satisfaction with the
recruitment procedure.

The overall satisfaction of the candidates with the process is measured on a scale of 1-4 and
the responses are mapped with various factors and Chi-square test is used to measure the
existence of a significance of a relationship.

6
Test-1:

Ho(Null Hypothesis): There is no interdependence between source of recruitment and overall

recruitment experience of the candidate.

Ha(Alternate Hypothesis): There is interdependence between source of recruitment and

overall recruitment experience of the candidate.

To test the interdependency of the variables ,Chi-square test is conducted as follows with an
observed table and an expected table

1.Excellent Observed
2.Good 3.Average 4.Bad Total
A.Newspaper Ad 1 0 0 4 5
B.Walk-in 1 1 3 1 5
C.Consultancies 2 3 0 0 5
D. Referrals 1 1 2 0 5
5 5 5 5 20
Expected values

1.Excellent 2.Good 3.Average 4.Bad Total

A.Newspaper Ad 1.25 1.25 1.25 1.25 5
B.Walk-in 1.25 1.25 1.25 1.25 5
C.Consultancies 1.25 1.25 1.25 1.25 5
D. Referrals 1.25 1.25 1.25 1.25 5
5 5 5 5 20

P-value from the chi-square test is found to be= 0.03084 (< 0.05)

With 95% confidence interval , we can reject the null hypotheses and hence state that there is
an interdependency among the source of recruitment and overall experience.

Inferences: From the present sample we can see although there are equal opportunities
through the various sources for recruitment, overall candidate satisfaction is high through the
consultancies, whereas it is the worst through newspaper ad. Accordingly the efforts could be
made to improve the response through Newspaper ad and increase the applications through
consultancies.

Test-2

Ho(Null Hypothesis): There is no interdependence between time taken by HR for interview

and overall recruitment experience of the candidate.

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Ha(Alternate Hypothesis): There is interdependence between time taken by HR for
intervierwand overall recruitment experience of the candidate.

To test the interdependency of the variables ,Chi-square test is conducted as follows with an
observed table and an expected table

1.Excellent Observed
2.Good 3.Average 4.Bad Total
A. 10 min 0 1 2 0 3
B. 10-20 min 1 1 2 2 6
C. 20-30 min 2 3 0 1 6
D. >30 min 2 0 1 2 5
5 5 5 5 20
Expected values

1.Excellent 2.Good 3.Average 4.Bad Total

A. 10 min 0.75 0.75 0.75 0.75 0.15
B. 10-20 min 1.5 1.5 1.5 1.5 0.3
C. 20-30 min 1.5 1.5 1.5 1.5 0.3
D. >30 min 1.25 1.25 1.25 1.25 0.25
0.25 0.25 0.25 0.25 1

For the above data, the p-value is found to be 0.36584>0.05 so we cannot reject null
hypothesis thus there is no interdependency between the time taken by HR for interview and
candidate’s satisfaction.

Test-2

Ho (Null Hypothesis): There is no interdependence between time taken by HR for interview

and overall recruitment effectiveness.

Ha (Alternate Hypothesis): There is interdependence between time taken by HR for interview

and overall recruitment effectiveness.

To test the interdependency of the variables,Chi-square test is conducted as follows with an

observed table and an expected table

1.Excellent Observed
2.Good 3.Average 4.Bad Total
A. 10 min 1 2 0 0 3
B. 10-20 min 0 2 3 1 6
C. 20-30 min 3 0 2 1 6

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D. >30 min 0 3 1 1 5
4 7 6 3 20
Expected values

1.Excellent 2.Good 3.Average 4.Bad Total

A. 10 min 0.6 1.05 0.9 0.45 0.15
B. 10-20 min 1.2 2.1 1.8 0.9 0.3
C. 20-30 min 1.2 2.1 1.8 0.9 0.3
D. >30 min 1 1.75 1.5 0.75 0.25
0.2 0.35 0.3 0.15 1

The P-Value for above is found to be 0.0244 (<0.05), thus null hypothesis is rejected and it is
found that relationship between time taken for interview and overall recruitment
effectiveness is significant.

Inferences:As there is not significant relationship with candidate’s satisfaction (External

Metrics), given the metrics to measure HR Performance we may not increase / decrease the
time allotted for interviews but if metrics is for recruitment effectiveness (Internal Metrics) we
find that it is significant. Thus this insight could help us build case for increasing time taken by
HR for interview

CHAPTER -5
Summary, suggestion and conclusion

SUMMARY:

There are 26m small enterprises in India, less than 5% of them have access to commercial
capital. VIDI Solutions, a brand of Visage Holdings and Finance Private Limited (NBFC) is a
Bangalore based social business that provides loans in the range of Rs.1 lac to Rs.10 lacs to
small enterprises with turnover of less than Rs.2 Crores, filling the gap between microfinance
and commercial capital.

It provides term loans, purchase order backed short-term loans and a bill discounting facility to
producers and providers across the value chain for asset purchase or working capital needs.
Our custom risk assessment methodology, flexible product terms, customer-centric processes

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and supply chain integration enable us to complete the loan process in 2-3 weeks.

It works with network partners (buyers, trade organizations, franchisors, etc.) across supply
chains to source and fund micro and small businesses in manufacturing, artisan products and
agri-retail. It has adopted an innovative approach to borrower acquisition. They acquire
reliable borrowers by plugging into existing supply chains. Loans are provided to sole
proprietor firms, artisan groups, partnership firms and village level entrepreneurs.

SUGGESTIONS:

 Operates in high-risk segments. Asset quality in these segments is cyclical

 Dependence on wholesale funding is high. The company is trying to reduce this by
exploring the NCD route.
 Gold loan business runs on cash
 Operates in underpenetrated business segments with huge growth potential.
 Currently only 45-50% of the total branches offer the entire product suite. Expansion of
product offering at such locations would result in higher growth
 Yet to explore the whole set of customers.

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CONCLUSION:

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 CHAPTER: 6
LEARNING EXPERIENCE, BIBLIOGRAPGY AND
ANNEXURE

LEARNING EXPERIENCE

My experience as an intern covered wide variety of different areas with human resources but
my primary responsibility were focused on recruitment specifically. Going into the internship I
was somewhat prepared for my new responsibilities due to my knowledge gained from
human resource at sappers. With anything in life knowledge is always critical, but no matter
how extensive ones knowledge is on particular subject, things becomes different when you
are in the field and making real-time decisions, which then leaves you rely on instinct. This is
what makes experience so crucial for a new business professional to gain so they can later
on it to avoid mistakes made in past.
My experience began with recruitment, which later on become my main field of focus in the
internship. I started out by creating letters pf acceptance or denial for applicants who applied
for a job opening. Once I would finish a batch of letters, I would then review the candidates
with Jo-Ann and we discuss why or why not they fit for job.
I then moved on to reviewing resumes and making reference calls. I enjoyed making the
reference call above all the other tasks because to me it was a different puzzle each time to
try and figure out what the question to ask and it was all ‘in the moment” decision making.
I enjoyed the creative element of human resource and it made on further more interested in
the field.

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BIBLIOGRAPHY

 www.recruiter.com/recruitment-strategies.html
 https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises
 https://economictimes.indiatimes.com/small-biz/sme-sector/alternate-lending-
platforms-are-fixing-indias-financial-inclusion-problem-becoming-enablers-for-sme-
funding/articleshow/64941891.cms
 https://www.business-standard.com/article/finance/private-banks-turn-to-smes-to-
drive-growth-114032700812_1.html

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 ANNEXURE

QUESTIONNAIRE

Name:………………… Age:……………………….

Dept:…………………… Marital Status:……………...

Number of members in Family:............

Monthly Income:…………………………...

Recruitment and Selection can be evaluated by using the following questionnaire:

Q1. Gender Ratio in VIDI?

a.Male
b.female

Q2. Source of Recruitment?

a.Newspaper advertisement
b.Direct walk-in
c.consultancies
d.Referrals

Q3.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

Q4.Is the organization doing timeliness recruitment and Selection process.

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a. Yes
b. No

Q5.Rate the effectiveness of the interviewing process and other selection instruments, such
as testing?
a. Poor
b. Adequate
c. Excellent

Q6. Does the HR team act as a consultant to enhance the quality of the applicant pre-
screening process?
a. Yes
b. No

Q7. Does HR train hiring employees to make the best hiring decisions?
a. Yes
b. No

Q8.How do you practiceScout Talent

(Searching Best talent)?
With the help of:
a. College Placement Cell
b. Technical Insti tutes l i ke NIIT
c. Placement Consultancies
d. From University Researchers
e. Other

Q9.You feel branding of the organization contributes to the effective recruitmentand

selection process because of:
a. Good Working Environment
b. Good Career Development and Succession Planning
c. Good Compensation and Bonus Structure
d. Quality of Workforce
e. All the above
f. Any other (Please Specify)

Q10.How many rounds of interviews are conducted before a candidate is offered the
employment?
A). junior level b). Middle level
c). senior level
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Q11. In Selection process, Do you think there is any adoption of Innovative Techniques?
a). Yes
b). No

Q12. Does HR provides adequate pool of quality applicants?

a). Yes
b). No

Q13. Is the organization doing timeliness recruitment and selection process?

a). Yes
b). No

Q14. Does the HR Department is efficient in selection policy of the employees?

a).Yes
b).No

Q15. How Would you rate the HR Department’s Performance in Recruitment and Selection?
a). Poor
b). Adequate
c). Excellent

Q16. What is the Average Time spent by the HR Department during recruitment (Each
candidate)?
a). 10 minutes
b).10 to 20 minutes
c). 20 to 30 minutes
d). more

Q17. Do you possess a good overall knowledge of HR recruitment process and policies?
a). Strongly agree
b). Somewhat agree
C).Strongly disagree
d). Somewhat disagree

Q18. Is a person’s character more important, If compared to their job skills, when it comes
to being a good employee in your company?
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a). Strongly agree
b). Somewhat agree
c).Strongly disagree
d). Somewhat disagree

Q19.Following which test organization conduct for selection of candidates?

a). Aptitude
b). Intelligence
c). Personality
d). Psychological
e). Any other

Q20. How do you rate the HR practices of the company?

a). Excellent
b). Good
c). Average
d). Bad

Q21. Did the recruiter ask you questions related to the context of the field of work you had
opted for?
a). Yes
b). No

Q22.Satisfaction of employees towards their job?

a). Yes
b). No

Q23. Respondent’s perception on the difficulty level of the aptitude test?

a). Very Easy
b). Easy
c). Difficult
d). Very difficult

Q24. Time taken to inform about the final selection?

a). Same day
b). Next day
c). 2days-1 week
d). >1 week
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Q25. Anxiety faced by the employees before joining?
a). Yes
b). No
c). can’t say

Q26. Training session after joining the company?

a). Yes
b). No

Q27. Knowledge of multiple languages?

a). one
b). Two
c). >2

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