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Selection and recruitment cbm (1) Document Transcript

  • 1. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI INDEX Topic Name Sr.no Page no 1. INTRODUCTION 6 2. MEANING, PROCESS AND SOURCES OF RECRUITMENT 7 3. MEANING AND PROCESS OF SELECTION 16 4. HDFC STANDARD LIFE INSURANCE • INTRODUCTION • HISTORY 25 5. RECRUITMNET POLICY OF HDFC SLI 36 6. SALIENT FEATURES OF THE RECRUITMENT AND SELECTION PROCESS OF HDFC SLI 38 7. FACTS AND FINDINGS 43 8. CONCLUSION 44 9. BIBLIOGRAPHY 45 1
  • 2. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI CHAPTER:1 INTRODUCTION The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, they need to recruit people with requisite skills, qualifications and experience. While doing so, they have to keep the present as well as the future requirements of the organization in mind. The process of matching the right candidate to the right job is what we call as “Recruitment”. This project aims at recognizing the various recruitment practices prevalent in various organizations and analyzing in deep the recruitment and selection policy of HDFC. 2
  • 3. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI CHAPTER:2 RECRUITMENT MEANING According to Flippo, “Recruitment is the process of searching for perspective employees and stimulating and encouraging them to apply for jobs in an organization.” In the words of Yoder, “Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient working force.” Recruitment needs are of three types – planned, anticipated and unexpected. Planned needs arise from changes in organization and retirement policy. Resignations, deaths, accidents and illness gives rise to unexpected needs. Anticipated needs refer to those movements in human resource which an organization can predict by studying the internal and external environment. An analysis of these definitions reveals the following being features of recruitment: • Recruitment is a process or a series of activities rather than a single act or event. The activities in this process are described under the next headings. • Recruitment is a linking activity as it brings together those with jobs (employer) and those seeking jobs (prospective employees). • Recruitment is a positive function as it seeks to develop a pool of eligible persons from which most suitable ones can be selected. 3
  • 4. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI • The basic purpose of recruitment is to locate the sources of people required to meet job requirements and attracting such people to offer them for employment in the organization. • Recruitment is an important function as it makes it possible to acquire the number and type of persons necessary for continued functioning of the organization. Careful recruitment of employees is particularly important in India because the chances of mismatching the job and person are greater. Due to widespread unemployment, the job seeker trend to accept any job irrespective of his suitability. • Recruitment is a persuasive function as all organizations engage in recruiting activity. But the volume and nature of recruitment varies with the size, nature and environment of the particular organization. • Recruitment is a two way process. It takes a recruiter and a recruitee. Just as the recruiter has a choice whon to recrit or not, similarly the prospective employee can choose for which organization to apply for a job. • Recruitment is a complex job because too many factors affect it e.g. image of the organization, nature of jobs offered, organizational policies, working conditions and compensation levels in the organization, rate of groeth of the organization, past recruitment record, employment conditions in the community, trade union attitudes, labour laws, culture and environment, government policies. Most of these factors serve as constraints restricting the freedom of management in recruitment. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it. A well-planned and well-managed recruiting effort will result in high-quality applicants, whereas, a haphazard and piecemeal effort will result in mediocre ones. 4
  • 5. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI High-quality employees cannot be selected when better candidates do not know of job openings, are not interested in working for the company and do not apply. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions. PURPOSE AND IMPORTANCE OF RECRUITMENT  Attract and encourage more and more candidates to apply in the organization.  Create a talent pool of candidates to enable the selection of best candidates for the organization.  Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.  Recruitment is the process which links the employers with the employees.  Increase the pool of job candidates at minimum cost.  Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.  Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.  Meet the organizations legal and social obligations regarding the composition of its workforce.  Begin identifying and preparing potential job applicants who will be appropriate candidates.  Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants 5
  • 6. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI PROCESS OF RECRUITMENT The process consists of the following steps: • Recruitment generally begins when the human resources department receives requisitions for recruitment from any department of the company. The human resource requisitions contain details about the position to be filled, number of persons to be recruited, the duties to be performed, qualifications required from the candidate, terms and conditions of employment and the time by which the person should be available for appointment etc. • Locating and developing the sources of required number and type of employees. • Identifying the prospective employees with required characteristics. • Communicating the information about the organization, the job and the terms and conditions of service. • Encouraging the identified candidates to apply for jobs in the organization. Candidates to apply for apply for jobs in the organization. • Evaluating the effectiveness of recruitment process. 6
  • 7. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI 7
  • 8. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI SOURCES OF RECRUITMENT 8
  • 9. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI SOURCES OF RECRUITMENT The sources of recruitment may be broadly divided into two categories: internal sources and external sources. Both have their own merits and demerits. Internal Sources:Persons who are already working in an organization constitute the ‘internal sources’. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. Whenever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted. External Sources:External sources lie outside an organization. Here the organization can have the services of: (a) Employees working in other organizations; (b) Jobs aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d) Candidates referred by unions, friends, relatives and existing employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates responding to the advertisements, issued by the organization; (g) Unsolicited applications/ walk-ins. 9
  • 10. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI MERITS AND DEMERITS OF INTERNAL SOURCES OF RECRUITMENT Merits 1) Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising. 2) Suitable: The organization can pick the right candidates having the requisite skills. The candidate can choose a right vacancy where their talents can be fully utilized. Demerits 1) Limited Choice: The organization is forced to select candidates from a limited pool. It may have to sacrifice quality and settle down for less qualified candidates. 2) Inbreeding: It discourages entry for talented people, available outside an organization. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities. 3) Reliable: The organization has the knowledge about suitability of a candidate for a position. ‘Known devils are better than unknown angels!’ 3) 4) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. It motivates them to work hard and earn promotions. They will work with loyalty commitment and enthusiasm. 10 4) Inefficiency: Promotions based on length of service rather than merit, may prove to be a blessing for inefficient candidate. They do not work hard and prove their worth. Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited, higher level positions in an organization. As years roll by, the race for premium positions may end up in a bitter race.
  • 11. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI MERITS AND DEMERITS OF EXTERNAL SOURCES OF RECRUITMENT Merits Demerits Wide Choice: The organization has the freedom to select candidates from a large pool. Persons with requisite qualifications could be picked up. Expenses: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task either. Infection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working. Time consuming: It takes time to advertise, screen, to test and test and to select suitable employees. Where suitable ones are not available, the process has to be repeated. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Such a competitive atmosphere would help an employee to work to the best of his abilities. De-motivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. The feeling that their services have not been recognized by the organization, forces then to work with less enthusiasm and motivation. Long term benefits: Talented people could join the ranks, new ideas could find meaningful expression, a competitive atmosphere would compel people to 11 Uncertainty: There is no guarantee that the organization ultimately will be able to hire the services of suitable candidates. It may end up
  • 12. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI give out their best and earn rewards, etc. hiring someone who does not fit and who may not be able to adjust in the new setup. CHAPTER:3 SELECTION MEANING The size of the labour market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection. To select means to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organisation. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organisation best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. 12
  • 13. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organisation a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. SELECTION PROCESS Selection is usually a series of hurdles or steps. Each one must be successfully cleared before the applicant proceeds to the next one. The time and emphasis place on each step will definitely vary from one organisation to another and indeed, from job to job within the same organisation. The sequence of steps may also vary from job to job and organisation to organisation. For example some organisations may give more importance to testing while others give more emphasis to interviews and reference checks. Similarly a single brief selection interview might be enough for applicants for lower level positions, while applicants for managerial jobs might be interviewed by a number of people. 13
  • 14. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI Steps in Selecting Process Reception A company is known by the people it employs. In order to attract people with talents, skills and experience a company has to create a favourable impression on the applicants’ right from the stage of reception. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. Employment possibilities must be presented honestly and clearly. If no jobs are available at that point of time, the applicant may be asked to call back the personnel department after some time. Screening Interview A preliminary interview is generally planned by large organisations to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. A junior executive from the Personnel 14
  • 15. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI Department may elicit responses from the applicants on important items determining the suitability of an applicant for a job such as age, education, experience, pay expectations, aptitude, location, choice etc. this ‘courtesy interview’ as it is often called helps the department screen out obvious misfits. If the department finds the candidate suitable, a prescribed application form is given to the applicants to fill and submit. Application Blank Application blank or form is one of the most common methods used to collect information on the various aspects of the applicants’ academic, social, demographic, work related background and references. It is a brief history sheet of employee’s background, usually containing the following things: • Personal data (address, sex, telephone number) • Marital data • Educational data • Employment Experience • Extra-curricular activities • References and Recommendations Usefulness of Application Blank or Form Application blank is highly useful selection tool, in that way it serves three important purposes: 1. It introduces the candidate to the company in a formal way. 2. It helps the company to have a cross-comparison of the applicants; the company can screen and reject candidates if they fail to meet the eligibility criteria at this stage itself. 3. It can serve as a basis to initiate a dialogue in the interview. Selection Testing The selection tests or the employment tests attempts to asses intelligence, abilities, personality trait, performance simulation tests including work sampling and the tests administered at assessment centres- followed by a discussion about the polygraph test, graphology and integrity test. 15
  • 16. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI A test is a standardized, objective measure of a person’s behaviour, performance or attitude. It is standardised because the way the tests is carried out, the environment in which the test is administered and the way the individual scores are calculated- are uniformly applied. It is objective in that it tries to measure individual differences in a scientific way giving very little room for individual bias and interpretation. Over the years employment tests have not only gained importance but also a certain amount of inevitability in employment decisions. Since they try to objectively determine how well an applicant meets the job requirement, most companies do not hesitate to invest their time and money in selection testing in a big way. Some of the commonly used employment tests are: • Intelligence tests • Aptitude tests • Personality tests • Achievement tests • Miscellaneous tests such as graphology, polygraphy and honesty tests. 1. Intelligence Tests: These are mental ability tests. They measure the incumbent’s learning ability and the ability to understand instructions and make judgements. The basic objective of such test is to pick up employees who are alert and quick at learning things so that they can be offered adequate training to improve their skills for the benefit of the organization. These tests measure several abilities such as memory, vocabulary, verbal fluency, numerical ability, perception etc. 2. Aptitude Test: Aptitude test measure an individual’s potential to learn certain skills- clerical, mechanical, mathematical, etc. These tests indicate whether or not an individual has the capabilities to learn a given job quickly and efficiently. In order to recruit efficient office staff, aptitude tests are necessary. An aptitude tests is always administered in combination with other tests like intelligence and personality tests as it does not measure on-the-job-motivation 3. Personality Test: Of all test required for selection the personality tests have generated a lot of heat and controversy. The definition of personality, methods of measuring personality factors and the relationship between personality factors and actual job criteria has been 16
  • 17. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI the subject of much discussion. Researchers have also questioned whether applicants answer all the items truthfully or whether they try to respond in a socially desirable manner. Regardless of these objections, many people still consider personality as an important component of job success. 4. Achievement Tests: These are designed to measure what the applicant can do on the job currently, i.e., whether the testee actually knows what he or she claims to know. A typing test tests shows the typing proficiency, a short hand tests measures the testee ability to take dictation and transcribe, etc. Such proficiency tests are also known as work sampling test. 5. Simulation Tests: Simulation exercise is a tests which duplicate many of the activities and problems an employee faces while at work. Such exercises are commonly used while hiring managers at various levels in an organisation. To asses the potential of a candidate for managerial positions assessment centres are commonly used. 6. Assessment Centre: An assessment centre is an extended work sample. It uses procedures that incorporate group and individual exercises. These exercises are designed to stimulate the type of work which the candidate will be expected to do. Initially a small batch of applicants comes to the assessment centre (a separate room). Their performance in the situational exercise is observed and evaluated by a team of 6-8 assessors. The assessors’ judgement on each exercise are complied and combined to have a summary rating for each candidate being assessed. 7. Graphology Test: Graphology involves using a trained evaluator to examine the lines, loops, hooks, stokes, curves and flourishes in a person’s handwriting to assess the person’s personality and emotional make-up. The recruiting company, may, for example, ask the applicants to complete the application forms and write about why they want a job. These samples may be finally sent to graphologist for analysis and the result may be put use while selecting a person. The use of graphology, however, is dependent on the training and expertise of the person doing 17
  • 18. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI the analysis. In the actual practice, questions of validity and just plain skepticism have limited in use. 8. Integrity Test: These are designed to measure employee’s honestly to predict those who are more likely to steal from an employer or otherwise act in a manner unacceptable to the organization. The applicants who take these tests are expected to answer several ‘yes’ or ‘no’ type questions such as: Typical Integrity Questions Typical Integrity Questions Yes No • Have you ever told a lie? • Do you report to your boss if you know of another employee stealing from the store? • Do you carry office stationary back to your home for occasional use? • Do you mark attendance for your colleagues also? SELECTION INTERVIEW: Interview is the oral examination of candidates for employment. This is the most essential step in the selection process. In this step the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through his own observations during the interview. Interview gives the recruiter an opportunity – → To size up the candidate personally; → To ask question that are not covered in the tests; → To make judgments on candidates enthusiasm and intelligence; → To assess subjective aspects of the candidate – facial expressions, appearance, nervousness and so forth; → To give facts to the candidates regarding the company, its policies, etc. and promote goodwill towards the company. 18
  • 19. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI Types of interviews: Several types of interviews are commonly used depending on the nature and importance of the position to be filled within an organization: • In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as they come to mind. There is no specific format to be followed. • In a PATTERNED INTERVIEW, the employer follows a predetermined sequence of questions. Here the interviewee is given a special form containing questions regarding his technical competence, personality traits, attitudes, motivation, etc. • In a STRUCTURED OR SITUATIONAL INTERVIEW, there are fixed job related questions that are presented to each applicant. • In a PANEL INTERVIEW several interviewers question and seek answers from one applicant. The panel members can ask new and incisive questions based on their expertise and experience and elicit deeper and more meaningful expertise from candidates. • Interviews can also be designed to create a difficult environment where the applicant’s confidence level and the ability to stand erect in difficult situations are put to test. These are referred to as the STRESS INTERVIEW. This is basically an interview in which the applicant is made uncomfortable by a series of, often, rude, annoying or embarrassing questions. STEPS IN INTERVIEW PROCESS: Interview is an art. It demands a positive frame of mind on part of the interviewers. Interviewers must be treated properly so as to leave a good impression about the company in their minds. HR experts have identified certain steps to be followed while conducting interviews: PREPARATION: Establishing the objective of the interview Receiving the candidates application and resume Keeping tests score ready, along with interview assessment forms Selecting the interview method to be followed Choosing the panel of experts who would interview the candidates Identifying proper room for environment 19
  • 20. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI RECEPTION: The candidate should be properly received and led into the interview room. Start the interview on time. INFORMATION EXCHANGE: State the purpose of the interview, how the qualifications are going to be matched with skills needed to handle the job. Begin with open ended questions where the candidate gets enough freedom to express himself. Focus on the applicant’s education, training, work experience, etc. Find unexplained gaps in applicants past work or college record and elicit facts that are not mentioned in the resume. EVALUATION: Evaluation is done on basis of answers and justification given by the applicant in the interview. PHYSICAL EXAMINATION: After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate being declared fit after the physical examination. MEDICAL EXAMINATION: Certain jobs require physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. REFERENCE CHECKS Candidates are required to give the names of 2 or 3 references in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievements or from the applicant’s previous employer, who is well versed with the applicant’s job performance and sometimes from the co-workers. In case the reference check is from the previous employer, information in the following areas may be obtained. 20
  • 21. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI HIRING DECISION: The HR manager has to make the final decision now – whether to select or reject a candidate after soliciting the required information. The manager has to take adequate care in taking the final decision because of economic, behavioral and social implications of the selection decisions. After taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization sends the appointment order to the successful candidates either immediately or after sometime depending upon its time schedule. CHAPTER:4 HDFC STANDARD LIFE INSAURANCE INTRODUCTION TO THE COMPANY COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE Co LTD ABOUT HDFC STANDARD LIFE INSURANCE 21
  • 22. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture. HDFC STANDARD LIFE INSURANCE PARENTAGE HDFC Limited.  HDFC is India leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977.  In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.  As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.  Rated AAA by CRISIL and ICRA for the 10th consecutive year  Stable and experienced management  High service standards  Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.  Presented the Dream Homeâ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards. 22
  • 23. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI Standard Life Group (Standard Life plc and its subsidiaries)  Standard Life Group (Standard Life plc and its subsidiaries)  The Standard Life group has been looking after the financial needs of customers for over 180 years  It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs 23
  • 24. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI  Its investment manager currently administers £125 billion in assets  It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's  Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006 HISTORY HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint Venture to form HDFC standard life insurance company limited. 24
  • 25. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer. The Bank assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Sarawat Bank and Bajaj Capital. The premium payment options available to the customers vary from online payment to direct desk payments at the HDFC Standard Life Branches, by courier services or in drop boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or standing instruction mandate. HDFC Standard Life Insurance Company is a customer oriented corporation and aim at complete customer satisfaction. The lapsation and renewal policy of HDFC Standard Life are clearly defined on the official website. Online renewal forms are also available. For any 25
  • 26. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI change in personal details like the contact details or the nominee of the policy or policy benefits, online servicing is also available. Even the claim procedure has been simplified since affect of the loss life is irreparable and is thus fully understandable at HDFC Standard Life. A completely hasslefree process has been formulated to provide maximum convenience. HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. 26
  • 27. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was Launched on 20th July 2000. Incorporation of HDFC Standard Life Insurance Company Limited: The company was incorporated on 14th August 2000 under the name of HDFC Standard life insurance Company limited. Their ambition from the beginning was to be the first private company to reenter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the first life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the 27
  • 28. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. HDFC Standard Life Insurance Company Limited is one of India's leading private life insurance companies offering a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd), India's leading housing finance institution and Standard Life plc, the leading providers of financial services in the United Kingdom. HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint venture. HDFC Standard Life's Product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, and Investment. Customers have the added advantage of customizing the Plans, by adding optional benefits called riders, at a nominal price. The company currently has 21 retail and 6 group products in its portfolio. HDFC Standard Life maintains very high professional standards during product offerings by providing sound financial advice, efficient post-sale service, and immaculate financial security. Ongoing training for conventional products, and specialized training, for unit-linked products, for 28
  • 29. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI its financial consultants, has also helped its customers choose the product, best suited for their needs. HDFC Standard Life operates across more than 726 cities and towns of the country supported by its strong network of more than 1,45,000 Financial Consultants. HDFC Standard Life also has more than 383 corporate agents and other sales intermediaries including banks for distribution of insurance products. AWARDS AND ACCOLADES May, 2008 Received PC Quest Best IT Implementation Award 2008 HDFC Standard Life received the PC Quest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, 29
  • 30. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Read more about the ‘Consultant Corner’ tool in the ‘HDFC SL in news’ section. HDFC Standard Life has won the PC Quest Best IT Implementation Award for two years consequently. Last year, the company received the award for Wonders, its path-breaking implementation of an enterprise-wide workflow system. Silver Abby at Goafest, March, 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organized by the Advertising Agencies Association of India (AAAI). The radio commercial ‘Pata nahin chala’ touched several changes in life in the blink of an eye through an old man’s perspective. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement, without compromising on one’s self-respect. Laadli Media Award 2007 HDFC Standard Life received Laadli Media Award 2007 for its 'Big car' TV commercial. It showed how a daughter wants to be more responsible towards her family and asks her dad to upgrade to a bigger car by offering him the extra money required to buy the car. HDFC Standard Life received this award for two years consecutively. In 2006, it won for the 'Papa' TV commercial, which challenged the stereotype parents saving only for their son's education or daughter's wedding. The 30
  • 31. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI company took a bold step by showing parents saving for their daughter's education abroad, demonstrating Progressive thinking. Laadli Media Awards, instituted in 2007, by Population First, an NGO working on women's rights and social development, is given to professionals in print and electronic media and ad makers for gender sensitive news reports, articles, print, TV ads, and films. February, 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. January, 2008 Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising & Marketing Moments' over the last 60 years in India,’ by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, 31
  • 32. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years. CHAPTER:5 RECRUITMENT POLICY OF THE COMPANY In today’s rapidly changing business environment, a well defined recruitment policy is necessary for every organization so as to respond to its human resource requirements in time. HDFC SLI thus believes that it 32
  • 33. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Recruitment policy of any organization is derived from the personnel policy of the same organization. In other words the former is a part of the latter. However, recruitment policy by itself should take into consideration the government’s reservation policy, policy regarding sons of soil, etc., personnel policies of other organizations regarding merit, internal sources, social responsibility in absorbing minority sections, women, etc. Recruitment policy should commit itself to the organisation’s personnel policy like enriching the organisation’s human resources or servicing the community by absorbing the retrenched or laid-off employees or casual/temporary employees or dependents of present/former employees, etc. A clear and concise recruitment policy helps ensure a sound recruitment process. It specifies the objectives of recruitment and provides a framework for implementation of recruitment program. It may involve organizational system to be developed for implementing recruitment program and procedures by filling up vacancies with best qualified people. HDFC SLI has formulated its recruitment policy giving consideration to the following factors: • • • • 33 Organizational objectives Personnel policies of the organization and its competitors. Government policies on reservations. Preferred sources of recruitment.
  • 34. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI • Recruitment costs and financial implications CHAPTER:6 SALIENT FEATURES OF THE RECRUITMENT AND SELECTION PROCESS OF HDFC STANDARD LIFE INSAURANCE 34
  • 35. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI FORM OF RECRUITMENT The recruitment process of an organization can be centralized or decentralized in nature. CENTRALIZED RECRUITMENT The recruitment practices of an organization are centralized when the HR / recruitment department at the head office performs all functions of recruitment. Recruitment decisions for all the business verticals and departments of an organization are carried out by the one central HR (or recruitment) department. Centralized from of recruitment is commonly seen in government organizations. Benefits of the centralized form of recruitment are: • Reduces administration costs • Better utilization of specialists • Uniformity in recruitment • Interchangeability of staff • Reduces favoritism • Every department sends requisitions for recruitment to their central office DECENTRALIZED RECRUITMENT Decentralized recruitment practices are most commonly seen in the case of conglomerates operating in different and diverse business areas. With diverse and geographically spread business areas and offices, it becomes important to understand the needs of each department and frame the recruitment policies and procedures accordingly. Each department carries out its own recruitment. Choice between the two will depend upon management philosophy and needs of particular organization. HDFC SLI follows a Centralized mode of Recruitment as it offers various benefits as indicated above SOURCES OF RECRUITMENT Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are 35
  • 36. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. HDFC SLI Ltd accomplishes most of its recruitment needs via external sources. These involve the following: EDUCATIONAL INSTITUTES Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment. HDFC SLI recruits almost 65 % of its workforce via campus placements. Students are selected from various universities and college and are trained to meet the job requirements. EXECUTIVE SEARCH AGENCIES, PLACEMENT AGENTS OR HEAD HUNTERS HDFC has contracts with several third-party recruiters who seek out candidates for the company. Headhunters are generally considered more aggressive than in-house recruiters or may have preexisting industry experience and contacts. HDFC has contracts with Marvell Associates, A J Placement Consultants, ABC Consultants etc. E-RECRUITMENT Also known as “Online recruitment”, it is the use of technology or the web based tools to assist the recruitment process. Job website like naukri.com, Monster. Com, timesjob.com are made use of. HDFC SLI makes wide use of the Internet as a source of recruitment. The Co advertises job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements. 36
  • 37. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI The internet penetration in India is increasing and has tremendous potential. There are more than 18 million resume floating online across the world. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the “passers-by” applicants. Online recruitment helps the organizations to automate the recruitment process, save their time and costs on recruitments. PRESS ADVERTISEMENTS: Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach. One advertisement in a leading daily can cover millions of person throughout the country. Cost per person is very low. This method is used in HDFC SLI for advertising for clerical, managerial and technical jobs. EMPLOYEE REFERRALS / RECOMMENDATIONS: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union. RECRUITMENT PROCESS IN HDFC SLI The job evaluation of the vacancy is done so as to understand to understand the skills required in the candidate. Recruitment when done via external sources generally follows the following process in HDFC SLI: 37
  • 38. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI 1. CV Submission Information regarding the vacancies and required eligibility criteria is published in the newspapers, websites, employment magazines etc. Potential candidates interested in joining the Co are required to send their complete curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to the candidate's email. 2. Application Evaluation The Human Resources department evaluates all incoming applications, against prerequisite abilities and skills set for all current openings. All applications are kept based on strengths and specialization, for future reference. 3. Ability Tests Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal, English and psychometric, when deemed necessary. 4. Capability Based Interviews To ensure that our recruitment process is fair and consistent, all candidates who are successful at the exams are invited for a capability based interview. Interviews are based against capabilities, required for each position for which the candidate is interviewed for. A capability or competency is an ability described in terms of skills & behaviors that are essential to effectively perform within a job. Apart from the educational and academic capability, the chief attributes HDFC SLI looks out for in a candidate are as follows:  We look out for a candidate who values Integrity  Has a zeal for Excellence  Is focused on Results 38
  • 39. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI  Is Self driven and Enthusiastic  Is a good Learner and Team Player  Is dedicated to Customer Satisfaction 5. Reply Letters At all stages of the process candidates are kept informed of the status of their application with an email reply letter. 6. Job Offer If a candidate successfully reaches the final stage, a position offering is made in conjunction with a competitive reward package. CHAPTER:7 FACTS AND FINDINGS 39
  • 40. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI HDFC SLI‘s recruitment policy is well structured and provides the company with a competitive edge due to the following reasons: • The recruitment policy focuses on recruiting the best potential people. • It ensures that every applicant and employee is treated equally with dignity and respect. • It is an unbiased policy. • It aids and encourages employees in realizing their full potential. • IT allows transparent, task oriented and merit based selection. • It abides by relevant public policy and legislation on hiring and employment relationship. • It Integrates employee needs with the organizational needs. CHAPTER:8 40
  • 41. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI CONCLUSION The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. THE RECRITMENT POLICY of an organization should be well planned and thus should be such so that it: • • • • Reduces administration costs Provides employees with job security Encourage responsible trade unions Provide suitable employment to handicapped, women and minority group • Be flexible enough to meet the changing needs of the organization • Works towards the growth and prosperity of the organization. CHAPTER:9 41
  • 42. SELECTION AND RECRUITMENT PROCESS IN HDFC SLI BIBLOGRAPHY BOOKS: 1.Human Resource management N.G.Kale (author) M.Ahmed (author) 2.HRM in Banking and Insurance Vinay.V.Prabhu(author) WEBSITES:  WWW.GOOGLE.COM  WWW.HDFC.COM  WWW.WIKIEPIDIEA.COM 42