Proper Reference Check !!!!!

Dear Members,
I would like to know the correct procedure of doing a reference check.Usually in bigger organizations its' been done by a third party but as such my organization is mid size thus I would do it before hiring a new employee.
Here are few doubts I have regarding reference checks:
1.While asking for references from the candidate, do we have to ask the reference of the immediate reporting manager or can it be from anyone in the team or organization?
2.Can I ask for a mail as proof about the employment of the candidate from any of these references given.(Incase there is no HR Dept in place with his current employer).If Yes, what should go in the draft....
Looking fwd to your suggestions.......

Dear Sunita,

asking for references from the candidate, do we have to ask the reference of the immediate reporting manager or can it be from anyone in the team or organization?

-- Take reference of Immediate reporting manager and HR Manager. Any one reference will not help. It also depend what you want to check. If HR manager is not there then you can take Accountant reference also. (Most of the org. take reference of immediate superior becoz he can give you more information.)

I ask for a mail as proof about the employment of the candidate from any of these references given.(Incase there is no HR Dept in place with his current employer).If Yes, what should go in the draft....

-- You can ask whatever you want but it will depend on policy of ex-employer whether they give any proof or not. Most of the org. do not give you any proof like email,letter sign. etc. You can send email them ---which consist of all questions which you ask during telecon. Some of the key area which is touched during references are duration of job,designation, performance, work profile, salary, reason for leaving, exit clearance, behavior etc.

White Eagle