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R&s

  1. 1. 1 PROJECT REPORT ON “RECRUITMENT & SELECTION” IN “HDFC STANDARD LIFE” BY KARPAMULA DIVYA H.T. NO: 1053-12-672-045 SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE MASTER’S DEGREE IN BUSINESS ADMINISTRATION (2012-2014) Department of Business Administration A.V.College PG Centre (Affiliated to Osmania University) Hyderabad
  2. 2. 2 DECLARATION I, the undersigned, hereby declare that the project report entitled “RECRUITMENT & SELECTION” carried out at HDFC STANDARD LIFE. Is my original work written and submitted by me in partial fulfillment of Master`s Degree in Business Administration of Osmania University. I also declare that this project has not been submitted earlier in any other university or institution. Name of the student k.divya Signature of the student H.T.No:1053-12-672-045
  3. 3. 3 ACKNOWLEDGEMENT I take this opportunity to extend my profound thanks and deep sense of gratitude to the authorities of HDFC STANDARD LIFE. For giving me the opportunity to under take this project work in their esteemed organization. I profusely thank Mr. RAVI K My sincere thanks to A.V .College PG Centre principle Mr. MADHUSHUDAN RAO, HOD Mr.P. BUCHA REDDY, and my project guide Mrs. ARCHANA. For the kind encouragement and constant support extended in completion of this project work. From the bottom of my heart I am also thankful to all those who have incidentally helped me, through their valued guidance, co-operation and unstinted support during the course of my project. K.Divya
  4. 4. 4 INDEX S.No: CHAPTER PAGE NO. 1. CHAPTER- I 5-12 INTRODUCTION  Scope of the Study  Objectives of the Study  Methodology of the Study  Limitations of the Study 2. CHAPTER- II 13-33  INDUSTRY PROFILE &  COMPANY PROFILE 3. CHAPTER- III 34-56  REVIEW OF LITERATURE 4. CHAPTER- IV 57-76  DATA ANALYSIS AND  INTERPRETATION 5. CHAPTER- V 77-85  FINDINGS  SUGGESTIONS  CONCLUSION  BIBILOGRAPHY  QUESTIONNAIRE
  5. 5. 5 CHAPTER-I INTRODUCTION
  6. 6. 6 INTRODUCTION: Defining Management education: Management education deals with the art and science of directing and controlling or handling any organization, especially under resource constraint situations, be it business, industry, public system or government. Such education not only covers a thorough understanding of behavioral science. Human Resource Development, Finance, Marketing, Operations and Information systems, but also calls for an adequate grasp of the National and Global economics, politics, Sociology. Legal Framework, Technology trends and natural environment in which the organization has to function and proper the formulation of effective strategies. All organizations need to have a vision and mission with a milestone to achieve a common goal. Experience of successful organizations has proved beyond doubt the personality factory plays a key role in day-to-day interactions. In today's competitive environment, organizations are becoming more and more personality conscious and are making efforts to develop the facets of personality of their employees. The focus is on developing a pleasing personality that insures success and happiness emphasizing on motivational as well as behavioral aspects of personality. Institutions offering management programmers cannot afford to ignore this vital component. In fact, planned efforts are required to be made to evolve comprehensive programmers for personality development in management education. Definition: The conscious and specific direction of effort towards the quality of the workforce in the short and long term. It involves all quality of the workforce in the short and long term. It involves all processes and activities aimed at managing the human resource of an organization i.e. Manpower, planning, recruitment, training and development, career management and human performance. It also involves the productive use of people in achieving the organizations strategic business objectives and the satisfaction of the individual employees needs. In other words it is a formal system for the management of people within the organization. It is mainly divided in to three major areas, staffing,
  7. 7. 7 rewarding and designing work. Human resources planning means deciding the number and type of the human resources required for each job, unit and the total capacity for a particular future date in order to carry out organizational activities. Human resources planning as "a process by which an organization should move from its current man power position to its desired manpower position. Though planning management strives to have the right number and right kind of people at the right place at the right time, doing things, which result in both the organization and the individual receiving maximum long run benefit. Once the required number and the kind of human resources are determined, the management has to find places where required human resources are/will be available and also work out strategies for attracting them towards the organization before selecting suitable candidates for jobs. This process is generally known as recruitment. Technically speaking the function recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organization To define and describe the scope of human resource management requires an understanding of the influences that the changing environment in which human resource management is situated have on human resource management systems and roles. For this reason, a brief survey is given of aspects of the environment that were taken into account when compiling the definition and scope of human resource management. The organizational context in which HRM finds itself at present is one of rapid change and considerable uncertainty. As various views of HRM were discussed, it became apparent that this sub-field of management is, in a phase of transition. In the context of traditional organizational structures, HRM was placed as a function within a 'silo', as were other organizational functions like finance, production and marketing. However, a turbulent environment has brought a concurrent change in organizational structures and the nature of HRM and its functions are in the process of change. Many organizations are now structured around multi-disciplinary project teams with the HRM professional as one member of the team or as consultants to team, and where line
  8. 8. 8 managers take on various HRM roles. Human resource management is also in the process of change with regard to the nature of the role performed. In the past, many functions were performed by HRM professional themselves, the role they are taking on, is one of consultants to line management, where line mangers perform many of the functions traditionally handled by HRM professional. Similarly there is a trend in which businesses are shedding all functions that are not directly related to core business. In the process many HRM functions are being outsource. Hence the change in the nature of services provided. The activity of generating unit standards and designing qualifications can be used as an opportunity to catapult HRM Practices into the future. To do this, those issues that are going to shape the future for HRM practices need to be identified and analyzed especially in relation to current roles that will still be required of HRM practitioners. These issues are central to the activity of generating unit standards (e.g. outsourcing, societal responsibility) and their impact on HRM roles (e.g. stating, performance management). In addition, supportive roles or functions required by HRM practitioners will also have to be identified in order to complete the HRM practitioners qualifications design packages. When people mention HR (human resource) these days, a few bywords such as talent management and human capital evidence that human resource as a discipline is changing to keep up with the demands of business in the 21st century can be heard. With new opportunities opening up for HR professional, what will the future hold, and will this future be right? Five steps to help HR professional prepare for the future:  RETHINK THE ROLE: HR professionals need to think of themselves as managers who are part of a company management team.  INVEST IN BUSINESS TRAINING: Having an HR diploma is no longer enough. Financial and business training is also required, in addition to well- developed leadership skills.  CREATIVITY: Those in HR should know how to advise leaders on subjects as smotional intelligence, creating a fun but not trivial work environment and
  9. 9. 9 inspiring commitment.  MOVE AROUND A GREAT DEAL: As an HR professional, work for an HR outsourcing firm. Work as an HR executive within a firm. Work as a consultant not to HR, but to business managers who have talent management challenges to address.  RECOGNIZE THE CHALLENGE: HR professional needs to be proactive in changing the role of human resources and in building a better future for HR. Human resources planning means deciding the number and type of the human resources required for each job, unit and the total capacity for a particular future date in order to carry out organizational activities. Human resources planning as "a process by which an organization should move from its current man power position to its desired manpower position. Though planning management strives to have the right number and right kind of people at the right place at the right time, doing things, which result in both the organization and the individual receiving maximum long run benefit. Once the required number and the kind of human resources are determined, the management has to find places where required human resources are/will be available and also work out strategies for attracting them towards the organization before selecting suitable candidates for jobs. This process is generally known as recruitment. Technically speaking the function recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organization Objective of the study The purpose of the study is to learn the practical applicability of the theoretical knowledge gained about recruitment and selection process.  To gain knowledge about the process of recruitment and selection  To know the effectiveness or ineffectiveness of the process of recruitment and selection  To provide suggestions if any, for having an effective recruitment and selection process
  10. 10. 10  To prepare the employees to move higher in their jobs.  To impart new entrants with basic HRD skills and knowledge.  To develop the potentialities of the employees for the next level job. Need of study: The purpose of study is to learn the practical applicability of the theoretical knowledge gained about recruitment and selection process. • To gain knowledge about, the process of recruitment and selection in HDFC STANDARD LIFE INSURANCE • To know the effectiveness or ineffectiveness of the process of recruitment and selection in HDFC STANDARD LIFE INSURANCE. SCOPE OF THE STUDY: The study covers HDFC STANDARD LIFE INSURANCE in Hyderabad consisting of 100 employees. RESEARCH METHODOLOGY: DATA COLLECTION METHODS: The data for the study was collected through primary and secondary METHODS Primary Data; Primary methods are those methods that provide first hand information. The methods followed were interview methods and questionnaire method (a) Interview method: By this method the employees and managers of the HDFC STANDARD LIFE INSURANCE were asked questions regarding the recruitment and selection process, its effectiveness and the relevant or required changes they intended to have in the present
  11. 11. 11 recruitment and selection process of the company. The managers of different departments were the majority to be interviewed in the entire sample taken. Secondary Data: Secondary methods are those methods that provide already existing information of the past, also called as second hand information. The information was obtained from the different HR journals published by the organization for various purposes like HR 'department personal use, reference by any other department about the performance of various activities that have been started by the HR department, to know about the performance appraisal system or the bonus system etc. PERIOD OF THE STUDY: Since so many years HDFC STANDARD LIFE INSURANCE Hyderabad has been following the same procedure of appraisals for their executives and employees and for the study of my project last on-year data has collected on Selection process. Sampling technique: Sampling technique is adopted in multi stages. Stage 1: Company is selected from particular region only. Stage 2: A Sample of 100 is selected through convenient random sampling. Population Size: 487. Sample Size: 100
  12. 12. 12 Limitations of the study: There are certain limitations of the concept of empowerment. It may be cost consuming in selecting personnel, training costs and labor costs may be high, it may result in slower or inconsistent services and poor use of the technique of empowerment. At the outset, Managers must also accept the fact that not all employees want to be empowered. Many workers just work better in jobs that are clearly defined and closely supervised. Once both employees and managers have received proper training, the next step is to give employee’s control of the resources needed to make the improvements in their job and work processes. By giving employees information, resources and training and by following with measurements and reinforcement, Human Resources can create an empowered environment. But Empowerment should be continuous process like quality improvement and it is like a race without a finish line. Those companies that take the first step by creating an environment conductive to empowerment will be at the head of the pack  As the period of study is limited for 45 days the data collected is very limited.  Due to time constraints, data is collected from limited number of employees of the Company.  As the data is collected in the working hours of the employees, they are busy they could not give the complete response.  Unable to obtain proper feed back because of the limited time period & busy schedule of the employees.  Problem with the confidential information.
  13. 13. 13 CHAPTER-II COMPANY PROFILE & INDUSTRY PROFILE
  14. 14. 14 Insurance in India Insurance is a subject listed in the concurrent list in the Seventh Schedule to the Constitution of India where both centre and states can legislate. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26%, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government. History In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. The early references to Insurance in these texts has reference to marine trade loans and carriers' contracts. Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.
  15. 15. 15 The Government of India issued an Ordinance on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1st 1973. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited. Industry structure Currently India is a US$41 billion industry. Currently, in India only two million people (0.2 % of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private companies in the sector, the situation may change soon.
  16. 16. 16 Specialization ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is limited by legislation but enjoy special powers. Acts The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts. The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India. The General Insurance Business Act of 1972 was enacted to nationalise the about 100 general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities. Until 1999, there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company Secretaries.
  17. 17. 17 A minimum capital of US$80 million(Rs.400 Crore) is required by legislation to set up an insurance business. Authorities The industry recognises examinations conducted by IAI (for actuaries), III (for agents, brokers and third-party administrators) and IIISLA (for surveyors and loss assessors). TAC is the sole data repository for the non-life industry. IBAI gives voice for brokers while GI Council and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the employees of the insurers. In addition, there are a dozen Ombudsman offices to address client grievances. Insurance Education National Insurance Academy, Pune is apex education and capacity builder institute in India and only one in Africa & Asia. NIA was founded as Ministry of Finance initiative with capital support from the then public insurance companies, both Life (LIC) and Non- Life (GIC, National, Oriental, United & New India). NIA has 32 acre campus & 30+ faculty member imparting training, conducting research and providing consulting services in insurance sector. NIA run 2 year PGDM (Insurance) to mould youth in insurance specialization
  18. 18. 18 COMPANY PROFILE
  19. 19. 19 COMPANY PROFILE Introduction HDFC Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 29 retail and 5 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Life continues to have one of the widest reaches among new insurance companies with more than 500branches servicing customer needs in over 700 cities and towns. The company has a strong base of Financial Consultants. HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch network, organising an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards. Our core values are drilled down to all levels of employees, as these are inviolable. We continue to promote high integrity in business practices and shun short cuts and unethical
  20. 20. 20 practices, as we wish to be perceived as an institution with high moral standing. Since our inception in 2000, when the Indian insurance space was opened for private participation, we have consistently focused on setting benchmarks in all aspect on insurance business. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12, 2000, HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters - HDFC Ltd and Standard Life. HDFC Ltd's excellent brand strength emerges from its unrelenting focus on corporate governance, high standards of ethics and clarity of vision. Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector. Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of 'death' to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category. We follow a conservative investment management philosophy to ensure that our customer's money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investor's long-term objective and return expectations, irrespective of the market condition. Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on tax benefits and limited advice-based selling. Our eight-step structured sales process 'Disha' however, helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. Need-based selling
  21. 21. 21 process, 'Disha', the first of its kinds in the industry, looks at the whole financial picture. Customers see a plan not piecemeal product selling. HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated. Training is an integral part of our business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, we have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on. HDFC Standard Life do not focus in the business of ramping up the topline only, but to create maximisation of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the long-term success of this company. We have initiated and implemented many new processes, some of which were found useful by the IRDA and later made mandatory for the entire industry.The agents who successfully completed this training only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked Guidelines HDFC Standard Life's wide and diversified product portfolio help individuals meet their various needs, be it:  Protection: Need for a sound income protection in case of your unfortunate demise  Investment: Need to ensure long-term real growth of your money  Savings: Save for the milestones and protect your savings too  Pension: Need to save for a comfortable life post retirement  Health: Cover for health related exigencies
  22. 22. 22 Our Parentage HDFC Limited HDFC Limited, India's premier housing finance institution has assisted more than 3.8 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 289 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of March 2011, the total asset size has crossed more than Rs. 1,32,727crores including the mortgage loan assets of more than Rs.1,17,126 crores. The corporation has a deposit base of over Rs. 24,625 crores, earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, Mauritius , Bangladesh in the setting up of housing finance companies. Standard Life Plc. Established in 1825, Standard Life Plc. is a leading provider of long term savings and investments to around 6 million customers worldwide. Headquartered in Edinburgh, Standard Life has around 9,000 employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. The Standard Life group includes savings and investments businesses, which operate across its UK, Canadian and European markets; corporate pensions and benefits businesses in the UK and Canada; Standard Life Investments, a global investment manager, which manages assets of over £157bn globally; and its Chinese and Indian Joint Venture businesses. At the end of April 2011 the Group had total assets under administration of £198.4bn. Standard Life plc is listed on the London Stock Exchange and has approximately 1.5 million individual shareholders in over 50 countries around the world.
  23. 23. 23 Our Vision & Values Our Vision 'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'. Our Values Values that we observe while we work:  Integrity  Innovation  Customer centric  People Care "One for all and all for one"  Team work  Joy and Simplicity Board Members Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of
  24. 24. 24 Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of HDFC Limited. Mr. David Nish joined Standard Life on 1st November 2006 as Group Finance Director and remained in that position until December 2009. He is the Chief Executive at Standard Life Plc. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010. Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all UK net funds. He was appointed a Director of the Standard Life Investments’ board. He is a Mathematics graduate from Oxford University and the Member of the Securities Institute. He joined the Board of Directors in December 2009. Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute, Fellow of the Royal Institute for the Encouragement of the Arts, Manufacture and Commerce, BA, MA.
  25. 25. 25 Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Associate Companies HDFC Limited HDFC Bank HDFC Mutual Fund
  26. 26. 26 HDFC Sales HDFC ERGO General Insurance HDB Financial Services HDFC Securities Other Companies  HDFC Trustee Company Ltd.  GRUH Finance Ltd.  HDFC Developers Ltd.  HDFC Property Ventures Ltd.  HDFC Ventures Trustee Company Ltd.  HDFC Investments Ltd.  HDFC Holdings Ltd.  Credit Information Bureau (India) Ltd  HDFC Securities  HDB Financial Services
  27. 27. 27 Corporate Governance The Corporate Governance Policy provides the framework under which the Board of Directors operates. It includes its corporate structure, culture, policies and the manner in which it deals with various stakeholders. The governance policies address the responsibilities, authority and administration of the Board of Directors. The policies also include the responsibilities of the Principal Officer and define the reporting relationships. Timely and accurate disclosure of information regarding the financial situation, performance, board constitution, ownership of the company etc. is an important part of corporate governance. Corporate governance arrangements are those through which an organisation directs and controls itself and the people associated with it. 'HDFC' - a household name that Indians proudly reckon with! Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households. Over the last three decades, HDFC has turned the concept of housing finance for the growing middle class in India into a world- class enterprise with excellent reputation for professionalism, integrity and impeccable service. A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 38 Lakhs customers to own a home of their own, through cumulative housing loan approvals of over Rs. 2.98 trillion and disbursements of over Rs. 2.42 trillion as at March 31, 2010. HDFC has a wide network of 289 offices (which includes 71 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
  28. 28. 28 HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of vision, percolate through the organization. Trust, Integrity, Transparency and Professional Service are the important pillars of the brand HDFC and most importantly, people - both employees and customers - are its brand ambassadors. Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's personalised service begins as soon as a customer approaches HDFC, and over time it progresses into a long and meaningful relationship. State-of-the-art information systems supported by strong in-house training programmes conducted at its specialized training centre in Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needs and thereby empower customers in making the right home buying decision. This is what sets apart HDFC's customer service philosophy - 'With You, Right Through'. HDFC's specialist team of over 1,500 trained and experienced professionals follows a 'single-window concept' for providing smooth and value added services at all stages. The team guides the customers right through the entire process of property purchase - be it property search assistance, technical support prior to finalising the property, legal advice on property related documentation, personalised home loan counseling or providing tailor-made repayment options to suit the customer's specific requirements. HDFC's wide product range includes loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP). HDFC also has a robust deposits mobilisation programme. HDFC has been able to mobilise deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs 23,081 crores in March 2010. In addition, HDFC has received 'AAA' rating for its Deposit products for highest safety from both CRISIL and ICRA for sixteen consecutive years.
  29. 29. 29 Over the years, HDFC has emerged as a financial conglomerate with its presence in the entire gamut of financial services including banking, insurance (life and non-life), asset management, real estate venture capital and more recently education loans. Today, HDFC is recognized as one of the Best Managed Companies in India and is a model housing finance company for developing countries with nascent housing finance markets. HDFC has undertaken several consultancy assignments in various countries across Asia, Africa and East Europe to support and establish their housing finance institutions. At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its 'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavoured to contribute to economic development and social upliftment of the weaker sections of society and has professionally nurtured each of its social initiative as an investment. HDFC has undertaken development oriented work and supported several social initiatives in the areas of education, child welfare, medical research, welfare for the elderly and the handicapped among several others. HDFC is how millions of Indian families spell the word 'Home' as the brand not only offers Housing Finance, but also Total Housing Solutions. The HDFC Advantage  Pioneers of Housing Finance in India with over 33-34 years of lending experience.  Widest range of home loan & deposit products.  Vast network of over 289 interconnected offices which includes 3 international offices.  Most experienced and empowered personnel to ensure smooth & easy processing.  Online loan application facility at www.hdfc.com and across-the-counter services for new deposits, renewals & repayments.  Counseling and advisory services for acquiring a property.  Flexible loan repayment options
  30. 30. 30  Free & safe document storage. Housing Finance Sector Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for housing has grown explosively. The importance of the housing sector in the economy can be illustrated by a few key statistics. According to the National Building Organization (NBO), the total housing shortfall is estimated to be 19.4 million units, of which 12.76 million units is from rural areas and 6.64 million units from urban areas. The housing industry is the second largest employment generator in the country. Background & Objectives The ideal way to connect with the core of any company is to understand its background and objectives. We at HDFC aspire to provide our customers with unique home loan solutions and make home ownership as easy and simple as unlocking a door with a key. Background HDFC was incorporated in 1977 by Mr. Hasmukhbhai Parekh with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households. The launching of HDFC was meant to be one small step in dealing with the availability of housing accommodation in India which was then virtually non-existent. HDFC as a pioneer launched India's first specialized home loan company with an initial capital of Rs. 100 million. Business Objective Our primary objective is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. We aim to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
  31. 31. 31 Our goals:  Develop close relationships with individual households.  Maintain our position as the premier housing finance institution in the country.  Transform ideas into viable and creative solutions.  To grow through diversification by gaining leverage from our existing client base.  To nurture the values and ethos of Brand HDFC through all its Subsidiaries and Associate Companies. Our growth strategies:  Increase the return on equity each year by 1 percentage point in order to maximise shareholder value;  Maintain gross Non-Performing Assets (NPAs) below 1%;  Consistently grow the loan book;  Improve operational efficiency by consistently bringing down the cost to income ratio. A synonym for convenient and hassle-free service, HDFC's Training Centre, CHF presents a unique focal point to hold training programmer. Nature at its best... CHF is located in the serene ambience of Lonavla, 2000 feet above sea level, 120 kms. from Mumbai. The hills and valleys and scenic landscape make your training a unique pleasurable experience, so much so you may even prefer having your sessions out in the open lush green lawns. Training & Human Resource Management... HDFC, having pioneered and helped develop market-oriented housing finance in India, has continued to expand its services to a broader spectrum of clients by offering specialized training courses.
  32. 32. 32 HDFC’s Centre for Housing Finance (CHF) provides technical assistance to national governments and housing finance institutions in developing countries in the South Asian and African regions, especially in the field of institutional development for effective shelter finance delivery. The second major area of activity of the CHF is managerial training for housing finance institutions. Besides effective housing finance operations, some established housing finance institutions also seek training for systems development and improvement. Technology adds value... State-of-the-art technology at this Training Centre makes your training programmer come alive. Overhead Projectors with remote control screen, multimedia projector, electronic copy board & programmable lighting arrangements all make for a great learning experience. Besides, you can bid farewell to the hiss, crackle and static of artificial audio sounds. And welcome sound in its natural state thanks to the acoustic cushioning of the Training Centre. CHF is also well-equipped with computers, fax and photocopying facilities. A back-up generator set provides uninterrupted power supply. Air conditioning systems ensure a balanced climate here. Also our Syndicate rooms provide facilities for group work. Service that makes you smile… CHF… Offering you service when you need it the most. Ergonomically designed chairs, with seating arrangements which are flexible to suit your requirements and refreshment services at preferred timings make the experience complete and fulfilling in every respect. A well-equipped Library, and above all, a caring and experienced staff who understand your needs are what make CHF truly one of a kind. When you come to CHF, rest assured that the only thing you would need to think about is your training. We'll take care of the rest.
  33. 33. 33 The Residential Annexed… The Residential Annex has seventeen well appointed rooms (individual balconies) for single or double occupancy. Equipped with comforts like Cable T.V., Air Conditioning, attached bathrooms and work space, these rooms make unwinding a rewarding experience. Attached to The Residential Annexes, is the air-conditioned Dining Room offering Chinese, Continental, Mughlai and South Indian cuisines. The Lounge… Detached from the Residential Annexes is the Lounge, situated in the most scenic surroundings. Evenings here add that touch of excitement with barbecues. An occasion to let your hair down. Be a sport… With over 6 acres of landscaped terrain, you could choose to go jogging, play basketball, tennis, table tennis or simply take a long leisurely stroll through this magical locale. The Customer's Voice… We at CHF believe that the final word is always that of the customer. Summing up what you can expect from CHF are the words of Mr. R. Sridhar (Managing Partner, Ogilvy Consulting), who facilitated a workshop at CHF, "I was with a team of 15 people… at CHF. As we entered, I could see at the gate that we were expected… as we entered the Reception Area… the facility-in-charge personally welcomed us…. The facility was wonderful… Everyone had a wonderful experience with the service. This is an excellent example of 'being there when they need you the most'. The reason is simple. He (the facility-in-charge) anticipated every need and fulfilled them before they arose." Experience Counts… Having conducted and organized several in-house and international workshops at CHF, we understand what it takes to organize a successful training programmer. What's more,
  34. 34. 34 we have an ever-lengthening list of reputed corporate clients including ANZ Grindlays, Bajaj Electricals Ltd. BASF India Ltd., Castrol India Ltd., Colgate-Palmolive India Ltd., Crompton Greaves India Ltd., HSBC Bank, Kirloskar Oil Engines, Kotak Mahindra Finance Ltd., Otis Elevators, PepsiCo Holdings, Philips India Ltd., Stock Holding Corporation of India Ltd., Telco Ltd., Wartsila NSD India Ltd., etc. All of whom have held training programmers at CHF and returned enriched and fulfilled. Over the years, delegates from several countries including Malaysia, Ghana, Mauritius, Fiji Islands, Thailand, China, Sri Lanka, Bangladesh, Nepal, Indonesia, Mongolia, Tanzania, Sultanate of Oman, Pakistan and Philippines have participated in training programmer held at the Centre and benefited greatly. Service at your doorstep… Once you've decided on making your learning experience a memory to cherish forever, just speak to us. And then, sit back and relax. We at CHF will take care of al your ticketing and sight-seeing arrangements. What's more, as soon as you reach Lonavla, your transport to and from the Centre is arranged for. Then you have the whole training centre to yourself for the entire period of your training. And coming from HDFC, India's premier housing finance institution, you couldn't expect anything short of the best. For us at CHF… you matter.
  35. 35. 35 CHAPTER-III REVIEW OF LITERATURE
  36. 36. 36 UNDERSTANDING RECRUITMENT PROCESS: Recruitment is the phase, which immediately precedes selection. Its purpose is to pave the -way for the selection procedures by producing, ideally, the smallest number of candidates who appear to be capable either of performing the required tasks of the job from the outset, or of developing the ability to do so within a-period of time acceptable to the employing organization. The smallest number of potentially suitable candidates can in theory, of course, be any number. The main point that needs to be made about the recruitment task is that the employing organization should not waste time and money examining the. Credentials of people whose qualifications do not match the requirements of the job. Apart from the methods used and the general administration of task, the achievement of the objective will depend very much in the end on how efficiently the basic tasks of manpower planning and job analysis have been carried out and applied. In short, efficient recruitment of staff may be described as knowing what resources you want, what resources are available, where and how they may be found. The Objectives of Recruitment are:  To attract people with multi-dimensional skills and experiences that suits the present and future organizational strategies  To induct outsiders with a new perspective to lead the company  To infuse fresh blood at all levels of the organization  To develop an organizational culture that attracts competent people to the Company  To search or head hunt/ head pouch people whose skills fit the . company's values.  To devise methodologies for assessing psychological traits  To seek out non-conventional development grounds of talent  To search for talent globally and not just within the company  To design entry pay that competes on quality but not on quantum  To anticipate and find people for positions that does not exist yet.
  37. 37. 37 Merits of Centralized Recruitment:  Average cost of recruitment per candidate/unit should be relatively less due to economies of scale  It would have more expertise available to use  It can ensure board unifonnity among human resources of various units/zones in respect of education, skill, knowledge, talent etc.,  It would generally be above malpractices, abuse of powers, favoritism, bias etc., Merits of Decentralized Recruitment:  The unit concerned concentrates only on those sources/places where it normally gets the suitable candidates. As such, the cost of recruitment would be relatively less.  The unit gets the most suitable candidates as it is well aware of the requirements of the jobs regarding cultural, traditional, family background aspects, local factors, social factors etc.,  Units can recruit candidates as and when they are required without any delay.
  38. 38. 38
  39. 39. 39 The different kinds of internal sources are: (a) Present permanent employees: Organizations consider the candidates from this source for higher-level jobs due to availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands and due to the policy of the organization to motivate the present employees. (b) Present temporary/casual employees: Organizations find this source to fill the vacancies relatively at the lower level owning to the availability of suitable candidates or trade union pressures or in order to motivate them on the present job. (c) Retired employees: ., Generally, particular organizations retrench the employees due to lack of work. The organization takes the candidates for employment from the retrenched employees due to obligation, trade union pressure and so on. Sometimes, the organizations prefer to re- employ their retired employees as a token of their loyalty to the organization or to postpone some internal conflicts for promotion. External sources: External sources are sources outside organizational pursuits. Organizations search for the required candidates from these sources for the following reasons:  The suitable candidates with skill, knowledge, talent etc., are generally available.  Candidates can be selected without any pre-conceived notion or reservations.
  40. 40. 40  Cost of employees can be minimized because employees selected from this source are generally organization.  Human resources mix can be balanced with different background, experience, skills etc.,  Latest knowledge, skill, innovative or creative talent can also be flowed into the organization.  Existing sources will also broaden their personality  Long run benefit to the organization in the sense that qualitative human resources can be brought. Placed in the minimum pay scale. Different kinds of External sources are: (a) Campus recruitment: Different types of organizations like industries, business firms, service organizations, social or religious organizations can get fresh candidates for different types of jobs from various educational institutions like collages and universities imparting education in science, commerce, arts, engineering and technology, agriculture, medicine, management studies etc., (b) Private employment agencies/consultants: Public employment agencies or consultants like ABC consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions so that they can concentrate on their operational activities and recruitment functions are entrusted to a private agency or consultants. (C) Professional associates; Professional organizations or associates maintain complete bio-data of their members and provide the same to various organizations on requisition. They also act as exchange between their members and recruiting firms in exchanging information, clarifying doubts etc. organizations find this source more useful to recruit the experienced and professional employees like executives, managers, engineers.
  41. 41. 41 MODERN METHODS OF RECRUITMENT: A number of modem recruitment sources are being used by the corporate sector in addition to traditional sources. The sources are divided into internal and external sources. Internal sources: (a) Employee referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such, they can make preliminary judgments regarding the match between the job and their friends or relatives. Hence, the HR Managers of the company depend on the present employees for reference of the candidates for various jobs. This source reduces the cost and the time required for recruitment. Further this source enhances the effectiveness of recruitment. External sources: (a) Walk in interviews and tests: The busy and rapidly changing organizations do not find time to perform various functions of recruitment. Therefore, they advice the potential candidates to attend for an interview directly and without a prior application on specified date, time and at a specified place. (b) Consult in: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates from among such candidates through the selection process. (c) E-Recruitment: The technological revolution in telecommunications helped the organizations to use Internet as a source of recruitment. Organizations advertise the job vacancies through the
  42. 42. 42 world wide web (www). The job seekers send their applications through e-mail using Internet. Alternatively job seekers place their CV's in the worldwide web/ Internet, which can be drawn by the prospective employers depending upon their requirements. For eg: Monsterindia.com, timesjobs.com, naukri.com, Chckjobs.com (d) Outsourcing: Some organizations recently started developing human resources pool by employing the candidates for them. These organizations do not utilize the human resources instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. Various companies, rather than employing HRs draw HRs from these organizations on commission basis. UNDERSTANDING SELECTION PROCESS: Recruitment function helps the organization to develop a pool of prospective human resources. It is difficult for the HR manager to employ the suitable people out of the pool. In fact, many organizations face critical problems in choosing the people. Selection techniques and methods reduce the complexities in choosing the right candidates for the job. After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an Organization, the management has to perform the function of selecting the right employees at the right time. The obvious guiding policy in selection is the intention to choose the best qualifies and suitable job candidate for each unfilled job. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedure is the system of functions and devices adopted in a given company to ascertain whether the candidate's specifications are matched with the job specifications and requirements or not. The selection process can be successful if the following requirements are satisfied:
  43. 43. 43  Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis to the workload and work force.  There must be some standard of personnel with which a prospective employee may be compared, i.e. a comprehensive job description and job specification should be available before hand.  There must be a sufficient number of applicants from whom the '' required number of employees may be selected. Selection of personnel to man the organization is a crucial, complex and continuing function. The ability of an organization to attain its goal effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programmer. If the right person is selected, he is valuable asset to the organization.
  44. 44. 44
  45. 45. 45 SELECTION PROCEDURE: Selection procedure employs several methods of collecting information about the candidate's qualifications, experience, physical and mental ability, nature and behavior, knowledge and aptitude for judging whether a given applicant is suitable or not for the job. Therefore the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step facts may come to light, which are useful for comparison with the job requirement and employee specifications. Steps in Scientific Selection Procedure:  Job analysis  Recruitment  Application form  Written examination  Preliminary interview  Business games  Tests  Final interview  Medical examination  Reference checks
  46. 46. 46 INDETAIL EXPLANATION: (A) JOB ANALYSIS: Job analysis is the basis for selecting the right candidates. Every organization should finalize the job analysis, job. Description, job specification and employee specifications before proceeding to the next step of selection. (b) APPLICATION FORM; Application form is also known as application blank. The techniques of application blank are traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary
  47. 47. 47 level. Many companies formulate their own style of application forms depending upon the requirement of information based on the size of the company, nature of business activities, type and level of the job etc. Information is generally required on the following items in the application forms:  Personal background information  Educational qualifications  Work experience  Salary (drawing and expecting)  Personal attainments including likes and dislikes (c) WRITTEN EXAMINATION: Organizations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate's ability in arithmetical calculations, to know the candidate's attitude towards the job, to measure the candidate's aptitude, reasoning, knowledge in various disciplines, general knowledge and English language (d) PRELIMINARY INTERVIEW: The preliminary interview is to solicit necessary information from the prospective applications and to assess the applicant's suitability to the job. An assistant in the personnel department may conduct this preliminary interview. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expectations, attitude towards job, age, physical appearance and other requirements etc. Thus, preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as stand up interviews or sizing up of the
  48. 48. 48 applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable (H) BUSINESS GAMES: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills etc. participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most succe ssful candidate in the game will be most successful one on the job. (I) TESTS: Psychological tests play a vital role in employee selection. A psychological test is essentially an objective and standardized measure of sample of behavior from which inferences about future behavior and performance of the candidate can be drawn. Objectivity of tests refers to the validity and reliability of the instruments in measuring the ability of the individuals. Objectivity provides equal opportunity to all the job seekers without any discriminating against sex; caste etc. standardization of test refers to uniformity of procedure in conducting the tests for all the candidates. Sample behavior refers to the sample of the total behavior of the prospective employee on the job.
  49. 49. 49 Types of Psychological Tests (I) Aptitude Tests: (a) Intelligence Test (IQ) (b) Emotional Quotient (c) Skill Tests (d) Mechanical Aptitude (e) Psychometric Tests (f) Clerical Aptitude Tests Type of Test (ii) Achievement Tests: (a) Job Knowledge Test (b) Work Sample Test (iii) Situational Tests: (a) Group discussions (b) In Basket (iv) Interest Test: (v) Personality Tests: (a) Objective Tests (b) Protective Tests (vi) Multi-Dimensional esting
  50. 50. 50 Types of test: Tests are classified into six classes, each class is again divided into different types of tests. They are: APTITUDE TESTS: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ) Clerical aptitude tests; These types of tests measure specific capacities involved in office work. Items of this tests include spelling, computation, comprehension, copying, word measuring etc. ACHIEVEMENT TESTS: These tests are conducted when applicants claim to know something- as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. SITUATIONAL TESTS: This test evaluates a candidate's in a similar life situation. In this test the candidate is asked either to cope with the situation or solve clerical situations of the job (1) Group discussion (GD) : This test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, coordinating and concluding skills.
  51. 51. 51 INTEREST TESTS: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate, is interested or disinterested in the Job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in a job and job success. Interest inventories are less faked and they may not fluctuate after the age of 30. MULTI-DIMENSIONAL TESTING: However, the need for multi-skills is being felt be most of the companies consequent upon globalization, competitiveness and the consequent customer-centered strategies. Organization have to develop multidimensional testing in order to find out whether the candidates possess a variety of skills or not, candidate's ability to integrate the multi-skills and potentiality to apply them based on situational and functional requirement.
  52. 52. 52
  53. 53. 53 PRELIMINARY INTERVIEW: (1) Informal interview: This is the interview, which can be conducted at any place by the person to secure the basic and non-job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquire about the vacancies or additional particulars in connection with the employment advertisement is an example of the informal interview. (2) Unstructured interview: In this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various items/areas, his background, expectations, interest etc. Similarly, the interviewer also provides information on various items required by the candidate. CORE INTERVIEW: It is normally the interaction between the candidates and the line executive Or experts on various areas of job knowledge, skill, talent etc. This interview May take various forms like: (1) Back ground information interview: This interview is intended to collect the information, which is not available inThe application blank and to check that information provided in theApplication blank regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes and extra curricular activities of the applicant.
  54. 54. 54 (2) Job and probing interview: This interview aims at testing the candidate's job knowledge about duties, activities, methods of doing the job, critical/problematic areas, methods of handling those areas etc. (3) Stress interview This interview aims at testing the candidate's job behavior and level of understanding during the period of stress and strain. The interviewer tests candidate by putting him under stress and strain by interrupting the applicant from:areas, keeping silent for unduly long periods after he has finished speaking etc. (4) Group discussion interview; There are 2 methods of conducting group discussion interviews, viz. group interview method and discussion interview method. All the candidates are brought into one room and are interviewed one by one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. (5) Formal and structured interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting interview. The course of the interview is preplanned and structured, in advance, depending on job requirements (6) Panel interview: A panel of experts interview each candidate, judges his performance individually and prepares consolidated judgment. This type of interview is known as panel interview. Interviewers for middle level and senior level mangers are normally conducted are the panel of experts.
  55. 55. 55 DECISION-MAKING INTERVIEW: After the experts including the line managers of the organization in the core areas of the job examine the candidates, the head of the department/section concerned interviews the candidates once again, mostly through informal discussion. The interviewer examines the interest of the candidate in the job, organization, reaction/adaptability to the working conditions, career planning, promotional opportunities, work adjustment and allotment etc. The personnel manger also interviews the candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc.. (K) MEDICAL EXAMINATION: Certain jobs require certain physical qualities like clear, vision, perfect hearing unusual stamina; tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities. Medical examination can give the following information:  Whether the applicant is medically suited for the specific job  Whether the applicant has health problems or psychological attitudes likely to interfere with work efficiency or future attendance. (L) REFERENCE CHECKS: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidate's academic achievement or form the applicant's previous employer, who is well versed with the applicant's job performance, and sometimes from co-workers.
  56. 56. 56 (M) FINAL DECISION BY THE LINE MANAGER: The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications but also because of behavioral and social implications. A careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the basis of selection of this organization. A true understanding between line managers and personnel managers should be established to take proper decisions. (N) JOB OFFER: Thus, after taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization offers the job to the successful candidates either immediately or after some time depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer. (O) EMPLOYMENT: The company may modify the terms and conditions of employment as requested by the candidate. However the alteration is purely depends on the sole discretion of the Management / company. The company employs those candidates who accept the job offer with or without modification of terms and conditions of employment and place them on the job. With the employment of the candidate the recruitment and selection process is completed.
  57. 57. 57
  58. 58. 58 CHAPTER-IV DATA ANALYSIS & INTERPRETATION
  59. 59. 59 Data Analysis 1 .By which method did you get recruited in to the organization? ------------------------------------------------------------------------------------------------ S. No Response ' No of Respondents Percentage ------------------------------------------------------------------------------------------------ 1. Internal method 50 50% 2. External Method 50 50% 100 100 Interpretation The above table shows that 50% of respondents were recruited by internal method and remaining 50% by external method 0 10 20 30 40 50 60 INTERNAL METHOD EXTERNAL METHOD RECUITED INTO ORGANIZATION Series1
  60. 60. 60 2. If by internal method, by which method were you recruited? ------------------------------------------------------------------------------------------------ S. No Response No of Respondents Percentage ------------------------------------------------------------------------------------------------ 1. Referred by employees 70 70% 2. Inter department transfer 20 20% 3. Promotion 10 10% 100 100% ------------------------------------------------------------------------------------------------ Interpretation The percentage of usage of different internal methods of recruitment like employee referrals, interdivisional and promotion followed by the organization is 70%, 20% and 10% respectively. 70% 20% 10% 1 2 3
  61. 61. 61 3. If by external method, by which method were you recruited? ------------------------------------------------------------------------------------------------ S. No Response No of Respondents Percentage ------------------------------------------------------------------------------------------------ 1. HR Consultancy 25 25% 2. Newspaper 75 75% 100 100 ------------------------------------------------------------------------------------------------ Interpretation The information regarding the preference of the external methods of recruitment like HR consultancy; Newspaper advertisements followed by the organization are 75% and 25% respectively. 0 10 20 30 40 50 60 70 80 HR consultancyt paper advertisement IF EXTERNAL
  62. 62. 62 4. After screening of application how did the organization approach you?- S.No Response No of Respondents Percentage 1. Direct call for an interview 55 55% 2. Call to attend the test 15 15% 3. Direct appointment 30 30% 100 100% Interpretation The above table shows that 55% of respondents agreed direct call for an interview and 15% call to attend the test and the remaining 30% by direct appointment. 0 10 20 30 40 50 60 Direct call for an interview call to attend the test direct appointment oragnizaton approach Series1
  63. 63. 63 5. If called for test what kind of test did you appear for? S.No Response No of Respondents Percentage 1. Technical Test 15 15% 2. Situation Test 15 15% 3. Subject Test 70 70 100 100% Interpretation The above table reveals that 15% of respondents attended technical test 15% of respondents attended situation test and 70% of respondents appeared for subject test. 0 10 20 30 40 50 60 70 80 technical test situation test subject test what kind of test appear
  64. 64. 64 6. If called for an interview what kind of interview did you face? S.No Response No of Respondents Percentage 1. Formal Interview 75 75% 2 Boar interview 25 25% 100 100% Interpretation The table reveals that 75% respondents faced formal interview, and the remaining 25% stress and board interview. 0 10 20 30 40 50 60 70 80 formal and structured interview board interview what kind of interview faced
  65. 65. 65 7. How many rounds of interviews did you face? S.No Response No of Respondents Percentage 1. HR Manager Round 20 25% 2. 3 Member Interview 20 25% 3. Head of dept 60 60% 100 100% Interpretation The above table reveals that 20%of respondents faced HR manager round 20% of respondents faced 3-member committee and 60% respondents faced head of department round 0 10 20 30 40 50 60 70 HR manager 3-member interview committee Head of the dept interview how many rounds of interview
  66. 66. 66 8. Is the process of recruitment and selection satisfactory or dissatisfactory? S. No Interpretation The above table reveals that 20%of respondents faced HR manager round 20% of respondents faced 3-member committee and 60% respondents faced head of department round. 0 10 20 30 40 50 60 70 80 90 satisfactory dissatisfactory Response No. Of Respondents Percentage Satisfactory 80 80% Dissatisfactory 20 20% 100 100
  67. 67. 67 (9) Rate the process of recruitment and selection in this organization? (a) Excellent (b) Good (c) Satisfactory (d) Not Satisfactory. Interpretation 20% of the employees feel that the recruitment and selection process is excellent in Lakshmi Hyundai. 50% of employees feel that the recruitment and selection process is good, and 30% feel that the recruitment and selection process is satisfactory. Rating the process of recruitment and selection 0 5 10 15 20 25 30 Excellent Good Satisfactory Not satisfactory No of Respondents Group Percentage (%) No of Respondents Excellent 20% 10 Good 50% 25 Satisfactory 30% 15 Not satisfactory 0% 0 Total 100 50
  68. 68. 68 (10) Which of the following attracted you to apply for the Job at Toyota? (a)Decent salary (b) opportunities for growth (c) Job security (d) Identification with the company Group Percentage (%) No of Respondents Decent salary 0% 0 Opportunities for growth 90% 45 Job security 10% 5 Identification with the company 0% 0 Total 100 50 Interpretation 90% of the employees feel that they are attracted to apply for the Job at Toyota for having opportunities for growth and 5% for job security. Reasons attracted to apply for job 0 5 10 15 20 25 30 35 40 45 50 Decent salary Opportunities for growth Job security Identification with the company No of Respondents
  69. 69. 69 (11) In your view, which source is more reliable for the recruitment? (a) Internal (b) External (c) mix of both. Group Percentage (%) No of Respondents Internal 10% 5 External 80% 40 Mix of both 10% 5 Total 100% 50 Interpretation 10% of the employees support for internal recruitment, 80% of employees support for external and 10% of employees support for both. Sources of recruitment 0 5 10 15 20 25 30 35 40 45 Internal External Mix of both No of Respondents
  70. 70. 70 (12) Which of these was a part of your recruitment and selection process? (a) Written test and interview (b) Group discussion and Interview (c) Interview (d) All of the above. Group Percentage (%) No of Respondents Written test and interview 10% 5 Group discussion and interview 10% 5 Interview 10% 5 All of the above 70% 35 Total 100 50 Interpretation 10% of the employees are based on written test and interview 10% of the employees are based on Group discussion and interview 10% of the employees are based on Interview, 70% of the employees based all. . Recruitment and selection process 0 5 10 15 20 25 30 35 40 Written test and interview Group discussion and interview Interview All of the above
  71. 71. 71 (13) During the interview process, what do you think is valued the most in Your profile? (a) Qualification (b) Experience (c) Personal traits (d) All the above Group Percentage (%) No of Respondents Qualification 20% 10 Experience 4% 2 Personal traits 4% 2 All of the above 72% 36 Total 100 50 Interpretation 20% of employees support for qualification,4% of employees support for experience,4% of employees support for personal traits, 72% of employees support for all. Interview process 0 5 10 15 20 25 30 35 40 Qualification Experience Personal traits All of the above No of Respondents
  72. 72. 72 14) What was the time taken for the entire recruitment and selection process? (a) Within one week (b) within 2 weeks (c) Within 3 weeks (d) more then 3 weeks Group Percentage (%) No of Respondents Within one weeks 10% 5 Within two weeks 20% 10 Within three weeks 30% 15 More then three weeks 40% 20 Total 100 50 Interpretation 10% Within one weeks ,20% Within two weeks,30%within three weeks ,40% more than three weeks. Time taken for the process 0 5 10 15 20 25 Within one weeksWithin two weeks Within three weeks More then three weeks No of Respondents
  73. 73. 73 (15) What kind of the interview did you undergo? (a) Formal and structural interview (b) Informal and unstructured interview (c) Stress interview (d) Board interview Group Percentage (%) No of Respondents Formal and structural Interview 70% 35 Formal and unstructured Interview 10% 5 Stress interview 2% 1 Board interview 18% 9 Total 100 50 Interpretation 70% Formal and structural Interview, 10% Formal and unstructured Interview 2%, Stress interview, 18% Board interview. Kind of the interview 0 5 10 15 20 25 30 35 40 Formal and structural Interview Formal and unstructured Interview
  74. 74. 74 (16) What is important for an employee before recruiting into the job? (a) Communication (b) subject knowledge (c) Both a & b (d) None of these Group Percentage (%) No of Respondents Communication 10% 5 Subject knowledge 10% 5 Both (a)&(b) 80% 40 None of these 0% 0 Total 100 50 Interpretation 10% of the employees should have communication silks, 10% of the employees should have subject knowledge, 80% of the employees should have both. Employee before recruiting 0 5 10 15 20 25 30 35 40 45 Communication Subject knowledge Both (a)&(b) None of these No of Respondents
  75. 75. 75 (17) What are the reasons to apply in this organization? (a) Company reputation (b) Job Security (c) Good working conditions (d) opportunity for advancement. Interpretation 20% of the employees support for good working conditions 80% of the employees support for none. Reasons to apply in this organization 0 5 10 15 20 25 30 35 40 45 Company reputation Job security Good working conditions None of these No of Respondents Group Percentage (%) No of Respondents Company reputation 0% 0 Job security 0% 0 Good working conditions 20% 10 None of these 80% 40 Total 100 50
  76. 76. 76 (18) Have you gone through the induction program? (a) Yes (b) No Group Percentage (%) No of Respondents Yes 94% 47 No 6% 3 Total 100 50 Interpretation 94% of the employees gone through the induction program, 6% of the employees did not undergo induction program. Induction program 0 5 10 15 20 25 30 35 40 45 50 Yes No No of Respondents
  77. 77. 77 (19) What is the impact of induction in your work life? (a) Excellent (b) Good (c) Satisfactory (d) Not Satisfactory. Group Percentage (%) No of Respondents Excellent 10% 5 Good 70% 30 Satisfactory 20% 10 Not satisfactory 10% 5 Total 100 50 Interpretation 20% of the employees feel that the impact of induction in your work life is excellent in HDFC stranded life. 70% of employees feel that the impact of induction in your work life is good and 20% of employees feel that the impact of induction in your work life is Satisfactory and 10% of the employees feel that the impact of induction in your work life is not satisfactory. Impact of induction in work life 0 5 10 15 20 25 30 35 Excellent Good Satisfactory Not satisfactory No of Respondents
  78. 78. 78 CHAPTER-V FINDINGS SUGGESTIONS CONCLUSION BIBILOGRAPHY QUESTIONNAIRE
  79. 79. 79 Findings  50% of respondents were recruited by internal method and remaining 50% by external methods.  The percentage of usage of different internal methods of recruitment like employee referrals, interdivisional and promotion followed by the organization is 70%, 20% and 10% respectively  The information regarding the preference of the external methods of recruitment like HR consultancy; Newspaper advertisements followed by the organization are 75% and 25% respectively.  55% of respondents agreed direct call for an interview and 15% call to attend the test and the remaining 30% by direct appointment  15% of respondents attended technical test 15% of respondents attended siuation test and 70% of respondents appeared for subject test.  75% respondents faced formal interview, and the remaining 25% stress and board interview  20%of respondents faced HR manager round 20% of respondents faced 3-member committee and 60% respondents faced head of department round.  20%of respondents faced HR manager round 20% of respondents faced 3-member committee and 60% respondents faced head of department round.
  80. 80. 80 Suggestions 1) While it is a fact that HDFC STANDARD LIFE INSURANCE is deploying a good number of recruitment methods. What is important is that the traveling public should further explore and install such recruitment methods, which go to improve public handling methods especially by Marketing Executives. It is suggested a sensitivity training method tailored to enable dealing with commuters should be evolved in consultation with management experts and social psychologists. 2) Employees who are on ‘long sick’, ‘or long absent’ should be included in the recruitment need analysis. They should be directed to undergo training at the training college. This is all the more important when it is realized that Work is skill oriented and time on and off the job has its impact on the effectiveness or otherwise of the working performance. 3) The top management should consider giving strict instructions to the management to relieve the employees due for refresher recruitment as per the she duke drawn up. 4) HDFC STANDARD LIFE INSURANCE is one of the important public utilities, the requirements of the customers should be taken periodically and that they are factored into the training programmers. This is all the more important that the traveling public as a customer of the organization can always bank up on the assistance and guidance of the consumer protection councils.
  81. 81. 81 Conclusion: From the study, the following conclusions are arrived at:  Depending on the job vacancy, job specifications and the appropriate source of recruitment is chosen.  Mostly, the internal source of recruitment is through employee referrals.  It is the responsibility of the recruitment personnel to conduct the needed tests, interviews etc.  Most of the interviews that are conducted on the basis of depth interviews.  Qualification, experience and personal traits are all important and play a vital role in the selection of a candidate.  Adequate manpower helps in recruitment process to fill the vacancies.  Good interpersonal relationship is maintained by the employees and HR personnel.  Satisfied working conditions in the organization.  Developmental needs of the employees are considered by the organization.
  82. 82. 82 BIBILOGRAPHY Personnel Management C.B.Mamoria Organization Behavior Aswathappa K. Personnel/Human Resource Management P.Subba Rao & V.S.P.Rao Human Resources Management Pearson 9th edition Monday 2007 Web Sites Browsed www. hdfcstandardlifeinsurance.com www.hrindia.com www.insurence.org.in
  83. 83. 83 QUESTIONNAIRE Name: Experience: Department: Designation: —————————————————Please tick the appropriate box———• Q.I. Did which method recruit you into the organization? > Internal method [ ] > External method [ ] Q.2. If by internal method, by which method were you recruited? > Referred by employees [ ] > Referred by management [ ] ^ Inter department transfer [ ] > Inter company transfer [ ] Q.3. If by external method, by which method were you recruited? > HR consultancy [ ] > Campus recruitment [ ] > Paper advertisement [ ] > Employment exchange [ ] > Direct applicant approach [ ]
  84. 84. 84 Q.4.After screening of the application how did the organization approach you? > Direct call for an interview [ ] > Call to attend the test ' [ ] > Direct appointment [ ] Q.5. If called for tests, what kind of test did u appear for? > Technical test [ ] > Aptitude test [ ] > Psychological test [ ] > Subject test [ ] > Situation test [ ] Q.6. If called for interview, what kind of interview did you face? ^ Formal and Structured interview [ ] > Informal and Unstructured interview [ ] > Stress interview [ ] > Board interview [ ] Q.7. How many rounds of interview did you face? > HR manager [ ] > 3-member interview committee [ ] > Head of the dept interview [ ]
  85. 85. 85 Q.8. Is the process of recruitment and selection, satisfactory or dissatisfactory? > Satisfactory [ ] > Dissatisfactory [ ] (9) Rate the process of recruitment and selection in this organization? (a) Excellent (b) Good (c) Satisfactory (d) Not Satisfactory. (10) Which of the following attracted you to apply for the Job at Toyota? (a)Decent salary (b) opportunities for growth (c) Job security (d) Identification with the company (11) In your view, which source is more reliable for the recruitment? (a) Internal (b) External (c) mix of both. (12) Which of these was a part of your recruitment and selection process? (a) Written test and interview (b) Group discussion and Interview (c) Interview (d) All of the above. (13) During the interview process, what do you think is valued the most in Your profile? (a) Qualification (b) Experience (c) Personal traits (d) All the above 14) What was the time taken for the entire recruitment and selection process? (a) Within one week (b) within 2 weeks (c) Within 3 weeks (d) more then 3 weeks (15) What kind of the interview did you undergo? (a) Formal and structural interview (b) Informal and unstructured interview (c) Stress interview (d) Board interview
  86. 86. 86 (16) What is important for an employee before recruiting into the job? (a) Communication (b) subject knowledge (c) Both a & b (d) None of these (17) What are the reasons to apply in this organization? (a) Company reputation (b) Job Security (c) Good working conditions (d) opportunity for advancement. (18) Have you gone through the induction program? (a) Yes (b) No (19) What is the impact of induction in your work life? (a) Excellent (b) Good (c) Satisfactory (d) Not Satisfactory. Q.20. If dissatisfactory, state the reasons for dissatisfaction? __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _________________________________________________________________ __________________________________________________________________ Q.21. what measures do you suggest for effective recruitment and selection process? __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _________________________________________________________________ __________________________________________________________________

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