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final project report

  1. 1. TRAININIG REPORT ON “RECRUITMENT AND SELECTION AT ANGEL BROKING” SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF NAME OF FACULTY SUBMITTED Dr.vijaykhurana CHINTAHARAN SINGH ( professor maims) ROL.- 01161101711 BBA 5th Sem A
  2. 2. STUDENT DECLARATION This is to certify that I have completed the summer Intrenship training project on “ Recruitment and selection at Angel Broking ” under the guidance of Dr.vijaykhurana , Professor (MAIMS) in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere. Name: chintaharansingh University Enrollment No.: 01161101711
  3. 3. CERTIFICATE FROM INSTITUTE GUIDE This is to certify that Mr chintaharansingh, a student of the Maharaja Agrasen Institute of Management Studies, Delhi,, has prepared his Training Report entitled “RECRIUTMENT AND SELECTION PROCESS AT ANGEL BROKING ” at Angel Broking Ltd, under my guidance. He has fulfilled all requirements leading to award of the degree of BBA . This report is the record of bona fide training undertaken by him and no part of it has been submitted to any other University or Educational Institution for award of any other degree/diploma/fellowship or similar titles or prizes. I wish him all success in life. Name of faculty guide: vijaykhurana Designation: Assistant Professor Signature
  4. 4. ACKNOWLEDGEMENT Success is an effort-bounded activity that involves co-operation of all. I hereby take the opportunity to express my profound sense of gratitude and reverence to all those who have helped and encouraged me towards successful completion of the Project Report. I express my sincere gratitude towards Dr. C.S SHARMA the director of our institute, for being a continuous source of inspiration and motivation. I would like to thank my Project Guide Dr.vijaykhurana&Mrs.Ektadargan for their immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. Also, I would like to thank all faculty members of Maharaja Agarsen Institute of Management Studies for guiding and supporting me in the completion of project from time to time. Student Name -chintaharansingh Enrollment No. - 0116110171
  5. 5. Table of CONTENTS Student declaration Cerificate from training company Certificate from Institute Guide Acknowledgement CHAPTER INTRODUCTION I INTRODUCTION 1.1 OVERVIEW OF INDUSTRY 1.2 PROFILE OF THE ORGANISATION 1.3 COMPETITORS INFORMATION 1.4 S.W.O.T. ANALYSIS II RESEARCH METHODOLOGY 2.1 OBJECTIVE AND SCOPE OF STUDY 2.2 RESEARCH METHODOLOGY III DISCUSSION ON TRAINING 3.1 RECRUITMENT 3.2 SELECTION IV FINDINGS AND RECOMMENDATIONS ANNEXURE QUESTIONNAIRE BIBLIOGRAPHY
  6. 6. CHAPTER – 1 INTRODUCTION
  7. 7. 1.1 OVERVIEW OF INDUSTRY AS A WHOLE NSE launched internet trading in early February 2000. It is the first stock exchange in the country to provide a web-based access to investors to trade directly on the exchange. The process : Log on to the brokers site of your choice where you get real time quotes, place a buy or sell order on the spot, and direct the site to debit the requisite amount. In some time you get confirmation and after the trade settlement your bank and depository account will reflect the changes which you can view anywhere, anytime. Online trading has become seamless. All that you need is a PC, a modem, subscription to an Internet Service Provider (ISP), a saving and a depository account with any bank providing online trading facility. Along with stocks one can trade in mutual funds and investment instruments. The advantage with online trading that you can operate in both BSE and NSE depending on the broking firm. NSE introduced for the first time in India a fully automated screen based trading. It uses a modern fully computerized trading system designed to offer investor across the length and breadth of country a safe and easy way to invest. The NSE trading system called “National Exchange for Automated Trading” (NEAT) is a fully automated screen-based trading system which adopts the principle of an order driven market. With over 20 million shareholders, India has the third largest investor base in the world after the USA and Japan. Over 9000 companies are listed on stock exchanges, which are serviced by approximately 7500 stockbrokers. The Indian capital market is significant in terms of the degree of development, volume of trading and its tremendous growth potential.
  8. 8. National Stock Exchange The national stock exchange of India limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transaction. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. In March 2006, the NSE had a total market capitalization of 4,380,774 crores INR making it the second-largest stock market in south Asia in terms of market-capitalization. Bombay Stock Exchange The Bombay stock exchange (or BSE) is there oldest stock exchange in Asia. It is located at Dalalstreet, Mumbai, India. The Bombay stock exchange was established in 1875. there are around 4800 Indian companies listed with the stock exchange, and has a significant trading volume. As of may 2007, the equity
  9. 9. market capitalization of the companies listed on the BSE was about Rs.40.7 trillion (US$999billion). This topic includes the practical experience company products that are followed by studying the consumer preference or interest towards share market. This is a market; which is uncertain sometimes it gives huge profit and also vice-versa; it depends upon the investment customer made. This is a better option to have better returns on the investments then investing in banks, mutual fund or bond et. But risk is high in this case. This products offers customer two type of investment option INTRADAY and DELIVERY both has The topic is to study the consumer preferences towards investment in stock market. 1.2 PROFILE OF THE ORGANIZATION Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing „Real Value for Money‟ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. Company‟s Business Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance Personal Loans IPO Depository Services Investment Advisory Angel Group
  10. 10. Angel Broking Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd. Company‟s Vision To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. ORGANISATION CHART Motto of the Company To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients. Chairman ManagingDirector Zonal Manager Regional Manager Retail Marketing Territory Manager Branch Manager Asstt. Br. Manager Business Dev. Mgr. Sales Dev. Mgr. Operation Channel Team Manager Operation Manager Human Resource HR ExecutiveTerritory Manager Alternative Channel Branch Manager Channel Executive
  11. 11. ONLINE TRADING ANGEL INVESTORS Highlights User-friendly browser for investors Easy online trading platform Works in proxy and firewall system set up Integrated Back office to access account information – anytime, anywhere Streaming quotes Refresh static rates when required Multiple exchanges on single screen Online fund transfer facility System Requirements You'll need access to a computer which has at least the following configuration: Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE Browser Settings Angle trades Highlights User-friendly browser-based online trading platform Streaming quotes Can be used in proxy and firewall environments Convenience of accessing your account from anywhere
  12. 12. System Requirements You'll need access to a computer which has at least the following configuration: Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE VM java(Download) Angel diets Highlights Application-based platform for day traders Hi-speed trading terminal on your desktop Streaming quotes for real time rate updates Multiple exchanges on single screen Online fund transfer facility Integrated Back office to access account information – anytime, anywhere System Requirements You'll need access to a computer which has at least the following configuration: Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE SERVICES EQUITY Investing in shares or stock market is inarguably the best route to long-term wealth accumulation. However, it can also be a very risky proposition due to high risk-return trade-off prevalent in the stock market. Hence, it is more appropriate to take help of an experienced and trustworthy expert who will guide you as to when, where and how to invest.
  13. 13. Angel provides guidance in the exciting world of stock market with suitable trading solutions and value-added tools and services to enhance your trading experience. Online Trading Three different online products tailored for traders & investors Customized single screen Market Watch for multiple exchanges Real-time rates Flash news & intra-day calls Intra-day & historical charts with technical tools Online research E-broking & back-office software training Quality Research Wide range of daily, weekly and special Research reports Expert Sector Analysts with professional industry experience Advisory Real-time market information with News updates Investment Advisory services Dedicated Relationship Managers Portfolio Management Services Support 24x7 Web-enabled Back Office Centralized Help Desk Live Chat support system Commodities Commodities Derivative market has emerged as a new avenue for investors to create wealth. Today, Commodities have evolved as the next best option after stocks and bonds for diversifying the portfolio. Based on the fundamentals of demand and supply, Commodities form a separate asset class offering investors, arbitrageurs and speculators immense potential to earn returns. Angel aims to harness the immense potential of the Commodities market by providing you a simple yet effective interface, research and knowledge.
  14. 14. The Angel Advantage Angel provides user-friendly online platforms for commodity trading in the leading commodity exchanges. Online Trading Three different online products tailored for traders & investors Single screen customized Market-Watch for MCX & NCDEX with BSE & NSE Streaming quotes Top quality Research In house research on more than 25 commodities Highly skilled Analysts with professional industry experience Daily, Weekly and Monthly Research Reports Pro-active Relationship Management Active advisory desk Efficient & nationwide network Seminars, workshops and investment camps for investors Life insurance Ensure your family‟s well-being by securing their future with a life insurance policy. No financial planning is complete without life insurance. Angel offers an array of life insurance products like Term Plans, Endowment Plans, Money back Plans, Children Life Insurance Plans and ULIP Plans to meet your individual insurance requirements. The Angel Advantage Low and affordable Premium with maximum life cover Assistance at your doorstep Tailor made plans to suit your financial needs Help desk for all your queries Hassle free and transparent dealings Mutual fund
  15. 15. Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Angel presents its Mutual fund services that strive to meet all your mutual fund investment needs. We have a wide spectrum of investment schemes from all top mutual fund houses. Angel also provides recommendations based on in-depth research, mutual fund performance and mutual fund ratings to help meet your investment goals. The Angel Advantage Pan India presence Online and offline transaction facility Schemes from all major fund houses Latest MF News and Fund Manager views Latest New Fund Offers (NFO) Information and tools to help you select the right scheme Dedicated Customer Help desk 24x7 Web-enabled Client Back Office Depository Services Enjoy the dual benefits of trading and depository services under one roof and experience efficient, risk-free and prompt depository service. Angel is registered as a Depository Participant with CDSL. We are also a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country–NCDEX & MCX. Angel Advantage Automated pay-in facility Access information – Anytime, Anywhere Quarterly demat statements with valuation Statements on demand View Demat A/C statement online Competitive transaction charges Enjoy exclusive benefits by registering with us: No risk of loss, wrong transfer, mutilation or theft of share certificates Hassle free automated pay-in of your sell obligation with no need for physical instruction
  16. 16. Reduced paper work Speedy settlement process resulting in increased liquidity of your securities Instant disbursement of non-cash benefits like Bonus and Rights Efficient pledge mechanism Wide branch coverage Personalized services of trained Help desk No charges for extra Transaction statement and Holding statement Combined monthly 'Bill-cum-Transaction-cum-Holding-cum-Ledger' statement of your investments
  17. 17. 1.3 COMPETITORS INFORMATION Kotakstreet Company Background Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sach. Online Account Types •Twin Advantage / Green Channel: 2 DP‟s, Limit against shares •Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction •High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55 PRICING OF KOTAK •Account Opening:Rs 500 •Demat:Rs 22.5 p.m •Initial Margin:Rs 5000(Compulsory) •Min Margin Retainable:Rs 1000 •Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure.
  18. 18. INDIABULLS Company Background India Bulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors Online Account Type •Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders •Power India bulls: Account with sophisticated trading tools, low commissions and priority access to R.M Pricing of IB Accounts :- Signature Account •Account Opening:Rs 250 •Demat:Rs 200 if POA is signed, No AMC for this DP •Initial Margin: NIL •Brokerage: Negotiable
  19. 19. Power India Bulls •Account Opening:Rs 750 •Demat:Rs 200 if POA is signed, No AMC for this DP •Initial Margin: NIL •Brokerage: Negotiable
  20. 20. ICICIDirect Company Background ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited Account Types •ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in services within the account 1. Cash on spot 2. Margin Plus Premium trading interface of ICICIDirect Link is given to DBC partners and HNI‟s •Account Opening:Rs 750 •Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year. •Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DP‟s without 1styr AMC •Initial Margin: Nil •Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.Slab wise brokerage ranges from 0.75% to 0.25% depending on volume.
  21. 21. 1.4 S.W.O.T. ANALYSIS STRENGTHS o A strong backup by two giant organizations, Angel Broking is India‟s premier financial institution. And Prudential Life Insurance, which is UK‟s largest and world‟s second largest Life Insurance organization o Angel Broking offers a wide range of insurance policies covering all types of income groups. o The organization offers maximum number of riders / Add On benefits along with the insurance policies o Angel Broking offers triple cover in case of accidental death in mass surface public transport. o Only Angel Broking Life offers major surgical benefit rider. o Under savings plan or money back, Angel Broking Life is the only company to offer 120 % as surgical benefit. o In case of money back or savings plan, liquidity is maximized at Angel Broking at an interval of 3 years for 15 years term. o Angel Broking offers accidental death, disability benefit and waiver of premium into one rider. o Most competitive premium rates of base plan and riders are that of Angel Broking. o Under Term Assurance, Angel Broking has no maximum limit on Sum Assured which is not offered by any other existing insurer. o Under single premium policies, in case of death, Angel Broking offers a death benefit of 25 % addition to the face amount.
  22. 22. WEAKNESSES OF ANGEL BROKING LIFE o Angel Broking does not offer a critical illness rider, i.e. the policy continues even after claim to the full face amount. This rider is only offered by Indiabulls. o Angel Broking does not offer competitive group online trading. o Angel Broking does not offer minimum S.A. of Rs. 50,000 as offered by Indiabulls in case of Term Assurance. OPPORTUNITIES o Change in business cycles contributes as an opportunity for the company because it offers various skim suitable in different economic scenarios. o Large size of untapped population is also an opportunity for Angel Broking. o Change in life style and perception in favor of Life insurance is another opportunity for Angel Broking. o Increased awareness among people regarding benefits of life insurance also contributes to the opportunities of the company. o Continuous improvement in technology is an opportunity for the organization. o Lower inflation rate is also an opportunity for Angel Broking. THREATS TO ANGEL BROKING LIFE o Reducing interest rates for government securities also poses a threat to the organization. o Competition posed by the existing life insurers and new entrants is also a threat to the company. o A fast technological obsolescence is another threat posed by the organization.
  23. 23. CHAPTER – 2 RESEARCH METHODOLOGY
  24. 24. 2.1 OBJECTIVES The Broad objective of the project is to make clients and to know about how recruitment and selection process are carried in Angel Broking. Also to convince them about how Angel Broking services out score their rivals. And how in future they will be benfited from the services offered by Angel Broking. This project will accomplish to understand the problem faced by the existing client and find ways to solve there queries at your level otherwise let the above level know about there problem. We have to be in regular contacts with our clients so that we come to know about the problem they are facing. This also helps us to multiply our clients by getting the further references. By this we are able to make a chain of the customers, which expands as we satisfy there needs. The other objective of this project to predict the future of online trading in India, which is possible due to dematerialisation of shares and it also includes the advantages and disadvantages of online trading. SCOPE OF THE STUDY To study the present recruitment and selection process in the organization at various levels, company which can prefer this new process to recruit and select with full security and reliability and with great speed. 2.2 RESEARCH METHODOLOGY Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research. Research Design: -
  25. 25. Type of Research: - Descriptive research Descriptive research includes Surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists as the present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Marketing Research Process 1. Define the Problem and Research Objectives 3. Collect the Information 2. Develop the Research Plan 5. Present the Findings 4. Analyze the Information
  26. 26. 1. Define the Research Problem & Objective Objective “To AnalyseThe Future Prospects Of recruitment and selection” Hence the sub objective is: To understand perception & awareness of recruitment. To understand perception & awareness of selection. 2. Develop the Research Plan The Second stage of Research calls for developing the most efficient plan for gathering information. Designing a research plan calls for decision on the data sources, research approaches, research instruments, sampling plan & contact methods. Data Sources There are two types of data: Primary data: The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. So in this research the data is collected from respondents through questionnaire. Secondary data: For the company information I had used secondary data like brochures, web site of the company etc. Research Instruments Selected instrument for Data Collection for Survey is Questionnaire. Questionnaires: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended of Open Ended Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.
  27. 27. Sampling Plan After deciding on the research approach and Instrument, the marketing researcher must design a Sampling Plan.this includes:. Sampling Unit: - Who is to be surveyed? The marketing researcher must define the target population that will be sampled. The sample Unit taken by me; General individual customer those who trade in share market. Sample Size/ Population Size: - How many people should be surveyed? I have cover entire Delhi city for the survey. My sample size is 200. Sampling Procedure: - How should the respondent be chosen? In the Project sampling done is on basis of Probability sampling for the Bharuch city. Among the probability sampling design the sampling design chosen is stratified random sampling. Because in this survey I had stratified the sample in business class and salaried class. So I can differentiate their different needs and preferences. Contact Methods Once the sampling plan had been determine, the marketing researcher must device how the subject should be contacted: Mail, Telephone, Personal or On-line Interviews. In my project I went for Personal Interviewing, as it‟s necessary to go meet the individual respondents at their place so I can collect the right information. 3. Collect The Information The Data collection phase of marketing research is generally the most expensive and the most prone to error. I had visited all the respondents individually in the Delhi city and collected information via questionnaire. I used to talk with them and in that talk I asked them the relevant question of the questionnaire so I could get correct information from them for the objective purpose. For some questions I have to also explain them about company like different plan of the company etc.
  28. 28. Generally most of the respondents had filled questionnaire themselves but some avoid filling up so at time myself filled according to their answer. The sample of Questionnaires I used is in Annexure. 4. Analysis of the Information or Data Collected After the data have been collected, the researcher turns to the task of analysis them. The analysis of data requires a number of closely related operations such as establishment of categories, than application of these categories to raw data though coding, tabulation and then drawing statistical inferences. The unwieldy data should necessarily be condensed into a few manageable groups and tables for further analysis. The researcher can analyze the collected data with the help of various statistical measures. After collecting the data I used hand tabulation method for analysis. 5. Findings and interpretation of survey: Based on collected information researcher have to give findings at the end of the project. Findings are written after data analysis.
  29. 29. CHAPTER – 3 DISCUSSION ON RECRUITMENT & SELECTION
  30. 30. 1. INTRODUCTION Recruitment and selection are two of the most important functions of personnel management. Recruitment precedes selection and helps in selecting a right candidate. Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient personnel. Staffing is one basic function of management. All managers have responsibility of staffing function by selecting the chief executive and even the foremen and supervisors have a staffing responsibility when they select the rank and file workers. However, the personnel manager and his personnel department is mainly concerned with the staffing function. Every organisation needs to look after recruitment and selection in the initial period and thereafter as and when additional manpower is required due to expansion and development of business activities. “Right person for the right job” is the basic principle in recruitment and selection. Ever organisation should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and essential for the orderly working of an enterprise. Every business organisation/unit needs manpower for carrying different business activities smoothly and efficiently and for this recruitment and selection of suitable candidates are essential. Human resource management in an organisation will not be possible if unsuitable persons are selected and employment in a business unit.
  31. 31. RECRUITMENT 3.1 MEANING Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. A formal definition states, “It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected”. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection. In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc.are used. In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees DEFINITION According to EDWIN FLIPPO, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.”
  32. 32. 3.2 NEED FOR RECRUITMENT The need for recruitment may be due to the following reasons / situation: Vacancies due to promotions, transfer, retirement, termination, permanent disability, death and labour turnover. Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job specification. PURPOSE AND IMPORTANCE OF RECRUITMENT: 1. Determine the present and future requirements of the organization on conjunction with its personnel-planning and job analysis activities. 2. Increase the pool of job candidates at minimum cost. 3. Meet the organization‟ s legal and social obligations regarding the composition of its work force. 4. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time. 5. Help increase the success rate of the selection process by reducing the number of visibly under qualified or overqualified job applicants. 6. Increase organizational and individual effectiveness in the short term and long term. 7. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. 8. Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection. 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 decided whether they wish to work for it. A well-planned and well-managed recruiting effort will result
  33. 33. in high quality applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones. 3.3 RECRUITMENT PROCESS Recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants. The process comprises five interrelated stages, viz, 1. PLANNING 2. STRATEGY DEVELOPMENT 3. SEARCHING 4. SCREENING 5. EVALUATION AND CONTROL. The ideal recruitment programme is the one that attracts a relatively larger number of qualified applicants who will survive the screening process and accept positions with the organisation, when offered. Recruitment programmes can miss the ideal in many ways i.e. by failing to attract an adequate applicant pool, by under/over selling the organisation or by inadequate screening applicants before they enter the selection process. Thus, to approach the ideal, individuals responsible for the recruitment process must know how many and what types of employees are needed, where and how to look for the individuals with the appropriate qualifications and interests, what inducement to use for various types of applicants groups, how to distinguish applicants who are qualified from those who have a reasonable chance of success and how to evaluate their work. STAGE 1: RECRUITMENT PLANNING The first stage in the recruitment process is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into set of objectives or targets that specify the (1) Numbers and (2) Types of applicants to be contacted. NUMBERS OF CONTACTS Organization, nearly always, plan to attract more applicants than they will hire. Some of those contacted will be uninterested, unqualified or both. Each time a recruitment Programme is contemplated, one task is to estimate the number of applicants necessary to fill all vacancies with the qualified people.
  34. 34. TYPES OF CONTACTS It is basically concerned with the types of people to be informed about job openings. The type of people depends on the tasks and responsibilities involved and the qualifications and experience expected. These details are available through job description and job specification. STAGE 2: STRATEGY DEVELOPMENT When it is estimated that what types of recruitment and how many are required then one has concentrate in (1). Make or Buy employees. (2). Technological sophistication of recruitment and selection devices. (3). Geographical distribution of labour markets comprising job seekers. (4). Sources of recruitment. (5). Sequencing the activities in the recruitment process. “MAKE” OR “BUY” Organisation must decide whether to hire le skilled employees and invest on training and education programmes, or they can hire skilled labour and professional. Essentially, this is the “make” or “buy” decision. Organizations, which hire skilled and professionals shall have to pay more for these employees. TECHNOLOGICAL SOPHISTICATION The second decision in strategy development relates to the methods used in recruitment and selection. This decision is mainly influenced by the available technology. The advent of computers has made it possible for employers to scan national and international applicant qualification. Although impersonal, computers have given employers and ob seekers a wider scope of options in the initial screening stage. WHERE TO LOOK In order to reduce the costs, organisations look in to labour markets most likely to offer the required job seekers. Generally, companies look in to the national market for managerial and professional employees, regional or local markets for technical employees and local markets for the clerical and blue-collar employees. WHEN TO LOOK An effective recruiting strategy must determine when to look-decide on the timings of events besides knowing where and how to look for job applicants.
  35. 35. STAGE 3: SEARCHING Once a recruitment plan and strategy are worked out, the search process can begin. Search involves two steps A) Source activation and B) Selling SOURCE ACTIVATION Typically, sources and search methods are activated by the issuance of an employee requisition. This means that no actual recruiting takes place until lone managers have verified that vacancy does exist or will exist. If the organisation has planned well and done a good job of developing its sources and search methods, activation soon results in a flood of applications and/or resumes. The application received must be screened. Those who pass have to be contacted and invited for interview. Unsuccessful applicants must be sent letter of regret. SELLING A second issue to be addressed in the searching process concerns communications. Here, organisation walks tightrope. On one hand, they want to do whatever they can to attract desirable applicants. On the other hand, they must resist the temptation of overselling their virtues. In selling the organisation, both the message and the media deserve attention. Message refers to the employment advertisement. With regards to media, it may be stated that effectiveness of any recruiting message depends on the media. Media are several-some have low credibility, while others enjoy high credibility. Selection of medium or media needs to be done with a lot of care. STAGE 4: SCREENING Screening of applicants can be regarded as an integral part of the recruiting process, though many view it as the first step in the selection process. Even the definition on recruitment, we quoted in the beginning of this chapter, excludes screening from its scope. However, we have included screening in recruitment for valid reasons. The selection process will begin after the applications have been scrutinized and short-listed. Hiring of professors in a university is a typical situation. Application received in response to advertisements is screened and only eligible applicants are called for an interview. A selection committee comprising the Vice chancellor,
  36. 36. Registrar and subject experts conducts interview. Here, the recruitment process extends up to screening the applications. The selection process commences only later. PURPOSE OF SCREENING The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must be exercised, however, to assure that potentially good employees are not rejected without justification. In screening, clear job specifications are invaluable. It is both good practice and a legal necessity that applicant‟s qualification is judged on the basis of their knowledge, skills, abilities and interest required to do the job. The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Interview and application blanks may be used to screen walk-ins. Campus recruiters and agency representatives use interviews and resumes. Reference checks are also useful in screening. STAGE 5: EVALUATION AND CONTROL Evaluation and control is necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are: - a) Salaries for recruiters. b) Recruitment overheads and administrative expenses. c) Cost of recruiting unsuitable candidates for the selection process. d) The cost of advertisements or other recruitment methods, that is, agency fees. e) Management and professional time spent on preparing job description, job specifications, advertisements, agency liaison and so forth. 3.4 EVALUATION OF RECRUITMENT PROCESS The recruitment has the objective of searching for and obtaining applications for job seekers in sufficient number and quality. Keeping this objective in the mind, the evaluation might include:
  37. 37. A) Return rate of application sent out. B) Number of suitable candidates for selection. C) Retention and performance of the candidates selected. D) Cost of the recruitment process E) Time lapsed data F) Comments on image projected. 3.5 SOURCES OF RECRUITMENT SOURCES OF MANAGERIAL RECRUITMENT INTERNAL SOURCES EXTERNAL SOURCES 1) PROMOTION 1) CAMPUS RECRUITMENT 2) TRANSFER 2) PRESS ADVERTISEMENT 3) INTERNAL NOTIFICATION 3)WALKS INS, TALKS INS. 4) RETIREMENT 4)TRAINING SCHEMES 5) RECALL 6) FORMER EMPLOYEES 7) MISCELLANEOUS EXTERNAL SOURCES The sources of recruitment can be broadly categorized into internal and external sources- INTERNAL RECRUITMENT Internal Recruitment – Internal recruitment seeks applicants for positions from within the company. The various internal sources include PROMOTION AND TRANSFERS – Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Promotions has many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improves the probability of good selection since information on the individual‟ s performance is readily available, is cheaper than going outside to recruit, thosechosen internally
  38. 38. are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle-level and top-level managers. However, promotions restrict the field of selection preventing fresh blood & ideas from entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promotions. EMPLOYEE REFERRALS Employees can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with introduction and encouraging them to apply. This is a very effective means as many qualified people can be reached at a very low cost to the company. The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill. FORMER EMPLOYEES These include retired employees who are willing to work on a part-time basis, individuals who left work and are willing to come back for higher compensations. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need of an orientation programme for them, since they are familiar with the organization. DEPENDANTS OF DECEASED EMPLOYEES Usually, banks follow this policy. If an employee dies, his / her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfill social obligation and create goodwill. RECALLS When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may de decided to recall that persons after the problem is solved, his leave may be extended. RETIREMENTS At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances, management may decide to call retired managers with new extension.
  39. 39. INTERNAL NOTIFICATION Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for. Often employees have friends or acquaintances who meet these requirements. Suitable persons are appointed at the vacant posts. EXTERNAL RECRUITMENT External recruitment seeks applicants for positions from sources outside the company. They have outnumbered the internal methods. The various external sources include: PROFESSIONAL AND TRADE ASSOCIATION Many associations provide placement service to its members. It consists of compiling job seeker‟s lists and providing access to members during regional or national conventions. Also, the publications of these associations carry classified advertisements from employers interested in recruiting their members. These are particularly useful for attracting highly educated, experienced or skilled personnel. Also, the recruiters can zero on in specific job seekers, especially for hard-to-fill technical posts. ADVERTISEMENTS It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to apply. Newspaper is the most common medium but for highly specialized recruits, advertisements may be placed in professional or business journals. Advertisements must contain proper information like the job content, working conditions, location of job, compensation including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the company and job are perfect for the candidate. Recruitment advertisements can also serve as corporate advertisements to build company‟ image. It also cost effective. EMPLOYMENT EXCHANGE Employment Exchanges have been set up all over the country in deference to the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled. The major functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Thus, employment exchanges act as a link between the employers and the prospective employees. These offices are particularly useful to in recruiting blue-collar, white collar and technical workers.
  40. 40. CAMPUS RECRUITMENT Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the institutes. Campus Recruitment is going global with companies like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. Some companies recruit a given number of candidates from these institutes every year. Campus recruitment is so much sought after that each college; university department or institute will have a placement officer to handle recruitment functions. However, it is often an expensive process, even if recruiting process produces job offers and acceptances eventually. A majority leave the organization within the first five years of their employment. Yet, it is a major source of recruitment for prestigious companies. 3.6 60 SECONDS GUIDE TO HIRING THE RIGHT PEOPLE 0:60 DEFINE DUTIES To find promising employees, you must first determine what you want them to do. Carefully consider all direct and associated responsibilities and incorporate them into a written job description. Be careful with general titles such as typist or sales clerk, as they have different meanings to different people. 0:49 …AND WHAT IT TAKES TO DO THEM Fulfilling these responsibilities will require some level of skill and experience, even if it is an entry-level position. Be reasonable about your expectations. Setting the bar too high may limit your available talent pool; setting it too low risks a flood of applications from those unqualified for the job. 0:37 MAKE IT WORTH THEIR WHILE Likewise, you don‟ t want to be overly generous or restrictive about compensation. State and local chambers of commerce, employment bureaus and professional associations can help you determine appropriate wages and benefits. Scanning descriptions of comparable jobs in the classified ads and other employment publications will also provide clues about prevailing wage rates. 0:38 SPREAD THE WORD How you advertise your job opening depends on who you want to attract. Some positions are as easy to promote as posting a “help wanted” sign in your store window or placing an ad in your local newspaper. For jobs requiring more specialized skills, consider targeted channels such as trade magazines, on-line job banks and employment agencies (though these may require a fee). And don‟ t overlook sources such as friends, neighbors, suppliers customers and present employees.
  41. 41. 0:25 TALK IT OVER Because you have clearly defined the role and requirements, you should have little difficulty identifying candidates for interviews. Make sure you schedule them when you have ample time to review the resume, prepare your questions and give the candidate your undivided attention. After the interview, jot down any impressions or key points while they‟ re still fresh in your mind. This will be a valuable reference when it‟ s time to make a decision. 0:12 FOLLOW-UP ON INTERVIEWS You want to believe your candidates are being honest, but never assume. Contact references to make sure you‟ re getting the facts or to clear up any uncertainties. Professional background checks are a wise investment for highly sensitive positions, or those that involve handling substantial amounts of money and valuables. 0:3 YOU HAVE FOUND THEM; NOW KEEP THEM: Now that you‟ ve hired ideal employees, make sure they stay with you by providing training and professional development opportunities. The small business experts at SCORE can help you craft human resource policies and incentive plans that will ensure your company remains the small business employer of choice.
  42. 42. SELECTION Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job. THE DIFFERENCE BETWEEN RECRUITMENT AND SELECTION Recruitment is identifying n encouraging prospective employees to apply for a job and Selection is selecting the right candidate from the pool of applicants. 3.7 SELECTION PROCESS Selection is along process, commencing from the preliminary interview of the applicants and ending with the contract of employment. The following chart gives an idea about selection process: -
  43. 43. ENVIRONMENT FACTOR AFEECTING SELECTION Selection is influenced by several factors. More prominent among them are supply and demand of specific skills in the labour market, unemployment rate, labour- market conditions, legal and political considerations, company‟ s image, company‟ s policy, human resources planning and cost of hiring. The last three constitute the internal environment and the remaining form the external environment of selection process. STEP 1:- PRELIMINARY INTERVIEW The applicants received from job seekers would be subject to scrutiny so as to eliminate unqualified applicants. This is usually followed by a preliminary interview the purpose of which is more or less the same as scrutiny of application, that is, eliminate of unqualified applicants. Scrutiny enables the HR specialists to eliminate unqualified jobseekers based on the information supplied in their application forms. Preliminary interview, on the other hand, helps reject misfits for reason, which did not appear in the application forms. Besides, preliminary interview, often called „courtesy interview‟ , is a good public relation exercise. STEP 2:- Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Generally, tests are used to determine the applicant‟ s ability, aptitude and personality. The following are the type of tests taken 1). Ability tests: Assist in determining how well an individual can perform tasks related to the job. An excellent illustration of this is the typing tests given to a prospective employer for secretarial job. Also called as „ACHEIVEMENT TESTS‟ . It is concerned with what one has accomplished. When applicant claims to know something, an achievement test is taken to measure how well they know it. Trade tests are the most common type of achievement test given. Questions have been prepared and tested for such trades as asbestos worker, punch-press operators, electricians and machinists. There are, of course, many unstandardised achievement tests given in industries, such as typing or dictation tests for an applicant for a stenographic position. 2). Aptitude test: - Aptitude tests measure whether an individuals has the capacity or latent ability to learn a given job if given adequate training. The use of aptitude test is advisable when an applicant has
  44. 44. hadlittle or no experience along the line of the job opening. Aptitudes tests help determine a person‟ s potential to learn in a given area. An example of such test is the general management aptitude tests (GMAT), which many business students take prior to gaining admission to a graduate business school programme. Aptitude test indicates the ability or fitness of an individual to engage successfully in any number of specialized activities. They cover such areas clerical aptitude, numerical aptitude, mechanical aptitude, motor co-ordination, finger dexterity and manual dexterity. These tests help to detect positive negative points in a person‟ s sensory or intellectual ability. They focus attention on a particular type of talent such as learning or reasoning in respect of a particular field of work. STEP 3:- INTERVIEW The next step in the selection process is an interview. Interview is formal, in-depth conversation conducted to evaluate the applicant‟ s acceptability. It is considered to be excellent selection device. It is face-to-face exchange of view, ideas and opinion between the candidates and interviewers. Basically, interview is nothing but an oral examination of candidates. Interview can be adapted to unskilled, skilled, managerial and profession employees. Types of interview: - Informal Interview: An informal interview is an oral interview and may take place anywhere. The employee or the manager or the personnel manager may ask a few almost inconsequential questions like name, place of birth, names of relatives etc. either in their respective offices or anywhere outside the plant of company. It id not planned and nobody prepares for it. This is used widely when the labour market is tight and when you need workers badly. Formal Interview: Formal interviews may be held in the employment office by he employment office in a more formal atmosphere, with the help of well structured questions, the time and place of the interview will be stipulated by the employment office. Non-directive Interview: Non-directive interview or unstructured interview is designed to let the interviewee speak his mind freely. The interviewer has no formal or directive questions, but his all attention is to the candidate. He encourages the candidate to talk by a little prodding whenever he is silent e.g. “Mr. Ray, please tell us about yourself after your graduated from high school”.
  45. 45. Depth Interview: It is designed to intensely examine the candidate‟ s background and thinking and to go into considerable detail on particular subjects of an important nature and of special interest to the candidates. For example, if the candidate says that he is interested in tennis, a series of questions may be asked to test the depth of understanding and interest of the candidate. These probing questions must be asked with tact and through exhaustive analysis; it is possible to get a good picture of the candidate. Stress Interview: It is designed to test the candidate and his conduct and behavior by him under conditions of stress and strain. The interviewer may start with “Mr. Joseph, we do not think your qualifications and experience are adequate for this position,‟ and watch the reaction of the candidates. A good candidates will not yield, on the contrary he may substantiate why he is qualified to handle the job. This type of interview is borrowed from the Military organisation and this is very useful to test behaviour of individuals when they are faced with disagreeable and trying situations. Group Interview: It is designed to save busy executive‟ s time and to see how the candidates may be brought together in the employment office and they may be interviewed. Panel Interview: A panel or interviewing board or selection committee may interview the candidate, usually in the case of supervisory and managerial positions. This type of interview pools the collective judgment and wisdom of the panel in the assessment of the candidate and also in questioning the faculties of the candidate. STEP 4: -REFERENCE CHECK:-
  46. 46. Many employers request names, addresses, and telephone numbers of references for the purpose of verifying information and perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. When the labour market is very tight, organisations sometimes hire applicants before checking references. Previous employers, known as public figures, university professors, neighbours or friends can act as references. Previous employers are preferable because they are already aware of the applicant‟ s performance. But, the problem with this reference is the tendency on the part of the previous employers to over-rate the applicant‟ s performance just to get rid of the person. Organisations normally seek letters of reference or telephone references. The latter is advantageous because of its accuracy and low cost. The telephone reference also has the advantage of soliciting immediate, relatively candid comments and attitude can sometimes be inferred from hesitations and inflections in speech. STEP 5: SELECTION DECISION:- After obtaining information through the preceding steps, selection decision- the most critical of all the steps- must be made. The other stages in the selection process have been used to narrow the number of the candidates. The final decision has to be made the pool of individuals who pas the tests, interviews and reference checks. The view of the line manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. The HR manager plays a crucial role in the final selection. STEP 6: - PHYSICAL EXAMINATION: - After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate being declared fit after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personnel records. There are several objectives behind a physical test. Obviously, one reason for a physical test is to detect if the individual carries any infectious disease. Secondly, the test assists in determining whether an applicant is physically fit to perform the work. Thirdly, the physical examination information can be used to determine if there are certain physical capabilities, which differentiate successful and less successful employees. Fourth, medical check-up protects applicants with health defects from undertaking work that could be detrimental to them or might otherwise endanger the employer‟ s property. Finally,
  47. 47. such an examination will protect the employer from workers compensation claims that are not valid because the injuries or illness were present when the employee was hired. STEP 7: - JOB OFFER: - The next step in the selection process is job offer to those applicants who have crossed all the previous hurdles. Job offer is made through a letter of appointed. Such a letter generally contains a date by which the appointee must report on duty. The appointee must be given reasonable time for reporting. Thos is particularly necessary when he or she is already in employment, in which case the appointee is required to obtain a relieving certificate from the previous employer. Again, a new job may require movement to another city, which means considerable preparation, and movement of property. The company may also want the individual to delay the date of reporting on duty. If the new employee‟ s first job upon joining the company is to go on company until perhaps a week before such training begins. Naturally, this practice cannot be abused, especially if the individual is unemployed and does not have sufficient finances. Decency demands that the rejected applicants be informed about their non-selection. Their applicants may be preserved for future use, if any. It needs no emphasis that the applications of selected candidates must also be preserved for the future references. STEP 8: -CONTRACT OF EMPLOYMENT: - There is also a need for preparing a contract of employment. The basic information that should be included in a written contract of employment will vary according to the level of the job, but the following checklist sets out the typical headings: Job title 1) Duties, including a parse such as “The employee will perform such duties and will be responsible to such a person, as the company may from time to time direct”. 2) Date when continuous employment starts and the basis for calculating service. Rate of pay, allowance, overtime and shift rates, method of payments. 3) Hours of work including lunch break and overtime and shift arrangements. 4) Holiday arrangement 5) Paid holidays per year. 6) Public holidays. 7) Length of notice due to and from employee. 8) Grievances procedure (or reference to it).
  48. 48. Disciplinary procedure (or any reference to it). Work rules (or any reference to them). Arrangements for terminating employment. Arrangements for union membership (if applicable). 9) Special terms relating to rights to patent s and designs, confidential information and restraints on trade after termination of employment. 10) Employer‟ s right to vary terms of the contract subject to proper notification being given. The drawback with the contracts is that it is almost to enforce them. A determined employee is bound to leave the organisation, contract or no contract. The employee is prepared to pay the penalty for breaching the agreement or the new employer will provide compensations. It is the reason that several companies have scrapped the contracts altogether. STEP 9: -CONCLUDING THE SELECTION PROCESS: - Contrary to popular perception, the selection process will not end with executing the employment contract. There is another step – amore sensitive one reassuring those candidates who have not selected, not because of any serious deficiencies in their personality, but because their profile did not match the requirement of the organisation. They must be told that those who were selected were done purely on relative merit. STEP 10: -EVALUATION OF SELECTION PROGRAMME: - The broad test of the effectiveness of the selection process is the quality of the personnel hired. An organisation must have competent and committed personnel. The selection process, if properly done, will ensure availability of such employees. How to evaluate the effectiveness of a selection programme? A periodic audit is the answer.
  49. 49. CHAPTER – 4 FINDINGS
  50. 50. FINDINGS In online trading, Angel Broking.com have mainly competition with kotakstreet.com, icicidirect.com, HDFCsec.com, 5Paisa.com indiabulls. Angel Broking comes at no. 2 retail broker. It has an advantage of being in this industry for more than 8 decades. It has launched its website in 2000 and were among the first player in the online share trading. The Angel Broking has decided to spend its advertisement budget through four medias i.e. Television, Print, Web and Outlets. Mr. BomanIrani is the brand ambassador for Angel Broking on television media. From the above analysis we can point out some points: 1. Angel Broking account opening charges are little higher than other competitors. Angel Broking is less flexible to cut down its account opening charges on the other side; some of the brokers are offering free account opening to High Net Worth customers. 2. The charges of demat account are reasonable at 300 p.a. but Indiabulls is offering pool account with no Annual Maintenance charges. 3. Angel Broking provides trading in NSE, BSE and Derivatives. It is also about to launch online Mutual Funds. Arbitrage facility is not available to customers. 4. Angel Broking is the only one that does not have any Demat transaction charges either on buying or selling. 5. Unlimited toll free calls service is provided to customer in Angel Broking.com. 6. Angel Broking accept offline payment from other banks also but kotakstreet.com, icicidirect.com, HDFCsec.com clients have compulsion to open an online account. 7. BTST facility is available on almost all scrips of NSE in Angel Broking, Indiabulls. But this facilty is not providing by HDFCsec.com, Kotakstreet offers it only for 75% of share value and icicidirect.com gives it only on 127 scrips. 8. SMS alerts facility is not available at HDFCsec.com, 5Paisa.com and Indiabulls. 9. IPO Online service is better provided in Angel Broking and Kotakstreet in comparative to others. Indiabulls and HDFCsec.com don‟t have this facility. 5paisa.com have recently started it. 10. Angel Broking is only broker in which no margin needs to keep.
  51. 51. 11. Angel Broking research reports come in client e-mail at free of cost around 5-6 times in a day. But some brokers charged for it and some provide it only at once in a day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com. 12. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on delivery and .05% on intraday.
  52. 52. RECOMMENDATIONS To sum up, we can say that computerization and automation are not to be avoided. Technology has been able to make the stock markets accessible to every individual. It has also led to positive developments in terms of reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge dissemination are still important. The use of technology should be preceded by a detailed study and assessment of all other alternatives. The key to successful use to technology is the appreciation of its constraints. Factors to keep in mind while selecting online brokers. Brokerage cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit. Safety: We should make sure site has 128-bit encryption to ensure safety of transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally get a secured Login id and password. It is always advisable to frequently change trading password. Ideally online trading site should be fully integrated. The greater the backward integration, the better it is for the customer. Ideally broking account, demat account and bank account should be linked electronically. Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates. Speed of execution: System has to be fast and reliable that does just one job- executes your trades. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should
  53. 53. be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action. Trading limit: For trading, all sites provide 4 times buy and sell limit against margin money put in by customer. For delivery of shares, buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares. Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. Intraday chart/ historical chart: The site should provide Intraday chart tick-by-tick time and price data / historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages. Before you can trade, you need to open an account and register as a trader as with online broking site. This involves filling up trading account form, Demat account form and for faster transfer of money- Internet enabled bank account. We should read terms and condition of each site before commencing to deal with them. As per SEBI rule, Photo id proof and current address proof is a must for opening trading account. Online share dealing on the Internet is now a way of life for thousands of investors. 80% of South Korea and 30%-40% US trade are executed online. If you want to deal in shares, there is no easier way. Future of online trading in India Indian economy has been globalized and the capital market has been linked to the international financial market. Foreign individuals and institutional investors have encouraged participating into it. So, there is a need for raising the Indian Capital market in to the international standards in terms of efficiency and transparency. One such measure is the passing out of the Depository Act during the year 1996. Dematerialization of securities and under this system is one of the major steps aimed at improving and modernizing the capital market and enhancing the levels of investor‟s protection
  54. 54. measures which aims at eliminating the bad deliveries and forgery of shares and expediting the transfer of shares. The draw back of the old system and the pool proof measures sought to improve efficiency in transfer and transparency standards prompted to evaluate the functioning of the dematerialization process and to focus on the 8developments of the depository system in the Indian capital market. The study showed that there is a growth in the shares included in the Dematerialization process both in terms of volume of shares and value of shares.
  55. 55. ANNEXURE
  56. 56. QUESTIONNAIRE Question 1: Since how long you have been investing in shares? (a) Less than 3 yr. (b) 3-5 yr. (c) More than 5 yr. Question 2: How much money have you invested in shares? (a) Less than 25000 (b) 25000-50000 (c) More than 50000 Question 3: How frequently you trade in shares? (a) Daily (b) Weekly (c) Monthly (d) Yearly Question 4: Do you trade through online? (a) Yes (b) No Question 5: Mark the company through which you trade? (a) Kotak (b) ICICI (c) Indiabulls (d) Angel Broking (e) any other Question 6: Are you satisfied with the services of your trading company? (a) Kotak (b) ICICI (c) Indiabulls
  57. 57. (d) Angel Broking (e) any other Question 7. Investment guidance: (a) Very inefficient (b) Inefficient (c) Efficient (d) Very efficient Question 8. Regular market information (a) Very inefficient (b) Inefficient (c) Efficient (d) Very efficient Question 9. Quality service (a) Very inefficient (b) Inefficient (c) Efficient (d) Very efficient Question 10. Query handling (a) Very inefficient (b) Inefficient (c) Efficient (d) Very efficient
  58. 58. BIBLIOGRAPHY Books  Philip Kotler ,” Marketing Managemnt”Prentice Hall Of India.New Delhi,10th edition ,2001  Kothari C.R.”Research Methodology” WishwaPrakashan,New Delhi,2nd edition ,2001.  KulkarniM.V.”Marketing Research” Everest Publishing House,Mumbai, Millinium edition,2001..  Training Kit Provided by the Angel Broking.  Indian financial system by M.Y KHAN  NSDL Depository operations module :--NCFM  The Economic Times ,Business Standard ,Business Line. Websites:  www.indiainfoline.com  www.economics times.com  http://www.investopedia.com/articles/  www. nse-india.com  www.bseindia.com  www.moneycontrol.com  www.Angel Broking .com
  59. 59. NEWS PAPERS Economic Times Financial Express Times of India
  60. 60. Attendance Sheet Name of the Student : chintaharansingh University Enrollment No. : 01161101711 Name of the Supervisor from the Industry : S.No. Date Time Progress Report Signature of the student Signature of Supervisor (Institute) 1 27-09-13 4:00 P.M Topic Discussion 2 02-10-13 4:00 P.M Chapter -1 Introduction 3 07-10-13 5:00 P.M Completion of Chapter-1 4 5 6 7 8
  61. 61. 9 10 *Minimum (8out of 10) 80% attendance compulsory

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